Japan New Car Sales:

 Article Source:  https://mainichi.jp/english/articles/20220401/p2g/00m/0bu/072000c

Article:

TOKYO (Kyodo) -- New car sales in Japan declined for the third straight year in fiscal 2021, down 9.5 percent from a year earlier, as production slowed on shortages of semiconductors and other components amid the coronavirus pandemic, industry bodies said Friday.

A total of 4,215,826 cars were sold in the year ended Thursday, according to the Japan Automobile Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association.

Ideas:

The shortages might have been a major reason for the decrease in car sales in 2021, but there is also another possible reason.

There is something now called subscription services which lets a customer get a car service subscription instead of actually buying a new car.

Supposidely the subscription service covers insurance and maintenance and is cheaper than actually buying a new car.

It seems to be very popular among young people who don't want invest in a new car. 

The subscription service is for 3, 5,7 years and at the end of the subscription a customer can return the car and get a new subscription car.

Article:

Domestic auto sales excluding mini vehicles slumped 8.2 percent to 2,660,855 units, the second lowest since the survey began in fiscal 1968.

Toyota Motor Corp. sold 1,313,913 units, down 9.7 percent. The pandemic's impact in Southeast Asia forced it to scramble for parts and temporarily reduce domestic production significantly.

Ideas:

But despite the possible interest in subscription car services, there are definetely disruptions in the supply chains for many car makers.

It has been estimated that it now takes six months or more to get a new car once you place an order because of the supply disruptions.

That alone might be reason to wait and not buy a new car at this time.

This might be a good time for Toyota and other car manufacturers to consider diversifying their supply chains it at all possible. meaning they have more than one supplier for the parts they need.

Article:

Honda Motor Co. and Nissan Motor Co. marked declines of 3.4 percent and 1.1 percent, respectively. Mazda Motor Corp. reported a 15.4 percent fall, with Subaru Corp. losing 14.2 percent.

Sales of minivehicles, which have an engine displacement of up to 660 cc, tumbled 11.5 percent to 1,554,971 units, the lowest in 24 years.

Daihatsu Motor Co., Toyota's minicar subsidiary, sold 506,436 cars, down 7.8 percent. Suzuki Motor Corp. suffered a 12.8 percent fall to 470,498 units.

Ideas:

Its still amzaing the Japan is able to have so many car manufacturers while other advanced countries have far fewer.

Perhaps the reason might be that car manufacturers in Japan cooperate with each other including some might be subsidaries of larger companies like Toyota.

It also show that maybe its possible for companies in Japan to diversify their offering and are able to find niche car markets that they can be succesful at and not go head to head with Toyota in all the different car offerings or makes.

The manufacturing of cars in Japan, and any country, is a major part of a country's manufacturing base. So anytime there is challenges such as the supply shortage related to parts has to have a significant effect on manufacturing and the Japanese economy.

Have a nice day and be safe!