Automobile Market: Significant Part of Japan’s Economic System


The automobile market continues to be a significant part of Japan’s economic system. Carmakers and automotive providers together employ over 5.3 million workers, which is comparative to 8.5 percent of the country’s total workers. The market produces 10 percent of the nation’s tax earnings and makes up 15 percent of the production industry, which produces approximately 20% of Japan’s GDP. However, Japan’s automotive market is facing many pressures to remain competitive, a struggle which will inevitably produce a mixture of both winners and losers.

Domestic production, such as the Japanese’s automobile industry, is still reeling from the Great East Japan Earthquake. Exports are being affected by the admiration of the yen, which is forcing carmakers to move production offshore and quickening the speed of offshore investment strategies by providers. The ageing population in Japan will begin to impact require for automobiles locally and Japanese’s carmakers are also experiencing increased competition from Oriental organizations, especially South Korean carmakers and providers. Future perspective for Japanese suppliers increasingly difficult, it will therefore be interesting to see how organizations will overcome these difficulties and address these issues they are facing, to stay successful, as well as competitive.

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