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Automobile industry

Japan's Auto Makers Shift Production Overseas Amid Stronging Yen

Strategic Insights

— 1 min read

Japan's two largest auto makers, Toyota and Nissan, have announced decreases in local production as they struggle to maintain competitiveness in the face of a strengthening yen. Despite this, the domestic market is showing signs of recovery, with Toyota's sales rising by 2.9 percent in July compared to the same period last year. Analysts see this as a positive sign that Japan may be emerging from its worst economic slump since World War II.

Key Takeaways:

  • Toyota's overseas production increased by 18 percent in July to 85,166 units, while local production decreased by 3.3 percent to 311,813 units compared to the same period last year.
  • The strengthening yen is forcing Japanese companies to shift production offshore to keep costs down, with Toyota exporting 139,739 vehicles in July, an 8 percent increase from the same period last year.
  • Nissan's domestic production dropped 17.7 percent in July to 139,407 units, while its overseas production increased by 1.7 percent to 72,666 units.
  • Nissan's exports in July leaped 13.4 percent to 63,981 units, marking a second-straight month of year-to-year increase.
  • Toyota held a 32.9 percent share of the total Japanese market in July, down 0.8 percent from the same period last year.
  • The domestic market in July rose by 2.9 percent to 637,000 units, marking the second consecutive month that registrations have exceeded the same month of the previous year.
  • Toyota's exports to North America and Oceania were buoyant, with exports to the United States, China, and Latin American countries also showing significant increases.

Statistics:

  • Toyota's overseas production for July: 85,166 units (up 18 percent)
  • Toyota's local production decrease for July: 3.3 percent
  • Toyota's exports increase for July: 8 percent
  • Nissan's domestic production decrease for July: 17.7 percent
  • Nissan's overseas production increase for July: 1.7 percent
  • Nissan's exports increase for July: 13.4 percent
  • Total Japanese market registrations in July: 637,000 units (up 2.9 percent)
  • Toyota's market share in July: 32.9 percent (down 0.8 percent from the same period last year)

Sources:

  • Toyota Motor Corporation
  • Nissan Motor Co. Ltd.
  • Reuters

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