The Japanese automobile industry is one of the largest in the world, with Japan currently the third largest producer. Major Japanese automakers include Toyota, Honda, Nissan, and Suzuki. The industry has been a top three producer since the 1960s. It also leads in manufacturing SUVs and sports bikes. A PEST analysis indicates the industry benefits from high R&D investment and innovation culture but faces threats from natural disasters and an appreciating yen.

1. Automobile Industry and Japan
Presented By:-
Bhanu Negi

2. Introduction
 The Japanese Automobile industry is one of the most prominent and largest
industries in the world.
 Japan is now currently the third largest automotive producer in the world with an
annual production of 9.9 million automobiles in 2012.
 Japan has been in the top three of the countries with most cars manufacture since
the 1960s.
 Japan Car company are producing number one SUV in the world and Top ten
Sports bike ( Honda, Kawasaki)
 Japanese zaibatsu (business conglomerates) began building their first
automobiles in the middle to late 1910s.
 In the 1970s Japan was the pioneer in robotics manufacturing of vehicles.

3. Major Automobile Industry In Japan
Toyota
Honda
Daihatsu
Nissan
Suzuki
Mazda

4. Mitsubishi
Subaru
Isuzu
Kawasaki
Yamaha
Mitsuoka
Hino

5. PEST
Analysis of Japan Automobile Industry

6. Japan Political Analysis
Structure of government (multi-party parliamentary representative democratic Constitutional
monarchy )
Government policy agenda
Political agenda
Japan Economic Analysis
 GDP ($5.964 trillion) GDP Growth rate -6,8% (Q2 2014 )
 inflation (3.2% (May 2014)
 GDP Contribution By ( Agriculture 1.2%, Manufacture 27.5% , Service sector 71.4%)
 Foreign direct investment in industry ( Automobile 16% )
 Export :- Car , electronic devices and computers.
 Import :- Raw materials such as oil, foodstuffs and wood

7. Japan Social Analysis
 Demographic analysis (Population 126 million)
106,000,000
96,000,000
2,000,000 125,000 1,500 600
Shinto Buddhism Christianity Islam Theravada Buddhism
Judaism
120,000,000
100,000,000
80,000,000
60,000,000
40,000,000
20,000,000
0
Series1
 Japanese diet:- Rice , seafood, beef, pork, chicken, dairy, vegetables and fruits.
Japanese-style noodles
 Human development index (17 among the 174 countries )
Dress( Western , Kimono)

8. Japan R&D and Technological Factors
 R&D expenditure in Japan ( 3 Rank R&D)
 Impact of technology in industry
 Technology policy
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9. SWOT Analysis of Japan Automobile Industry

10. Strength
 Reliability
 Demand of Environment friendly vehicle
 Innovation Culture
 High R&D Investment
 Number SUV producer country
 Popular automobile industry
 Excellence Manufacturing

11. Opportunity
 Global Demand for the Environment friendly Vehicle.
 Relaxing entry barriers is opening up more markets for entry.
 Demand of Electric Car
Increasing fuel price
 Demand of Tricity

12. Weakness
 Europe Passport
 High Energy Price
 Japanese Car Makers Rally on Weak Yen
 High Maintenance cost with Japanese vehicle.
 Branded as having uninteresting car designs

13. Threat
Natural Disaster
Appreciating
Raising raw material Price
Domestic market covering by foreign player
Business model copying by US and Europian
http://jama.org/japan-auto-industry
http://www.newsonjapan.com/autos