News: Toyota Motor says it is recalling 870,000 vehicles over a technical fault that causes air bags to deploy unnecessarily, reports the International Business Times. The company said the vehicles are being recalled as a problem with an air-conditioner part could cause airbags to deploy accidentally.
BMI View: The expected contraction in Japanese auto sales has continued into June, as sales for the month fell 10.8% y-o-y, taking the total for the first six months of 2013 down 8.0% y-o-y. We forecast over a 4.8% decline for 2013, based on the incentivised growth of 2012, which we believe will be difficult to repeat. However, we are upgrading our 2013 auto sales forecast from our previous estimate of a 11.4% drop.