New Cars in Japan - · PDF fileJapan accounts for 31.2% of the Asia-Pacific new cars market...

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Japan - New Cars 0104 - 0358 - 2010

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INDUSTRY PROFILE

New Cars in

Japan

Reference Code: 0104-0358

Publication Date: October 2011

EXECUTIVE SUMMARY

Japan - New Cars 0104 - 0358 - 2010


EXECUTIVE SUMMARY

Market value

The Japanese new cars market grew by 8.6% in 2010 to reach a value of $138.1 billion.

Market value forecast

In 2015, the Japanese new cars market is forecast to have a value of $142.9 billion, an increase of 3.5% since 2010.

Market volume

The Japanese new cars market grew by 7.5% in 2010 to reach a volume of 4.2 million units.

Market volume forecast

In 2015, the Japanese new cars market is forecast to have a volume of 4.1 million units, a decrease of 4.1% since 2010.

Market segmentation

Japan accounts for 31.2% of the Asia-Pacific new cars market value.

Market share

Toyota is the leading player in the Japanese new cars market, generating a 33.5% share of the market's volume.

Market rivalry

Rivalry within the new cars market has been intensified, as a consequence of recent economic turbulence and the presence of strong, international incumbents.

CONTENTS

Japan - New Cars 0104 - 0358 - 2010


TABLE OF CONTENTS

EXECUTIVE SUMMARY 2

MARKET OVERVIEW 7

Market definition 7

Research highlights 8

Market analysis 9

MARKET VALUE 10

MARKET VOLUME 11

MARKET SEGMENTATION 12

MARKET SHARE 13

FIVE FORCES ANALYSIS 14

Summary 14

Buyer power 15

Supplier power 16

New entrants 17

Substitutes 18

Rivalry 19

LEADING COMPANIES 20

Honda Motor Co., Ltd. 20

Nissan Motor Co. Ltd. 24

Suzuki Motor Corporation 28

Toyota Motor Corporation 32

MARKET FORECASTS 36

Market value forecast 36

Market volume forecast 37

MACROECONOMIC INDICATORS 38

APPENDIX 40

Methodology 40

Industry associations 41

CONTENTS

Japan - New Cars 0104 - 0358 - 2010


Related Datamonitor research 41

Disclaimer 42

ABOUT DATAMONITOR 43

Premium Reports 43

Summary Reports 43

Datamonitor consulting 43

CONTENTS

Japan - New Cars 0104 - 0358 - 2010


LIST OF TABLES Table 1: Japan new cars market value: $ billion, 2006–10 10

Table 2: Japan new cars market volume: thousand units, 2006–10 11

Table 3: Japan new cars market segmentation: % share, by value, 2010 12

Table 4: Japan new cars market share: % share, by volume, 2010 13

Table 5: Honda Motor Co., Ltd.: key facts 20

Table 6: Honda Motor Co., Ltd.: key financials ($) 22

Table 7: Honda Motor Co., Ltd.: key financials (¥) 22

Table 8: Honda Motor Co., Ltd.: key financial ratios 22

Table 9: Nissan Motor Co. Ltd.: key facts 24

Table 10: Nissan Motor Co. Ltd.: key financials ($) 25

Table 11: Nissan Motor Co. Ltd.: key financials (¥) 26

Table 12: Nissan Motor Co. Ltd.: key financial ratios 26

Table 13: Suzuki Motor Corporation: key facts 28

Table 14: Suzuki Motor Corporation: key financials ($) 29

Table 15: Suzuki Motor Corporation: key financials (¥) 30

Table 16: Suzuki Motor Corporation: key financial ratios 30

Table 17: Toyota Motor Corporation: key facts 32

Table 18: Toyota Motor Corporation: key financials ($) 33

Table 19: Toyota Motor Corporation: key financials (¥) 34

Table 20: Toyota Motor Corporation: key financial ratios 34

Table 21: Japan new cars market value forecast: $ billion, 2010–15 36

Table 22: Japan new cars market volume forecast: thousand units, 2010–15 37

Table 23: Japan size of population (million), 2006–10 38

Table 24: Japan gdp (constant 2000 prices, $ billion), 2006–10 38

Table 25: Japan gdp (current prices, $ billion), 2006–10 38

Table 26: Japan inflation, 2006–10 39

Table 27: Japan consumer price index (absolute), 2006–10 39

Table 28: Japan exchange rate, 2006–10 39

CONTENTS

Japan - New Cars 0104 - 0358 - 2010


LIST OF FIGURES Figure 1: Japan new cars market value: $ billion, 2006–10 10

Figure 2: Japan new cars market volume: thousand units, 2006–10 11

Figure 3: Japan new cars market segmentation: % share, by value, 2010 12

Figure 4: Japan new cars market share: % share, by volume, 2010 13

Figure 5: Forces driving competition in the new cars market in Japan, 2010 14

Figure 6: Drivers of buyer power in the new cars market in Japan, 2010 15

Figure 7: Drivers of supplier power in the new cars market in Japan, 2010 16

Figure 8: Factors influencing the likelihood of new entrants in the new cars market in Japan, 2010 17

Figure 9: Factors influencing the threat of substitutes in the new cars market in Japan, 2010 18

Figure 10: Drivers of degree of rivalry in the new cars market in Japan, 2010 19

Figure 11: Honda Motor Co., Ltd.: revenues & profitability 23

Figure 12: Honda Motor Co., Ltd.: assets & liabilities 23

Figure 13: Nissan Motor Co. Ltd.: revenues & profitability 27

Figure 14: Nissan Motor Co. Ltd.: assets & liabilities 27

Figure 15: Suzuki Motor Corporation: revenues & profitability 31

Figure 16: Suzuki Motor Corporation: assets & liabilities 31

Figure 17: Toyota Motor Corporation: revenues & profitability 35

Figure 18: Toyota Motor Corporation: assets & liabilities 35

Figure 19: Japan new cars market value forecast: $ billion, 2010–15 36

Figure 20: Japan new cars market volume forecast: thousand units, 2010–15 37

MARKET OVERVIEW

Japan - New Cars 0104 - 0358 - 2010


MARKET OVERVIEW

Market definition

The new cars market consists of the initial retail sale of passenger cars. The market value is calculated at retail selling price (RSP) and the market volume is given in terms of units sold. Any currency conversions used in this report have been calculated at constant 2010 annual average exchange rates.

