Japan’s Core Automotive Industry Faces Rocky Road Under Tariffs

Figures from the last few years demonstrate the importance to Japan of its automotive industry, which faces a rocky road through tariffs imposed by the United States under President Donald Trump.

In 2022, the value of shipments for the Japanese automotive industry totaled ¥62.8 trillion, accounting for 17.4% of total shipments within the manufacturing sector.

In fiscal 2023, capital investment in automobile manufacturing totaled ¥1.5 trillion, accounting for 25.5% of the ¥6.0 trillion for all manufacturing industries. Meanwhile, in fiscal 2022, auto research and development expenditures totaled ¥3.9 trillion, or slightly more than 30% of the total ¥12.8 trillion for manufacturing as a whole.

The number of people employed in automobile-related sectors totals 883,000 in manufacturing alone (finished vehicle manufacturers and parts manufacturers). However, include the sales and maintenance sectors, material sectors (e.g. steel, textiles, and paint), related services (e.g. gas stations), and user industries (e.g. transportation), and the total rises to 5.6 million people, which is 8.3% of Japan’s total workforce of 67.5 million.

(Translated from Japanese. Banner photo © Pixta.)