Japan's auto market will recover in 2012

Sales of cars in Japan is expected to recover in 2012, when the government gives subsidies and tax cuts.

According to Mr. Toshiyuki Shiga, president of the Association of Japanese Automobile Manufacturers (JAMA), the demand for passenger cars, commercial vehicles and buses in Japan in 2012 will increase by 900,000 vehicles after falling Century record 14% last year.

Mr. Shiga said, adding that vehicle sales could boom period in 2009 when the government implemented tax incentives as well as price support. The capacity of the Japanese car makers were badly hit by the quake in Japan on 11/03 and severe floods in Thailand.

Estimates of this year, demand in the domestic market will drop to 4.25 million units compared to 4.95 million vehicles in 2010. Japan's Ministry of Commerce said the government plans to spend 300 billion yen (3.8 billion dollars) for preferential purchase. If the budget is adopted, preference will apply to cars environmentally friendly.