For the purposes of this report, Asia-Pacific comprises Australia, China, India, Indonesia, Japan, New Zealand, Singapore, South Korea, Taiwan, and Thailand.

MARKET OVERVIEW

Japan - New Cars 0104 - 0358 - 2010


Research highlights

The Japanese new cars market had total revenue of $138.1 billion in 2010, representing a compound annual rate of change (CARC) of -0.9% between 2006 and 2010.

Market consumption volumes declined with a CARC of -2.3% between 2006 and 2010, to reach a total of 4.2 million units in 2010.

The performance of the market is forecast to accelerate, with an anticipated compound annual growth rate (CAGR) of 0.7% for the five-year period 2010 - 2015, which is expected to drive the market to a value of $142.9 billion by the end of 2015.

MARKET OVERVIEW

Japan - New Cars 0104 - 0358 - 2010


Market analysis

After the decline experienced by the Japanese new cars market in recent years, the market recovered with strong growth in 2010. However, the market is predicted to fall in to decline once more in 2011 before moderate growth in the years up to the end of the forecast period.

The Japanese new cars market had total revenue of $138.1 billion in 2010, representing a compound annual rate of change (CARC) of -0.9% between 2006 and 2010. In comparison, the Chinese and Indian markets grew with compound annual growth rates (CAGRs) of 21.7% and 23.8% respectively, over the same period, to reach respective values of $178.7 billion and $48.5 billion in 2010.

Market consumption volumes declined with a CARC of -2.3% between 2006 and 2010, to reach a total of 4.2 million units in 2010. The market's volume is expected to fall to 4.1 million units by the end of 2015, representing a CARC of -0.8% for the 2010-2015 period.

The Insert sector 1 segment was the market's most lucrative in 2010, with total revenue of $0 billion, equivalent to 0% of the market's overall value. The Insert sector 1 segment contributed revenue of $0 billion in 2010, equating to 0% of the market's aggregate value.

The performance of the market is forecast to accelerate, with an anticipated CAGR of 0.7% for the five-year period 2010 - 2015, which is expected to drive the market to a value of $142.9 billion by the end of 2015. Comparatively, the Chinese and Indian markets will grow with CAGRs of 16.5% and 22.6% respectively, over the same period, to reach respective values of $383 billion and $134.5 billion in 2015.

MARKET VALUE

Japan - New Cars 0104 - 0358 - 2010


MARKET VALUE

The Japanese new cars market grew by 8.6% in 2010 to reach a value of $138.1 billion.

The compound annual rate of change of the market in the period 2006–10 was -0.9%.

Table 1: Japan new cars market value: $ billion, 2006–10 Year $ billion ¥ billion € billion % Growth2006 143.0 12,557.0 107.7 2007 140.3 12,320.6 105.7 (1.9%)2008 138.3 12,148.7 104.2 (1.4%)2009 127.2 11,171.7 95.8 (8.0%)2010 138.1 12,129.6 104.0 8.6%

CAGR: 2006–10 (0.9%)

Source: Datamonitor D A T A M O N I T O R

Figure 1: Japan new cars market value: $ billion, 2006–10


MARKET VOLUME

Japan - New Cars 0104 - 0358 - 2010


MARKET VOLUME

The Japanese new cars market grew by 7.5% in 2010 to reach a volume of 4,224.7 thousand units.

The compound annual rate of change of the market in the period 2006–10 was -2.3%.

Table 2: Japan new cars market volume: thousand units, 2006–10 Year thousand units % Growth2006 4,641.72007 4,400.3 (5.2%)2008 4,227.6 (3.9%)2009 3,930.0 (7.0%)2010 4,224.7 7.5%

CAGR: 2006–10 (2.3%)


Figure 2: Japan new cars market volume: thousand units, 2006–10


MARKET SEGMENTATION

Japan - New Cars 0104 - 0358 - 2010


MARKET SEGMENTATION

Japan accounts for 31.2% of the Asia-Pacific new cars market value.

China accounts for a further 40.3% of the Asia-Pacific market.

Table 3: Japan new cars market segmentation: % share, by value, 2010 Category % ShareChina 40.3Japan 31.2India 10.9South Korea 6.6Rest of Asia-Pacific 11.0

Total 100%


Figure 3: Japan new cars market segmentation: % share, by value, 2010


MARKET SHARE

Japan - New Cars 0104 - 0358 - 2010


MARKET SHARE

Toyota is the leading player in the Japanese new cars market, generating a 33.5% share of the market's volume.

Honda accounts for a further 14.2% of the market.

Table 4: Japan new cars market share: % share, by volume, 2010 Company % ShareToyota 33.5%Honda 14.2%Nissan 13.4%SUZUKI 11.4%Other 27.4%

Total 100%


Figure 4: Japan new cars market share: % share, by volume, 2010


FIVE FORCES ANALYSIS

Japan - New Cars 0104 - 0358 - 2010



The new cars market will be analyzed taking car manufacturers as players. The key buyers will be taken as consumers and fleet operators, and suppliers of commodity items, such as metals as the key suppliers.

