Automotive industry in Japan

The automotive industry in Japan is one of the most prominent and largest industries in the world. Japan has been in the top three of the countries with most cars manufactured since the 1960s, surpassing Germany. The automotive industry in Japan rapidly increased from the 1970s to the 1990s (when it was oriented both for domestic use and worldwide export) and in the 1980s and 1990s, overtook the U.S. as the production leader with up to 13 million cars per year manufactured and significant exports. After massive ramp-up by China in the 2000s and fluctuating U.S. output, Japan is now currently the third largest automotive producer in the world with an annual production of 9.9 million automobiles in 2012. Japanese investments helped grow the auto industry in many countries throughout the last few decades.

Japanese zaibatsu (business conglomerates) began building their first automobiles in the middle to late 1910s. The companies went about this by either designing their own trucks (the market for passenger vehicles in Japan at the time was small), or partnering with a European brand to produce and sell their cars in Japan under license. Such examples of this are Isuzu partnering with Wolseley Motors (UK), Nissan partnering with British automaker Austin, and the Mitsubishi Model A, which was based upon the Fiat Tipo 3. The demand for domestic trucks was greatly increased by the Japanese military buildup before World War II, causing many Japanese manufacturers to break out of their shells and design their own vehicles. In the 1970s Japan was the pioneer in robotics manufacturing of vehicles.

The country is home to a number of companies that produce cars, construction vehicles, motorcycles, ATVs, and engines. Japanese automotive manufacturers include Toyota, Honda, Daihatsu, Nissan, Suzuki, Mazda, Mitsubishi, Subaru, Isuzu, Kawasaki, Yamaha, and Mitsuoka.

Cars designed in Japan have won the European Car of the Year, International Car of the Year, and World Car of the Year awards many times. Japanese vehicles have had worldwide influence, and no longer have the stigma they had in the 1950s and 1960s when they first emerged internationally.

Overview
Japanese car features are high quality. In the image survey in 14 emerging market areas, Japanese cars are cited as a Japanese product that I think is of good quality. Even in the survey by US consumer groups considering reliability and safety, Japanese cars are often mentioned as recommended models. Also, Japanese cars are leading even with highly reliable models and good fuel economy models. In the American durable car quality survey, Lexus ranked top for 14 consecutive years until 1995-2008. According to the 2009 Fuel Economy Guide of the US Environmental Protection Agency, 13 cars out of 40 vehicles were Japanese cars at the top of the classified fuel efficiency ranking.

In 2008, the annual production volume of automobiles in Japan was 1.156 million, the world’s No. 1 in the world.

In 2008, the major automobile manufacturers in Japan accounted for 22.982 2924 vehicles, accounting for 33.0% of the world’s car production volume of 69.56 million 1356.

According to the evaluation by the American Highway Safety Association in 2013, among the 22 models that met the criteria of “Top Safety Pick Plus” which is the highest safety rating, 16 models were Japanese manufacturer vehicles. In 2014, the Consumer Report announced the ranking of the reliability by brand, and in the order of Lexus, Toyota, Mazda, Honda, Japan dominated the top four places.

The share of “Japanese brand vehicles” in major passenger car sales in major countries is as follows.

United States: 41.2%
Western Europe as a whole: 13.5%
United Kingdom: 17.8%
Germany: 11.6%
France: 8.7%
Italy: 11.5%
Sweden: 15.7%
However, while it is evaluated in terms of performance and quality like these, it is also frequent to receive evaluation as “Topic is treated as” boring stuff “frequently,” It is not good with respect to the area that appeals to sensitivity “as it is treated in North America It was also the reason behind the establishment of the Scion brand.

Currently Nissan Motor and Mitsubishi Motors are Renault and Mitsubishi Fuso are under umbrella of Daimler, and in the past Subaru Suzuki was under General Motors and Mazda was under Ford’s affairs.

History

Early years
Cars built in Japan before World War II tended to be based on European or American models. The 1917 Mitsubishi Model A was based on the Fiat A3-3 design. (This model was considered to be the first mass-produced car in Japan, with 22 units produced.) In the 1930s, Nissan Motors’ cars were based on the Austin 7 and Graham-Paige designs, while the Toyota AA model was based on the Chrysler Airflow. Ohta built cars in the 1930s based on Ford models, while Chiyoda built a car resembling a 1935 Pontiac, and Sumida built a car similar to a LaSalle.

