Posts Tagged ‘Nissan’

Auto sales driven by gas mileage

Thursday, March 21st, 2013

Fit to be drived

Fit to be drived

Last week Prime Minister Shinzo Abe announced that Japan would participate in the Trans-Pacific Partnership (TPP) talks, a prospect that worries American car makers since the trade agreement could remove any remaining tariffs from Japanese cars sold in the U.S., thus making them cheaper and even more attractive to American consumers. Apparently, carmakers in the U.S. don’t think the agreement will sufficiently remove what they deem barriers to American car sales in Japan. The fact that these barriers, which include, in the words of Reuters, “discriminatory taxes, onerous and costly certification procedures for foreign cars and [an] unwillingness by Japanese auto dealers to sell foreign cars,” have not prevented certain European automakers from doing well in Japan may, in fact, indicate that the problem is American products rather than Japanese protectionism. For instance, the U.S. claims that Japan’s preferential tax treatment for kei (light) cars — smaller automobiles whose engine displacement is 660cc — is a trade barrier, but since America doesn’t make kei cars it’s difficult to understand what it’s a barrier to. Kei cars account for about 30 percent of the Japanese car market, which means people like them, and the main reason they like them is their superior gas mileage.

It’s also the main reason for the popularity of hybrids. On March 3, the land ministry announced its most recent findings for the best gas mileage among cars sold in Japan. Toyota’s hybrid Aqua came out in first place with 35.4 km per liter (in JC08 mode). In second place was the first hybrid car sold in Japan, Toyota’s Prius with 32.6km/l. In third place was Toyota’s high-end hybrid Lexus at 30.4km/l, and fourth was Honda’s hybrid Insight. The highest non-hybrid on the list was the Mitsubishi Mirage, which gets 27.2km/l.

Aqua is also the best-selling model in Japan right now. In February, 24,526 Aquas were sold nationwide, with Prius in second place with 23,473. After that, it was Nissan’s Note with 16,497 followed by Honda’s Fit. However, overall kei cars still outsell regular cars and hybrids in terms of units, probably because in addition to good gas mileage they cost less to purchase. Suzuki’s Alto and Mazda’s Carol tied for first among kei cars in terms of fuel efficiency with 30.2km/l. American carmakers will probably not be happy to learn that the government has required all cars sold in Japan to meet stricter efficiency standards by 2015 in accordance with the revised Energy Conservation Law. As it stands, however, a fair number of domestic models already meet these standards.

Of course, the gas mileage figures offered by the government and the automakers themselves should be used purely for comparative purposes. One would probably have to drive straight on an expressway on perfectly balanced tires going downhill with the wind at one’s back to achieve 35km/l in an Aqua, but last week we decided to try one out for a day trip to Gunma. We picked up the car in Iwatsuki, Saitama Prefecture, at a branch of Toyota Rental & Leasing. The fee was ¥7,000 for the day, including the use of a car navigation system, plus ¥1,000 for insurance.

We drove about 250 km and ended up spending ¥1,372 for gasoline, which worked out to about 9 liters or a little less than 25km/l. That’s much less than the advertised rate, but better than we expected considering that more than a third of the drive was spent on surface roads rather than expressways. But we didn’t use the air conditioner, either. And when we checked several websites dedicated to jissai nenpi, or fuel efficiency under real driving conditions, the average gas mileage for the Aqua is around 21.5km/l.

For comparison’s sake, in January we rented Nissan’s compact (but not kei) March from Nikoniko rentals for ¥4,000 a day with insurance included but no car navigation system. We drove 140 km, none on expressways, and ended up using 8.37 liters, which means gas mileage was 17.9km/l (advertised: 24; real: 20). The advantage of the hybrid is obvious, and will likely become more so when Honda comes out with a new version of its hybrid Fit in August. The company is already boasting that gas mileage will exceed 36, thus topping Aqua. And it will be cheaper, too.

Electric cars aren’t just for driving any more

Tuesday, March 13th, 2012

Nissan charged up about giving back to the community.

Late last month, Nissan announced that starting in April its new electric car, the Leaf, would be used as an emergency power supply for a new office-condominium high-rise in Shinjuku managed by Sumitomo Real Estate. In the event of a disaster that resulted in a power failure, Leaf cars could be connected to the building’s electrical system through outlets specially installed for recharging electric vehicles and then the cars’ stored power could be used to supply electricity to the building for up to 42 hours for emergency services such as recharging cell phones and illumination. As a side note, the building also has a special hall that can be converted into a shelter for people in Tokyo who cannot return home during a disaster.

