Automakers in Japan are gearing up for the boost in domestic production. Companies in the country’s automotive industry are expecting a huge increase in vehicle purchases as it has been announced that the sales tax will be hiked in April 2014.
The domestic output of Toyota Motors Corp will be increased from January 2014 until March 2014 by about 10%, compared with the current month. The company has already informed its parts suppliers that daily output during the January-March 2014 period will be around 14,000 cars.
During January 2014, the company had planned to produce 12,500 cars on a daily basis. Media reports say that Honda Motor Co is set to operate two of its domestic plants two days longer than originally scheduled during January 2014, in order to meet demand for one of its smaller models.
Moreover, Mitsubishi Motors Corp and Suzuki Motor Corp are also scheduled to keep their domestic production lines running three days longer than they originally planned in January 2014, in order to meet demand for their newly introduced models. The country of Japan is all set to increase its sales tax from 5% to 8%, which will be effective from April 2014. The move has been made to help pay the rising healthcare costs. The upcoming increase in tax has encouraged citizens to buy homes, cars and other durable goods and luxury items before they become more expensive.
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