Young people in Japan are forsaking cars for cheaper transport, electronics and other lifestyle goods, forcing the domestic car industry once a talisman of the country’s postwar revival into a long and steady decline.
While the country’s biggest car makers enjoyed a surge in global sales last year, their domestic sales slumped to a 35-year low, partly because of dwindling enthusiasm among financially cautious young people who no longer see cars as a measure of status.
Vehicle sales slid 7.6% to 3.43 million a fall for the fourth straight year.
This is the first time this has happened since 1968, when the industry began keeping figures.
Toyota came within 3000 sales of toppling General Motors from its world No.1 position for the first time last year but in Japan its sales fell 6%.
Mitsubishi, which announced the closure of its Australian plant after 27 years of production, enjoyed a 13% rise in global sales for the first nine months of last year over the same period from 2006.
But domestically, it suffered an 11% drop.
Analysts say young men in particular are finding the cost of maintaining a car in Japan where drivers must pay thousands of dollars in check-ups every two years, and where the cost of keeping a car in a parking station can cost hundreds of dollars a week prohibitive. And whereas a set of wheels was once an essential part of a young man’s armory, now he has other ways of conveying status.
“That way of thinking that you need a car to impress people is outdated,” says Oki Takemasa, 29, a computer engineer from Tokyo. He agrees with research by used-car dealership chain Gulliver International that shows young Japanese no longer consider a car essential for dating.
“These days, young people have different priorities: computers, mp3 player’s mobile phones, clothes, rent and education,” says Takemasa uses his bicycle to go shopping and relies on the city’s clockwork train system to get work.
“Most of my friends don’t have cars because they’re too hard to keep in Japan too expensive and too much hassle,” he says. Between 2001 and 2005, the proportion of men in the first half of their 20s without a car rose from one in five to one in three, a Japan Automobile Manufacturers Association survey found.
Ownership rates did not change among older generations.