Automobile manufacture from Japanese companies was struggling, despite investment efforts by the Japanese Government. The 1923 Great Kantō earthquake devastated most of Japan’s fledgling infrastructure and truck and construction equipment manufacturing benefited from recovery efforts. Yanase & Co., Ltd. (株式会社ヤナセ Yanase Kabushiki gaisha) was an importer of American-made cars to Japan and contributed to disaster recovery efforts by importing GMC trucks and construction equipment. By bringing in American products, Japanese manufacturers were able to examine the imported vehicles and develop their own products.

From 1925 until the beginning of World War II, Ford and GM had factories in Japan, where they dominated the Japanese market. The Ford Motor Company of Japan was established in 1925 and a production plant was set up in Yokohama. General Motors established operations in Osaka in 1927. Chrysler also came to Japan and set up Kyoritsu Motors. Between 1925 and 1936, the United States Big Three automakers’ Japanese subsidiaries produced a total of 208,967 vehicles, compared to the domestic producers total of 12,127 vehicles. In 1936, the Japanese government passed the Automobile Manufacturing Industry Law, which was intended to promote the domestic auto industry and reduce foreign competition; ironically, this stopped the groundbreaking of an integrated Ford plant in Yokohama, modeled on Dagenham in England and intended to serve the Asian market, that would have established Japan as a major exporter[citation needed]. Instead by 1939, the foreign manufacturers had been forced out of Japan. Vehicle production was shifted in the late 1930s to truck production due to the Second Sino-Japanese War.

During World War II, Toyota, Nissan, Isuzu and Kurogane built trucks and motorcycles for the Imperial Japanese Army, with Kurogane introducing the worlds first mass-produced four-wheel-drive car, called the Kurogane Type 95 in 1936. For the first decade after World War II, auto production was limited, and until 1966 most production consisted of trucks (including three-wheeled vehicles). Thereafter passenger cars dominated the market. Japanese car designs also continued to imitate or be derived from European and American designs. Exports were very limited in the 1950s, adding up to only 3.1% of the total passenger car production of the decade.

1960s to today
During the 1960s, Japanese automakers launched a bevy of new kei cars in their domestic market; scooters and motorcycles remained dominant, with sales of 1.47 million in 1960 versus a mere 36,000 kei cars. These tiny automobiles usually featured very small engines (under 360cc, but were sometimes fitted with engines of up to 600cc for export) to keep taxes much lower than larger cars. The average person in Japan was now able to afford an automobile, which boosted sales dramatically and jumpstarted the auto industry toward becoming what it is today. The first of this new era, actually launched in 1958, was the Subaru 360. It was known as the “Lady Beetle”, comparing its significance to the Volkswagen Beetle in Germany. Other significant models were the Suzuki Fronte, Mitsubishi Minica, Mazda Carol, and the Honda N360.

The keis were very minimalist motoring, however, much too small for most family car usage. The most popular economy car segment in the sixties was the 700-800 cc class, embodied by the Toyota Publica, Mitsubishi Colt 800, and the original Mazda Familia. By the end of the sixties, however, these (often two-stroke) cars were being replaced by full one-litre cars with four-stroke engines, a move which was spearheaded by Nissan’s 1966 Sunny. All other manufacturers quickly followed suit, except for Toyota who equipped their Corolla with a 1.1 litre engine – the extra 100 cc were heavily touted in period advertising. These small family cars took a bigger and bigger share of an already expanding market. All vehicles sold in Japan were taxed yearly based on exterior dimensions and engine displacement. This was established by legislation passed in 1950 that established tax brackets on two classifications; dimension regulations and engine displacement. The taxes were a primary consideration as to which vehicles were selected by Japanese consumers, and guided manufacturers as to what type of vehicles the market would buy.

