According to Xinhuanet.com, Japan has exported vehicles to the United States, its largest overseas market, at 1.9million units in 1980, 1.86million units in 1981, 2.1 million and 3.4million units in 1988, 1990, respectively. Besides, Japanese cars have accounted for 34% market share in the United States.
Japan has no regional preference when it exports vehicles to other countries. That is to say, Japan probably sells its cars to every corner of the world. However, its overseas markets are concentrated in North America, Europe and Asia. Amongst them, North America is its most important export market. Judging from Japans’ years of export data, it’s not hard to tell that Japans’ export volume of complete vehicles has dropped year by year. Nevertheless, Japan has relied primarily on capital export to steadily expand its overseas markets since 1980s.
Export has been transformed to overseas production.
Japanese cars have violently struck American and European automakers, whose market share has been occupied and production volume has declined year by year. In this case, many countries had to boycott Japanese cars in the way of export volume restrictions, however, the root of the problem can’t be solved so that they encourage or turn a blind eye to speculators, who have raised the value of yen. Yen’s sudden appreciation has greatly frustrated Japan’s competitiveness, as well as its auto sector. Meanwhile, developing countries have also taken steps to restrict imported Japanese autos, including lifting tariff barriers and increasing some other non-tariff barriers. Some countries and regions even made no secret of announcing to prohibit importing vehicles from Japan. Under such background, Japan auto industry had to adopt a detour strategy.
Japan’s detour strategy is to transfer its manufacturing bases overseas, focusing on North America, Europe and Southeast Asia to avoid tariff and restrictions, as well as lower the cost. According to Japanese, the above three regions including Japan itself have been dubbed as “four systems”, which are the four largest automobile markets as well as manufacturing bases. As a matter of fact, Japanese automakers have built overseas plants in order to transform Japan’s export volume to other countries, so as to protect its market share, as well as forceful halt exterior criticism.
Japanese automakers have attached great importance to local partners. Japanese automakers are prudent to decide overseas investment. Therefore, they have attached great importance to information collection and analysis. Take Toyota for example; when Toyota planned to enter European market, it has established manufacturing plants in Valenciennes, North France, rather than the Middle East, which is characterized by low cost. As for Toyota, France has been the largest compact vehicles market, as well as concentrated in auto parts industry. What’s more, Valenciennes, North France, is connected with Toyota’s established plant in Great Britain through the channel tunnel, as well as adjacent to its European market management technology enterprise in Belgium, which has carried out unified management on all European issues. Toyota would give preference to the Middle East in terms of low labor costs, however, as this region is far away from the demanding market, logistic fees must be soared and the quality of auto parts can’t be guaranteed. Furthermore, Japanese automakers have focused on other countries or regions' cultural background. Recently, they have made more efforts in this aspect. In Europe, Japan and North America, Japanese automakers usually have established their own research centers, where local staff predominates. When Japanese automakers introduce a new model to the world, they will usually launch at least two versions, North America and Europe versions, catering to consumers in these two countries. What they have done is not for nothing, but occupies more market share.
Japanese cars are well-sold to the globe.
It’s a successful global business model of Japanese auto sector behind the splendor. Take Toyota’s sales target at 9.5 million vehicles for example, Toyota could reach annual sales at 1.2 million vehicles or so in Japan, while the figure rose to about 2.5 million units in North America. Also, the sales volume in European market could catch up with Japan, and sales volume reached 4 million or 4.5 million vehicles in other overseas’ markets. The ratio is 1: 2:1:4 among Japan, North America, Europe and other overseas markets. The sales pattern of Nissan and Honda is similar to that of Toyota.
Owning to the global economic slowdown, especially three economic powerhouses, Japan, Europe and North America, gradually getting in the way of global economic growth, their sales have dropped since 2006, leading to involve almost every global automaker, who has usually depended heavily on these major markets. For example, 40% sales of Ford and GM have been concentrated in North America, where Chryslers sold more than 85%, a more surprising figure.
Ten years earlier, Japanese automakers have carried out their layout strategies in emerging markets, including China, Russia, India and Southeast Asia, and have stepped into seasons of harvest. Since this year, Japanese automakers still gained an average of 20% growth in emerging markets, while the other global automakers suffered surprise setback. Toyota's loss in Japan and North America has been made up by the booming sales in emerging markets, such as China and Russia.
The successful global strategic layout has not only laid a solid market foundation for Japanese cars, but also made them scare industrial highlights at times of Japan’s economic depression. (Translator: Qinghua/ Serena)
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http://auto.sohu.com/20100228/n270473180.shtml