Japan's vehicle market posts 1.7% December increase after earlier declines

Japan's new vehicle market rose 1.7% in December 2025 to 335,459 units, and full-year sales increased 3.3% to 4,565,777 units.

Japan's new vehicle market finished December 2025 with a small increase after several months of declines, according to registration data from the Japan Automobile Manufacturers Association (JAMA). December sales rose to 335,459 units, helped by a rebound from production disruptions a year earlier. For the full year 2025, overall vehicle registrations grew compared with 2024. Broader market conditions include higher borrowing costs for consumers following a Bank of Japan rate increase. Key figures: - December 2025 registrations rose 1.7% to 335,459 units, from 329,786 units a year earlier. - The overall market expanded 3.3% in 2025 to 4,565,777 units, after a 7.5% decline in 2024. - Passenger car sales increased 3.0% to 3,836,380 units; truck sales rose 3.9% to 719,491 units; medium and large bus and coach sales declined by almost 2% to 9,906 units. - Toyota's domestic sales rose more than 4% to 1,413,632 units; Daihatsu's sales rebounded about 46% to 535,919 units; Mazda's volumes increased about 5% to 149,526 units. - Suzuki's sales ticked up just over 1% to 728,952 units, while Honda's sales declined over 7% to 619,437 units and Nissan's sales fell about 15% to 403,105 units. - Overseas brands made up just over 5% of sales, with German automakers among the leading foreign brands. Summary: The market closed the year with modest growth following a rebound from last year's production stoppages, while consumers face higher vehicle loan repayment pressures and the Bank of Japan raised its key policy rate to 0.75%. Undetermined at this time.