Japan’s vehicle sales decline by 3.5% in February

Market Overview - Japan's new vehicle market declined by 3.5% to 394,965 units in February 2026, down from 409,348 units a year earlier [1] - The vehicle market remains sluggish due to slow economic growth, with GDP growth slowing to 0.2% year-on-year in Q4 2025, primarily due to a slowdown in private consumption [2] Sales Performance - Vehicle sales in the first two months of 2026 decreased by 2.9% to 762,717 units, compared to a 16% increase to 785,606 units in the same period last year [3] - Passenger vehicle sales fell by 6.8% to 636,374 units, while truck sales increased by over 23% to 124,816 units [3] Manufacturer Insights - Toyota experienced a 6% sales decline year-to-date, selling 232,761 units, with passenger vehicle sales down nearly 12% to 201,771 units [4] - Daihatsu's sales rose by almost 15% to 94,296 units, driven by a significant increase in truck sales [4] - Other manufacturers like Suzuki, Honda, and Nissan also reported sales declines of 3.3%, 3.6%, and 5.2% respectively [4] Market Share and Forecast - Overseas brands account for approximately 4% of total vehicle sales in Japan, with sales falling by nearly 9% to 30,560 units year-to-date [5] - GlobalData forecasts a 3.9% increase in light vehicle sales in Japan to 4.69 million units in 2026, following a 3.1% rise to 4.52 million in 2025 [5]