Japan Automobile Manufacturers Association of Canada

- Statistics, Industry Information, Newsletters & Reports for Japanese Auto Manufacturers in Canada -

Pages:

Home
About Us
Statistics
News
Industry Info
Trade Issues
Archive
Links
Contact

JAMA Canada Annual Review 1999

Summary

The Year in Perspective

During 1998, the Japanese economy was knee-deep in recessionary turmoil from the worst economic downturn in its post-war period. Consumer confidence was shaken badly by a number of factors including the impact of the so-called Asian flu and severe debt problems in the Japanese financial and banking sector. While analysts suggest that the reforms required to bring about a recovery in economic growth are difficult and daunting, signs that the financial system is being restructured is evident in terms of foreign ownership and direct investment in Japan's banking, insurance and financial services sectors. And the process of industrial restructuring is also underway in the automotive sector, seen recently in the deeper international alliances between Ford & Mazda and General Motors & Suzuki, as well as the new alliance between Nissan & Renault.

The economic slump has also taken its toll on the domestic automotive industry in Japan. Sales of all new vehicles fell 12.6% overall in unit volume to just under 5.8 million from 6.7 million in 1997. Passenger cars were down 8.9% to 4.0 million units, trucks were off 20.1% to under 1.8 million units, and buses slid 10.3% to 14,141 units. Sales of mini vehicles were the only bright spot, showing remarkable strength in the last quarter of 1998 to close up 4.1% overall at almost 1.56 million units.

Vehicle production in Japan fell to its lowest level since 1979 with total output of just over 10 million units. Passenger car production dropped 5.1% to just over 8 million units, while truck output plunged 20.0% to 1.9 million units. Bus production was off 8.5% to almost 57,000 units.

Exports of finished vehicles from Japan to markets around the globe retreated slightly in 1998 after sharp gains in 1997. Shipments fell 0.5% to 4.5 million units in total. Passenger cars were up 2.9% to under 3.7 million, while trucks declined 13.4% to almost 796,000 units. By destination, export shipments increased marginally to major markets in North America, Europe, Latin/South America and Oceania, but dropped rather precipitously to Asia.

Import vehicle sales in Japan were hit hard by the slump in demand from the ailing economy for the second year in a row. Sales registrations of imported vehicles including models built overseas by Japanese automakers posted a drop of 24.4%, from 364,882 in 1997 to 275,869 in 1998. Imported passenger car sales fell 22.2% to 265,848 units, while trucks and buses lost 57.2% over the previous year to 10,021 units. Foreign automakers sales in Japan slipped 19.8% to 252,065 units, while the sales tally of imports built overseas by Japanese automakers sank 53.0% to 23,804 units from 50,601 in 1997.

The Outlook for 1999

Overall, the outlook for the auto industry, like the Japanese economy as a whole, is still rather gloomy; although there are a few glimmers that the bottom of the recession has been reached and a gradual recovery may begin in the latter half of 1999. Some positive signs include a continuing commitment by the Japanese Government to deregulation together with countermeasures to stimulate economic activity, a 20% gain in the Nikkei in the first quarter of 1999, and a number of new foreign direct investments into Japan, notably in the investment banking and financial services sector, including Merrill Lynch, Goldman Sachs, and Manulife, a Canadian insurance company.

In the auto sector, industrial restructuring will continue to impact both production and sales as companies struggle to find the right balance between global competition and cooperation and at the same time, to maintain their focus on meeting the ever demanding needs of the consumer. Mini vehicle sales in Japan have continued to show robust results over the last six months of the fiscal year, and automakers have been aggressive in introducing new eco-friendly models, such as direct injection engines and hybrid (gas/electric) vehicles. And the 1999 Tokyo Motor Show in October is an international showcase of new automotive technology and design that generates widespread interest among Japanese consumers.

The forecast for motor vehicle demand in the Japanese market in 1999 optimistically projects some overall growth to just over 6 million units. In the face of many challenges in the years ahead, Japanese automakers intend to focus on three specific areas in 1999:

    1. Revitalization of domestic demand
    2. Environmental protection and vehicle safety
    3. Promotion of international mutual understanding and co-operation.
Motor Vehicle Production
Year

Cars

% Chg.

Trucks

% Chg.

Buses

% Chg.

