JAMA Report Details Impact of Japan Earthquake, Pace of Recovery

Vehicle production declined to 8.4 million units in 2011, but the recovery was well under way two months after the natural disaster.

Roger Schreffler

September 4, 2012

3 Min Read
Japanese plants turned out 93 million vehicles in last fiscal year up 3
Japanese plants turned out 9.3 million vehicles in last fiscal year, up 3%.

TOKYO – A by-the-numbers look at the impact of last year’s earthquake and tsunami on the nation’s auto industry can be found in the 2012 edition of the Japan Automobile Manufacturers Assn.’s “The Motor Industry of Japan.”

Production, exports and home-market sales all fell by more than 10% in calendar 2011. Declines were reported in both value and volume.

That said, a review of the numbers behind the numbers reveals the industry began to recover in May 2011, two months after the March 11 disaster, and by June production was back to pre-quake levels. Since September, output growth generally has exceeded 10%.

While vehicle production declined 13.8% to 8.4 million units in calendar 2011, it recovered to 9.3 million for the Japanese fiscal year ending March 31, 2012, up 3% from the prior year.

Also note that 0.66L minivehicle sales, which accounted 36% of domestic demand in both calendar and fiscal 2011, were 11% higher in the April-March period than in January-December.

In value terms, production fell to ¥14.6 trillion ($186.5 billion) in calendar 2011, down from 2010’s  ¥16.8 trillion ($214.6 billion). Fiscal 2011 results were not included in the report.

Of the 2011 total, exports of both vehicles and parts dropped 8% to ¥11.54 trillion ($147.7 billion), while imports rose 11% to ¥1.2 trillion ($15.3 billion). JAMA reported fiscal 2011 exports totaled $149.2 billion, a 5.1% increase.

On a unit basis, exports fell from 4.8 million to 4.5 million, off 6.3% year-on-year, with the largest shortfalls to North America and Europe, at 35.5% and 22.3%, respectively.

For the fiscal year, exports fell only 3.8% from 4.8 million to 4.6 million units. Shipments to North America actually rose 1% to 1.7 million, while the shortfall in exports to Europe shrunk to 5.4%. Total shipments: 950,302 units.

With respect to imports, Japanese auto makers accounted for one-fourth of total sales in fiscal 2011, with 69,787 of the 265,086 units delivered. The Japanese total, up 62% from fiscal 2010, was due mainly to growth in Thai-built Marches by Nissan.

Including 3.9 million domestic models, overall market volume fell to a 34-year low of 4.2 million units, with passenger vehicles 84% of the total.

Recreation vehicles accounted for 31% of demand. Among them were 378,041 station wagons and 170,305 SUVs.

Used-vehicle sales declined for the sixth consecutive year to 6.45 million units, 1.4% below 2010 levels.

Other findings in the report:

  • The nation’s vehicle parc grew marginally to 75.5 million units, up from 75.4 million in 2010. Included were 58.7 million cars, 15.0 million trucks, and 3.2 million buses and special-purpose vehicles.

  • Average vehicle age and service life, continuing a trend dating back to the beginning of the last decade, rose in all categories to an average 17.4 years.

  • National Police Agency statistics show traffic fatalities declined to 4,611, one of the lowest levels since the early years of motorization in Japan and nearly 50% below 2002 levels. The agency attributes the drop to increased usage of seatbelts: an estimated 95% of front-seat occupants now buckle up, according to the report. The rear-seat percentage stands at about 33%.

  • Safety features are proliferating across more models. Antilock brakes were on more than 190 models in 2010, with installations totaling 95.1%. High-intensity discharge headlamps were installed on 43.6% of cars; adaptive front lighting on 5.5%; and electronic stability control and traction control on 25.0% and 24.3%, respectively. (See: Onboard Safety Systems by Japanese Auto Makers in 2010 and 2006)

  • Among advanced safety features, blind-corner monitoring was installed on 2.0% of cars sold in 2010, while night vision penetration stood at 0.1% and lane-departure warning at 0.6%. Adaptive cruise control was installed on just 1.0% of cars built, but was available on 23.2% of all models.

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