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Data released Monday showed that Japanese automakers'sales in South Korea fell sharply in July, triggering a rebound in South Korea as Japan imposed export restrictions on South Korea.
Japan's tightening of export controls in July led to an escalation of labor disputes during World War II, as well as a boycott of Japanese automobile, beer, pen and tourism services and products by Korean consumers.
Japanese automakers are worried that sales may continue to decline this month.
A South Korean executive at Honda Motor told Reuters that "the number of passengers rewarding cars has decreased, while consumers have delayed signing contracts." Because of the sensitivity of the matter, the executive refused to be named.
According to KAIDA data, sales of Toyota Motor (7203.T) in Korea dropped 32% to 865 units in July compared with the same period last year, while sales of Honda Motor (7267.T) fell 34%.
Lexus sales fell 25% to 982 units from the previous month, but still increased 33% from the same period last year. Lexus is the third largest imported car brand in Korea, after Mercedes-Benz/Pingzhi/Benz and BMW.
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