Introduction

Japan is considered to be among the world’s top economic superpowers

  • The Asian country has achieved this status by leveraging the power of technology
  • It has managed to improve its manufacturing output by taking the lead in technological innovation and digital transformation

Although Japan’s economy comprises a large number of industries, some of these make a greater contribution to the economic growth compared to others

  • For instance, two of the most successful industries in Japan are the automobile industry and the computer industry
  • The automobile sector of Japan carries an extremely good reputation, and Japanese products are exported to almost all parts of the world
  • Some of the leading exporters of automobiles in Japan are Toyota, Honda, and Suzuki
  • Japanese automobiles are popular around the world, including North America, Europe, Asia, and even Africa

This blog discusses Japan’s export of automobiles and related items as well as the key reasons behind its growth 

The Importance of Automobiles in Japan’s Exports

During the year 2019, Japan exported automobiles and vehicles to the tune of $148.8 billion

  • This figure indicates that the automobile sector accounted for nearly 21% of the country’s total exports
  • The automobile industry of Japan faces tough competition from the computer machinery sector, since the latter accounts for almost 19.4% of the total exports
  • The electrical machinery sector is in third place, accounting for nearly 14.6% of the total exports from Japan

Japan began to export cars to other parts of the world as early as the 1960s

  • Thereafter, during the 1970s, the US became the largest importer of Japanese cars
  • In the early years of the 21st century, Japan became one of the world’s leading producers of automobiles
  • In fact, the Asian nation was the world’s number one producer of automobiles between the years 2006 and 2008
  • Although it has lost its top position now, the country continues to be an extremely important player in the global automobile market

Similarly, the country is also an important player in terms of the export of cars

  • It is estimated that millions of Japanese cars are exported to other parts of the world
  • Some of the leading importers of Japanese cars are the US, Western Europe, and Asia
  • It is also important to note that Japanese automobile exports are not only limited to new cars

In fact, the country is also among the leading exporters of used cars

According to estimates, nearly one million used cars are exported from Japan every year

  • Japanese automobile products are considered to be of high quality, and their general reputation is that they are extremely safe
  • These products also have a relentless focus on technology, thereby improving the overall driving experience considerably

Overall, it is evident that Japanese automobile exports are continuing to show their strength in international markets

  • The industry has shown great resilience in recent years, as it has negotiated a tough operating environment in the US
  • Although the US government has implemented new tariffs on imports, Japanese manufacturers continue to excel in the North American country

To conclude, it is clear that there are several reasons why Japan’s automobiles are high in demand. Institutions such as Euro Exim Bank offer customized support to traders in the form of financial instruments and bespoke trade advisory services. Euro Exim Bank offers financial instruments such as Bank Guarantees and Letters of Credit (LCs). Further information about Euro Exim Bank and its key product offerings is available here.