Export expansion
Exports of passenger cars increased nearly twohundred-fold in the sixties compared to the previous decade, and were now up to 17.0 percent of the total production. This though, was still only the beginning. Rapidly increasing domestic demand and the expansion of Japanese car companies into foreign markets in the 1970s further accelerated growth. Effects of the 1973 Arab Oil Embargo accelerated vehicle exports along with the exchange rate of the Japanese yen to the U.S. Dollar, UK Pound, and West German Deutsche Mark. Passenger car exports rose from 100,000 in 1965 to 1,827,000 in 1975. Automobile production in Japan continued to increase rapidly after the 1970s, as Mitsubishi (as Dodge vehicles) and Honda began selling their vehicles in the US. Even more brands came to America and abroad during the 1970s, and by the 1980s, the Japanese manufacturers were gaining a major foothold in the US and world markets.

Japanese cars became popular with British buyers in the early 1970s, with Nissan’s Datsun badged cars (the Nissan brand was not used on British registered models until 1983) proving especially popular and earning a reputation in Britain for their reliability and low running costs, although rust was a major problem. In the 1960s Japanese manufacturers began to compete head-on in the domestic market, model for model. This was exemplified by the “CB-war” between the Toyota Corona and Nissan’s Bluebird. While this initially led to benefits for consumers, before long R&D expenditures swelled. Towards the late 1980s and early 1990s Japanese automobile manufacturers had entered a stage of “Hyper-design” and “Hyper-equipment”; an arms race leading to less competitive products albeit produced in a highly efficient manner.

World leader
With Japanese manufacturers producing very affordable, reliable, and popular cars throughout the 1990s, Japan became the largest car producing nation in the world in 2000. However, its market share has decreased slightly in recent years, particularly due to old and new competition from South Korea, China and India. Nevertheless, Japan’s car industry continues to flourish, its market share has risen again, and in the first quarter of 2008 Toyota surpassed American General Motors to become the world’s largest car manufacturer. Today, Japan is the third largest automobile market and, until China recently overtook them, was the largest car producer in the world. Still, automobile export remains one of the country’s most profitable exports and is a cornerstone of recovery plan for the latest economic crisis. Even though Japan has been taken over by Mainland China as the world’s largest car producer, Japanese imports continue to be widely used on streets and highways in the Chinese special administrative regions of Hong Kong and Macau.

Main manufacturer / brand

Four-wheeler
Toyota Motor Corporation
Toyota
Lexus
Daihatsu
Hino Motors
Scion * now abolished
Toyopet ※ Now abolished (name remains as a sales channel)

Nissan Motor
Nissan
Infinity
Datsun
Prince ※ abolition now

Honda Motor Co., Ltd.
Honda
Acura

Mazda
Mazda
Anfini ※ Abolition now
Eunos ※ Abolition now
Autozam * Currently abolished

SUBARU
Subaru

Mitsubishi Motors Corporation
Suzuki
Isuzu Motors
Mitsuoka
Japan Electrical Equipment
Mitsubishi Fuso Truck & Bus
UD Trax (formerly Nissan Diesel)

Two wheeled vehicle
Honda Motor Co., Ltd.
Suzuki
Kawasaki Heavy Industries
Yamaha Motor

Japanese cars outside Japan
Full-fledged overseas exports of Japanese cars after the war have passed through the Foreign Exchange and Foreign Trade Control Law of December 1, 1949 (Showa 24) and the Export Trade Control Order, and furthermore the following 1950 (Showa 25) With the abolition of the monthly automobile control price, we had to wait until all the regulations concerning procurement, production, sale and pricing of raw materials were removed and liberalization was done. In addition, the automobile industry established the “Automobile Export Promotion Organization” in April 1949, set up Toyota president Kiichiro Toyoda as chairman, and prepared for resumption of export.

Following private exporters, manufacturers resumed their overseas exports, but the original export destinations were mainly Okinawa, Taiwan, Thailand and Brazil before returning to the mainland. Originally it was in the process of being popularized in the world after the Second World War, while large trucks and buses equipped with diesel engines, which had accumulated manufacturing technology in Japan due to military vehicle production, were the main export destinations.

Although it is not increased production due to pure exports, “U.S. Army Procurement Agency in Japan (APA) Special Demand” that began in 1956 also made an opportunity to improve production technology.