Summary

Figure 5: Forces driving competition in the new cars market in Japan, 2010


Rivalry within the new cars market has been intensified, as a consequence of recent economical turbulences and due to presence of strong, international incumbents.

The new cars market has a large number of buyers. Manufacturers have invested significantly in brand building. Whilst switching costs are low and buyers are price-sensitive, this brand power means buyer power is weakened. Key inputs include commodities like steel, whose price may be difficult for manufacturers to control, and other inputs such as fabricated components and labor. Although there are high capital requirements for viable manufacturing scale, as the market shows signs of recovering from the recent economic downturn, incumbents may face more threat from new entrants. Substitutes such as used cars and public transport offer a strong threat to car makers. Concentration within particular geographic regions can be quite high, due to years of consolidation that have left relatively few major players.


Japan - New Cars 0104 - 0358 - 2010


Buyer power

Figure 6: Drivers of buyer power in the new cars market in Japan, 2010


The new cars market will be analyzed taking manufacturers as players and end-users, both consumers and fleet operators, as buyers. This assumes that the intermediaries (dealers) are transmitting end-user demand fairly reliably to manufacturers. The new cars market offers a great deal of choice for customers, with a variety of manufacturers making products with high levels of differentiation. For many buyers, who are price-sensitive, switching costs are low. However, manufacturers have invested heavily in brand building, meaning buyer power is weakened. This market is essentially a polypsony, with a large number of vehicles being sold to an equally large number of consumers, none of whom have a particularly large market share. This reduces buyer power. Car leasing companies offer a partial exception to this. Through bulk purchasing and contractual arrangements, favorable prices can be obtained, along with an enhanced degree of buyer power. Overall, buyer power in the new cars market is assessed as moderate.


Japan - New Cars 0104 - 0358 - 2010


Supplier power

Figure 7: Drivers of supplier power in the new cars market in Japan, 2010


Key inputs required by car manufactures include commodity items, such as metals, as well as more differentiated input such as fabricated components, produced by other companies rather than being manufactured in-house. There is often little to distinguish between suppliers, with raw materials offering low differentiation. This reduces buyer power somewhat. Despite this, the high importance of the quality of raw materials and components to the car manufacturers (particularly when safety-critical) can enhance supplier power. Manufacturers’ margins have been affected by the global fluctuating price of raw materials, such as steel and aluminum, during recent years. The upstream competitive landscape is relatively fragmented, although recent consolidation in the steel industry could boost supplier power. Typical suppliers are likely to sell to a wide variety of manufacturing companies, with the car market likely to be contributing only a small share of total supplier revenues. This further strengthens the position of suppliers. Overall, supplier power is moderate.


Japan - New Cars 0104 - 0358 - 2010


New entrants

Figure 8: Factors influencing the likelihood of new entrants in the new cars market in Japan,

2010


It is relatively difficult for new players to directly enter a particular country’s market due to the importance of brand strength and reputation within the new cars market. Those that succeed often do so through the introduction of successful foreign brands. Due to the high fixed costs in car design and manufacture, as well as the economies of scale gained from mass production, new start-up companies are rare: the capital requirements for a manufacturing facility of feasible scale are high. New entrants are likely to be put off by recent market decline and the filing of bankruptcy by large market players General Motors and Chrysler. Additionally, many of the major new car markets have faced recession, with buyers avoiding expensive purchases such as a new car. The government introduced a car scrappage scheme in 2009, leading to boosted car sales. Despite this, the threat of new entrants is assessed as weak.


Japan - New Cars 0104 - 0358 - 2010


Substitutes

Figure 9: Factors influencing the threat of substitutes in the new cars market in Japan, 2010


The main substitutes threatening players in the new cars market are used cars, alternative forms of personal transport, and public transport. Auto manufacturers totally committed to conventionally-powered cars may see hybrid powered vehicles as a threat. These are often cheaper alternatives, and offer a more environmentally friendly option, which is generally rewarded by governments, i.e. through lower taxes. Public transport, and substitutes, such as cycles, can reduce the effect of volatile fuel prices for the user. However, end-users may also find them less convenient, less reliable, and less significant as status symbols. Overall, the threat from substitutes - particularly in countries affected by recession and with high consumer awareness of environmental factors - is strong.


Japan - New Cars 0104 - 0358 - 2010


Rivalry

Figure 10: Drivers of degree of rivalry in the new cars market in Japan, 2010


A relatively small number of large companies dominate the new cars market, with Toyota, Honda and Nissan holding a strong market position. The market is fairly consolidated, as companies in large but mature markets, such as Japan, have looked to increase their market share inorganically, in the face of limited growth. Rivalry is reduced somewhat due to a degree of differentiation, with several different segments within the market, such as luxury and budget. Companies utilize a high level of design and marketing to promote their product. The new car market was one of the most severely hit during the global economic downturn, with automotive manufacturers experiencing record losses, culminating in few well known players having to file for bankruptcy in 2009. However, the Japanese new cars market is showing signs of recovery and this may help to alleviate rivalry slightly. As a result of the recession, the market is set to consolidate over the next few years: manufacturers are likely to become ever more competitive in order to cover their huge operating costs, as exit barriers are very high in the automotive market. Overall, rivalry in the new cars market is strong.

LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


LEADING COMPANIES

Honda Motor Co., Ltd.

