Japanese sales take a whack
The inevitable consequence of motorcycle production being devastated, with Japanese domestic sales down almost 11 percentThe domino effect seemingly continues. A few weeks ago we reported that motorcycle production in Japan had felt the full wrath of the nation’s devastating earthquake, and now the latest sales figures have followed a similar path.
Just 37,856 motorcycles were sold in Japan in March, down from 42,461 the year before – a fall of 10.8 percent.
Most of the damage was done in the 50cc and under segment, with just 24,602 sales in March, down from 28,189 the year before.
That loss was partially mitigated by increased sales in the 51-125cc and 126-250cc segments, while over 250cc also joined under 50cc in negative territory.
But is supply constraint the prime reason for the retail woes, with news that Japan's economy shrank in the first quarter at nearly double the pace expected, effectively slipping into recession as business and private consumption plummeted.
Gross domestic product fell 0.9 percent in the first quarter, much more than a median market forecast for a 0.5 percent contraction.
And analysts are forecasting another reduction in the next quarter before the economy starts to rebound later in the year thanks to reconstruction efforts and government spending.
Meanwhile in motor vehicles, retail sales dropped by a whopping 35.13 percent (down to 437,598 from 674, 493) in March compared to the year before.
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