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Article

Title: Japan's Young Won't Rally Round the Car

Author: Murphy, John Article Type: Product Analysis
Source: Wall Street Journal, v251 n49 pB1(2) Publication Date: Feb 29, 2008
  ISSN: 0193-2241
URL of Publication: http://www.wsj.com

While international sales of Japanese cars are expanding, sales within Japan are decreasing due to, among other factors, the indifference of Japanese youth to cars. While older Japanese coveted cars, younger Japanese in their 20s and 30s prefer to spend their money on other things. Only 25 percent of Japanese men in their 20s report wanting a car. Other reasons for the decline in sales include higher gas prices. Studies by Nissan also found that youth, particularly in Tokyo, thought cars were uncool because of the pollution and congestion they cause. To counteract these perception problems, Japanese automakers are launching new marketing campaigns, though so far with limited success. Toyota Motor Corp. Is trying to reach young people through its website, which features video of scenic drives with a young Japanese model. Nissan is promoting a new compact car through Japanese bands. Honda is offering a new mini-van with a novel seating pattern that creates more space to store goods or equipment in the back, but sales have been underwhelming. Nissan unveiled two concept cars at the Tokyo Car Show last fall. One is designed to reduce the stress of city driving for young women, while the other offers an interior inspired by the lively feeling of a sports bar for young men who want to hang out with friends in their car. There are no plans to put either design into production soon. Both Honda and Toyota have revised sales prediction for the year ending March 31 downward.

Companies:
Honda Motor Co Ltd Nissan Motor Co Ltd
TecTerms Toyota Motor Corp

Products:
Japan

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