A Vast Range of Related Industries

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2 Automotive Industry AutomobileRelated Industries and Employment A Vast Range of Related Industries Automobiles are the focus of an extremely wide range of industrial and related activity, from materials supply and vehicle production to sales, servicing, freight shipping and other autocentered operations. Autorelated employment in Japan at present totals 5.48 million people. EMPLOYMENT IN THE AUTOMOBILE MANUFACTURING AND RELATED INDUSTRIES Number of employees Automobile Production , employment in auto manufacturing & related industries: 5.48 million (8.8%) Automobile manufacturing (including motorcycles)... 6, Auto parts and accessories manufacturing... 62, Auto body and trailer manufacturing... 4, Road Transport... 2,8, Road freight transport...,793, Road passenger transport , Road transportrelated services... 35, Vehicle rental services... 44, Automotive Fuel/Insurance/Recycling... 48, employment (workforce) in Japan: million (%) Automotive fuel retailing , Auto damage insurance..., Automobile recycling... 3, Materials & Equipment Supply , Electrical machinery & equipment... 63, Nonferrous metals... 3, Iron & steel..., Metal products... 36, Chemicals (including paints), textiles, and petroleum... 7, Plastics, rubber, and glass... 86, Electronic parts & equipment... 37, Manufacturing machinery... 35, Sales & Services...,85, Automobile retailing (including motorcycles, used vehicles, and auto parts and accessories) , Automobile wholesaling (including motorcycles, used vehicles, and finished/used parts and accessories)... 76, Automobile servicing , Note: Figures are rounded off to the nearest thousand. Sources: Economic Census, Labor Force Survey, InputOutput Tables for Japan, Census of Manufactures, Ministry of Internal Affairs and Communications Statistics Bureau; Ministry of Economy, Trade and Industry

3 Automotive Industry Investment in Materials and Equipment Automobile Manufacturing Is an Integrated Industry An automobile typically is composed of 2, to 3, parts, all of which even the largest manufacturers cannot produce themselves. Automakers therefore either outsource production or purchase finished products (such as tires, batteries, air conditioners and audio systems), including products manufactured abroad. The volume of imported components increases yearly. Automobile manufacturing is thus an integrated industry because it relies on many supporting industries to produce the great diversity of materials and components it uses. Trends in the automobile industry, which makes huge investments in equipment and researchanddevelopment activities, are considered a barometer of the economy. PRINCIPAL MATERIALS AND COMPONENTS USED IN AUTOMOBILE MANUFACTURING Cast iron Common steel Special steel Copper Lead, tin, zinc Aluminum Noble metals Other nonferrous metals Synthetic resin Glass Rubber Ceramics Textiles Leather Paper Wood Paints Chemicals Animal and vegetable oils Fats and oils Engine parts, e.g. cylinder blocks Chassis, frames, wheel parts Gears, axle shafts, crankshafts, fuel injection equipment Electricals, radiators, cables Engine metals, solder, body varnish, batteries Engine parts (e.g. pistons, cylinder heads), wheels, chassis Emissions aftertreatment parts Magnets, plating Steering wheels, bumpers, radiator grilles, body components Window glass, mirrors, headlamps Tires, sealing parts, vibration control parts Plugs, electronic parts, sensors, emissions aftertreatment parts Seats, linings, seatbelts Seats, packing Filters Loadcarrying platforms, interior equipment Ornamental and rustproof paints Antifreeze, engine oil, transmission oil, brake oil For casting For lubrication, heat treatment, etc. Springs, dampers Turbochargers Bearings Machined parts, e.g. pumps Tires and tubes Batteries Window glass Onboard tools, e.g. jacks Supplies, e.g. extinguishers, tire chains Electronic parts Lights, cables, optical fibers Air conditioners, air cleaners Sensors, ECUs, actuators Starters, alternators, generators, inverters, meters Audio systems, phones, navigation systems Safety equipment, e.g. antilock brakes, airbags, traction control Coke Petroleum, electricity, natural gas For casting Fuel, heat treatment, paint drying, power generation INVESTMENTS IN EQUIPMENT OF MAJOR MANUFACTURING SECTORS (PROJECTED, FY 22) NonFerrous Metals,989 (5.