Table 5: Honda Motor Co., Ltd.: key facts Head office: 1-1 2-chome, Minami-Aoyama, Minato-ku, Tokyo, 107 8556, JPN Telephone: 81 3 3423 1111 Website: world.honda.com Financial year-end: March Ticker: HMC, 7267 Stock exchange: New York, Tokyo Source: company website D A T A M O N I T O R

Honda Motor (Honda) is one of the leading manufacturers of automobiles and the largest manufacturer of motorcycles in the world. The company also provides a range of financial services to its customers and dealers. The company has 390 subsidiaries and 102 affiliates all over the world.

The company operates through four business segments: automobile, motorcycle, financial services, and power products and others.

The automobiles business segment manufactures passenger cars, multi-wagons, minivans, sport utility vehicles, and mini cars. Honda's automobiles use gasoline engines of three, four or six-cylinder powered, diesel engines, and gasoline-electric hybrid systems. The company also offers alternative fuel-powered vehicles such as natural gas, ethanol, and fuel cell vehicles.

The company's popular passenger car models include Legend, Accord, Inspire, Civic, Insight, City, Acura RL, Acura TL, Acura TSX, and Acura CSX. In the multi-wagons, minivans, sport utility vehicle, the popular models include Elysion, Odyssey, Step Wagon, Stream, FREED, FR-V, Airwave, Fit/Jazz, Partner Pilot, Ridgeline, CR-V, Element, Crossroad, CR-Z, Acura RDX, Acura MDX and Acura ZDX. The mini cars are marketed under Life, Zest, Vamos, and Acty models.

Honda manufactures its automobiles at two sites in Japan: the Saitama factory and the Suzuka factory. The company's other major production sites are located in the US (Ohio, Alabama, and Indiana), Canada (Ontario), UK (Swindon), Thailand (Ayutthaya) India (Uttar Pradesh), and Brazil (Sao Paulo). In addition, Yachiyo Industry Co, one of the company's consolidated subsidiaries, assembles Mini cars for the Japanese domestic market.

LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


In FY2010, the company sold 3,392,000 units of automobiles. Of the total sales, the company sold 646,000 in Japan; 1,297,000 in North America; 249,000 in Europe; 950,000 in Asia; and the remaining 250,000 in other regions.

The motorcycle business segment produces a range of motorcycles, from 50 cubic capacities (cc) to 1,800 cc cylinder displacement. Honda's motorcycle line consists of sports (including trial and moto-cross racing), business and commuter models. The motorcycles use internal combustion engines developed by the company that are air or water cooled, two or four cycled, and single, two, four, or six cylinder powered. Honda's motorcycles are produced at the Kumamoto factory in Japan. The company also has production facilities in Italy, Thailand, Vietnam, the Philippines, India, Brazil, and Argentina. In FY2010, the company sold 9,639,000 units of motorcycles. Out of the total sales, the company sold 190,000 in Japan; 189,000 in North America; 199,000 in Europe; 7,628,000 in Asia; and remaining 1,433,000 in other regions.

Honda offers several financial services to its customers and dealers through subsidiaries in countries including Japan, the US, Canada, the UK, Germany, Brazil, and Thailand. The services include retail lending, leasing to customers, and other financial services, such as wholesale financing to dealers.

Honda's power products and other businesses segment manufactures a range of power products including power tillers, portable generators, general purpose engines, grass cutters, outboard marine engines, water pumps, snow throwers, power carriers, power sprayers, lawn mowers, and lawn tractors (riding lawn mowers). Honda also manufactures the major components and parts used in its products, including engines, frames, and transmissions. In FY2010, the company sold 4,744,000 units of power products.

The company also makes engines for light business jets as well as automobile fuel cells. Honda also manufactures ASIMO (humanoid robots), and sells thin film solar cells made of crystalline silicon for home use, public and industrial use.

Key Metrics

The company recorded revenues of $97,681 million in the fiscal year ending March 2010, a decrease of 14.3% compared to fiscal 2009. Its net income was $6,081 million in fiscal 2010, compared to a net income of $1,560 million in the preceding year.

LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


Table 6: Honda Motor Co., Ltd.: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 112,810.3 126,235.3 136,661.6 113,985.8 97,680.6Net income (loss) 6,797.3 6,743.8 6,831.9 1,559.9 6,081.0Total assets 120,365.9 137,044.9 143,637.8 134,567.6 132,406.5Total liabilities 73,391.6 86,007.0 90,283.2 87,540.4 79,563.4Employees 144,785 167,231 178,960 181,876 176,815 Source: company filings D A T A M O N I T O R

Table 7: Honda Motor Co., Ltd.: key financials (¥) ¥ million 2006 2007 2008 2009 2010Revenues 9,908,000.0 11,087,100.0 12,002,834.

010,011,241.

0 8,579,174.0

Net income (loss) 597,000.0 592,300.0 600,039.0 137,005.0 534,088.0Total assets 10,571,600.

012,036,500.0 12,615,543.

011,818,917.

0 11,629,115.0

Total liabilities 6,445,900.0 7,553,900.0 7,929,472.0 7,688,573.0 6,987,962.0 Source: company filings D A T A M O N I T O R

Table 8: Honda Motor Co., Ltd.: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 6.0% 5.3% 5.0% 1.4% 6.2%Revenue growth 14.5% 11.9% 8.3% (16.6%) (14.3%)Asset growth 13.5% 13.9% 4.8% (6.3%) (1.6%)Liabilities growth 6.9% 17.2% 5.0% (3.0%) (9.1%)Debt/asset ratio 61.0% 62.8% 62.9% 65.1% 60.1%Return on assets 6.0% 5.2% 4.9% 1.1% 4.6%Revenue per employee $779,157 $754,856 $763,643 $626,723 $552,445Profit per employee $46,948 $40,326 $38,176 $8,577 $34,392 Source: company filings D A T A M O N I T O R

LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


Figure 11: Honda Motor Co., Ltd.: revenues & profitability

Source: company filings D A T A M O N I T O R

Figure 12: Honda Motor Co., Ltd.: assets & liabilities


LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


Nissan Motor Co. Ltd.

