Japan vehicle sales may drop as government incentives run out

Japan’s new vehicle sales may fall 23 percent in the second half of the fiscal year from the same period a year earlier as incentives for fuel-efficient cars run out, NHK reported, citing an industry group.

The Japan Automobile Dealers Association projects sales to total 2.09 million cars in the six months starting Oct. 1 because government rebates and tax cuts are due to end in September, the television broadcaster reported today. The subsidy program has helped boost sales by about 1 million vehicles since it was introduced in April 2009, the report said.