%) Pulp & Paper,555 (4.%) General Machinery 4,96 (2.5%) Other 5,896 (5.%) Chemicals 4,387 (.2%) Petroleum 993 (2.5%) Automotive 7,549 (9.3%) All Manufacturing Sectors 39,99 (%) Iron & Steel 5,258 (3.4%) Electronic Equipment 5,28 (3.3%) x million yen Electrical Machinery & Equipment,458 (3.7%) Note: Japan s fiscal year (FY) starts on April and ends on March 3 of the following year. Source: Survey on Corporate Finance, Ministry of Economy, Trade and Industry INVESTMENTS IN R&D OF MAJOR MANUFACTURING SECTORS (FY 2) Iron & Steel,633 (.5%) Foods 2,24 (2.%) Other,66 (9.9%) Electrical Machinery & Equipment 9,68 (9.%) All General Machinery & Equipment 6,933 (5.7%) Chemicals 7,44 (6.9%) Manufacturing Sectors 7,833 (%) IT & Telecommunications Equipment 7,45 (6.2%) Pharmaceuticals 2,299 (.4%) x million yen Electronic Circuits, Parts & Equipment 7,5 (6.6%) Automotive 2,796 (2.2%) Transport Equipment 22,378 (2.7%) Source: Survey on Research Activities in Science and Technology, Ministry of Internal Affairs and Communications 2

4 Automotive Industry Automotive Shipments in Value Terms Automobile Manufacturing Is a Core Industry The automotive industry is one of the Japanese economy s core industrial sectors. In 2 automotive shipments accounted for 6.4% of the total value of Japan s manufacturing shipments, and 36.6% of the value of the machinery industries combined shipments. Automotive shipments (both domestic and export shipments, including motorcycles, auto parts, etc.) in value terms totalled 47.3 trillion yen in 2, up 6.8% from the previous year. To our readers: Because a significant amount of shipment data for major manufacturing sectors in 2 was not yet available at press time, this entire page remains unaltered from last year s edition of this publication. SHIPMENTS OF MAJOR MANUFACTURING SECTORS IN VALUE TERMS (2) x million yen COMPARISON OF VALUE OF AUTOMOTIVE SHIPMENTS TO TOTAL VALUE OF ALL MANUFACTURING SHIPMENTS Other 944,29 (32.7%) Metal Products 22,92 (4.2%) Iron & Steel 8,463 (6.3%) NonFerrous Metals 89,4 (3.%) 2,89,77 (%) General Machinery 36,86 (.6%) Chemicals 262,2 (9.%) Electrical Machinery & Equipment 442,848 (5.3%) Automotive 472,962 (6.4%) Transport Equipment 542,36 (8.7%) Breakdown of automotive shipments: Automobiles (including motorcycles)... 85,6 Auto bodies and trailers... 3,77 Automotive parts and accessories , value of all manufacturing shipments value of automotive shipments x trillion yen SHIPMENTS OF MAJOR MANUFACTURING SECTORS IN VALUE TERMS Chemicals 55,42 4,38 79,787 25, ,3 233, , , , ,27 24,493 25,27 26, ,939 28, , ,2 Iron & Steel 65,648 3,63 78,956 77,543 82,687 4,727 9,63 2,8 9,627 9,3 4,43 68,964 84,727 2,97 243,322 59,884 8,463 NonFerrous Metals 3,547 39,87 8,86 63,836 78,27 64,964 62,89 58,492 56,685 56,32 6,93 67,6 9,62 7,75 4,85 69,4 89,4 Metal Products 37,277 65,73 6,465 3,944 85,736 76,465 55,868 45,45 37,365 32,43 34,543 4,59 44,5 5,889 5,492 24,267 22,92 General Machinery 68,28 6,2 75,998 24,94 332, ,844 34,32 282, ,773 26,683 29,742 32,8 333,33 362,734 42, ,32 36,86 Electrical Machinery & Equipment 73,35 8,23 222,346 48, , ,39 595,87 524,657 46,4 48,37 498, ,83 5, ,265 58,797 4, ,848 Machinery Industries Transport Equipment 72,758 47, ,536 36, , ,45 444,474 45, , ,869 56, , , , 637,666 47, ,36 Automotive Subtotal Other x million yen Automotive Shipments As % of Value of Machinery Shipments As % of Value of Manufacturing Shipments Notes:. Shipments from all manufacturing operations with four or more employees are included in this data. 2. Compilation of data on production in value terms was discontinued in 996 and replaced by data on shipments in value terms. 