Japan May Lose Its Taste for Foreign Luxury Cars

In Japan, Maserati, Volkswagen, Mercedes-Benz, and other foreign automakers have been enjoying their best sales streak in years, thanks to last year’s roaring bull market—and drivers like Taichi Matsukura. He wants to stand out in a market dominated by Toyotas and Hondas. “When I opened the door, the colors and interior immediately evoked Italy,” says the 42-year-old restaurant designer of the Fiat Abarth 595C convertible he bought in February to replace his Honda CR-V.

Some investors who rode last year’s 57 percent rally in the Nikkei have been splurging on imported sports cars and luxury compacts. That’s caused cheers among foreign automakers that had struggled to enter the Japanese market. In the year ended March 31, foreign car companies sold 302,000 vehicles, the most since 1997.