Japan Automotive OEM Market Size, Share, and COVID-19 Impact Analysis, By Component (External Body, Electrical and Electronics, Car Interior, Power-Train and Chassis, Others), By Vehicle Type (Commercial Vehicles, Passenger Cars, Electric Vehicles, Others), By Distribution Channel (OEM Retailers, Wholesalers, Distributors, Others) and Japan Automotive OEM Market Insights, Industry Trend, Forecasts to 2030Industry: Automotive & Transportation
OEM is an abbreviation for Original Equipment Manufacturer. Since the OEM is the original manufacturer of a vehicles components, OEM car parts are identical to the parts used in the production of a vehicle. The quality and compatibility of aftermarket parts, which are made by different vendors, may not always be constant. These producers use the highest grade raw materials to create the devices or components, which are of the highest caliber. These components are used in the assembly of vehicles during the manufacturing process.
One of the largest and most well-known industries in the world is the automotive sector in Japan. Innovation holds high regard among the Japanese. Its automotive industry, which is extremely inventive and technology-driven, excels in terms of quality and production.
The largest manufacturing sector in Japan, which is dominated by the automotive industry, accounts for 89% of the country's total manufacturing output, and auto components suppliers have become a significant contributor to the country's economy by diversifying into sectors like chemicals and rubber. For example, the Japan Automotive Dealers Association and Japan Light Motor Vehicles and Motorcycle Association report that sales in Japan grew 15.7% to 328, 999 units in January 2022. Toyota is at the top of the production data list. Its massive market share of 47% of domestic production is greater than that of other high-volume OEMs, the majority of which are based outside of Japan. Honda and Suzuki are the companies that come after Toyota Motor Corporation and Nissan Motor Company.
This research report categorizes the market for Japan Automotive OEM Market based on various segments and regions and forecasts revenue growth and analyzes trends in each submarket. The report analyses the key growth drivers, opportunities, and challenges influencing the Japan Automotive OEM Market. Recent market developments and competitive strategies such as expansion, product launch, and development, partnership, merger, and acquisition have been included to draw the competitive landscape in the market. The report strategically identifies and profiles the key market players and analyses their core competencies in each sub-segments of the Japan Automotive OEM Market.
Innovation holds high regard among the Japanese. It’s very innovative and leading in terms of quality and output automotive OEM sector. Through rising vehicle sales, expertise in the areas of cost, quality, performance, design, and fuel economy has led to global leadership. OEM and aftermarket manufacturers have a strong desire to stand out in the automobile parts market because of the fierce competition in the region.
Japanese companies in both OEM and aftermarket are actively using technologies such as 3D printing to efficiently create on-demand parts and make their supply chains more flexible. Rapid changes in product demand may be costly for traditional production to respond to and may require companies to maintain higher inventory levels. Japanese automotive giants are providing on-demand production auto parts manufacturers with additional production options.
Several factors, including the high cost of OEM components and parts, as well as the rise in the prevalence of counterfeit OEM products, are expected to limit the market's potential growth in the automotive original equipment manufacturer (OEM) sector. These factors could also pose a threat to market expansion during the forecast period.
COVID 19 Impacts
The COVID-19 pandemic led supply networks to become disrupted, which resulted in the suspension of vehicle manufacturing. Additionally, during the pandemic, vehicle sales were extremely less. To sustain markets in the East Asian region from declining too sharply, Japan's larger automotive OEMs worked to stabilize smaller automobile and auto part manufacturers.
- In 2022, the power-train and chassis segment is witnessing a higher growth rate over the forecast period.
Based on components, the Japan Automotive OEM Market is segmented into the external body, electrical and electronics, car Interior, power-train and chassis, and others. Among these, the power-train and chassis segment is witnessing a higher growth rate over the forecast period owing to the increased demand for electric vehicles and battery electric vehicles. The rise in environmental concerns, surge in energy consumption, and advancement in hybrid vehicle innovation by renowned Japanese companies are likely to fuel the growth of the power-train and chassis segment in the automotive OEM market.
- In 2022, the commercial vehicles segment is witnessing significant CAGR growth over the forecast period.
On the basis of vehicle type, the Japan Automotive OEM market is segmented into two-wheeled vehicles, three-wheeled motor vehicles, commercial vehicles, passenger cars, electric vehicles, and others. Among these, the commercial vehicles segment is witnessing significant CAGR growth over the forecast period. Batteries, electric vehicles, hybrid electric vehicles, or plug-in hybrid electric vehicles could all be used in electric vehicles. During the forecast period, the demand for original equipment manufacturing parts will be high in the commercial vehicle segment. The passenger car segment is also expected to grow during the forecast period due to an increase in car demand and usage in the Japanese market.
- In 2022, OEM retailers are dominating the market with the largest market share of 60% over the forecast period.
Based on application, the Japan Automotive OEM market is segmented into OEM retailers, wholesalers, distributors, and others. Among these, OEM retailers have the largest market share of 60% during the forecast period. The percentage of OEM sales directly to consumers is increasing, thanks to the various service centers that procure OEM in larger quantities.
The report offers the appropriate analysis of the key organizations/companies involved within the Japan Automotive OEM Market along with a comparative evaluation primarily based on their product offering, business overviews, geographic presence, enterprise strategies, segment market share, and SWOT analysis. The report also provides an elaborative analysis focusing on the current news and developments of the companies, which includes product development, innovations, joint ventures, partnerships, mergers & acquisitions, strategic alliances, and others. This allows for the evaluation of the overall competition within the market.
List of Key Companies
- Nissan Motor Co., Ltd.
- Mitsubishi Motors
- Toyota Motor
- Honda Motor Co., Ltd.
- Suzuki Motor
- Yamaha Motor Co., Ltd.
- Mazda Motor
- Subaru Corporation
- Aspark Co., Ltd.
- Isuzu Motors Ltd.
- Hino Motors, Ltd.
- Kawasaki Heavy Industries Ltd.
- Mitsuoka Motor
- Dome Co. Ltd
- GLM Co. Ltd.
- Showa Corporation
- Takeoka Auto Craft Co. Ltd.
- Tsubakimoto Chain Co.
Key Target Audience
- Market Players
- Government Authorities
- Consulting and Research Firm
- Venture capitalists
- Value-Added Resellers (VARs)
- In October 2019, Showa Corporation, along with Honda and Hitachi partners Keihin and Nissin Kogyo, began to be merged into Hitachi Automotive Systems as their supplier of steering and suspension components. The merger was completed in January 2021, with Hitachi Astemo emerging as the resulting parts supplier (Japanese).
- In February 2022, Toyota Motor Corp., which introduced the Toyota BZ4X sport utility vehicle (SUV) concept, made a concerted effort to make its first mass-market model safer and more durable than its peer's BEV products. By investing USD 70 billion to electrify its cars, Toyota plans to sell 3.5 million BEVs yearly by the year 2030.
This study forecasts revenue at global, regional, and country levels from 2019 to 2030. Spherical Insights has segmented the Japan Automotive OEM Market based on the below-mentioned segments:
Automotive OEM Market, By Component
- External Body
- Electrical and Electronics
- Car Interior
- Power-Train and Chassis
Automotive OEM Market, By Vehicle Type
- Commercial Vehicles
- Passenger Cars
- Electric Vehicles
Automotive OEM Market, By Distribution Channel
- OEM Retailers
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