Domestic car sales may rise for the first time in two years in the next business year as new models by Nissan Motor Co. and Daihatsu Motor Co. spur demand in the world's third-largest auto market.

Sales of cars may rise 0.4 percent to 4.43 million vehicles in the business year starting April 1, led by a 1.3 percent gain in minicars, the Japan Automobile Manufacturers Association said in a release Wednesday. Overall vehicle sales will fall 0.6 percent to their lowest in 27 years as demand for trucks declines 5.3 percent, JAMA forecast.

New or redesigned minicar models by Nissan and Daihatsu may help attract buyers in Japan because they have lower tax and insurance rates. Inflation and a shrinking population are damping demand. Consumer confidence dropped to the lowest in five years last month amid rising food and oil prices.