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    Japanese cars dominate worldwide market
     

    THE emergence of a big market for Japanese cars not only on their home turf but also abroad is really phenomenal and worth looking into.

    Japan’s automobile manufacturing is a core industry in itself. In its 2005 record, automotive shipments accounted for 16.5 percent of the total value of Japan’s manufacturing shipments. Translated in numbers, that is ¥489,548 billion.

    Automobiles are now the focus of an extremely wide range of industrial and related activities in Japan—from materials production to sales and other diverse related services. Out of Japan’s 63.56-million work force, auto-related employment there today totals 4.95-million or roughly 7.8 percent.

    A big chunk of this work force is in automotive transport. There are 2.641 million people who are working in road-freight transport, road-passenger transport, road transport-related services, parking-lot operations, vehicle rental services and warehousing. Sales and services are next with a total manpower of 1.047 million that are employed in automotive retailing of new and used cars, motorcycle retailing, auto parts and accessories retailing, auto whole-selling and auto services.

    Automobile production, which includes auto manufacturing, auto parts and accessories manufacturing and auto-body and trailer manufacturing, employs 819,000 while that of auto use (including auto fuel retailing, financing and insurance) has 311,000 and materials supply (electrical machine and equipment, nonferrous metals, iron and steel, metal products, chemicals, textiles and petroleum, paints, plastics, rubber and glass, electronic parts and equipment and general industrial machinery) accounts for 133,000, respectively.

    Since auto manufacturing in Japan is an integrated industry that relies on many supporting industries, it also makes huge investments in equipment and research and development. And auto manufacturing is considered as a barometer of a country’s economy. A total of ¥67.3 billion  has been earmarked as investment in the equipment of major manufacturing sectors in Japan as of 2006, while a total of ¥112.52 billion has been invested in the research and development of major manufacturing sectors as of 2005.

    Japan’s gross exports in 2006 increased by 14.6 percent and the automotive exports accounted for a hefty 19.7-percent increase or roughly ¥16.2 trillion, thanks to the expanding motor vehicle, motorcycle and parts exports.

    And to show this, Japan’s motor vehicle production has risen for five consecutive years. In 2006 motor vehicle production rose to 6.3 percent over 2005, or a total of 11.5 million units. Passenger cars accounted for most of the increase as it rose to 8.2 percent, or 9.76 million units. Within that category, standard car production climbed 17.3 percent to a total of 4.92 million units and minicar production rose to 9.2 percent or 1.54 million units (although small car production declined to 3.3 percent or 89,000 units compared with that of 2005).

    Out of the 11.5 million units produced in 2006 Japan had exported a whopping 5,966,672 units worldwide. Compared with the previous year, vehicles exported to North America ballooned to 34.2 percent. A total of 2,488,373 were exported to North America, or 41.7 percent of the total units exported by Japan worldwide. The Americans alone gobbled up a total of 2,261,552 units. This is the main reason Japanese cars are already thumping those American-produced cars even in their own backyard.

    Among those markets that have gained substantially for the Japanese cars are South Africa and Latin American countries. Europe is another boomer where Japan’s car export rose to 10.8 percent. A total of 1,305,861 units were delivered there in 2006 or 21.9 percent of the total pie, which is Japan’s second-biggest market worldwide. Surprisingly, the heaviest importer of Japanese cars there were Germany (188,260 units), United Kingdom (174,163 units), and Italy (117,729 units).

    The third-heaviest importers of Japanese cars are Middle East countries with a total of 590,341 units delivered in 2006. Japan also delivered 441,912 units in the Oceania region, which is a little over the 381,561 units delivered to the whole Asia of the same year.

    The Philippines, the smallest importer in the Asian region, had a total of 17,889 vehicles imported from Japan—10,517 of these were passenger cars, 3,633 trucks, and 3,739 buses.

    While the Chinese are the biggest passenger-car importers from Japan with 60,706, the Malaysians are the biggest in terms of truck importation with 23,545 units, while Thailand (which has a total of 37,689 vehicles imported from Japan in 2006) leads in the bus importation with 11,260. Quite mind-boggling figures indeed!

    ****

    MY youngest kid Juan Miguel (Migoy for short) and his friend EJ will surely miss their playground every Saturday when the Speedzone closes next month.

    The two friends (together with their respective parents, of course—EJ’s Cesar and Marie—and my wife Cecil) seemed to have been hooked on karting since last month. We were told that the management is now looking for a new location after it reportedly failed to secure a new lease contract on the said place. This may be the reason the rental karts are no longer as sparkling and shiny as they used to be and the lights at night are no longer shining as bright as they used to.

    When the place closes down next month, the only three remaining kart venues here will be the Citykart in Sucat, Parañaque, Kart Trak at the Boomland and the circuit inside the Enchanted Kingdom. Sayang naman, the place is one relatively good (although expensive) venue for the kids on a weekend. On the Saturdays that we were there, the place was teeming with youngsters who were after the fun and excitement.

    Just like Migoy and EJ, they will miss the excitement on the track when the lights close and the track is gone.

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