Table 9: Nissan Motor Co. Ltd.: key facts Head office: 1-1 Takashima 1-chome, Nishi-ku, Yokohama-shi, Kanagawa 220-

8686, JPN Telephone: 81 45 523 5523 Website: www.nissan-global.com Financial year-end: March Ticker: 7201OTC Stock exchange: Tokyo Source: company website D A T A M O N I T O R

Nissan Motor (Nissan) and its consolidated subsidiaries are primarily engaged in the manufacture and sale of automobile products, marine equipment and forklift business. Nissan manufactures vehicles in 20 countries and offers its products and services in more than 160 countries worldwide. It primarily operates in Japan, the US, Canada, Mexico, Australia, New Zealand, South Africa, Middle East, and Asia.

The group partners with Renault for automobile manufacturing and sales; and automotive financing. Renault holds 44.3% stake in Nissan, while Nissan owns 15% of Renault shares. Renault Nissan manages the operations of RNPO (Renault-Nissan Purchasing Organization) and RNIS (Renault-Nissan Information Services).

The group organizes its operations into two reportable segments: automobile and sales financing.

Nissan's automobile segment is engaged in the manufacturing and sale of passenger cars, trucks, SUVs (sports utility vehicles), light utility vehicles, and mini vans. The group markets its passenger cars under Nissan, Infiniti, and Forklift brand names. Some of the important models of the Nissan brand include Leaf, Micra, Cube, Sunny, Tsuru, Versa, Bluebird, Fairlady, GT-R, Wingroad, Sentra, Lafesta, Juke, Rogue, Altima, Maxima, X-trail, Patrol, Pathfinder, Armada, Xterra, Murano, Quest, Elgrand, Livina, Serena, Clipper, Frontier, Titan, Altas, Primaster, and Teana.

Nissan also manufactures luxury cars under the brand name Infiniti. Infiniti brand is highly regarded for its advanced design and powerful performance in each of its markets, including the US, Canada, Russia, the Middle East and Korea. Some of its models include Infiniti G, Infiniti G Coupe, Infiniti G Convertible, and Infiniti DX.

In FY2010, the group produced 3,282,436 units worldwide, including 1,025,253 units in Japan and 2,257,183 units in other countries.

LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


Out of these 2,257,183 units, the company produced 755,890 units (including Dongfeng brand passenger vehicle and light commercial vehicle) in China, 432,725 units in the US, 404,128 units in Mexico, 379,574 units in the UK, 65,506 units in Spain and the remaining 219,360 units from other countries,

For the same period, Nissan sold 3,514,759 units worldwide including 630,070 units (including mini vehicles) in Japan, 755,520 units in China, 1,067,441 units in North America, 516,978 units in Europe and the remaining 544,750 units from other regions.

Nissan is also engaged in the development, production and sales of industrial machinery through Nissan Forklift. Nissan Forklift supports the logistic operation of various industries by providing forklifts and other material handling equipment in the global market. It has extensive sales and service network of distributors and dealers covering over 85 countries around the world. Nissan also engaged in various marine businesses including pleasure boat production and sales, marina business, and export of outboard engines through its subsidiary Nissan Marine.

The group's sales financing segment provides financial products and services such as auto loans, car leasing, credit cards, car rental, and car insurance through its wholly owned subsidiary, Nissan Financial Services (NFS). These financial services are provided primarily in Japan and North America.

Key Metrics

The company recorded revenues of $85,590 million in the fiscal year ending March 2010, a decrease of 10.9% compared to fiscal 2009. Its net income was $483 million in fiscal 2010, compared to a net loss of $2,661 million in the preceding year.

Table 10: Nissan Motor Co. Ltd.: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 107,348.5 119,193.0 123,242.4 96,061.5 85,590.1Net income (loss) 5,898.4 5,246.5 5,490.9 (2,661.0) 482.6Total assets 130,725.0 141,208.8 135,940.3 116,585.2 116,303.7Total liabilities 95,565.9 97,066.2 92,111.4 86,666.5 81,974.4Employees 186,336 180,535 159,097 160,422 151,698 Source: company filings D A T A M O N I T O R

LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


Table 11: Nissan Motor Co. Ltd.: key financials (¥) ¥ million 2006 2007 2008 2009 2010Revenues 9,428,292.0 10,468,583.0 10,824,238.

08,436,974.0 7,517,277.0

Net income (loss) 518,050.0 460,796.0 482,261.0 (233,709.0) 42,390.0Total assets 11,481,426.

012,402,208.0 11,939,482.

010,239,540.

