Japan’s August Vehicle Sales See First Gain in 13 Months

Japan’s vehicle sales rose in August for the first time in 13 months, up 2.3% to 198,265, the Japan Automobile Dealers Assn. reports.

Car sales posted an 8.2% gain for the month to 179,766, although trucks fell 33.8% to 17,673.

Among the top three auto makers, Toyota Motor Corp.’s deliveries grew 9% to 90,802, Honda Motor Co. Ltd. jumped 13% to 31,115 and Nissan Motor Co. Ltd. fell 1.4% to 31,015.

Japan’s 2008 vehicle sales suffered the largest decline in a decade after crude oil prices climbed to more than $100 a barrel.

Media reports indicate the sales rise was due to government subsidies and tax cuts that boosted sales of the new Toyota Prius and Honda Insight hybrid-electric vehicles. Electric, natural gas and some diesel vehicles also qualified for a tax cut.

Car buyers also are eligible for a ¥250,000 ($2,684) subsidy if they scrap a car more than 13 years old for a more fuel-efficient model or ¥100,000 ($1,073) for a new-car purchase without scrapping an older model.

The government expects the incentives to boost sales by 690,000 units this fiscal year, ending March 31, but the Japan Automobile Manufacturers Assn. predicts domestic sales still will fall 8.5% to 4.3 million units.

New Toyota Prius best-selling car in Japan.

The auto industry is waiting to see if the incentives will continue under the incoming Democratic Party, which recently won a crushing victory in the country’s general election.

Analysts predict sales could start falling again without the boost from tax incentives.