Takeo Fukui, president and chief executive officer of Honda Motor Co., poses for a photograph during the launch of the new Freed minivan in Tokyo, May 29, 2008. Photographer: Haruyoshi Yamaguchi/Bloomberg News
Honda Motor Co., Japan's second- biggest carmaker, led a rise in domestic auto sales in July, after its new models spurred demand.
Toyota Motor Corp., Japan's largest carmaker, and Honda are introducing new and revamped models to lure buyers to showrooms as higher gas prices and decade-high inflation squeeze consumer spending in Japan. Toyota brought out the Alphard and Vellfire minivans while Honda unveiled the Freed in May.
``The new models may provide a quick boost to sales,'' said Takashi Aoki, who helps manage about 130 billion yen at Mizuho Asset Management Co. in Tokyo. ``But the effect won't last.''
Honda gained 29 percent to 40,449 units. Nissan reported a 5.9 percent sales increase to 50,098 vehicles, while Toyota's increased 5.6 percent last month to 139,669.
There was one extra selling day last month compared with last year. Also, sales last year fell after an earthquake disrupted production.
Toyota, Honda, Mazda Motor Corp. and Fuji Heavy Industries Ltd. have all introduced minivans in the past three months to boost sales.
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