Auto production and domestic auto shipments down in March, exports up

April 29, 2007
By Ken Worsley

On Friday, the Japan Automobile Manufacturers Association published the results of Japan’s March auto production, and for the first time in 17 months, there has been a fall in domestic auto production. In March, a total of 1,118,009 cars, buses and trucks were built, down 37,821 units (3.4％) from the same month in 2006.

By category, car output declined 2.6% to 937,390 units, the first decrease in 17 months. Truck production fell 10.2% to 133,178 units, the second consecutive month with a drop, and bus production was up fro the 26th straight month, rising 23.8% to 9,620 units.

At the same time, vehicle exports last month increased 8.1% to 568,303 units while domestic shipments were down 8.1% to 767,366 units.

Why was there lower production this March? There seem to be two factors: 1) April, along with August and January, is one of the slowest month for new cars sales in Japan. This would indicate that production should be lower than normal in March and the growth in the market is not anticipated, thereby causing downward pressure on production targets. At the same time, 2) the ongoing decline in domestic sales would seem to increase that downward pressure by giving no reason to increase production. What other factors might be at play here?

Filed Under Automotive, Economic Reports