Overview

• Four of six major Japanese brands posted year-on-year U.S. sales declines in August, including Honda (-5.2%), Mazda (-7.6%), Subaru (-2.9%) and Mitsubishi (-30.5%).
• Toyota and Nissan recorded gains, selling 225,367 vehicles (+13.6%) and 80,932 (+12.7%) respectively.
• Automakers attributing declines said the pre-tariff buying rush has faded, and industry contacts report consumer interest shifting toward lower-priced models.
• Japan’s September economic report cautioned that the U.S. administration’s high-tariff policy is weighing on the auto industry and noted a notable decrease in exports to the U.S.
• Despite sector pressures, the government kept its overall view that the domestic economy is recovering moderately and reported fewer firms citing a worsening environment since a July tariff talks agreement.