Tokyo, 29 August (Argus) — Japan’s domestic car output fell on the year in July, partially driven by reduced exports to the US market.
Total car output fell to around 700,000 units in July, down by 7.7pc from a year earlier, according to data compiled by Argus based on reporting by eight major domestic car manufacturers.
Car production fell partly because of weaker export demand, especially in the US market, Japan’s trade and industry Meti said today.
Japan’s car exports to the US fell by 3.2pc on the year to 123,531 units, based on the country’s customs data. This is despite Japan’s overall car exports to the global market having increased by 3.2pc on the year to 520,328 units.
It remains unclear whether the fall is directly linked to the US tariffs, Meti said. Meti’s monthly industrial production survey for July found that no manufacturing firm explicitly cited the US tariffs as a reason for reduced exports, according to a Meti official.
Washington and Tokyo reached a trade agreement on 23 July, under which the US will impose a 15pc tariff on Japanese car imports. This is lower than the previous additional rate of 25pc, on top of the existing 2.5pc in April.
But the new tariff has yet to take effect, pending final approval via executive order by US president Donald Trump.
Meanwhile, a magnitude 8.8 earthquake that struck Russia’s Kamchatka peninsula on 30 July had minimal impact on domestic car output, Meti said. The ministry’s survey showed that the earthquake and its subsequent tsunami wave partially disrupted seaborne delivery but did not affect domestic production, according to Meti.
By Yusuke Maekawa
