2010.08.3103:53:00UTC+00Japanese Auto Production Rises 17%

Japanese automobile production rose strongly in July aided by government tax breaks and subsidies for purchases of environmentally friendly cars, fresh data showed on Tuesday.

Production rose 16.8% year-on-year to 867,000 units in July, the Japan Automobile Manufacturers Association said. This marks the ninth straight month in which production has risen.

Production of passenger cars rose 16%, and those of trucks was up 21.9%. Bus production increased 24.7%.

Production at Toyota, the world's largest carmaker, surged 15% to 300,000 units. Nissan, Mitsubishi, Mazda, Honda, Suzuki, Daihatsu and Subaru all recorded double-digit growth.

Meanwhile, domestic sales of automobiles in Japan climbed 12.9% to 487,000 units, JAMA said. Passenger car sales increased the same 12.9%.

Auto exports in July increased 24.4% compared with the same month of the previous year to 423,000 units. This marks the seventh straight month in which exports have risen.

Total value of autos exported in July was $12.4 billion. This is an increase of $3.3 billion or 35.6% on the same month of 2009.

Auto exports to the U.S. increased 23.8% and that to the E.U. was up 83%. Exports to Asia jumped 36.9%.

The strong numbers suggest the yen's rise to a 15-year high against the U.S. dollar is yet to adversely impact the auto industry. But with the government's subsidy program ending next month, automakers are likely to cut back on production as demand softens.

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