Ferrari sees business growth in Japan in midst of Europe, China slump

 

Top Italian luxury sports car makers Ferrari are slowly being convinced that business will grow in Japan, in light of the sales numbers early this year. Supported by a weakening yen, the global luxury vehicle brand saw almost twice growth in the Japanese market compared to the larger and more consistent U.S. market last quarter, and all this with European sales weakening and the decrease of demand in China.
According to the Japan Automobile Importers Association on Thursday, registered purchases of the ultra-luxury car brand have increased by 40 percent in the first quarter of 2013, totaling to around 144 new vehicles purchased in Japan. And though North America was Ferrari’s biggest market last year (over 2,000 deliveries) and China is still the biggest automobile market in the world, Japan is still proving to be a significant hub for Ferrari sales, owing to the fact that the country is home to the world’s biggest active Ferrari owners’ club, with more than 600 members, this according to the group’s website. “The growth is very promising, and I think we can expect these super luxury brands to introduce more models that they hadn’t introduced to Japan before and to strengthen their dealership networks,” said Yoshiaki Kawano, a Tokyo-based auto analyst at industry researcher IHS Automotive. “The optimism for an economic recovery is spreading.” Ferrari plans to take advantage of this growth, even putting up a new after-service facility in the country this month. “We are ever more committed to offer a quality of service to cater to the needs of our growing number of Japanese clients in every step of ownership,” said Herbert Appleroth, head of the company’s operations in the country.
The central Japanese government is optimistic about the surge in demand for luxury cars. This, to them, can only be signs that Prime Minister Shinzo Abe and Bank of Japan Governor Haruhiko Kuroda’s “Abenomics” is gradually gaining momentum, taking the yen value down and reviving a culture of spending in the country. “It seems like demand is coming back,” said Michiaki Ishida, a spokesman for the auto importers association. “Some people are reacting to Abenomics, so the trend may continue.” The stock market is showing continuous and consistent signs of improvement, climbing back to levels before the collapse in September 2008. All in all, households have become more confident about spending their money, giving a great confidence in the market about Japan’s economic outlook.

Posted in: World business