American Cars Gain Acceptance in Japan

Strategic Insights -

American passenger cars sold in Japan have more than doubled in the first five months of this year, compared with the same period last year, despite an overall decline in car sales. While the sales of about 35,000 American-made cars in Japan pale in comparison to the 1.5 million passenger cars exported to the US by Japanese companies, the growth is significant and attributed to the improved quality and competitiveness of American cars in the Japanese market. Detroit's Big Three - Ford, General Motors, and Chrysler - have introduced new models and advertising campaigns to cater to Japanese consumers, with Ford's Mustang and Mondeo being particularly successful.

Key Takeaways:

  • Sales of American passenger cars in Japan have more than doubled in the first five months of this year, compared with the same period last year.
  • The Big Three - Ford, General Motors, and Chrysler - expect to sell about 35,000 American-made cars in Japan this year, up from 19,335 last year.
  • Ford has seen its sales of imports in Japan triple, with a base price of less than $23,000 for the Mustang, which has exceeded expectations.
  • Chrysler's sales have more than quadrupled this year, following the introduction of a new right-hand-drive Jeep Cherokee.
  • General Motors has seen its sales rise 11 percent, with a focus on truck sales, but has largely missed out on the recent gains.
  • The Japanese car market is controlled by Japanese companies, with a 29% market share in the US and 23% in combined car and light truck sales.
  • Washington has asked for goals to be set for increasing the number of Japanese dealers carrying foreign cars, but American officials say this is not enough.

Statistics:

  • Sales of American passenger cars in Japan in the first five months of this year: +112% compared to the same period last year.
  • Total Jeep Cherokee sales in Japan: over 13,000 this year, following the introduction of a right-hand-drive version.
  • Total Ford Mustang sales in Japan: over 5,000 in the first two months after introduction.
  • Number of Japanese dealers carrying foreign cars: 530 this year, up from 85 in 1988.
  • Total number of car dealers in Japan: about 2,000.

Sources:

  • The New York Times, May 1994.
  • Japan Automobile Importers' Association.
  • Japan Automobile Manufacturers Association.