New vehicle sales in Japan in 2020 dipped below 5 million units for the first time in four years as far fewer customers dropped by auto dealers due to the COVID-19 pandemic.
Demand for new cars plunged in the first half of last year as a result of the pandemic, pushing sales down to the second lowest level in the period between 2000 and 2020.
With a second state of emergency expected to be issued for Tokyo and three neighboring prefectures on Jan. 7 following a recent surge in novel coronavirus infections, auto dealers are fearing yet another drop in demand.
“People may (again) refrain from visiting dealers,” said a Japan Automobile Dealers Association (JADA) public relations representative. “We cannot be optimistic (about the impact of the emergency declaration on sales) since many new vehicles are sold in the greater Tokyo metropolitan area.”