Market share of automobile

automobile image automobile sales changes automobile manufacturers market share

Automobiles sales kept five million units in spite of crisis and ressions!

  • The market size of automobile in Japan is about 20 trillion yen.
  • Toyota has the top share of domestic automobile market.
  • Mercedes-Benz, BMW and Volkswagen are popular imported car brands in Japan.

The market size of automobile in Japan is about 20 trillion yen(about 200 billion dollars) in 2017 according to the report of Ministry of Economy,Trade and Industry. The number of new automobiles in 2017 in Japan was about five million units. The number of that in the world was 74 million units, so the number of that in Japan account for 6.7% of the world automobiles market.

The peak of automobiles sales was 7.8 million units in 1990, that have dropped to almost 70% of its peak now. However, the automobiles sales has kept about five million units though there was some ressions from 1990 to 2017, the financial crisis in 2007 and The aftermath of the 2011 Tōhoku earthquake and tsunami.

the number of new automobile

The sales of passenger cars in 2017 is about 4.3 million units which accounts for 80% of the total automobiles sales. The sales of commercial cars is about 0.8 million units, that was 2.1% increase from the previous year because of sightseeing bus for foreign visitors. It is said the sales of automobiles after 2020 will decrease because Tokyo Olympics over and the consumption tax increase. In addition, personal consuption of Japan is afeected by aging society.

The total automobile production units in Japan is about 9.5 million. Half of them are for exports to foreign companies because the number of new automobiles in Japan is about five million units. The automobile production for exports support the total automobile production in Japan. However, Japanese automaker seek for overseas production because of decreasing cost, avoiding foreign exchange loss and tariff. The automobile prodution in Japan will decrease since they continue overseas production.

The total sales of Japanese automakers is about 60 trillion yen though the market size of automobile in Japan is about 20 trillion yen. Japanese automaker earn the remaining 40 trillon yen in the overseas. Among the Japanese automakers, Toyota Motor Co. is the largest automaker in Japan, its sales is about 30 trillion yen. Toyota also has the top share of domestic automobile market. Honda Motor Co is the second, Suzuki Motor Co. is the rhird, Daihatsu Motot Co. is the fourth and Nissan Motor Co. is the fifith. Toyota group accounts for over 40% of domestic automobile market because Daihatsu is a subsidiary of Toyota.

automaker  market share pie chart

Toyota Motor Co. used to be the automobile part of Toyota Industries Co which was found by Sakichi Toyota. It grew and became the largest automaker in Japan with big hits, CROWN, COROLLA, CENTURY, CAMRY and more. It launched Lexus series which was the luxury brand of Toyota in USA from 1989. It started selling PRIUS which was the world's first HV(hybrid car) in 1997.

Toyota is well known as a company which is proactive in development of fuel efficient automobiles and next-generation automobiles. It seeks for expanding HFCV(hydrogen fuel cell vehicle), and began to sell the first HFCV "Mirai" which maens future in Japanese from 2015. However, delivery of Mirai is set for 2019 or 2020. Toyota also focus on EV(electric vehicles) with keeping development of FCV recently.

toyota mirai image

By the way, Japan imports about 350 thousand cars from abroad for a year. The number of imported cars is not influenced or affected by the rate of exchange but by driver's taste and trend. Some Japanese always buy imported cars in all ages. Mercedes-Benz, BMW and Volkswagen are popular imported car brands in Japan now.

Toyota, Honda, Nissan and Suzuki are listed on the Tokyo Stock Exchange. Foreign investors can invest in them on NYSE by ADR(American Depositary Receipt). In addition, they can do them through many ETFs, MAXIS Nikkei 225 ETF(NKY), iShares MSCI Japan ETF(EWJ), Wisdomtree Japan Hedged ETF(DXJ) and more.