3. Figures in value terms include domestic consumption tax revenue from shipments. 4. Electrical Machinery & Equipment includes ITrelated electronic parts and equipment as of 22. Source for all statistical data on this page: Census of Manufactures, Ministry of Economy, Trade and Industry 54,673 5,24 22, , ,6 395,63 4,429 44,25 43,63 45,5 458,22 489,548 54,9 57, ,53 44,95 472, ,8 379,55 682,457,55,932,397,439,33,364,385,62,299,43,23,66,275,564,335,93,385,37,484,34,597,84,558,94,6,779,29,7 287, ,87 952,724,63,24,25,939,55,277,5,72,6,56 967,3 956,63 968, ,77,23,649,58,7,5,93 894,53 944,29 69,348,274,329 2,46,998 2,653,26 3,233,726 3,6,356 3,35,824 2,867,544 2,693,68 2,737,344 2,844,83 2,962,47 3,48,346 3,367,566 3,355,788 2,652,59 2,89,

5 Automotive Industry Automotive Trade Motor Vehicle Exports and Imports Both Show an Increase Japan s gross exports in 22 decreased by 2.7% from the previous year, while gross imports rose by 3.8%. In value terms, automotive exports grew.5% from 2 to 2.8 trillion yen, with motor vehicle and parts exports rising but motorcycle exports falling. Automotive imports also increased, by 2.2% yearonyear to.5 trillion yen, with both motor vehicle and parts imports showing growth. EXPORTS BY PRINCIPAL COMMODITY (FOB) IN 22 Scientific & Optical Equipment 28 (3.3%) Ships 72 (2.7%) Electrical Machinery & Equipment,4 (7.9%) Other 793 (2.4%) 6,375 (%) General Machinery,284 (2.%) Transport Equipment,499 (23.5%) Motor Vehicles (including motorcycles and parts),275 (2.%) Textile Yarn & Textiles 6 (.%) Chemicals 636 (.%) Iron & Steel Products 35 (5.5%) x billion yen NonFerrous Metals & Metal Products 23 (3.6%) IMPORTS BY PRINCIPAL COMMODITY (CIF) IN 22 Transport Equipment 23 (3.3%) Motor Vehicles (excluding motorcycles and parts) 46 (2.%) Electrical Machinery & Equipment 844 (.9%) General Machinery 5 (7.%) NonFerrous Metals & Metal Products 22 (3.%) Other,29 (7.%) Chemicals 593 (8.4%) 7,69 (%) Foodstuffs 585 (8.3%) Petroleum & Petroleum Products,47 (2.8%) Mineral Fuels 2,49 (34.%) x billion yen Raw Materials 477 (6.7%) AUTOMOTIVE EXPORTS IN VALUE TERMS (FOB) Motor Vehicles 8,363 24,773 35,32 6,795 85,267 75,26 93,679 25,956 5,47 27,52 Chg. (%) Passenger Cars, Trucks, Buses 88,95 92,42 99,288 22,995 43,7 37,36 66,933 9,74 82,42 92,25 Auto Parts Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ). AUTOMOTIVE IMPORTS IN VALUE TERMS (CIF) 22,998 25,67 28,6 3,227 33,555 3,655 23,89 3,833 29,972 32,5 Motorcycles & Motorcycle Parts 6,45 7,4 7,839 8,573 8,543 7, 3,657 3,382 3,43 3,22 Exports 545,484 6,7 656, , ,34 8,8 54,76 673, , ,476 x million yen Chg. (%) x million yen Motor Vehicles,799 2,842 3,353 4,42 5,586 4,6 8,245,836 2,69 4,63 Chg. (%) Passenger Cars, Trucks, Buses 8,279 9,55 9,49 9,63 9,294 7,499 4,549 5,957 7,352 9,82 Auto Parts Notes:. Motor vehicles include passenger cars, trucks, buses, and chassis. 2. FOB: Free on board; CIF: Cost, insurance, and freight. 3. Chg. (%) means change from the previous year (with the previous year s result indexed at ). 3,52 3,787 4,24 5,249 6,29 6,662 3,696 4,879 4,77 5,549 Imports 443,62 492,66 569, ,443 73, ,548 54,994 67,65 68,2 76,886 Chg. (%) Source for all statistical data on this page: The Summary Report on Trade of Japan, Ministry of Finance 4

6 Motor Vehicles Production Motor Vehicle Production Up for First Time in 2 s In 22 motor vehicle production in Japan increased for the first time in two years, totalling 9.94 million units, up 8.4% from the previous year. Passenger car production grew 9.5% to a total of 8.55 million units. Within that category, standard car production climbed 2.% to 4.69 million units, small car production rose 2.% to 2.25 million units, and minicar production surged 44.6% to.62 million units. Truck and bus production also showed an increase over 2, growing.5% to.27 million units and 7.4% to 22, units, respectively. MOTOR VEHICLE PRODUCTION BY TYPE IN 22 Standard 583,56 (5.9%) Small 275,992 (2.8%) Mini 47,26 (4.