0 10,214,820.0

Total liabilities 8,393,443.0 8,525,214.0 8,090,039.0 7,611,818.0 7,199,715.0 Source: company filings D A T A M O N I T O R

Table 12: Nissan Motor Co. Ltd.: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 5.5% 4.4% 4.5% (2.8%) 0.6%Revenue growth 9.9% 11.0% 3.4% (22.1%) (10.9%)Asset growth 16.6% 8.0% (3.7%) (14.2%) (0.2%)Liabilities growth 13.7% 1.6% (5.1%) (5.9%) (5.4%)Debt/asset ratio 73.1% 68.7% 67.8% 74.3% 70.5%Return on assets 4.9% 3.9% 4.0% (2.1%) 0.4%Revenue per employee $576,102 $660,221 $774,637 $598,805 $564,214Profit per employee $31,655 $29,061 $34,513 ($16,587) $3,182 Source: company filings D A T A M O N I T O R

LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


Figure 13: Nissan Motor Co. Ltd.: revenues & profitability


Figure 14: Nissan Motor Co. Ltd.: assets & liabilities


LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


Suzuki Motor Corporation

Table 13: Suzuki Motor Corporation: key facts Head office: 300 Takatsuka-cho, Minami ku, Hamamatsu City 432 8611, JPN Telephone: 81 53 4402904 Website: www.globalsuzuki.com Financial year-end: March Ticker: 7269 Stock exchange: Tokyo Source: company website D A T A M O N I T O R

Suzuki Motor (Suzuki) designs and manufactures passenger cars, commercial vehicles, motorcycles, all-terrain vehicles (ATVs), outboard motors, and other products. The company also provides logistics and other services related to the respective operations. Suzuki operates in 187 countries, and its main production facilities are located in 23 countries and areas worldwide. The company has 139 subsidiaries and 35 affiliate companies.

The company operates through four business segments: automobile, motorcycle, marine and power products, and financial services.

The automobile segment manufactures sports utility vehicles, minicars, and premium and luxury cars. Suzuki's brands in the automobile segment comprises Swift, SX4 (sports crossover vehicle), Splash, Grand Vitara, Jimny, Alto/CERELIO, APV, and Kizashi. The company manufactures its automobiles through its subsidiaries, Magyar Suzuki, Maruti Suzuki India, and through an affiliate, CAMI Automotive. The automobile parts are manufactured by Suzuki Hamamatsu Auto Parts and others. The marketing of automobiles is carried out by its subsidiaries, Suzuki Motor Sales Kinki, Japan; American Suzuki Motor, the US; and other marketing companies. The company also offers various logistics services through its subsidiary, Suzuki Transportation & Packing.

In FY2010, the company's worldwide automobile production was 2,545,000 units, and its global sales were 2,349,000 units. Automobile production in Japan accounted to 959,000 units with sales of 622,000 units, while the overseas production was 1,586,000 units with sales of 1,727,000 units.

The motorcycle segment manufactures motorcycles, scooters, ATVs, and motorsports. Suzuki's brands in the motorcycles segment comprises of Let's4 and Let's5 scooters, Gemma, GSR400/ABS, Gladius, Bandit 650, GSXR1000, Suzuki Boulevard M90 cruiser and the KINGQUAD 750AXi 4x4 ATV.

LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


Motorcycles are manufactured by the company and its subsidiary, Thai Suzuki Motor, and an affiliate, Jinan Qingqi Suzuki Motorcycle. The motorcycle parts are manufactured by the company's subsidiary, Suzuki Toyama Auto Parts, Japan and others.

The company markets its motorcycles in the domestic market through a subsidiary, Suzuki Motorcycle Sales (Higashi Nihon) and other marketing companies. In overseas markets, the marketing of motorcycles is conducted through a subsidiary, Suzuki International Europe, Germany and other marketing companies. In FY2010, the company's worldwide motorcycle production was 2,902,000 units, and its global sales were 3,017,000 units. Motorcycles production in Japan was accounted to 162,000 units, while the overseas production was 2,740,000 units.

The marine and power products segment manufacture outboard motors, motorized wheelchairs and electro senior vehicles. Outboard motors are manufactured mainly by the company and are marketed by its subsidiary, Suzuki Marine, Japan and others. In the domestic market, Suzuki markets its motorized wheelchairs and electro senior vehicles through its subsidiaries Suzuki Motor Sales Kinki and others. The financial services segment of the company is conducted by a subsidiary, Suzuki Finance, and others.

In addition, Suzuki has been engaged in various business opportunities with other car manufacturers worldwide. For instance, the company works together with General Motors to generate synergies by utilizing and complementing resources in various areas, including advanced technologies, CAMI project, power trains, and global joint purchasing, mutual supply of vehicles, etc. Further, Suzuki also supplies Mazda's mini-cars in Japan, and it has cross-OEM relationship with Nissan.

Key Metrics

The company recorded revenues of $28,112 million in the fiscal year ending March 2010, a decrease of 17.8% compared to fiscal 2009. Its net income was $329 million in fiscal 2010, compared to a net income of $312 million in the preceding year.

Table 14: Suzuki Motor Corporation: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 31,270.5 36,020.8 39,877.8 34,213.0 28,112.2Net income (loss) 750.8 854.0 913.8 312.3 329.2Total assets 21,060.4 26,431.4 27,430.2 24,568.8 27,113.1Total liabilities 12,972.7 16,685.5 17,150.1 16,110.1 16,274.0 Source: company filings D A T A M O N I T O R

LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


Table 15: Suzuki Motor Corporation: key financials (¥) ¥ million 2006 2007 2008 2009 2010Revenues 2,746,453.0 3,163,669.0 3,502,419.0 3,004,888.0 2,469,063.0Net income (loss) 65,945.0 75,008.0 80,254.0 27,429.0 28,913.0Total assets 1,849,714.0 2,321,441.0 2,409,165.0 2,157,849.0 2,381,314.0Total liabilities 1,139,381.0 1,465,468.0 1,506,270.0 1,414,934.0 1,429,331.0 Source: company filings D A T A M O N I T O R

