Japan Auto Output: Ideas Later: Its Cars But Still About People.

 https://mainichi.jp/english/articles/20201127/p2g/00m/0bu/076000c

Article:

TOKYO (Kyodo) -- Total global output by eight major Japanese automakers rose 2.7 percent from a year earlier to 2.44 million vehicles in October, continuing a gradual recovery from fallouts of the coronavirus pandemic, manufacturers' data showed Friday.

The production increased for the second straight month following a 1.7 percent growth in September.

Ideas and Commentary(Analysis):

A year ago, if it had any affect there was a major typhoon that hit Japan in early September. The affect of the typhoon might had reduced production in some areas.

And then there was the sales tax increase from 8 percent to 10 percent that started in October.

A car is a major purchase and its like buying a daily necessity or even new shoes or clothes. So the 2 percent increase might have had an affect of some future car buyers.

Article:

Toyota Motor Corp. said its global production rose 9.0 percent to 845,107 units, the highest output for the month, following an 11.7 percent increase in the previous month and lifted by recovering sales in Japan and China.

Domestic output rose 12.0 percent to 309,582 units, supported by the popularity of its revamped Harrier sport utility vehicle. Overseas production grew 7.4 percent to 535,525 units.

Toyota's global sales in October climbed 8.3 percent to 847,713 units, also a record for the month, backed by solid sales of its luxury Lexus models in China, the world's largest auto market, and a rise in auto demand in the United States.

Ideas and Commentary (Analysis):

As China begins to fully recover there might be even more sales in the future.

But whatever the numbers and statistics say its always about the customer/consumer.

Toyota and other companies can make a fine product that looks good and feels good, but it has to be what customers want.

Marketing should always be the main focus on any company that makes products for customers.

Marketing in this situation is find out what customers want and need and make the best products for them.

Now some would say you need to educate the customer on what a good product is. You need to show them what is a good product such as your product. 

That is not really a good idea. Companies need to find out and know what customers want and need.

A product should be able to sell itself if a company has done its marketing correctly without a lot of bells and whistle selling.

The selling of a product or the sales person, should be only a small part of the process.

Obviously Toyota as done something right in China with the Lexus model. They have identified the needs and wants of the Chinese consumer with the Lexus.

Article:

"The pace of recovery (in production) has been faster than expected," a Toyota official said, adding that the automaker will closely watch a recent global resurgence of coronavirus infections.

Suzuki Motor Corp. said its global production jumped 27.1 percent to a monthly record for October of 304,196 units, benefiting from improving sales in India where the company has a large market share.

Honda Motor Co.'s global output grew 5.7 percent with production in China reaching the highest level for October, while Mazda Motor Corp. saw a 4.5 percent increase due to solid demand for its CX-5 sport utility vehicle.

Ideas and Commentary (Analysis): 

The idea of production increases could be nothing more than the stocking of depleted inventories and or the increase due to logistics problems in the spring and summer and logistics chains were severely strained early on.

And or customers maybe again are feeling optimistic enough to spend on big ticket items like cars, as they were either waiting to feel better about the economy and or waiting for inventory levels to recover from logistics challenges.

Either way its good for the car companies in Japan, and everywhere globally.

Article:

Subaru Corp. logged a 14.0 percent rise in global output, showing a strong increase from a year earlier when the company was forced to cut back production due to a typhoon.

Nissan Motor Co.'s global production fell 15.1 percent due partly to a shift in its focus to profitability from sales volume.

Mitsubishi Motors Corp., a member of a three-way alliance with Nissan and Renault SA, saw a 33.0 percent plunge in global production, while Daihatsu Motor Co., a vehicle-making subsidiary of Toyota, saw a 3.6 percent drop.

In October, global sales of the eight automakers rose 3.5 percent from a year earlier to 2.30 million units.

Ideas and Commentary (Analysis):

The idea of eight automakers is interesting, in that some might think the domestic market is not big enough to support eight automakers?

And correctly so in that all of the Japanese automakers seem to have had some kind of success globally, at least before the pandemic hit.

But here is what is even more interesting about the Japanese auto market; many of these automakers work in some way or another in cooperation with the other automakers, or so it seems.

And all of these eight automakers probably have unique supply chains that work closely with thousands of other companies in Japan, as most large and medium sized companies do.

The former Nissan CEO, name not mentioned as we know who he is tried to pair down Nissan's supply chain relationships.

But I say, whether right or wrong the supply chain relationships is the backbone of Japanese industry and the Japanese economy would not be as strong and stable as it is without these supply chain relationships.

Are there too many? Maybe but the relationships are so intertwined that its like a giant web running throughout most of the Japanese economy.

And what is even more interesting is, maybe so maybe not, some of the automakers are not giants like Toyota and Nissan. They have found a niche and been able to survive as a minnow among giants.

I find that is a unique feature of the Japanese business culture, society and the economy. 

While in the US minnow car makers don't exist and never will.

For sure the Japanese economy is highly competitive but there seems to be many minnows able to grow and survive in some industries in Japan, but of course not all.

Have a nice day and be safe!