%) Buses 22,22 (.2%) TRENDS IN MOTOR VEHICLE PRODUCTION x million units 4 2 Mini,65,435 (6.2%) Trucks,266,354 (2.8%) 9,942,793 (%) Standard 4,686,2 (47.%) Passenger Cars 8 6 Small 2,252,672 (22.7%) Passenger Cars 8,554,29 (86.%) Trucks & Buses MOTOR VEHICLE PRODUCTION Passenger Cars Standard Small Mini 5,69 29,32 43, ,792,75,783 2,553,73 3,376,447 3,753,446 4,44,563 4,9,36 4,95,428 5,864,354 5,786,333 3,459,589 4,846,4 4,8,36 4,686,2 2,377,639 4,98,55 6,438,847 6,99,432 7,36,224 4,4,629 3,699,893 3,434,662 3,39,47 3,46,622 3,32,265 2,638,842 2,74,43 2,45,279 2,59,9,86,279 2,252, ,45 6,272 95,923 6, ,965 96,2,283,94,29,22,366,675,48,753,537,2,44,44,427,397,257,293,34,832,6,885,65,435 3,78,78 4,567,854 7,38,8 7,646,86 9,947,972 7,6,533 8,359,434 8,478,328 8,72,385 9,6,735 9,754,93 9,944,637 9,928,43 6,862,6 8,3,362 7,58,525 8,554,29 Trucks Standard Small Chg. (%) Gasoline Diesel Subtotal Gasoline Diesel ,47 26,53 258,,56,729 97, ,34 23, ,7,44,759 68, ,28 427,99 885,98,663, , , ,42,278,22,28, , ,255 64,27,249,525 57, , ,54 59, ,4 34,495 64, ,28 495,9 649,8 24, , ,42 65,37 772,727 25,9 99, , , ,953 26,92 84, ,53 67,33 723, ,694 23, ,83 63, ,4 23,687 25, , ,639 78,9 77,425 88, ,443 63,48 734,923 63,237 66, , ,244 37,686 27,4 88, ,6 445,6 52,627 33,43 5, ,95 453,39 52,26 35,335 99, ,6 5,4 583,56 62,2 3,98 Notes:. Passenger cars and trucks are classified under Japan s Road Vehicles Act in three categories, based primarily on engine capacity: standard (over 2,cc), small (66ccvehicle and have been treated as components since Chg. (%) means change from the previous year (with the previous year s result indexed at ). 5

7 TRENDS IN MOTOR VEHICLE PRODUCTION IN VALUE TERMS x trillion yen 25 Passenger Cars Trucks & Buses MOTOR VEHICLE PRODUCTION IN VALUE TERMS Passenger Cars Trucks Standard Small Mini Standard Small Mini Tractors Large Small 895,4 3,77,356 5,47,637 6,64,75 8,454,25 8,836,999 9,352,545,89,826 3,22,924 3,6,9 7,26,654,239,33 8,45,638 9,676,68 7,49,323 8,676,75 4,869,427 4,298,37 4,243,75 4,67,398 4,78,64 4,88,449 3,67,9 3,27,9 2,548,37 2,69,86 2,343,337 3,9,67 85,925 8,3, ,88 2,966,259 79,33,87,367,237,65 2,76,5,54,329 3,752,249,46,5 4,5,52,69,87 4,7,57,333,394 6,33,669,39,576 7,6,4,293,624 7,56,852,55,68,965,76,27,423 4,56,587,45,46,84,435,486,926 4,254,674,793,,953,924,69,428,,558,539,22,85,35,96,692 2,29,3 2,46,53 2,,682,27,974,684,489,73,798,954,36,59,934,8,28 849,5 543,48 54,48 56, , ,272 52, ,435 32, ,8 35,55 422,52 679,498 59,44 5, , , ,66 357,65 352,5 39,4 32,374 28, ,8 285,454 32,836 46,745 64,93 24,764 45,453 67,945 89,959 4,567 22,267 2,346 36,277 34,778 75,944 89,976 6,29 4,39,77 3,79,9 3,4,282 2,58,84 2,485,882 2,79,32 2,967,98 3,77,69 3,99,46 3,22,768,757,37 2,442,34 2,44,743 2,785,98 3,53 34,5 7,647 8,897 6,56 5,985 27,65 3,726 29,29 36,5 9,723 8,3 97,57 2,992 Buses,7 66,988 89,44 9,7 3,268 29,577 63,69 23,23 264,477 33,594 66,5 2,359 99,3 237,96 x million yen Grand 24,6 2,273,526 2,3 6,957,27 97,88 4,8,737 89,94 4,424,38 246,828 6,484, ,562 7,76,376 29,674 7,958, ,957 9,726, ,686 2,93, ,79 2,979, ,838 2,998,68 329,659 6,828,56 296,458 4,577, ,88 7,398,77 Source: Ministry of Economy, Trade and Industry Subtotal,253,86,6,475 2,3,3,877,893,262,943 99,32 483, , , ,763 49,44 365, ,758 25,39 238, , ,992 Mini 55, ,987 94,679,388, ,7 84, , ,427 54,22 546,85 52, , ,78 398, , ,5 47,26 2,63,883 2,337,632 3,93,88 4,544,688 3,498,639 2,537,737,726,88,746,66,73,69,76,6,64,693,538,2,58, ,,29,79,35,996,266,354 Buses Large Small Chg. (%) ( 3 passengers) ( 29 passengers) Chg. (%) 2. 5,265 3,3 46, ,289, ,624 22,48 36, ,94, ,47 75,8 9, ,42, ,547 64,44 79,59.2 2,27, ,787 24,398 4, ,486, ,84 34,452 47, ,95, ,35 46,59 54, ,4,796.,46 49,668 6,74 92.,286, ,286 48,56 6, ,5, ,763 64,55 76, ,799, ,63 77,574 88,637 6.,484, ,56 2,54 3, ,596, ,66 27,442 39,2 22.4,575, ,783 78,2 86, ,934, ,274 99,6 9, ,628, ,427 94,682 4, ,398,63.5,598,622 22, ,942,793 Chg. (%) 2,cc), and mini (66cc and under); see page 66 for details. 2. KD sets have been excluded since 979; they represent less than 6% of the cost of compositional components per Source: Japan Automobile Manufacturers Association

