Japan's automobile exports continue to fall. The Japan Automobile Manufacturers Association reports that the total number of four-wheeled vehicles (passenger cars, including light vehicles, trucks, and busses) exported in 1995 came to only 3.79 million units, a 15% drop from the previous year and the lowest figure since 1977. This marks the tenth consecutive year of decline and the largest ratio of decline since World War II, excepting 1952, when a sudden export drop resulted from demand for military vehicles for the Korean War. The value of automobile exports, including parts, fell below that of 1994 for the first time in 13 years. This trend, a concomitant of expanded overseas production, will probably continue for some time to come.
Japanese automobile exports peaked at 6.73 million units in 1985, when exports accounted for 54.8% of the year's domestic production. They began slipping the following year and have slid farther down hill every year since, approaching half of the peak figure in 1995. This has lowered their ratio of total production to 37.2%, a plunge of nearly 20 points from what it was at peak.
By destination, exports to the United States, Japan's largest market, came to 1.23 million units, 25.3% below the previous year and the largest ratio of decline since 1961. Similarly, exports to Europe slumped 12.7%. The main causes in both cases were stagnant automobile markets coupled with increased local production by Japanese manufacturers.
Exports to other parts of Asia rose by 3.6% to 616,000 units, the first increase in two years. Demand for local production is strong, however, in Southeast Asia, China, and other Asian countries, so exports of completed cars to Asian markets will probably decrease in the future.
The value of exports including parts also fell by 2.9% to 81.68 billion dollars, indicating that, in addition to fewer completed car exports, more parts are being procured locally.
Overseas Production Growing
In contrast to export trends, overseas production by Japanese automobile manufacturers is climbing annually. In 1994 it reached 5.31 million units, exceeding exports for the first time. This trend continued in 1995.
Plans announced thus far by manufacturers indicate that in 1996 exports can be expected to fall even farther to the 3.61- million-unit plateau, while overseas production is anticipated to climb to 6.04 million units.
(The above article, edited by Japan Echo Inc., is based on domestic Japanese news sources. It is offered for reference purposes and does not necessarily represent the policy or views of the Japanese Government.)