Japanese auto sales fell by a third in May, the lowest total for the month since 1968, as car makers struggled to restart production after the earthquake and tsunami that roiled the country in March.
South Korean rivals, on the other hand, continued to gain traction with Hyundai Motor and affiliate Kia Motors posting double-digit growth in sales driven by solid demand for new models.
Despite the ninth consecutive drop in monthly new vehicle sales, Japanese car makers are recovering faster than expected with market leader Toyota Motor expecting its output to return to 90 percent of its pre-quake levels by this month.
Still, overall production in 2012 could be almost a million vehicles less than Toyota had planned to build at the start of the year. Lost output by the end of May was 900,000 cars.
Nissan Motor Co and Honda Motor Co have also said they are working to bring production back to pre-quake levels as soon as possible, most likely during the financial third quarter from October-December.
Sales of vehicles, excluding 660cc minicars in Japan, fell 37.8 percent from the year before to 142,154 units last month. Toyota, the world's biggest automaker, led the drop with a 56.6 percent fall. Combined with 660cc vehicles, tallied separately, new vehicles sales in the world's third-biggest auto market declined 33.4 percent to 237,364 vehicles, data showed on Wednesday.
Meanwhile in Europe, auto sales in France fell 8.3 percent in May on an adjusted basis, a decline attributed to the ending of government incentives to replace older models.
South Korea's Hyundai and sibling Kia, which rank fifth in global car sales, saw robust sales growth in May. Hyundai's sales climbed 13.6 percent, while Kia's sales soared 22 percent as a jump in its overseas sales offset a dip in sales at home.
But their May sales inched down from the preceding month and weighed on high-flying shares in both companies.
"The monthly sales decline came as a good reason to sell, particularly following the shares' rally and current uncertain global economic backdrop," said Choi Dae-shik, an analyst at HI Investment & Securities Hyundai Motor shares fell 3.6 percent and Kia shares fell 3.7 percent in a flat market. Both stocks have surged by nearly 50 percent this year. The combined market share of Hyundai and Kia is expected to hit a record high for May in the US market after reaching 9.4 percent for April, thanks to brisk sales of Hyundai's Sonata sedan, Elantra compact and Kia's Optima sedan, analysts say.
Their combined May sales may surpass Toyota Motor for the first time in the United States, media reports said, citing a forecast by TrueCar.Com.
India's largest automaker, Maruti Suzuki , posted its slowest growth rate in more than two years, with a 1.9 percent rise in total sales to 104,073 units.
Indian automakers overall sold 162,825 units in April, up 13 percent from a year ago, the slowest pace in nearly two years.
India's third largest two-wheeler maker, TVS Motor Co, posted an 18 percent jump in May sales to 185,930 units, a record for the company.
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