In the most recent figures released for domestic sales in Japan, the auto industry as a whole saw a decline of 4.8 percent in 2008 with only Honda and Suzuki polling increased numbers. In the October to December quarter, sales dropped 13.8 percent. Excluding the sales of minicars, those with 660cc engines, sales for the period reached their lowest level since 1974.

Although the aging and shrinking Japanese population has, in recent years, purchased far fewer vehicles, recent months have shown that the global credit crunch, which first affected North America and Europe has reached Japan itself, with companies lowering earning forecasts and adjusting their production.

Honda and Suzuki benefited from the sale of smaller, more fuel-efficient models with Honda gaining 0.4 percent and Suzuki 0.1. Toyota Motor Corp., on the other hand, lost 4.8 percent, its status of world's largest carmaker notwithstanding.

In a report, JP Morgan analyst Takaki Nakanishi said, "The downturn in domestic sales volume has accelerated. It is disappointing to see such an abrupt contraction at this stage in the domestic market, where the financial crisis has had less of an impact than in the West."

The Japan Automobile Manufacturers Association reported a 22.3 percent decline in domestic sales for December and predicts a continued 4.9 percent decline throughout 2009.