Japan’s new vehicle sales plunge

Sale of new vehicles in Japan has plunged in the aftermath the earthquake and tsunami that hit the country’s north-east coast.

Automobile sales in March fell by 37% compared to the same month a year ago.

Japan’s auto sector has been hit hard by the quake with production at biggest auto manufacturers halted due to a shortage of parts and power cuts.

Toyota motors led the falls as its sales dropped 46%.

Nissan Motor’s sales slumped 38% while Honda Motor’s numbers retreated 28%.

The earthquake and tsunami hit Japan on 11 March causing widespread damage to the country’s infrastructure.

There have been concerns that the breakdown of supply chain and shortfall of parts will dent profits at Japan’s auto makers.

The latest numbers are the first indicators of the the extent of damage that may hit the sector in the short to medium term.

Earlier on Friday, Toyota Motors’ President Akio Toyoda warned that the suspension of production at its factories will hurt the company’s profits.