Automotive industry in Japan

Automotive industry in Japan

The Japanese automotive industry is one of the most prominent industries in the world. Japan was the world's largest vehicle manufacturer in 2008 but lost one rank in 2009 to current leader China (although the automotive industry in Japan still remains unrivalled by quality standards). It is home to a number of companies that produces cars, construction vehicles, motorcycles, ATVs, engines, etc.
Japanese automotive manufacturers include Toyota, Honda, Daihatsu, Nissan, Suzuki, Mazda, Mitsubishi, Subaru, Isuzu, Kawasaki, Yamaha, and Mitsuoka .






History

Early years


In 1904, Torao Yamaha produced the first domestically manufactured bus, which was powered by a steam engine. In 1907, Komanosuke Uchiyama produced the Takuri, the first entirely Japanese-made gasoline engine car. In 1911, Kwaishinsha Motorcar Works (later to evolve into Nissan Motors) was established and later began manufacturing a car called the DAT. Most early vehicles, however, were trucks produced under military subsidy.

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.

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. 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.

For the first decade after World War II, auto production was limited, and until 1966 most production consisted of trucks (including 3-wheel vehicles). Thereafter passenger cars dominated the market. Japanese car designs also continued to imitate or be derived from European and American designs.

 

 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 to 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&bsp;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.

Rapidly increasing domestic demand and the expansion of Japanese car companies into foreign markets in the 1970s further accelerated growth. 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.

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.



Timeline of the Japanese car industry


1900-1970

1907 - Hatsudoki Seizo Co., Ltd. established

1911 - Kwaishinsha Motorcar Works established

1917 - Mitsubishi Motors' 1st car

1918 - Isuzu's 1st car

1920-1925 Gorham/Lila - auto production established (merged into Datsun)

1924-1927 Otomo built at the Hakuyosha Ironworks in Tokyo

1931 - Mazda Mazdago - by Toyo Kogyo corp, later Mazda

1934-1957 Ohta begins auto production

1936 - Toyota's 1st car (Toyota AA)

1952-1966 Prince Motor Company (integrated into Nissan)

1953-1967 Hino Motors starts auto production (merged into Toyota)

1954 - Subaru's 1st car (Subaru P-1)

1955 - Suzuki's 1st car (Suzulight)

1957 - Daihatsu's 1st car (Daihatsu Midget)

1963 - Honda's 1st car (Honda S500)

1966 - One of the best selling cars of all time, the Toyota Corolla, is introduced

1967 - Japan Automobile Manufacturers Association (JAMA) is founded

Since 1970

1981 - Voluntary Export Restraints from May limit exports to United States to 1.68 million cars per year; redundant by 1990 as production inside US displaces direct exports; similar policies in several EU countries

1982 - Honda Accord becomes the first Japanese car built in the United States

1982 - Mitsuoka 1st car (BUBU shuttle 50)

1983 - Holden and Nissan form a joint venture in Australia

1984 - Toyota opens NUMMI, the first joint venture plant in the United States with General Motors

1986 - Acura is launched in the US by Honda

1988 - Daihatsu enters the US making it the first time all nine Japanese manufacturers are present

1989 - Lexus is launched in the US by Toyota

1989 - Infiniti is launched in the US by Nissan

1989 - United Australian Automobile Industries (UAAI) founded in Australia as a joint venture between Toyota and Holden

1996 - UAAI joint venture dissolved

2003 - Scion is launched by Toyota

2008 - Toyota surpasses General Motors to become the world's largest car manufacturer

2010 - 2009–2010 Toyota vehicle recalls

2011 - Tohoku earthquake affects production.

Production volumes


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

Passenger cars	Trucks	Buses
Manufacturer 2007 2008 2009 Toyota 3,849,353 3,631,146 2,277,426 Honda 1,288,577 1,230,621 729,804 Nissan 982,870 1,095,661 702,071 Suzuki 1,061,767 1,059,456 691,435 Mazda 952,290 1,038,725 627,517 Daihatsu 648,289 641,322 507,638 Mitsubishi 758,038 770,667 320,690 Subaru 403,428 460,515 318,714 Other 25 30 0 Total 9,944,637 9,928,143 6,175,295	Manufacturer 2007 2008 2009 Toyota 291,008 271,544 163,092 Suzuki 156,530 158,779 135,724 Daihatsu 138,312 151,935 121,291 Isuzu 236,619 250,692 104,387 Nissan 188,788 189,005 100,507 Mitsubishi 88,045 83,276 56,895 Hino 101,909 101,037 55,295 Subaru 72,422 64,401 46,098 Mitsubishi Fuso 131,055 115,573 44,462 Honda 43,268 33,760 24,803 Mazda 43,221 39,965 22,119 Nissan Diesel 44,398 45,983 16,738 Other 2,445 2,449 489 Total 1,538,020 1,508,399 891,900	Manufacturer 2007 2008 2009 Toyota 85,776 109,698 63,178 Mitsubishi Fuso 10,225 10,611 4,619 Nissan 7,422 8,416 4,130 Hino 4,984 5,179 4,044 Isuzu 3,668 3,221 1,804 Nissan Diesel 1,595 1,977 1,479 Total 113,670 139,102 79,254

January–November 2009

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