The export to the US favorable to acquire more foreign currency began with Toyota’s Crown and Land Cruiser in 1957. At the time, the technical ability was still low, so the crown was forced to stop exporting early without improvement due to overheating and burning, lack of steering stability, insufficient illuminance of the lights, etc., , Toyota Motor Corporation (now · TMS) at the time of establishment was forced into a crisis situation that connects the vein only to Land Cruiser.

After that, each manufacturer thoroughly modeled the technology of Europe and the United States, gradually the evaluation got higher by researching.

When the CVCC was developed by Honda in the 1970s when oil shock and air pollution problems became serious, attention gained attention for its high technical strength and fuel saving performance, and the evaluation in the world has greatly increased. Now it is reputation that good fuel economy, less breakdown due to high work precision, and inexpensiveness has become a reputation, and it has become popular all over the world.

It is exported to North Korea without diplomatic relations and Iraq of the Hussein regime through a trading company (mainly Toyota / Hilux, high-ace of the same manufacturer etc. pickups and vans that a large number of people can ride). In Chad’s civil war between Chad’s government army vs. Libyan army and anti-government army, and Iran-Iraq war, both Japanese and Japanese troops used Japanese cars as “weapons” (technical).

Used cars used in Japan in many countries such as the Russian Federation, Southeast Asia, South Asia, West Asia, African countries are being exported in large quantities, and in Russia and Mongolia countries, right hand steering It is used as it is. In particular, many commercial vehicles are being used with Japanese signs drawn.

Also, although not limited to Japanese cars, the export of stolen vehicles continues to increase. It is said that there are no effective countermeasures as long as there is Dubai, which has a free trade port and Jebel Ali Free Zone.

In England and the United States, some sports models such as Skyline GT – R, Lancer Evolution, Impreza WRX etc are proud of cult popularity.

In Brazil until the 1990s the sale of imported vehicles is prohibited by national policy in principle, and Toyota had been limited to assembling some models on site. However, at the moment the sale of imported cars has been lifted, Honda Motor Co., Ltd. also began local production, and after launching Flex fuel vehicles, Toyota also entered production and sales of flex fuel vehicles.

Market share in the US market is high at about 35%. As far as California state is concerned, the share is 45%, which is a higher share than the 41% American car (2006). American manufacturers are centering on sales of pickup trucks, while Japanese manufacturers are leading sedans and SUVs. In 2007, USA’s largest newspaper, the USA Today newspaper published the “1st place – Toyota Camry (1992 type), 3rd place – Toyota Prius (2001),” the car that had the most impact in the past 25 years ” 6) of the top 10 were Japanese cars, including the 7th and Lexus LS 400 (1990 type).

In Europe, the market share is about 13.5%, which is increasing from 11.7% in 1999. Especially in the UK there is nearly 18% share. Germany has the highest share as an imported car. In recent years, Toyota Motor has increased unit sales in Europe, while Nissan Motor is falling significantly.

In Australia there is a market share of nearly 50%. Toyota with a local factory is the top share among all (USA, Europe, Japan, Korea) makers. Also, there were also cases where Nissan and Mitsubishi also produced locally.

In Korea, although the import of cars was liberalized in 1988, since the car was designated as a de facto import banned item called “import destination multi-faceted (diversification) system” In the meantime import / sales were banned, but during that time as well, many local models including Mitsubishi, Mazda, Suzuki and other vehicles were produced locally by local manufacturers. Sales of Japanese cars began after the system was abolished in June 1998. It has been said that there is a psychological despair for riding Japanese cars, but since 2005 Lexus has become the number one seller of imported cars, and sales of Honda and Infiniti are also strong. In recent years, due to the US-Korea Free Trade Agreement, cars manufactured by Japanese manufacturers made in the US are gradually increasing (Toyota Camry, Toyota Sienna, Nissan / Ultima, etc.).

As Taiwan (Republic of China) also prohibited the importation of finished cars made in Asia and Australia including Japan until the beginning of the 21st century, Japanese manufacturers were concentrating on production of KD in joint venture with local companies. Among them, Yulon Automobile (Yulon, Yulon), which was producing the Nissan model, has been in operation since the 1960’s.

