Why Japan specializes in automobile production

In 2016, Japan’s exports worth 688 billion US dollars which makes it the 4th largest exporter in the world. Within all the commodities, automobiles (cars) are the biggest export which accounts for 14.6% of total Japan’s exports.

Japan’s automobile industry is one of the most outstanding and largest in the world. Countries with the most cars manufactured, Japan has been in top 3 of since the 1960s, surpassing Germany. So in what particularly makes Japan specializes in car production?

History of the automobile industry in Japan

Throwback to the origin, the very first entirely,’made in Japan’ car was manufactured by Komanosuke Uchiyama in 1907 while in 1904, “Torao Yamaha built the first Japanese-made bus, with the seating capacity of 10 people.” After WWI ended, governments and Imperial Armies provided funds and subsidies to large cooperations which support them to start manufacturing military trucks. This eventually bolstered in the startup of the automobile companies such as Toyota and Nissan.

During the developments and expansions:

Under the guidance of the Ministry of International Trade and Industry, the Japanese automobile industry started to flourish.

By the end of the 1950s, Japan began to export vehicles to different countries every year.

In the year 1961, for the very first time, the numbers of used cars exported achieved 10,000.

By 1970, Japan started to export around million of vehicles across many countries around the world.

At the beginning of the export process, Japanese vehicles were not so popular, but eventually, due to their superb quality and low prices, these vehicles began to make their place.

The 1973 oil crises increased the popularity of Japanese cars in the global market as vehicles developed by them have smaller engine and are fuel-efficient.

During 1970s popularity of Japanese vehicles increases in Britain and U.S. Mitsubishi and Honda were popular Japanese brands in the U.S. while in Britain, Nissan became a popular maker.

Japan has always been famous for its advanced technology development and high-quality products. Through manufacturing cost-effective, practical, qualified, and affordable vehicles, Japan succeed to thrive and stand out from the intense competition with other newly developed countries such as China, South Korea, and India. By the year 2000, “Japan became one of the largest vehicle manufacturing nations across the world.”

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