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Foreign carmakers offering big discounts in Japan

With car sales stalling amid the global recession, foreign carmakers in Japan recently launched discount campaigns in a bid to overcome the double disadvantage they suffer as many of their car are not subject to tax breaks or government purchase subsidies for eco-friendly car buyers.

The foreign carmakers’ strategy is to play up the distinctive and luxurious features of their new models, while calling consumers’ attention to their reduced prices.

On May 8, Mercedes-Benz Japan began offering a discount of up to 450,000 yen on three models. BMW Japan is offering a discount of up to 250,000 yen. Fiat, Volvo and Audi are also offering discounts in a bid to boost flagging sales of imported cars.