Domestic sales of automobiles, including minivehicles, are likely to shrink by 0.7 percent in 2002 to 5.88 million vehicles for the second straight year of decline, an industry group said Thursday.

Sales are expected to drop this year by the same margin to 5.92 million vehicles, the Japan Automobile Manufacturers Association said.

"It is regrettable that automakers failed to spur demand this year despite the launch of a number of new models in the market," said Hiroshi Okuda, chairman of the association as well as of Toyota Motor Corp.

Sales of cars with engines over 2,000cc are expected to fall 3.4 percent this year to 744,000 vehicles, and to further decline 4.6 percent next year to 710,000, the association said.

Sales of vehicles with engines between 660cc and 2000cc, however, are likely to grow 2.6 percent this year to 2.266 million but edge down 0.5 percent next year to 2.254 million.

Domestic sales of minivehicles, which have engines up to 660cc, are expected to fall 0.9 percent this year to 1.27 million but rebound next year by 1.6 percent to 1.29 million, the group said.

JAMA welcomes GM

The Japan Automobile Manufacturers Association on Thursday approved an application from the Japanese unit of U.S. automaker General Motors Corp. to become a member of the association next month.

General Motors Japan Ltd., a wholly owned subsidiary, will be the first foreign automaker to join JAMA.

"We made the decision at a time that our activities are becoming increasingly internationalized," a JAMA official said. "We hope the entry will revitalize our organization."

General Motors Japan applied for membership last month.

GM jointly developed the Chevrolet Cruze car with Suzuki Motor Corp., in which it holds a 20 percent stake. The vehicle is manufactured at Suzuki's plant in Shizuoka Prefecture.

JAMA recognized the move as a start by GM to manufacture automobiles in Japan -- a prerequisite for membership.

GM also holds a 20 percent stake in Fuji Heavy Industries Ltd., the maker of Subaru vehicles, and a 49 percent stake in Isuzu Motors Ltd.