The Japan Automobile Manufacturers Association (JAMA) has revised its forecast made in December last year for vehicle demand in Japan in the calendar year 2011, stating that its original forecast had become inapplicable after the earthquake and tsunami that devastated northeastern Japan on March 11 this year and various resulting factors, including a shifting economic environment, changes in consumer confidence, and severe disruptions in automakers' supply chains.
Accordingly, demand for passenger cars and commercial vehicles during the second and third quarters of 2011 declined as a result of supply shortages. Total demand for passenger cars and commercial vehicles in 2011 has therefore been revised to 4.25 million units, down 14.2 percent from the previous year. Despite the firmly-established demand for eco-friendly cars and, in the latter part of the year, the normalization of market supply, total demand for passenger cars in 2011 is projected to decline from 2010 as a result of the sharp drop in sales in the second and third quarters.