Japan demand for minicars eroding profits at automakers - report |
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Tue, 23 Jan 2007 03:12
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TOKYO (XFN-ASIA) - Increased demand for minicars is eroding domestic margins for Japanese automakers, the Financial Times reported.It said young car buyers no longer see cars as status symbols like their parents did, boosting demand for small, less-profitable models. Competition has thus intensified with eight carmakers competing in the minicar segment, the report said.Nissan Motor, Japan's second biggest carmaker, said it plans to sell 2,500 units a month of the new Pino minicar, citing increased demand for cars with engines sizes under 660 cc.The Pino will be built for Nissan by Suzuki Motor, and will be Nissan's fourth minicar.Nissan's announcement follows a report that Toyota is seeking to develop a low-cost car that would be cheaper than Renault's Logan, which sells for some 9,000 usd.The report said sales of larger vehicles in Japan fell more than 5 pct in 2006, while sales of mini-cars rose 5 pct.Suzuki's Wagon R, a mini-vehicle, was the best-selling car in Japan last year for the third consecutive year, it said.
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