TOKYO (MNI) - New vehicle sales in Japan rose 35.1% from a year earlier to 294,887 units in February, posting the seventh straight month of year-on-year gains, backed by tax breaks for buying low emission automobiles, data released by the Japan Automobile Dealers Association on Monday showed.

The increase followed a 36.8% rise in January. In August 2009, domestic new vehicle sales rose 2.3%, posting their first y/y rise in 13 months.

In February passenger car sales rose 39.2% from a year earlier to 270,389 units (vs. +42.8% y/y in the previous month) while truck sales rose 1.3% to 22,994 units (vs. -9.0%), the first y/y rise since +0.3% in September 2006, and sales of buses rose 17.2% to 1,504 units (vs. -7.6%), the first y/y gain since +0.3% in December 2008.

Separately, the Japan Mini Vehicle Association reported that domestic sales of new mini vehicles (with engine displacement of less than 660 cc) rose by 0.6% in February from a year earlier to 163,341, posting the second consecutive month.

In January mini vehicle sales showed the first y/y rise in 15 months, up 0.7%.

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