Though this is just a corollary benefit of the Leaf, Nissan’s announcement stresses the idea that electric vehicles could offer a wider range of purposes than just mobility. A number of new housing communities that are being developed with “smart grid” technologies have homes with EV charging stations. As with the Sumitomo building, these stations not only provide electricity for charging the battery of an EV, they also accept electricity from an EV that can be used in the home.

Such news is being stressed as more carmakers enter the EV field. Mercedes Benz Japan said it will start selling its own electric car, Smart, as early as August due to consumer demand. It will be the first foreign EV sold in Japan. At the moment the price hasn’t been determined, but an executive with the company has said it will be competitive with domestic EVs. The Leaf’s sticker price is about ¥4 million, but with the restart of the government’s eco car subsidy, a consumer could take it home for about ¥3 million. The Mitsubishi EV, the MiEV, is even cheaper. After subtracting the subsidy it would cost a little less than ¥2 million.

In related news, Panasonic has said it will start selling a rechargeable storage battery system (chikuden) for the home starting next week. The battery specifically takes advantage of home solar systems, and is mainly being promoted as a stopgap measure for power outages. The problem with solar systems is that they only work when the sun is shining and without a storage device any excess power goes to waste if it isn’t fed back into the grid. This battery can store solar power for the night, for a rainy day, or for blackouts. The battery is a lithium ion type, measuring 45 cm by 15.6 cm by 60 cm. Its capacity is 4.65kW per hour. When fully charged it can supply a house of average size with normal power for two days. The main drawback is the cost, which is ¥2,110,500. It’s cheaper to buy a MiEV.

Car makers try to stave off the inevitable

Thursday, September 9th, 2010

Don't miss Audi!

Don’t miss Audi!

Though the tax cut (genzei) for automobile acquisition and weight will continue to be in effect for so-called “eco cars” until at least the spring of 2012, on Sept. 30 the eco car rebate (hojokin) officially ends after having been extended once. The government had allocated more than ¥580 billion for the rebate program, ostensibly to promote the sale of fuel-efficient vehicles, though everybody understands it had more to do with helping car manufacturers and stimulating the economy.

And it worked. More than 4.5 million vehicles were sold under the rebate program. Sales were particularly good during the last month as the program wound down. Applications for rebates from new car buyers on Sept. 6 accounted for ¥11.6 billion in subsidies, the highest one-day amount since the program started more than a year ago. The reason is that people knew the program was about to end and wanted to get in on the deal before it did. The rebate amounts for applications on Sept. 7 could have been even higher except that there was only ¥10.2 billion left in the government rebate fund.

What this means is that some new car buyers, expecting to get in on the rebate, missed it. During the summer the government told car makers and dealerships to notify potential buyers that once the rebate money ran out the program would end, regardless of the original Sept. 30 cutoff date. Also, since the procedure for receiving the rebates requires paperwork, buyers had to take this lead time into consideration.

Consequently, car makers are now offering their own discounts to people who tried to get in on the rebate but failed. Fuji Juko, which makes Subaru cars, is offering up to ¥100,000 off any of its designated eco cars if the sales contract is signed between Sept. 6 and Sept. 23. Nissan is offering the same discount amount to purchasers of eight models as long as the sale is finalized within the month of September. Toyota hasn’t offered any discount but says it may offer rebates of its own to dealerships in October, depending on sales, which are expected to drop steeply now that the rebate program has finished. Studies of similar programs carried out in Germany and Korea found that sales dropped by 20 percent once government subsidies dried up.

What one needs to understand is that Japanese taxpayers were basically subsidizing Japanese auto makers’ recovery from the recession. But they were (and still are, with the tax cut) subsidizing foreign auto makers, too, and Audi, for one, isn’t ready to let go. Audi dealerships are offering a “bold bargain” for several of its fuel efficient models. If a buyer signs a contract before the end of Sept. and misses out on the government rebate, Audi will knock ¥100,000 off the price. This is on top of an even larger discount for the current “Eco Support” campaign, which ends Sept. 30, offering ¥200,000 off the price of four of its models. It sounds like a lot, but Audi can afford it thanks to the high yen.

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