Total

1998 8,055,763 -5.1 1,937,076 -20.0 56,953 -8.5 10,049,792
1997 8,491,440 8.0 2,421,413 -0.3 62,234 17.1 10,975,087
1996 7,863,763 3.3 2,428,897 -4.3 53,126 12.4 10,345,786
1995 7,610,533 -2.5 2,537,737 -6.1 47,266 -3.8 10,195,536
1994 7,802,037 -8.1 2,702,970 0.6 49,112 2.2 10,554,119
1993 8,493,943 -9.4 2,685,528 -12.5 48,074 -7.6 11,227,545
1992 9,378,694 -3.8 3,068,585 -11.0 52,005 17.0 12,499,284
1991 9,753,069 -2.0 3,447,914 -1.4 44,449 10.6 13,245,432
1990 9,947,972 9.9 3,498,639 -11.0 40,185 -4.5 13,486,796
Note: Percentage figures represent the change from the preceeding year
Source: Japan Automobile Manufacturers Association
Motor Vehicle Exports
Year Cars % Chg. Trucks % Chg. Buses % Chg. Total % Chg.
1998 3,684,150 2.9 795,808 -13.4 48,917 -10.4 4,528,875 -0.5
1997 3,579,131 25.1 919,469 13.9 54,602 24.5 4,553,202 22.7
1996 2,860,080 -1.2 807,508 -5.0 43,866 -1.9 3,711,454 -2.1
1995 2,896,217 -13.8 849,827 -17.2 44,734 -39.2 3,790,778 -15.0
1994 3,360,668 -14.1 1,026,024 -0.7 73,600 -0.6 4,460,292 -11.1
1993 3,910,605 -11.3 1,033,147 -12.7 74,009 -1.4 5,017,761 -11.5
1992 4,408,864 -1.0 1,183,686 -5.1 75,096 39.4 5,667,646 -1.5
1991 4,452,233 -0.7 1,247,263 -4.7 53,883 34.8 5,753,379 -1.3
1990 4,482,130 1.8 1,309,121 -9.4 39,961 13.7 5,831,212 -0.9

Note: Percentage figures represent the change from the preceeding year
Source: Japan Automobile Manufacturers Association

New Motor Vehicle Registrations
Year Cars % Chg. Trucks % Chg. Buses % Chg. Total % Chg.
1998 4,093,148 -8.9 1,772,136 -20.1 14,141 -10.3 5,879,425 -12.6
1997 4,492,006 -3.8 2,217,257 -7.3 15,763 -8.5 6,725,026 -5.0
1996 4,668,728 5.1 2,391,790 -0.5 17,227 -0.4 7,077,745 3.1
1995 4,443,905 5.6 2,403,825 4.6 17,303 -3.0 6,865,033 5.2
1994 4,210,168 0.3 2,298,685 2.2 17,843 -6.2 6,526,696 0.9
1993 4,199,451 -5.7 2,248,803 -9.4 19,025 -11.8 6,467,279 -7.1
1992 4,454,012 -8.5 2,483,484 -5.7 21,577 -9.3 6,959,073 -7.5
1991 4,868,233 -4.6 2,632,730 -0.6 23,796 -4.5 7,524,759 -3.2
1990 5,102,659 15.9 2,649,909 -6.3 24,925 -5.9 7,777,493 7.2

Note:
1. Figures include imported vehicles
2. Percentage figures represent the change from the preceding year
Sources: Japan Automobile Dealers Association, Japan Mini-Vehicles Association

Exports by Destination
1993 1994 1995 1996 1997 1998

Asia

744,441 594,335 616,027 620,016 606,389 264,987

Middle East

379,652 275,480 206,446 284,881 346,154 455,159

Europe

1,280,988 1,053,095 918,831 948,712 1,254,879 1,370,931

(EU)

(1,086,353) (910,463) (792,058) (801,858) (1,025,688) (1,132,535)

North America

1,792,212 1,757,918 1,301,218 1,169,073 1,412,055 1,459,338

(U.S.A.)

(1,617,386) (1,643,221) (1,228,096) (1,098,504) (1,271,095) (1,313,583)

Central & South America

364,113 340,827 329,064 279,641 437,848 450,128

Africa

125,938 102,348 137,718 134,027 174,325 170,836

Oceania

318,423 327,584 274,828 265,478 310,776 347,194

Others

11,889 8,705 6,676 9,626 10,776 10,302

Total

5,017,656

4,460,292

3,790,808

3,711,454

4,553,202

4,528,875

Source: Japan Automobile Manufacturers Association

New Registrations of Imported Cars
Country of Origin 1990 1991 1992 1993 1994 1995 1996 1997 1998
Europe 190,750 165,149 142,567 138,703 182,335 236,307 268,700 256,485 210,888
*German cars 137,442 119,048 104,680 97,684 120,886 156,216 184,133 177,075 148,607
U.S.A. 28,602 30,128 37,085 54,493 91,643 122,872 122,559 83,344 53,462
*US-made Japanese cars 12,598 16,328 22,765 35,083 57,368 84,722 69,534 36,206 17,573
Others 2,354 1,907 1,765 1,894 2,183 3,086 2,133 1,666 1,498
Total 221,706 197,184 181,417 195,090 276,161 362,265 393,392 341,495 265,848

Note: Percentage figures represent the changes from the preceding year
Source: Japan Automobile Importers Association * Data included in European / U.S.A. figures


 

Page Navigation:

© 2017 JAMA Canada