
While car companies are currently in a terrible financial situation, with sales having slumped in developed countries, most do see light at the end of the tunnel and anticipate a recovery. In Japan, however, the decline may be much harder to reverse.
In 2009 it is predicted that 4.86 million new cars will be sold in Japan, which would be the first time in 30 years that sales have fallen below five million. What is even more worrying for Japanese car makers is that young people – men especially – are far less interested in cars than they used to be.

While owning a car used to be a status symbol, Japanese youngsters these days are more likely to be spending their money on the latest mobile phones, MP3 players and other electronic gadgetry than on their first car. The convenience of public transport in urban areas also leaves childless 20- and 30-somethings with little reason to buy one.
So how can car manufacturers make their products more appealing to young Japanese? Perhaps one way forward is for companies to generate more revenue from car-related services than from car sales. A car-sharing scheme could prove popular, especially when coupled with an online “car booking” service that can be accessed from mobile phones. All for a monthly fee, of course.
What do you think will happen to the Japanese car industry?
Related: “Japan auto sales plunge as young lose interest” – The Detroit News