Japanese car sales fell for the first time in five months, in the latest sign of the fallout from the global shortage of semiconductors.
According to Arabia Net, the Japanese Car Dealers Association stated that sales of cars, trucks and buses decreased by 2.2% compared to last year.
The drop in sales is a by-product of a worldwide chip shortage and could temporarily add to Japan's problems altogether as it emerges from the two-month state of emergency that is set to be lifted in the Tokyo region late this week.
Consumption fell amid government calls for reduced working hours in restaurants and cafes, which led to the economy returning to deflation this quarter.
However, SMBC economist Nike Nico Securities, Koya Miamai, expects pent-up demand for auto sales to increase once semiconductor supplies allow carmakers including Nissan Motor, Honda Motor and Subaru to restart factory lines again, according to the report. He mentioned it to Bloomberg, and Al Arabiya.net reviewed it.
he added, "It's a supply-side problem, as Japanese consumers continue to buy nearly 5.2 million cars annually once the chip throttle subsides."
In turn, Bloomberg Intelligence analyst Tatsu Yoshida, in a recent report, said that Toyota Motor Corporation, Japan's largest automaker, has been able to withstand The Storm does comparatively better due to its supply chain monitoring system and a strong track record of meticulous orders.
