Motor vehicle production in Japan 2014-2023

In 2023, approximately nine million motor vehicles were produced in Japan, up from about 7.84 million units in the previous year. The production volume of motor vehicles in Japan included passenger cars, trucks, and buses, of which passenger cars accounted for the majority. 

Where are the manufacturing hubs of Japanese cars located?

Virtually all Japanese automotive manufacturers produce domestically and overseas. Overseas automobile factories have a higher output than domestic factories, placing the largest production region in Asia outside Japan. Inside Japan, manufacturing sites cluster in the industrial belt along the east coast, many in Aichi Prefecture and Shizuoka Prefecture. The industry employs hundreds of thousands in Japan, remaining crucial for the Japanese job market and economy.

Cost drivers of motor vehicles become pricey

The primary cost driver of motor vehicle manufacturing is raw materials, which make up roughly half of the production cost. As the main chunk represents steel, carmakers fill the order books of domestic steelmakers. Other crucial materials are plastics, aluminum, rubber, and lithium in the case of battery electric vehicles. The production of those raw materials relies heavily on finite fossil fuels today, threatening production costs in the future. One way to mitigate costs is by using recycled materials from end-of-life vehicles.