Japan
Automobile
Manufacturers
Association, Inc.

Issue No. 4, 2006

EU Production Up by 9.7% in 2005 Fiscal Year

EU production performance

During fiscal 2005 (April 2005 to March 2006 in Japan), JAMA members produced 1,420,391 vehicles in the EU25, which equates to a 9.7% growth from the previous fiscal year (up from 1,295,259 units).  This represents a high proportion of the total number of Japanese vehicles sold in the EU.

Fiscal 2005 results (April 2005-March 2006)

Apr 2005-Mar 2006
(units)

Apr 2004-Mar 2005
 (units)

Change (%)

Asia

4,174,624

3,623,380

115.2

Middle East

     10,880

     10,920

  99.6

Europe

(EU + non-EU)

1,603,506

1,464,394

109.5

(EU)

1,420,391

 1,295,259

109.7

North America (including USA)

4,092,193

 3,895,594

105.0

(USA)

3,386,751

 3,204,811

105.7

Latin America

   676,146

    570,126

118.6

Africa

   237,949

    197,007

120.8

Oceania

   134,620

    122,687

109.7

TOTAL

10,929,918

  9,884,108

110.6

Note:  “Change (%)” means percentage change from previous year, relative to an index of 100.

This performance coincides with the 20th anniversary of the first Japanese car built in the European Union.  The success of Japanese cars with European consumers subsequently grew year after year, resulting in a continuous increase in vehicle production by the European subsidiaries of Japanese automobile manufacturers.  Over the past two decades, JAMA member companies have invested 14.8 billion euros in European production and R&D facilities, thereby contributing to employment and the economy throughout the region.  The graph below illustrates the growth of Japanese automakers’ manufacturing activities in the EU over the past ten years.

               Graph 1     EU production by Japanese automakers (calendar years)


One consequence of this growth is a stronger relationship with the European supply chain.  European parts procurement by Japanese manufacturers has steadily increased, reaching 11.24 billon euros in 2005.  Today, European suppliers deliver more than 80% in value of the parts used in Japanese automakers’ European operations.  

           Graph 2     Purchase of EU parts by Japanese automakers

Global overseas production

For the 2005 fiscal year, EU manufacturing represented 13% of the total overseas production of Japanese auto manufacturers, which amounted to 10,929,918 vehicles, for a global increase of 10.6% over fiscal 2004. 

On the other hand, Japanese automakers’ domestic production for fiscal 2005 stood at 10,893,529 units (up 276,491 units, or 2.6%, compared with the 10,617,038 units recorded for fiscal 2004, and marking the fourth consecutive yearly rise)—0.33% lower than overseas production.  Thus for the first time, overseas production exceeded domestic production.

Graph 3     Overseas production by Japanese auto manufacturers in fiscal 2005, by region


Moreover, Japanese models produced in the EU and exported outside the EU totalled more than 384,220 units in 2005, thereby contributing to the EU trade balance.

Continued Growth in 2006

Overseas vehicle production by Japanese automakers in the first quarter of 2006 totalled 2,722,011 units, a global increase of 13.5% over the same period in the previous year.  This is explained by expanded overseas production operations in the world’s markets.

A similar trend was observed in the EU, where Japanese manufacturers produced a total of 381,488 vehicles in the first quarter of 2006, compared to 330,653 for the same period in 2005—equivalent to a 15.4% growth rate.