June 29, 2010Auto Industryby EconomyWatch

Japanese Auto Industry

Japanese auto industry has grown constantly over a long time and has finally overtaken U.S. auto industry as number one producer of cars in world. Major manufacturers of cars in Japan – Toyota, Honda, Nissan, Suzuki, and Mazda are also amongst largest manufacturers of cars in world.

Overcoming ill effects of defeat in Second World War that had destroyed national economy, was not an easy process on part of Japanese industries. Car manufacturers belonging to Japanese auto industry were commissioned to supply army trucks to South Korea by Federal Government of U.S. during Korean War between 1950 and 1953. This was main reason behind upswing of Japanese auto industry that began in 1960s.

Products of Japanese auto industry, that is, Japanese cars, are of a superior grade and last for longer periods, in addition to being fuel efficient. Japaneses cars are primarily priced at affordable rates which are comparatively much lower than cars produced by their foreign competitors especially those based in U.S. and Western Europe.

Japanese auto industry has grown in domestic car markets as well as in car markets around globe mainly due to production of “kei cars” or smaller sized cars that not only turned cars more affordable but also reduced payment made towards taxes, that had to be paid by owners of larger cars.

Toyota has recently overtaken General Motors of U.S. as leading producer as well as seller of cars in world. Toyota Motor Corporation is therefore best bet of Japanese auto industry. And Honda has overtaken Nissan to become second largest producer of cars of Japanese auto industry.

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