New vehicle sales soar 12.6 percent

Domestic sales of new vehicles rose 12.6 percent in October from a year earlier, marking the highest margin of growth in 12 years and nine months, an industry body said Monday.

Sales of new vehicles excluding minivehicles totaled 263,506 units, the Japan Automobile Dealers Association said, pointing to tax breaks and government subsidies for environmentally friendly cars.

It was the sharpest rise since the 14.9 percent rise in January 1997.

The strong figures last month followed a sales plunge in October 2008 after the collapse of U.S. investment bank Lehman Brothers Holdings Inc.

Despite the rise in sales, the third monthly increase in a row, the association said a full-scale recovery is not in sight.

"The rise was due to government support measures and a rebound" from the low level of a year earlier, an official said.

By vehicle category, sales of new standard-size passenger cars with engines bigger than 2,000cc increased 23.4 percent to 108,234 units, the second highest level for an October since 1968, when comparable data was first compiled. Sales of smaller cars rose 15.5 percent to 132,727 units.

Sales of small trucks fell 27.8 percent to 14,566 units, a record low for the month of October.

Honda Motor Co.'s sales rose 29.9 percent, while Toyota Motor Corp. recorded a 13.8 percent increase, excluding luxury Lexus vehicles. Mazda Motor Corp. logged an 11.8 percent increase, its first rise in 13 months.

Meanwhile, sales of new minivehicles with engine displacements of up to 660cc fell 8.9 percent to 132,542 units, down for the 12th consecutive month, the Japan Mini Vehicles Association said.

Sanyo Electric Co. said Monday it will supply nickel-metal hydride battery systems for the PSA Peugeot Citroen group's diesel-electric hybrid cars.

Sanyo will provide the battery systems for the Peugeot 3008 Hybrid4 and the Citroen DS5 Hybrid4, which Peugeot Citroen plans to manufacture in 2011, Sanyo said.

"Given the growing public concern for environment protection, Sanyo is strengthening its business by intensively developing rechargeable batteries for environmentally friendly vehicles, which are expected to see a surge in demand in the coming years," Sanyo said in a statement.