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• Country: India
• Date: 2017-09-20

apan has become the largest car-producing nation in the world. This follows their emergence as major competitors in the global automobile market and has been enabled by their increased innovativeness in technology, improved level of car performance and competitive pricing, among other factors.

In 2011, Japan has seen disruption like never before. Earthquakes and tsunamis have left the nation in turmoil. Although despite facing overwhelming disaster, Japanese manufacturers are known for their ability to improvise and adapt in times of hardship.

This paper will discuss and closely examine the rise and growth of Japan's automobile industry to become the largest car-producing nation in the world. It also reviews how innovative policies have enabled this.
Japan's ability to produce popular, reliable, and affordable cars throughout the 1990s resulted in Japan becoming the largest car-producing nation in the world in 2000 (JAMA). This growth was led by passenger car exports and can be credited to various factors including; the improved performance of Japanese cars, due partly to the rise of technological levels of manufacturing; competitive pricing due to cost reductions that follow mass production; and the long-term market development strategies of Japanese manufacturers (JAMA).

In 2011, Japan has seen disruption like never before (Taylor,2011). Earthquakes and tsunamis have not only created direct damage, there are secondary effects. The impacts of the disaster have truly been felt globally, being felt as far as Europe.

Growth of the Industry

Japan's postwar era officially ended in 1955, entering the first stage of long-term economic growth. Car purchases rose with this growth as personal income increased. By 1958, cars bought for personal use had doubled (54.5% of cars sold compared to 25.2% in 1955) with individual demand outweighing business demand for cars for the first time (JAMA).

Substantial cuts in prices made cars increasingly affordable, these were made possible through expansions and improvements in manufacturing operations and the establishment of a mass-marketing system (JAMA).

Special-purpose automatic transfer machines were the main focus in regards to investments in equipment. Manufacturers started concentrating on introducing these machines in 1955 and applied them in the creation of engine parts (JAMA). Each company also began to apply the just-in-time system to their manufacturing processes. These changes helped create the rapid automation of Japans automobile production system (JAMA).

To improve production line management, digital technology was introduced. The use of digital technology for specific tasks was broadened when operations went on line, in short creating the computerization of the entire manufacturing process (JAMA). New robot technologies were also gradually implemented throughout the 1970s, which removed humans from dangerous operations in the manufacturing process (JAMA).

The Japanese automobile export market grew steadily from a 51.9% share in 1965 to 73% in 1971 (JAMA). This growth was led by passenger car exports and can be credited to various factors including; the improved performance of Japanese cars, due partly to the rise of technological levels of manufacturing; competitive pricing due to cost reductions that follow mass production; and the long-term market development strategies of Japanese manufacturers.