Group calls to standardize fuel efficiency standards

The Japan Automobile Importers Association (JAIA) has called on the Japanese government to globalize fuel-efficiency measuring standards, to offer further support to imported vehicle sales in the country, reports Kyodo News. JAIA Chairman Hans Tempel requested that the Japanese government standardize test cycles to measure exhaust emissions and fuel efficiency so that more imported vehicles qualify for tax breaks and other incentives. Imported vehicle sales in Japan have declined significantly in the wake of the global economic slowdown, falling by 27.3% year-on-year during the first half of 2009 to a 17-year low of 87,076 units. Customers have found it difficult to obtain financing for such vehicles, and the problem has been compounded by the fact that most of the imported models are not eligible for the government’s “green” car tax breaks. By contrast, 40% of domestically produced vehicles benefit from the tax breaks, with almost 90% eligible for the buyer subsidy program. (July 23, 2009)