P.M. BRIEFING : Japan Car Sales Up 12% in ’89

Trade figures released today showed car sales in Japan rose 12% in 1989, and strong demand is likely to drive vehicle sales to their fourth consecutive record high in 1990, industry sources said.

Sales rose to 5.56 million units last year, nearly 12% higher than 1988, figures released by the Japan Automobile Dealers Assn. said.

The Japanese market is strong not only as a result of demand for replacement vehicles but also among first-time buyers. Japanese have been buying more cars thanks to rising disposable income and low interest rates on car loans, especially among dealers of foreign cars.

Some people scrapped plans to buy houses or condominiums because of their high prices and purchased cars instead, the sources said.