The global sales of Japanese automakers fell by 21.3% in June from the same month of 2019, with this being the fourth straight month where the automakers have made double-digit losses, according to data provided on Thursday July 30.
Japan’s seven largest automakers, including Toyota Motor Company and Nissan Motor Company Ltd, managed to sell a combined 1.88 million vehicles during June, which is significantly less than the 2.39 million vehicles that were sold during June 2019.
On a more positive note, the decline in monthly sales has slowed down, with the peak being in April, when there was a 50% drop in monthly sales, quickly followed by a 38% fall in May.
This fall in global demand for cars has been present since March, ever since lockdown measures were introduced in plenty of countries in order to control the COVID-19 pandemic.
These measures led to less people visiting car dealerships, with people not feeling a need to allocate their funds to such big purchases, especially during a time when travelling was very restricted.
Whilst plenty of countries have opted to ease their lockdown measures, several industry experts claim that in order to return to 2019 levels, it could take up to five years.
Nissan Motor are currently predicting their biggest-ever annual operating loss, whilst Mitsubishi Motors are facing doubts when it comes to achieving a quick recovery from the pandemic.
During the first half of the year, Suzuki reported a fall of 22.4% in sales from the previous year, whilst Mazda was one of the best performing companies, registering just a 13.1% drop in sales.
According to government data, Japan went into a recession during the first quarter of 2020, as the GDP shrank by 3.4% from the same period of the previous year, with falling domestic consumption and exports.
With the fall in global demand, several automakers in Japan opted to make significant production cuts during the second quarter in order to lessen the effect of the pandemic.