The Rise of the Japanese Auto Industry and Auto Exports
After 1955 Japanese auto corporations began to produce more cars then before. At the same time, the government restricted car imports in order to promote the Japanese auto industry. Other countries seldom criticized Japan’s protectionism in those days since the car market in Japan was very small. Later, under the guidance of the Ministry of International Trade and Industry, the Japanese auto industry began to weed out small companies through mergers and eventually reached its current state. Japan’s annual car production gradually increased. It was less than 10,000 vehicles in 1953, but exceeded 20,000 in 1955. In the late 1960s Japan’s car production became similar to Western European countries. Japan started to export cars in the late 1950s, but only a few hundred each year. In 1961 annual exports exceeded 10,000 for the first time. In the early 1970s Japan exported more than one million cars to other countries, primarily to the United States. When car exports began, the reputation of Japanese cars was poor. But their low price based on the low value of the Japanese yen against the US dollar increased the number of Japanese car buyers in the US. Subsequently, the 1973 oil shock increased the popularity of Japanese cars because of their good fuel economy.
Supply of used cars
In Japan, used cars are mainly sold at auto auctions by car owners and dealers. At auto auctions, owners are hidden from bidders while the auctioneers provide independent car evaluations called inspection sheets. Exporters, acting as bidding agents for importers, use the auto auctions as their main supply. There are over 200 auto auction groups operating throughout Japan including JAA, JU Group, TAA, USS, and ZIP.
Besides auto auctions, Japanese exports have access to vehicles from dealerships and private sellers.
Exporting methods
Vehicles which will be exported from Japan must be prepared before shipping. This includes de-registering the vehicle with the government, getting an export certificate, and cleaning the car to remove biosecurity risks. Car cleaning is especially necessary for the Australian Quarantine and Inspection Service (AQIS) and New Zealand’s Ministry of Primary Industries (MPI) agencies’ clearances.
Exporters can ship the car that is ready by ro-ro or container according to customer specification, ship schedules, and the capabilities of the destination port.
Market differences
The suitability of Japan’s domestically sold cars for export to other countries is constrained by various factors. Vehicles in Japan have right-hand drive—the steering wheel is on the right side of the vehicle—in accord with Japan’s left-hand traffic. Some countries with right-hand traffic permit right-hand drive vehicles, though right-traffic headlamps are generally unavailable for models exclusive to Japan. Some countries with right traffic do not allow right-hand drive cars, but in some such markets the extensive labor required to convert a car to left-hand drive is economically feasible; such conversions are sometimes done by the local importers. The Philippines is an example of a market where such conversion is common, until recently, when the importation of such used vehicles (except for heavy vehicles) was banned by E0 156. Japan’s automobile safety regulations also differ substantially from the ECE Regulations used throughout most of the world and the North American regulations that apply in the United States and Canada. Vehicle components such as windows and windshields, seat belts, lamps and reflectors, and mirrors, as well as design features for crashworthiness such as bumpers, fuel tanks, and structural rigidity of vehicles meant for the Japanese market may not comply with non-Japanese standards. They often lack structural reinforcements needed to meet side-impact crashworthiness standards in effect outside Japan. Moreover, entire categories of vehicle, such as Kei cars, do not exist in regulations outside Japan.
