The increase in Japan’s automobile production has been substantial enough to restore the country to the status of the world’s largest car producer, after an interval of 13 years.
After 13 years, Japan has wrested back its position as the world’s biggest car producer. The United States follows next, with China being at third place leaving Germany far behind. The Organisation Internationale des Constructeurs d’Automobiles on May 7, 2007 published 2006 statistics, which stated Japan overtook the US with 11.48 million cars, a 6.3 percent increase from 2005 (10.8 million cars), as per the news published on English. Chosun.
Inclusive of overseas production, Japan’s performance was even more impressive. Last year 10.97 million cars were produced overseas, a 3.5 percent increase from the previous year for an all-time record. Combining both domestic and overseas production, Japan produced 22.45 million vehicles last year, which was one-third of the total global production of 69.21 million vehicles.
Japan is home to the biggest domestic car market in the Far East and its major manufacturers including Toyota, Nissan, Honda, Mitsubishi and Mazda enjoy popularity worldwide as well as in Japan. Japan’s space constraint for road-vehicles prompted stringent regulations, which along with other factors make the market suitable for part-exchange for the new model purchases. Therefore, Japan has no domestic pre-owned car market. Also, there’s a swift depreciation in the prices of cars.
Spiraling domestic demand and the entry of Japan’s car companies into foreign markets further sped up the growth. The rapid increase in Japan’s automobile production continued with Mitsubishi (Dodge vehicles) and Honda entering the US vehicle market. Although there were other brands entering America and abroad, the Japanese manufacturers were making their presence felt in the US and world markets. The main reason for this remained the suitability of Japanese cars, like Mitsubishi, Isuzu, Mazda, Honda, etc, for the lifestyles of western people in terms of speed and style.
There has also been an increase in Japan’s auto export and overseas production. Due to most Japanese manufacturers forging long term ties with parts suppliers and the long lead time for design in-process from design to production, close relations with auto manufacturers in Japan is integral for exploring sales opportunities.
A RNCOS research analyst explains that with a reputation for quality and innovation, Japanese automakers are developing some of the most advanced technologies in the global industry, generating partnership opportunities for foreign firms eyeing Japan to benefit the country’s automotive industry for sales to the global market.
Related Market Research Reports:
Indian Automobile Sector - A Booming Market
Global Hybrid Car Market Forecast to 2010
Slovakia Automobile Sector Analysis
