Japan's Auto Output Drops To Record Low On Falling Demand

Tokyo, Japan (AHN) - Japan's auto production in November dropped to the lowest level since 1967 as Toyota Motor Corp. and Nissan Motor Co. suffered due to slumping demand and a deepening recession, a report indicated Thursday.

According to the Japan Automobile Manufacturers Association, production of cars, trucks and buses dropped 20.4 percent in November to 854,171 vehicles, compared to the same month a year earlier.

"Carmakers have all embarked on large-scale production cuts," Takashi Moriwaki, a Tokyo-based analyst at Nomura Securities Co., wrote in a report on Thusday, according to Bloomberg News.

"Given the global recession, we can't expect auto demand to recover in the short- term," Moriwaki added.

The report showed today that last month's production decrease on the same month of the previous year for two consecutive months.

Total exports of automobiles declined by as much as 18 percent to 491,990 units, while the shipments to the U.S. dropped sharply by 30 percent to 137,176 vehicles.

Domestic sales in November stood at 368,884 vehicles, which is at 81.8 percent capacity as compared with the same month of the previous year.

Toyota's domestic production of vehicles tumbled by as much as 27 percent to 288,138 units and exports to North American region, which is its biggest market, slipped by 30 percent.

Nissan's domestic output slumped by 36 percent to 79,649 vehicles, which was led by a 50 percent decline in exports to North American region, the report showed.