The Japanese Automotive Industry and its Supply Chain

The automotive industry remains an important part of Japan’s economy. However, it is facing many pressures to remain competitive, a struggle which will inevitably produce a mixture of both winners and losers.

The Japanese automotive industry grew from producing fewer than 70,000 vehicles in 1955 to a peak of 13.5 million vehicles in 1990. The industry has spawned leading global carmakers, which in turn has created leading automotive suppliers. Today, Japan boasts 13 truck, car and bus makers and the Japan Auto Parts Industries Association (JAPIA) has over 9,000 member companies. In fact, Japan is estimated to have the world’s largest automotive parts industry, with revenues of JPY19.9 trillion (US$251.9bn) – it is estimated by JAPIA that 84% of this is generated from domestic sales and 16% from overseas sales.