Prius Top-Selling Car in Japan for 4th Month

This photo taken July 10, 2008 shows a Toyota Prius hybrid automobile sits near new trucks on a Little Rock, Ark., Toyota dealer's lot. (AP Photo/Danny Johnston)

(AP)

Toyota's hugely popular Prius ranked as Japan's best-selling car in August, keeping the top spot for the fourth consecutive month with the help of government subsidies and tax breaks, an auto industry group said Friday.

The Japan Automobile Dealers Association said Toyota Motor Corp., the world's biggest automaker, sold 21,669 Prius cars in the month. Honda Motor Co.'s Fit compact was No. 2 in August with 10,927 units sold.

"Government measures such as subsidies and tax breaks really helped lift sales of hybrid and energy-efficient cars," said Toshiki Miyake, a spokesman for the association. Although the Fit is not hybrid, consumers can enjoy lower taxes because the vehicle is energy-efficient, he said.

"More consumers are turning to hybrid and compact eco-friendly cars rather than large, gas-gazzling vehicles," Miyake said.

But compared to July's numbers, August sales of the Prius fell 22 percent and those of the Fit slid 36 percent. Miyake said a drop in sales was due to seasonal factors such as dealer holidays, and did not suggest a drop in demand.

Toyota's Vitz subcompact, which is marketed overseas as the Yaris, came third in August auto sales, the association said.

Honda's Insight hybrid — a direct competitor with the Prius — was No. 4 in August sales. Honda sold 7,900 Insight cars in August, down 23 percent month-on-month.

Japan's overall auto sales in August rose for the first time in 13 months to 198,265 units, the association said Tuesday, citing tax breaks and subsidies boosted sales of eco-friendly vehicles.

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