8 Motor Vehicles New Registrations Motor Vehicle Sales Show First Increase in 2 s Passenger car and commercial vehicle demand in Japan in 22 totalled 5.37 million units, an increase of 27.5% from the previous year. passenger car sales grew 29.7% to 4.57 million units, with the standard car segment rising 23.8% to.4 million units, small cars climbing 28.6% to.6 million units, and minicars surging 36.8% to.56 million units. Sales of trucks and buses increased 6.4% and 2.% from 2, to 785, and 2, units respectively. NEW MOTOR VEHICLE REGISTRATIONS BY TYPE IN 22 Small 227,326 (4.2%) Standard 36,359 (2.5%) Mini,557,68 (29.%) Mini 42,765 (7.9%) Trucks 785,45 (4.6%) Buses,938 (.2%) 5,369,72 (%) Passenger Cars 4,572,332 (85.2%) Standard,4,7 (26.3%) Small,62,95 (29.9%) TRENDS IN NEW MOTOR VEHICLE REGISTRATIONS x million units Passenger Cars Trucks & Buses NEW MOTOR VEHICLE REGISTRATIONS Passenger Cars Trucks Standard Small Mini Subtotal Chg. (%) Standard Small Mini Subtotal Chg. (%) 9,68 49,25 7,93 73, ,49 889,26 77,22,229,97,358,28,27,349,225,867,299,68,25,987,6,75,49,99,39,9,4,7,652,899 2,53,396 2,68,25 2,869,527 3,839,22 2,654,29 2,28,387 2,94,94 2,37,767 2,89,992,98,267,654,25,549,677,48,37,57,693,246,26,62,95 77,7 57,2 74,3 6,7 795,948 9,355,28,265,29,89,372,83,387,68,57,598,447,6,426,979,283,429,284,665,38,752,557,68 2,379,37 2,737,64 2,854,76 3,4,83 5,2,659 4,443,96 4,259,872 4,75,92 4,768,3 4,748,49 4,64,732 4,4,299 4,227,643 3,923,74 4,22,267 3,524,788 4,572, ,86 2,8 54,472 8,9 93,775 77,264 84,626 28,752 86,588 97,548 29,283 7,998 46,69 87,692,697 7,29 36, , ,55,44,67 945,484,449,678,4,296,5,33 373,259 36,449 35,78 354,87 293,2 249,655 8,59 87,642 85,97 227, ,743 43,8 839,38,367,685,6,456 85, ,66 59,44 59,67 536,648 56,2 472,73 442,94 44,742 44, ,393 42,765,693,52,55,454 2,37,947 2,43,78 2,649,99 2,43,825,686,599,9,55,67,4,85,94,8,74 937, , ,943 73,94 674,78 785,45 Notes:. Chassisbased through 22, data compilation became vehicle registration numberbased as of Truck figures include specialpurpose vehicles (except large ones). 3. Data

9 NEW MINIVEHICLE SALES BY TYPE Passenger Cars (Minicars),29,889,372,83,387,68,57,598,447,6,426,979,283,429,284,665,38,752,557,68 Commercial Vehicles ( Bonnet minivans) 89,532 77,297 77,547 68,74 57,59 5,622 42,932 4,63 33,23 27,73 Commercial Vehicles (Caboverengine minivans) 72,644 83,995 97,4 24,838 96,4 85,86 67,358 8,55 68,75 98,843 Commercial Vehicles (Minitrucks) 25,69 257,775 26,96 242,469 29,64 25,486 94,452 29,62 8,665 95,92 Notes:. Figures for 23 include other types of minivehicles not counted in the data in the bottom chart. 2. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Mini Vehicles Association,84,755,89,5,923,76 2,23,69,99,89,869,893,688,7,726,42,52,45,979,446 Chg. (%) RECREATIONAL VEHICLE (RV) SALES Station Wagons Vans OffRoad 4WD Vehicles Minivans Chg. (%) , ,5 62,667 59,936 46,95 454,64 339, , ,4 43,995 6,927 7,347 9,363 9,46 8,752 9,396 7,433 8,762 8,482,65 83,435 7,447 79,776 2,35 226,59 23,29 57,284 95,783 7,34 22,34 Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ).,2,27,23,788,69,6,26,26 98,8 938,694 89, , ,33 92,75 2,63,6 2,78,83,97,82,856,693,676,42,65,463,394,89,56,583,34,96,556, Source: Japan Automobile Dealers Association Buses Large Small Subtotal Chg. (%),256 8,88 9,44 8,798 9,62 6,475 4,333 5,862 5,98 5,856 6,64 5,53 5,357 4,234 4,777 3,36 4,266 7,572,8 3,973 2,775 5,763,828 2,238 5,34 3,49,898,536,464 9,976 8,338 7,998 7,55 7,672 27,828 9,836 23,387 2,573 24,925 7,33 6,57 2,23 8,47 7,754 7,6 5,67 5,333 2,572 2,775,65, ,,467 4,38,93 5,5,5 5,556,834 7,777,493 6,865,34 5,963,42 5,828,78 5,853,382 5,852,67 5,739,56 5,353,648 5,82,235 4,69,256 4,956,36 4,2,29 5,369,72 Chg. (%) Vehicle Registrations 2,844,554 3,72,63 4,2,72 4,28,32 5,975,89 5,49,44 4,95,7 4,27,35 3,962,232 3,928,35 3,75,887 3,433,829 3,22,342 2,92,85 3,229,76 2,689,74 3,39,274 Chg. (%) Mini Vehicles Chg. (%),255, ,3 82.,3, ,528,72 4.8,82,44 6.3,75,62 6.2,867, ,8, ,89,5 5.,923,76.7 2,23,69 5.2,99, ,869, ,688,7 9.3,726,42 2.3,52,45 88.,979, includes imported cars. 4. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Sources: Japan Automobile Dealers Association; Japan Mini Vehicles Association

