Top Car Companies in Japan

It’s no secret that the Japanese automobile industry is one of the most powerful and prevalent in the world. Since the 1960’s, the top car companies in Japan have been responsible for the most manufactured cars in the world. Not even Germany can keep up with the massive growth and demand for these cars.

As of 2012, Japan produces 9.9 million cars each year that are sold both domestically and internationally. All of this success came from the hard work and dedication of the companies within the country. Let’s explore the history of this massive industry and which companies are contributing the most to the overall success.

Japan’s Top Companies

Before we delve into the rich history of Japan’s automotive industry, let’s take a look at the top companies currently manufacturing cars in Japan. The top three car companies are as follows in no particular order:

• Honda
• Nissan
• Toyota

Now, let’s examine each one in a little more detail to see where they stand in terms of competition with each other.

1. Honda

Honda Motors managed to increase their global sales in 2013 and sold over 4 million vehicles. The largest market for them is in the United States. The Honda CR-V compact was the top seller for the company, and their combined sales from the Honda and Acura brands was one of the highest sales numbers the company has ever seen.

2. Nissan

Nissan has an alliance with the French car brand Renault, and it is this very agreement that earned it an impressive sales year in 2013 with 8.2 million vehicles sold, most of which came from the Japanese side of the alliance. The largest market for Nissan is in China actually where it dominates over the other Japanese car brands.

3. Toyota

Toyota reigns supreme as the top automaker in the world. In 2013 it took the number one spot for the second year in a row with 9.98 million vehicles sold. The Toyota Corolla was the best selling car in 2013 for this automotive company.

The History of Japan’s Automotive Industry

The car companies in Japan that have become successful all came from a rich history of hard work and innovation. It all began in 1904 when Torao Yamaha created the very first manufactured bus in Japan powered by a steam engine. Three years later, Komanosuke Uchiyama create the Takuri: the very first Japanese-created gasoline powered vehicle.

Automotive companies began forming and eventually merged together into the DAT Automobile Manufacturing Company which would eventually become Nissan Motors. Prior to World War II many of the cars in Japan were based on European models.

For example, the 1917 Mitsubishi Model A was inspired by the Fiat A3-3’s design. Twenty-two of these were made, making it the first mass produced model in Japan.

In 1925 The Ford Motor Company of Japan was created and a plant was built in Yokohama to start production. In 1927, General Motors stepped in to set up shop in Osaka. Chrysler followed suit, setting up Kyoritsu Motors during the time between 1925 and 1936.

This cemented the presence of the United State’s Big Three manufacturers, but it would not last. The foreign companies produced a total of 208,967 vehicles compared to Japan’s paltry 12,127 which sparked a fire.

In 1936 the Japanese government passed the Automobile Manufacturing Industry Law, which promoted domestic companies and limited competition from foreign ones.  It only took until 1939 before the foreign companies were forced to leave Japan.

After World  War II, the production of vehicles went down. Until 1966, most of the vehicles produced were trucks and three-wheeled vehicles. Exports were down, and the designs remained copies of other designs.

The 1960’s saw a revival for the industry though. Scooters and motorcycles became the dominant vehicles and were easier to export because the taxes weren’t as high on them as full-sized cars. The average citizen was also able to afford a vehicle as well, which increased sales.

This key factor is what put Japan on the path to becoming the dominant player it is today. The focus shifted away from smaller cars and instead move into family-sized vehicles with more powerful engines. Nissan was the first to push into this territory with the 1966 Sunny.

Toyota tried to break away from Nissan’s one-liter engines and instead went for a 1.1 liter option that provided an extra 100 cc of power. The small family cars of this era quickly became a focus in the automobile market.

Exports expanded two-hundred-fold in the 1960’s which was also fueled by massive expansion in the domestic markets. In the 1970’s many of the top car companies in Japan started selling vehicles in foreign markets. The 1973 Arab Oil Embargo raised the value of foreign currencies and served to push the growth even further.

By the 1980’s Japan had a major stake in the US and international markets. Nissan in particular became very popular among the British who lauded it for being reliable with low maintenance costs.

Final Thoughts

The Japanese automobile industry is a shining example of how to bounce back and rely on domestic talent and innovation to succeed. Despite being knocked down, the country continues to get back up and fight for their place among the other companies in the world. Both inspiring and innovative, these cars aren’t going anywhere anytime soon.