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The year ending 2009, Japanese automobile manufacturers are expected to register 7 million auto units in exports, the highest ever exports by the country in 23 years. This feat would be possible due to the rising demand for automobiles in the Gulf nations and South America, and other countries, reported the Nikkei
The graph below shows Japan's exports from 1997 through 2007.
The news comes at a time when the North American auto industry is up against tough times with declining production and sales. The US market is particularly hit with the May 2008 auto sales down by 14%. As I had covered earlier that the Canadian auto industry also grappled, but the outlook was to get brighter by the end of 2008. A recent report from the Conference Board of Canada projects that the Canadian automakers' efforts to reduce costs would cut losses by $430 million and would help it to earn a profit of US$155 million this year.
The projections further note that though the Japanese auto industry exports to North America would decrease by 8%, it would make up for it by exports to other regions. Moreover, these projections are also in contrast to the reports of the expected fall of 26% in pretax profit for the Japanese auto industry including the auto part manufacturers. The forecast is welcome for Japan for sure, but possible appreciation in Yen and increases in raw material costs would also affect how the industry actually fares?
The contribution of the Japanese auto industry to the country's economy is large. Not only does the industry accounts for 10% of employment, but also contributes over 10% to the output of the manufacturing sector.
The following graph features the number of motor vehicles produced in Japan during the last 10 years.
Japan's stock market reached its highest mark this year after the Japanese automakers registered higher sales. Further, as the Yen weakened against the dollar, it raised the hopes for the Japanese exporters. Nikkei reported an average rise of 1.2 % on Wednesday and the top Japanese automaker Honda Motor Co Ltd. reported good growth in contrast to the rest of the industry in the US.
There's word about inflation around, but with the recent developments in Japan, it might have spelled the end of deflation for the Japanese industry.
The news comes at a time when the North American auto industry is up against tough times with declining production and sales. The US market is particularly hit with the May 2008 auto sales down by 14%. As I had covered earlier that the Canadian auto industry also grappled, but the outlook was to get brighter by the end of 2008. A recent report from the Conference Board of Canada projects that the Canadian automakers' efforts to reduce costs would cut losses by $430 million and would help it to earn a profit of US$155 million this year.The projections further note that though the Japanese auto industry exports to North America would decrease by 8%, it would make up for it by exports to other regions. Moreover, these projections are also in contrast to the reports of the expected fall of 26% in pretax profit for the Japanese auto industry including the auto part manufacturers. The forecast is welcome for Japan for sure, but possible appreciation in Yen and increases in raw material costs would also affect how the industry actually fares?
The contribution of the Japanese auto industry to the country's economy is large. Not only does the industry accounts for 10% of employment, but also contributes over 10% to the output of the manufacturing sector.
The following graph features the number of motor vehicles produced in Japan during the last 10 years.
Japan's stock market reached its highest mark this year after the Japanese automakers registered higher sales. Further, as the Yen weakened against the dollar, it raised the hopes for the Japanese exporters. Nikkei reported an average rise of 1.2 % on Wednesday and the top Japanese automaker Honda Motor Co Ltd. reported good growth in contrast to the rest of the industry in the US. There's word about inflation around, but with the recent developments in Japan, it might have spelled the end of deflation for the Japanese industry.
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