10 Motor Vehicles Imported Vehicle Sales Sales of Imported Vehicles Rise for Third Consecutive Imported vehicle sales in Japan in 22 totalled 36, units, up 4.6% from the previous year. Passenger car sales climbed 5.3% to 3, units, and commercial vehicles (trucks and buses) rose 3.% to 5, units. Sales of used imported vehicles increased 5.% to 58, units, with passenger cars rising 5.5% to 488, units, and trucks growing.9% to 5, units. TRENDS IN IMPORTED MOTOR VEHICLE SALES Vehicles produced by nonjapanese manufacturers Passenger Cars Commercial Vehicles Vehicles produced by Japanese manufacturers abroad Passenger Cars Commercial Vehicles Vehicles produced by nonjapanese manufacturers Vehicles produced by Japanese manufacturers abroad Passenger Cars Commercial Vehicles Grand s Chg. (%) 4, 3, 2,, Passenger Cars Commercial Vehicles Passenger Cars Commercial Vehicles 243,996 3,6 247,66 3,98 3,98 275,94 3,6 278, ,29 3, ,89 28,989 28, ,98 3, , ,6 3, ,993 9,9 9,9 264,729 3, , Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ). 243,892 2,72 246,64 5,67 5,67 259,562 2,72 262, ,78,55 23,593 32, , ,996 2,9 265,86. 92,37,585 93,92 3,96,368 25,329 26,278 2,953 29, ,43,76 6,94 8,746 8,877 7,623 67,889,638 78, ,255,827 82,82 33,28 9,973 43, 23,283,8 225, ,8 2,57 25,857 56,97 2,88 69,787 26,77 4, , ,546 2,7 24,563 6,48 3,382 74,43 3,594 5,399 35, Source: Japan Automobile Importers Association IMPORTED MOTOR VEHICLES (ON CUSTOMS CLEARANCE BASIS) Passenger Cars 46,285 52,225 25,69 4, ,582 28, , , ,726 29, ,255 45,687 23,79 273, ,38 Chg. (%) Commercial Motor Other Vehicles Vehicles Chg. (%) ,85 47, , , , , , , , , , , , , , , , , , , , , , , , , , , Motorcycles 7,5 7,87 28,696 43,936 74,96 562,45 485, , , ,722 43,87 367, ,26 386,949 42,99 Notes:. Other denotes specialpurpose vehicles and enginemounted chassis. 2. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Trade Statistics of Japan, Ministry of Finance USED IMPORTED VEHICLE SALES Passenger Cars 555, ,89 588, , ,2 54,7 47,986 46,5 462, ,675 Chg. (%) Trucks 6,48 7,96 9,468,2 2,58 2,44 2,547 3,38 4,37 4,636 Chg. (%) SpecialPurpose Vehicles 38,25 3,856 27,269 22,64 7,574 3,292,83 7,878 6,756 5,469 Chg. (%) Other ,376 66,97 625,362 62, ,57 53, ,78 482,49 483,725 58,28 Chg. (%) Notes:. For motor vehicle classifications in Japan, see page Other includes buses, large specialpurpose vehicles and smallsized threewheeled trucks. 3. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Automobile Importers Association

11 Motor Vehicles Used Vehicle Sales Used Vehicle Sales Rise for First Time in 7 s In 22 sales of used motor vehicles expanded 7.3% over the previous year to total 6.92 million units, marking the first increase in seven years. Used passenger car sales climbed 9.% to 5.65 million units, with standard passenger cars increasing 9.5% to.69 million units, small cars rising 5.4% to.83 million units, and minicars growing.9% to 2.3 million units. Also showing an increase over 2, sales of used trucks and buses rose.% to.7 million units and 6.9% to 5, units, respectively. USED VEHICLE SALES BY TYPE IN 22 Buses 4,799 (.2%) Other 82,484 (.2%) TRENDS IN NEW AND USED MOTOR VEHICLE SALES Used vehicles New vehicles x million units 9 Small Mini 235, ,469 (3.4%) (.%) Standard Standard 68,439 (2.5%) Trucks,73,54 (7.%) 6,99,3 (%),688,66 (24.4%) Mini 2,33,725 (3.8%) Passenger Cars 5,648,666 (8.6%) Small,826,335 (26.4%) USED MOTOR VEHICLE SALES Passenger Cars Trucks Buses Other Standard Small Mini Subtotal Chg. (%) Standard Small Mini Subtotal Chg. (%) Chg. (%) Chg. (%) Chg. (%) 985 6,5 3,295,92 356,726 3,8, , ,32,25,545,854, , , ,722, ,93 3,945,86 34,782 4,554, ,85 555,634,746,495 2,487, , , ,9, ,3 3,845,76 727,259 5,566, ,523 52,244,538,78 2,28, , , ,945, ,742,786 3,5,87,448,546 6,24, ,74 42,5,69,626,783, , , ,23, ,9,7 2,64,456,89,84 6,36, ,47 379,46,62,66,662, , , ,95, ,984,562 2,524,764,777,866 6,287, ,75 363, ,,56, , , ,, ,2,563 2,46,4,89,54 6,353,27. 