Auto sales in Japan have posted year-on-year increases for January and February, the first two consecutive increases since the April 1997 consumption tax hike, an industry leader said Monday. Hiroshi Takikawa, chairman of the Japan Automobile Dealers Association, told a news conference that Feb. 1-25 sales of cars -- excluding minivehicles, buses and trucks -- rose 9.6 percent from the same period last year. He also predicted the sales trend would continue next month. "March is important (for the auto industry) because auto demand is normally strongest in that month. If sales continue for three months in a row, auto dealers' financial health will improve." Takikawa, however, was cautious over wether the trend will extend into April, noting that auto sales in that month have suffered year-on-year declines since 1997. The consumption tax was increased from 3 percent to 5 percent in April 1997, stifling consumer demand. Due to the continuing economic slump, Japan's 1999 auto sales, excluding minivehicles, fell 8 percent from the previous year, falling below 4 million units for the first time since 1984. But the dealers' association estimates this year's sales will increase 4.1 percent to 4.15 million units -- the first year-on-year increase since 1996 -- amid expectations of a long-awaited recovery.
