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Auto output totalled 863,397 units, up 7.1% year-on-year, the Japan Automobile Manufacturers Assn (Jama) said on Monday March 31.
This was the sixth consecutive monthly rise on a yearly basis, the association noted.
Passenger cars led the output increase with 741,376 units, up by 7.5%.
Output of trucks and buses rose by 4.8% and 3.1% respectively, to 109,997 and 12,024 units.
The higher numbers were driven by local sales, which saw an 18.4% year-on-year spike in February to 565,170 vehicles.
Exports were down 6% on the year however, Jama noted.
The association also said that motorcycle production increased by 9.6% in February to 56,348 units, while domestic sales surged by 26.3% to 37,401 units.
For the full 2014 fiscal year starting April 1, Jama is expecting a decline in auto sales of more than 10% on the back of an increase in Japan’s consumption tax.
Japanese carmakers manufactured 57,186 more vehicles in February this year than in the same month of 2013 on strong support from the domestic market.