Three of Japan's biggest auto makers cut domestic production sharply in March as they moved to reduce inventories amid stagnant consumption in major markets.
Toyota Motor Corp. and Nissan Motor Co. cut output by more than half in March from a year earlier, while Honda Motor Co.'s output sank 40% as exports from Japan slumped to other Asian countries, the U.S. and Europe.
However, the production cutback was in line with the car makers' plans, and some industry observers see signs that the downturn in their domestic output could bottom soon.
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Goldman Sachs Wednesday raised its forecast for global vehicle sales this year to a 13% decline from an 18% fall because of the impact of government support for global auto industries.
China and India have lifted auto sales with measures such as tax relief, Goldman Sachs' analyst Kota Yuzawa said. "Subsidies may be seen as eating into future demand, but we emphasize the benefits for capacity utilization during a demand slump," he said.
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