Thursday, 3rd January 2013
In Business In Japan, General Japan News,
Japan Automobile Manufacturers Association suggests car market growth
Both emerging economies and developed nations are worth tapping into when it comes to making the most of the auto market.
That is the message being given by chairman of the Japan Automobile Manufacturers Association, Akio Toyoda.
In a group interview Mr Toyoda suggested that there is still much room for growth in the industry.
He said: "People often say the car industry is a 'mature industry' or 'industry of the 20th century,' but this is a total misunderstanding.
"It is an industry with an annual growth rate of four per cent, and I want that to be understood."
He suggested that while there is room for growth in both developing and developed nations, the strategies for both should differ.
"What's important is to help people buy a replacement after a proper period of time by releasing environmentally-friendly and exciting cars at the right time in developed countries. In growth markets, it will be important to launch cars at reasonable prices," he said.
Mr Toyoda suggested that Japanese car manufacturers need to keep their factories in Japan if they are to stay competitive in a tough market.
By doing this, they can ensure good relations with supply chains which will support both the development and production of vehicles, he said.
His optimism over the current state of the market comes as Japanese car giant Honda announced its intention to regain some of the market share it has lost recently in India.
The sales drive is part of an initiative which the car manufacturer hopes will help it regain its number one spot.
In a recent report cited by Whatinvestment.co.uk, the Atlantis Japan Growth Fund suggested that the Japanese automative sector is set for growth in the coming 12 months.
Atlantis Japan Growth Fund stated that "despite the slowing sales of Japanese cars in China, we look for good growth for the Japanese auto industry due to continuing recovery in North America [and] strong sales in South East Asia, India, and China".
Written by Mark Smith
Related news stories:
Downturn hits Tokyo Motor Show (24th March 2009)
Enjoy a fireworks festival in Japan this summer (22nd July 2014)
Japan ready to celebrate 'White Day' on March 14th (12th March 2015)