24,6 368,778 98,74,589, , , ,6, ,959,739 2,34,226 2,33,569 6,297, ,77 365,8,3,67,63, , , ,66, ,8,596 2,5,22 2,22,866 5,938, ,989 32,43 935,745,458, , , ,53, ,728,9,944,766,995,333 5,668, , , ,836,389, , , ,78, ,69,37,855,7,864,874 5,339, ,8 266, ,957,248, , , ,698, ,592,,86,696,873,466 5,282, , , ,854,55, , , ,539, ,542,64,733,59,96,523 5,82, ,47 233, ,63,7, , , ,45, ,688,66,826,335 2,33,725 5,648, , , ,469,73,54. 4, , ,99,3 Notes:. Passenger cars and trucks are classified under Japan s Road Vehicles Act in three categories, based primarily on engine capacity: standard (over 2,cc), small (66cc 2,cc), and mini (66cc and under); see page 66 for details. 2. Includes imported vehicles. 3. Other refers to emergency vehicles, special vehicles equipped with beds, refrigerated trucks, tank trucks, tractors, bulldozers, steamrollers, snowplows, snowmobiles, etc., that are assigned special registration numbers. 4. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Sources: Japan Automobile Dealers Association; Japan Mini Vehicles Association 7.3

12 Motor Vehicles Motor Vehicles in Use and Motor Vehicle Density Slight Increase in Number of Motor Vehicles in Use At the end of December 22, motor vehicles in use in Japan (excluding motorcycles) totalled 76. million units, a.8% increase over the previous year. Passenger cars in use increased.3% to 59.4 million units, with standard and minicars growing.5% and 4.2% to 7.3 million and 9.3 million units respectively, but small cars dropping.2% to 22.9 million units. Meanwhile, trucks in use slipped.9% from 2 to 4.8 million units whereas buses in use rose.% to 226, units. At the end of March 22, the average service life of motor vehicles in Japan was 2.6 years for passenger cars, 2.8 years for trucks, and 6.82 years for buses. MOTOR VEHICLES IN USE BY TYPE AT END OF 22 Buses 226,79 (.3%) SpecialPurpose Vehicles,643,325 (2.2%) TRENDS IN MOTOR VEHICLES IN USE x million units 8 7 Small 3,672,649 (4.8%) Standard 2,266,836 (3.%) Mini 9,258,239 (25.3%) Mini 8,895,635 (.7%) Trucks 4,835,2 (9.5%) 76,25,533 (%) Passenger Cars 59,42,9 (78.%) Standard 7,294,2 (22.7%) Small 22,868,749 (3.%) Passenger Cars Trucks, Buses & SpecialPurpose Vehicles (Minicars) (Minitrucks) MOTOR VEHICLES IN USE (at end of every calendar year) ,374 27,5 472,34 7,94,784,594 7,874,89 3,942,626 5,836,593 6,295,52 6,634,529 6,74,523 6,77,52 6,748,373 6,688,645 6,89,42 7,39,684 7,294,2 6,457,8 4,47,68 2,,96 25,6,79 3,554,652 3,3,462 28,593,49 26,885,69 26,4,67 26,254,546 25,698,33 24,92,226 24,356,3 23,99,9 23,47,3 23,43,892 22,868,749 Passenger Cars Standard Small Mini Subtotal Standard 2,244,47 2,6,3 2,76, 2,6,487 2,584,926 5,775,386 9,9,258 2,49,928 3,297,363 4,2,74 5,8,27 5,93,25 6,76,486 7,42,89 7,986,982 8,486,738 9,258,239 8,778,972 7,236,32 23,659,52 27,844,58 34,924,72 44,68,37 52,437,375 55,22,59 55,994,5 57,9,789 57,52,43 57,623,753 57,864,972 58,9,853 58,347,387 58,67,34 59,42,9 Trucks Chg. (%) Small Mini Subtotal Chg. (%) ,256,58,465,494,464,668,852 2,76,488 2,574,433 2,596,42 2,476,588 2,464,873 2,474,378 2,465,823 2,455,268 2,386,255 2,39,62 2,28,7 2,266,42 2,266,836 4,478,486 6,,26 7,55,22 6,679,665 6,69,536 6,23,45 5,474,66 4,87,933 4,694,922 4,594,363 4,43,3 4,323,579 4,2,553 3,952,534 3,825,632 3,74,36 3,672,649 3,5,7 2,785,82 4,527,794 8,79,289 2,535,45,642,3,54,427 9,732,853 9,62,53 9,665,3 9,62,484 9,495,42 9,47,694 9,288,679 9,77,282 8,963,64 8,895,635 8,28,759,43,853 3,77,479 7,39,86 2,32,439 2,43,49 8,225,58 7,8,374 6,78,848 6,733,87 6,499,4 6,274,267 5,896,52 5,56,825 5,284,625 4,97,422 4,835, Notes:. Specialpurpose vehicles refers to emergency vehicles, special vehicles equipped with beds, refrigerated trucks, tank trucks, tractors, bulldozers, steamrollers, snowplows, ). 3. Threewheeled vehicles includes threewheeled passenger cars, trucks, and specialpurpose vehicles.

