TOKYO, Dec 3: The downturn in Japanese vehicle demand accelerated in November, with year-on-year sales falling for the third straight month as Japan’s economic gloom deepened, industry data showed on Monday.

Overall vehicle sales for the month fell 4.9 per cent to 474,550 units, according to data from the Japan Automobile Dealers Association and the Japan Mini Vehicle Association.

Ordinary vehicle sales were hit particularly hard, dropping 9.3 per cent to 311,015 units, with industry heavyweight Toyota Motor Corp showing a surprisingly steep decline of 18 per cent.

Sales of cheaper 660cc minivehicles, which account for one third of the market, rose 4.8 per cent to 163,535 units.

Analysts said the figures were a bit worse than expected and could signify that the auto sector, one of the few bright spots in what has been a dismal year for corporate Japan, was being increasingly affected by the growing economic malaise.

“The surprise has been that the vehicle market had held out for as long as it did,” said Christopher Richter, analyst at HSBC Securities.

Toyota stood out as a disappointment, with ordinary vehicle sales declining 18 per cent to 131,056. Overall sales for Toyota — including its minivehicle unit Daihatsu Motor Co Ltd — fell 13.2 per cent to 175,255 vehicles.

Of Japan’s top five automakers, third-largest Honda Motor Co Ltd continued to stand out, extending its impressive year-long performance in registered vehicle sales with a 20.2 per cent rise to 49,989 vehicles on the back of strong sales of its new Fit subcompact and strong minivan line-up.—Reuters