Limited pent-up demand from the consumption tax rate hike and vehicle tax reduction
First written in FY2020-Q2. 1 of 3 entries say "Worsened", first in FY2020-Q3. Latest entry: FY2020.
System Location moved to the "Worse" side of this theme in 2020.
The whole theme swung hardest in 2020: 2 of 19 companies on the "Worse" side.
1 other company's latest entry also says "Materialised".
- FY2020MaterialisedAnnual report
「Amid declining consumer sentiment following the October 2019 consumption tax increase and the impact of the spread of COVID-19, full-year new-vehicle sales declined by approximately 220,000 units, down 4.2% year on year.」
The impact of the consumption tax increase and the spread of COVID-19 on the demand environment materialized as an actual decline in new-vehicle sales. - FY2020-Q3WorsenedAnnual report
「During the cumulative third quarter of the current consolidated fiscal year (1 April 2019 to 31 December 2019, hereinafter the “period”), new-vehicle sales (registered vehicles plus mini vehicles) fell by double digits for 3 consecutive months from October, affected by the consumption tax increase and natural disasters, reaching approximately 1.05 million vehicles in the third quarter, down approximately 200,000 vehicles, or 16.3%, from the same period of the previous year.」
In addition to the reaction to the rush demand through the second quarter, the impact of the consumption tax increase and natural disasters materialized as an actual decline in new-vehicle sales, which fell by double digits for 3 consecutive months from October. - FY2020-Q2First statedAnnual report
「During the cumulative second quarter of the current consolidated fiscal year (1 April 2019 to 30 September 2019, hereinafter the “period”), demand for new vehicles increased ahead of the consumption tax increase in October. However, because the automobile tax on registered vehicles was reduced from October, the so-called “rush demand” before the tax increase remained modest. Meanwhile, because the automobile tax on mini vehicles was left unchanged, the tendency toward “rush demand” was somewhat stronger than for registered vehicles.」
The company explained that although demand increased ahead of the consumption tax increase, the reduction in automobile tax on registered vehicles kept rush demand modest, while the trend was comparatively stronger for mini vehicles.