Foreign carmakers use high yen to slash prices in Japan

These carmakers have chalked up brisk sales in recent months—the Japan Automobile Importers Association said Monday 131,799 registered imported cars were sold between January and August, an impressive 26.2 percent rise from the same period in 2009.

BMW Japan Corp. is offering a discount of 100,000 yen on five models of its popular Mini series in September.

The five include four models covered by the government's eco-car purchase incentive program. The company is rubbing its hands at the prospect of a last-minute surge in demand for green cars, and will reduce its prices just before the program finishes at the end of September.

The company also cut the prices of other BMW models by 200,000 yen.

Audi Japan KK also plans to reduce the price of 15 models by 200,000 yen this month.

Volkswagen Group Japan KK and Fiat Group Automobiles Japan Ltd. guarantee to cut the prices of vehicles covered by the eco-car subsidy program by 100,000 yen to 150,000 yen for customers who purchase the cars this month, even after the government budget for the program runs out.

Mercedes-Benz Japan Co. added a new high-end car, the C Class, to its lineup in August. The automaker clipped 400,000 yen from the price by simplifying some parts and equipment, so it now retails for 3.99 million yen.

Domestic automakers expect their sales will drop by 20 percent to 30 percent after the eco-car subsidy program ends this month.

However, Renault Japon Chief Operating Officer Tsukasa Daigo said the end of the subsidies would have a minimal impact on his company because only a few of its imports are covered by the program

Audi Japan President Hiroshi Okita also is bullish about his company's outlook. “Sales (of imported cars) won't drop even after October,” he said.

All eyes will be on how domestic automakers rise to the challenge.

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