Domestic automobile retailers find themselves in a state of flux as intensified competition due to structural and demographic changes in the market lead many Japanese automakers to revamp their sales networks.
The reorganization of domestic sales networks has become a pressing issue for manufacturers because "the domestic market will probably not expand in the mid- to long-term" due to the sluggish economy and a declining population, according to Shinji Kitayama, an automobile industry analyst at Shinko Securities Co.
Diversifying customer needs are also transforming existing sales channels, he said.