In China, the share of the “Japanese brand” (total of export cars from locally produced vehicles and Japan) in 2008 is 21%, which is the top foreign capital.

In India, Multi Suzuki (a subsidiary of Suzuki) holds a market share close to 60%.

Start local production
As mentioned above, Japanese cars were exported to various parts of the world since the 1960s, but since the latter half of the 1980s after the number of automobile production in Japan became the world’s largest, the so-called trade friction (Japan bashing) intensified , The yen appreciation, the policy circumstances of the partner country (customs duties, import restrictions, etc.), etc., major manufacturers such as Toyota and Nissan are in the major regions of the world such as America, Europe, South America, China, Taiwan, ASEAN The establishment of a local production factory, the transfer of technology from Japan, the proportion of Japanese brand cars being produced locally is increasing.

Initially we had been exporting major parts and parts from Japan, but eventually the local procurement rate of major parts is also increasing, and improved models designed by overseas bases have come to appear. Some vehicles produced at foreign bases are also imported to Japan.

Japanese cars seen in the culture outside Japan
In the United States, I call a tennis-up Japanese car (Sports compact: Spocon) as Rice burner (Rice burner) or Rice car (Rice car), Japanese motorbike maker sports bike as Rice rocket . Vehicles which were remodeled remarkably using relatively small vehicles such as Honda · CR-X, Honda · Integra, Honda · Civic, Mitsubishi · Eclipse, etc. are particularly popular, illegal drag races limited by Japanese cars are rampant I also have it. The reason is that the vehicle itself is inexpensive, repair is also relatively easy, fuel efficiency is superior to American sports cars, and the kind of tuning parts is also very abundant is also cited as a reason for popularity (especially Japanese cars, There are many enthusiasts who import and install parts for the Japanese market as they are, although aftermarket markets are rising worldwide as well as the market for North America).

The movie “Wild Speed” (original title: “The Fast and the Furious”), which made Japanese cars one of the themes, has been hit worldwide, especially the United States, and has been series.

Manufacturers
Production volumes by manufacturer
The following are vehicle production volumes for Japanese vehicle manufacturers, according to the Japan Automobile Manufacturers Association(JAMA).

Passenger cars
Manufacturer 2007 2008 2009 2010 2011 2012
Toyota 3,849,353 3,631,146 2,543,715 2,993,714 2,473,546 3,170,000
Nissan 982,870 1,095,661 780,495 1,008,160 1,004,666 1,035,726
Honda 1,288,577 1,230,621 812,298 941,558 687,948 996,832
Suzuki 1,061,767 1,059,456 758,057 915,391 811,689 896,781
Mazda 952,290 1,038,725 693,598 893,323 798,060 830,294
Daihatsu 648,289 641,322 551,275 534,586 479,956 633,887
Subaru 403,428 460,515 357,276 437,443 366,518 551,812
Mitsubishi 758,038 770,667 365,447 586,187 536,142 448,598
Other 25 30 0 0 0 0
Total 9,944,637 9,928,143 6,862,161 8,310,362 7,158,525 8,554,219
Trucks
Manufacturer 2007 2008 2009
Toyota 291,008 271,544 178,954
Suzuki 156,530 158,779 150,245
Daihatsu 138,312 151,935 132,980
Isuzu 236,619 250,692 118,033
Nissan 188,788 189,005 109,601
Mitsubishi 88,045 83,276 61,083
Hino 101,909 101,037 62,197
Subaru 72,422 64,401 51,123
Mitsubishi Fuso 131,055 115,573 49,485
Honda 43,268 33,760 28,626
Mazda 43,221 39,965 23,577
UD Trucks 44,398 45,983 18,652
Other 2,445 2,449 545
Total 1,538,020 1,508,399 985,101
Buses
Manufacturer 2007 2008 2009
Toyota 85,776 109,698 69,605
Mitsubishi Fuso 10,225 10,611 4,982
Nissan 7,422 8,416 4,479
Hino 4,984 5,179 4,473
Isuzu 3,668 3,221 2,077
UD Trucks 1,595 1,977 1,179
Total 113,670 139,102 86,795

Source from Wikipedia