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In 2024, approximately **** million motor vehicles were produced in Japan, down from about **** million units in the previous year. The production volume of motor vehicles in Japan includes passenger cars, trucks, and buses, of which passenger cars accounts for the majority.

Where are the manufacturing hubs of Japanese cars located?

Most Japanese automotive manufacturers produce domestically and overseas. Overseas automobile factories have a higher output than domestic factories, placing the largest production region in ****, outside of Japan. Inside Japan, manufacturing sites cluster in the industrial belt along the east coast, many in Prefecture and *** Prefecture. The industry employs * in Japan, remaining crucial for the Japanese job market and economy.

Cost drivers of motor vehicles become pricey

The primary cost driver of motor vehicle manufacturing is raw materials, which make up roughly **** of the production cost. As the main chunk represents steel, carmakers fill the order books of domestic steelmakers. Other crucial materials are plastics, aluminum, rubber, and lithium in the case of battery electric vehicles. The production of those basic materials that are necessary for car manufacturing relies heavily on imported raw materials, such as iron ore and other types of resources. One way to mitigate costs is by using recycled materials from end-of-life vehicles.