Table 16: Suzuki Motor Corporation: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 2.4% 2.4% 2.3% 0.9% 1.2%Revenue growth 16.1% 15.2% 10.7% (14.2%) (17.8%)Asset growth 9.2% 25.5% 3.8% (10.4%) 10.4%Liabilities growth 38.3% 28.6% 2.8% (6.1%) 1.0%Debt/asset ratio 61.6% 63.1% 62.5% 65.6% 60.0%Return on assets 3.7% 3.6% 3.4% 1.2% 1.3% Source: company filings D A T A M O N I T O R

LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


Figure 15: Suzuki Motor Corporation: revenues & profitability


Figure 16: Suzuki Motor Corporation: assets & liabilities


LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


Toyota Motor Corporation

Table 17: Toyota Motor Corporation: key facts Head office: 1 Toyota-cho, Toyota city, Aichi Prefecture 471-8571, JPN Telephone: 81 565 28 2121 Fax: 81 565 23 5721 Website: www.toyota.co.jp Financial year-end: March Ticker: TM, 7203 Stock exchange: New York, Tokyo Source: company website D A T A M O N I T O R

Toyota Motor Corporation (Toyota) is one of the largest automobile manufacturers in the world. The company is engaged in the design, manufacture, assembly and sale of passenger cars, minivans, compact cars, sports utility vehicles (SUV), trucks and related parts and accessories throughout the world. It also provides financing, vehicle and equipment leasing and certain other financial services primarily to its dealers and their customers to support the sales of vehicles and other products manufactured by Toyota. Toyota and its affiliates produce automobiles and related parts and components through more than 51 manufacturing companies in 26 countries and regions.

The company operates through three business segments: automotive, financial services and other.

Toyota produces automotives in two categories: conventional engine vehicles and hybrid vehicles. The company's product line-up includes sub-compact and compact cars, mini-vehicles, mid-size, luxury, sports and specialty cars, recreational and sport-utility vehicles, pickup trucks, minivans, trucks and buses. The company sells its products under Toyota, Lexus, Hino and Daihatsu brands. Under the Toyota brand, the company includes models such as the Camry, the Corolla and the Avensis. Lexus is the luxury car division of Toyota, and is operated as an entity separate from the Toyota brand. Lexus also produces the luxury sports utility vehicle, the RX330. Hino produces and sells commercial vehicles. Daihatsu Motor produces and sells mini-vehicles and compact cars. In Japan, the company sells luxury cars under the brand name Crown and the Century limousine. The Prius is the company's mass-produced hybrid car.

Toyota's sub-compact and compact cars include the four-door Corolla sedan, which is one of Toyota's best-selling models. The Yaris, marketed as the Vitz in Japan, is a sub-compact car, designed particularly for the European consumers.

LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


The company's sport-utility vehicles includes the Sequoia, the 4Runner, the RAV4, the Highlander, the FJ Cruiser and the Land Cruiser; and the Tacoma and Tundra are pickup trucks. Toyota's models for the minivan market include the Alphard, Sienna, Estima, Hiace, Regius Ace, the Noah, the Voxy and the Isis.

In FY2010, the company recorded total sales of 7,237,000 units, as compared to the unit sales of 7,567,000 in FY2009. Out of the total sales, the company sold 2,163,000 vehicles in Japan; 2,098,000 vehicles in North America; 979,000 vehicles in Asia; 858,000 in Europe; and remaining 1,139,000 vehicles in other countries. Further, the company produced a total of 6,809,000 units in FY2010, as compared to 7,051,000 units in FY2009.

Toyota's financial services operations are primarily handled by Toyota Financial Services Corporation (TFS), which has overall control of financial services subsidiaries worldwide. TFS provides financial services primarily for vehicle purchases and leases to approximately 8.1 million customers in 33 countries and regions worldwide. The segment also provides retail financing, retail leasing, wholesale financing, credit cards, housing loans and insurance services. Some of the financial service subsidiaries of the company include Toyota Finance in Japan, Toyota Financial Services, Toyota Credit Canada, Toyota Finance Australia, Toyota Kreditbank and Toyota Financial Services (UK).

The company's other business segment consists of housing, including the manufacture and sale of prefabricated homes, information technology related businesses, including information technology and telecommunications, intelligent transport systems, GAZOO and other businesses.

Key Metrics

The company recorded revenues of $215,772 million in the fiscal year ending March 2010, a decrease of 7.7% compared to fiscal 2009. Its net income was $2,385 million in fiscal 2010, compared to a net loss of $4,975 million in the preceding year.

Table 18: Toyota Motor Corporation: key financials ($) $ million 2006 2007 2008 2009 2010Revenues 239,521.6 272,667.7 299,323.5 233,745.2 215,771.6Net income (loss) 15,623.3 18,718.6 19,559.4 (4,974.9) 2,384.8Total assets 327,131.6 370,889.3 369,563.3 330,894.0 345,550.3Total liabilities 200,179.8 236,126.1 234,419.5 216,339.3 221,098.7Employees 285,977 299,394 324,537 320,808 320,590 Source: company filings D A T A M O N I T O R

LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


Table 19: Toyota Motor Corporation: key financials (¥) ¥ million 2006 2007 2008 2009 2010Revenues 21,036,909.

023,948,091.0 26,289,240.

020,529,570.

0 18,950,973.0

Net income (loss) 1,372,180.0 1,644,032.0 1,717,879.0 (436,937.0) 209,456.0Total assets 28,731,595.

032,574,779.0 32,458,320.

029,062,037.

