Japanese OEMs and suppliers’ production strategy

Growth for the Japanese automotive industry is increasingly coming from overseas markets. We take an in depth look at how this change is affecting the way OEMs and suppliers do business

Japanese automakers have long used Japan as an export base to meet demand in international markets, but the appreciation of yen against the US dollar and euro, especially between 2007 and 2012, forced many Japanese automakers to reduce dependence on domestic production for exports and invest in overseas production facilities. The twin disasters (earthquake and tsunami) in March 2011, which heavily disrupted automotive exports from Japan for some months, also forced Japanese automakers to intensify focus on globalised production.