Domestic sales of new vehicles plunged 27.9 percent in January from a year earlier to 174,281 units, the biggest monthly drop since May 1974 and the largest ever for a January as the widening global recession continued to dent demand, an industry body said Feb. 2.

It was the sixth consecutive monthly decline in Japan's new auto sales, excluding minivehicles, the Japan Automobile Dealers Association said, noting unit sales were about half the peak of 325,468 logged in January 1990.

Domestic sales of minivehicles also continued to fall in January as consumers even shied away from smaller and cheaper cars, other data showed.

Automakers have been hammered by weakening demand for new vehicles amid the deepening economic crisis and the credit crunch, which has resulted in tighter lending.