0 30,349,287.0

Total liabilities 17,581,566.0

20,738,687.0 20,588,793.0

19,000,830.0

19,418,844.0


Table 20: Toyota Motor Corporation: key financial ratios Ratio 2006 2007 2008 2009 2010Profit margin 6.5% 6.9% 6.5% (2.1%) 1.1%Revenue growth 13.4% 13.8% 9.8% (21.9%) (7.7%)Asset growth 18.1% 13.4% (0.4%) (10.5%) 4.4%Liabilities growth 18.9% 18.0% (0.7%) (7.7%) 2.2%Debt/asset ratio 61.2% 63.7% 63.4% 65.4% 64.0%Return on assets 5.2% 5.4% 5.3% (1.4%) 0.7%Revenue per employee $837,556 $910,732 $922,309 $728,614 $673,045Profit per employee $54,631 $62,522 $60,269 ($15,507) $7,439 Source: company filings D A T A M O N I T O R

LEADING COMPANIES

Japan - New Cars 0104 - 0358 - 2010


Figure 17: Toyota Motor Corporation: revenues & profitability


Figure 18: Toyota Motor Corporation: assets & liabilities


MARKET FORECASTS

Japan - New Cars 0104 - 0358 - 2010


MARKET FORECASTS

Market value forecast

In 2015, the Japanese new cars market is forecast to have a value of $142.9 billion, an increase of 3.5% since 2010.

The compound annual growth rate of the market in the period 2010–15 is predicted to be 0.7%.

Table 21: Japan new cars market value forecast: $ billion, 2010–15 Year $ billion ¥ billion € billion % Growth2010 138.1 12,129.6 104.0 8.6%2011 125.9 11,060.7 94.9 (8.8%)2012 133.6 11,733.3 100.6 6.1%2013 136.9 12,022.0 103.1 2.5%2014 139.8 12,276.3 105.3 2.1%2015 142.9 12,553.2 107.7 2.3%

CAGR: 2010–15 0.7%


Figure 19: Japan new cars market value forecast: $ billion, 2010–15


MARKET FORECASTS

Japan - New Cars 0104 - 0358 - 2010


Market volume forecast

In 2015, the Japanese new cars market is forecast to have a volume of 4,052.3 thousand units, a decrease of 4.1% since 2010.

The compound annual rate of change of the market in the period 2010–15 is predicted to be -0.8%.

Table 22: Japan new cars market volume forecast: thousand units, 2010–15 Year thousand units % Growth2010 4,224.7 7.5%2011 3,788.0 (10.3%)2012 3,974.2 4.9%2013 4,005.4 0.8%2014 4,019.3 0.3%2015 4,052.3 0.8%

CAGR: 2010–15 (0.8%)


Figure 20: Japan new cars market volume forecast: thousand units, 2010–15


MACROECONOMIC INDICATORS

Japan - New Cars 0104 - 0358 - 2010



Table 23: Japan size of population (million), 2006–10 Year Population (million) % Growth2006 127.8 0.0%2007 127.8 0.0%2008 127.7 (0.1%)2009 127.5 (0.1%)2010 127.4 (0.1%)


Table 24: Japan gdp (constant 2000 prices, $ billion), 2006–10 Year Constant 2000 Prices, $ billion % Growth2006 4,799.7 0.8%2007 4,873.4 1.5%2008 4,702.8 (3.5%)2009 4,452.0 (5.3%)2010 4,561.7 2.5%


Table 25: Japan gdp (current prices, $ billion), 2006–10 Year Current Prices, $ billion % Growth2006 4,362.6 (4.2%)2007 4,378.0 0.4%2008 4,880.0 11.5%2009 5,033.0 3.1%2010 5,457.7 8.4%



Japan - New Cars 0104 - 0358 - 2010


Table 26: Japan inflation, 2006–10 Year Inflation Rate (%)2006 0.3%2007 0.1%2008 1.4%2009 (1.4%)2010 (0.7%)


Table 27: Japan consumer price index (absolute), 2006–10 Year Consumer Price Index (2000 = 100)2006 98.12007 98.22008 99.52009 98.22010 97.5


Table 28: Japan exchange rate, 2006–10 Year Exchange rate ($/¥) Exchange rate (€/¥)2006 116.3366 145.96272007 117.8145 161.20872008 103.4662 151.39692009 93.6167 130.17512010 87.8289 116.5760


APPENDIX

Japan - New Cars 0104 - 0358 - 2010


APPENDIX

Methodology

Datamonitor Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-checked and presented in a consistent and accessible style.

Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by analysis from industry experts using highly complex modeling & forecasting tools, Datamonitor’s in-house databases provide the foundation for all related industry profiles

Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market overview

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Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and trends

Datamonitor aggregates and analyzes a number of secondary information sources, including: - National/Governmental statistics - International data (official international sources) - National and International trade associations - Broker and analyst reports - Company Annual Reports - Business information libraries and databases

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Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

APPENDIX

Japan - New Cars 0104 - 0358 - 2010


Industry associations

International Organization of Motor Vehicle Manufacturers

4 rue de Berri, F 75008 Paris, France Tel.: 0033 1 4359 0013 Fax: 0033 1 4563 8441 http://www.oica.net/htdocs/Main.htm

Japan Automobile Manufacturers Association

Jidosha Kaikan 16-17F, Shiba Daimon 1-chome, Minato-ku, J Tokyo 105-0012, Japan Tel.: 0081 3 5405 6126 Fax: 0081 3 5405 6136 http://www.jama.or.jp

Related Datamonitor research

Industry Profile

Global new cars

New Cars in Australia

New Cars in Europe

New Cars in Asia-Pacific

New Cars in China

APPENDIX

Japan - New Cars 0104 - 0358 - 2010


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Japan - New Cars 0104 - 0358 - 2010


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