13 PRIVATE PASSENGER CARS IN USE PER HOUSEHOLDS BY PREFECTURE (at March 3, 22). Fukui 2. Toyama 3. Gunma 4. Yamagata 5. Gifu 6. Tochigi 7. Ibaraki 8. Nagano 9. Niigata. Yamanashi. Fukushima 2. Mie 3. Ishikawa 4. Saga 5. Shizuoka 6. Tottori 7. Shiga 8. Shimane 9. Iwate 2. Okayama 2. Akita 22. Tokushima 23. Kagawa 24. Aichi 25. Miyagi 26. Kumamoto 27. Oita 28. Miyazaki 29. Okinawa 3. Yamaguchi 3. Aomori 32. Wakayama 33. Kagoshima 34. Nara 35. Hiroshima 36. Ehime 37. Fukuoka 38. Kochi 39. Nagasaki 4. Saitama 4. Chiba 42. Hokkaido 43. Hyogo 44. Kyoto 45. Kanagawa 46. Osaka 47. Tokyo 48. National Average Source: Automobile Inspection & Registration Information Association PASSENGER CARS IN USE BY YEAR OF FIRST REGISTRATION of First Registration April 2March 22 April 2March 2 April 29March 2 April 28March 29 April 27March 28 April 26March 27 April 25March 26 April 24March 25 April 23March 24 April 22March 23 April 2March 22 April 2March 2 April 999March 2 April 998March 999 March 998 Vehicles in Use Vehicles in Use 2,74,278 2,634,9 2,82,928 2,372,259 2,745,864 2,77,64 2,97,964 2,887,33 2,777,46 2,485,835 2,552,735 2,8,56,89,82,434,798 5,99,75 4,43,44 AVERAGE AGE BY TYPE AVERAGE SERVICE LIFE BY TYPE At March 3, 22 % of Vehicles in Use In years Passenger Cars Trucks Buses In years Passenger Cars Trucks Buses Notes:. Average age means the average number of years elapsed since first registration. 2. Average service life means average vehicle lifespan. 3. Average age and average service life figures are as at the end of every fiscal year. 4. The above three tables exclude minivehicles. Source: Automobile Inspection & Registration Information Association Large 4,895 2,86 6,633 8,967 4,89 4,478,46 9,99 9,73 9,97 9,763 9,62 9,88 8,76 8,36 7,435 7,528 Small Buses 83,85 24,98 23,387 22,26 3,849 28,67 25,437 2,99 2,23 2,86 2,98 2,37 2,873 9,637 9,35 8,53 8,55 Subtotal 87,98 226,284 23,2 23, , ,95 235,483 23,88 23,934 23,733 23,68 23,928 23,68 228, ,27 225, ,79 Chg. (%) SpecialPurpose Vehicles 333,32 584, 789,55 94,647,26,39,5,29,75,733,689,629,649,686,63,62,66,934,585,873,536,6,55,4,52,593,646,23,643,325 Chg. (%) ,58,843 28,9,558 37,856,74 46,57,26 57,697,669 66,853,5 72,649,99 74,24,4 74,655,58 75,686,455 75,859,68 75,74,82 75,528,35 75,324,486 75,36,876 75,52,887 76,25,533 Chg. (%) Trailers 23,79 39,88 56,84 65,485 87,359 2,7 33,676 37,5 42,32 47,626 5,44 54,798 57,95 52,38 52,834 54, 55,835 Three Wheeled Vehicles 243,934 47,998 7,724 6,23 4,56 3,62 3,827 3,478 3,47 3,28 3,238 3,2 3,9 3,27 3,2 3,89 4,86 snowmobiles, etc., that are identified as specialpurpose vehicles by special registration numbers. 2. Chg. (%) means change from the previous year (with the previous year s result indexed at Source: Ministry of Land, Infrastructure, Transport and Tourism

14 Motor Vehicles Exports Motor Vehicle Exports Show First Increase in 2 s Exports of motor vehicles in 22 rose 7.5% over the previous year to 4.8 million units. Passenger car exports increased 6.8% to 4.2 million units, truck exports climbed 2.5% to 477, units, and bus exports grew 5.7% to 28, units. With the value of automobile exports increasing 2.5% to US$ 4.6 billion and the value of auto parts exports rising 8.3% to US$ 43.5 billion, the total value of automotive exports thus grew.3% from 2 to US$ 58. billion. MOTOR VEHICLE EXPORTS BY TYPE IN 22 Small 66,652 (.4%) Mini 6 (.%) Buses 28,78 (2.7%) TRENDS IN MOTOR VEHICLE EXPORTS x million units 7 6 Mini 6,735 (.%) Small 64,749 (3.4%) Standard 4,25 (8.5%) Trucks 476,99 (9.9%) 4,8,9 (%) Passenger Cars Passenger Cars 4,96,94 (87.4%) Standard 3,547,6 (73.9%) Trucks & Buses MOTOR VEHICLE EXPORTS ,58,623 3,932,44 3,38,47,732,5,462,69,222,433,27,3,98,273,449,68,359,44,534,975 84,98 88,66 743,59 64,749 Passenger Cars Standard Small Mini Subtotal 345,43 493,47,343,967,56,22 2,333,263 2,856,32 2,995,259 3,64,63 3,845,8 4,45,934 4,379,569 2,43,359 3,453,95 3,76,95 3,547,6 75,45,82,835,36 5,45 2,24,3 6 8,44 52,753, , ,755,2 6, ,586,827,286 3,947,6 4,426,762 4,482,3 2,896,26 3,795,852 4,8,498 4,24,27 4,363,68 5,295,497 5,8,959 5,95,429 3,28,639 4,275,366 3,929,94 4,96,94 Chg. (%) Standard 65,7 68,37 332,257,96, ,737 62,654 53, ,46 59,233 52, , , 567, ,6 397,44 369,973 4,25 Small 272, ,232,548,25,29, , ,929 86,329 76,787 96,453 89,946 89,2 89,28 9,58 48,447 52,98 53,786 66,652 Trucks Mini 3,892 22,7 73,77, Notes:. Figures represent exfactory export shipments of motor vehicles manufactured in Japan, which are classified in the above categories as per Japanese law, including the Road Vehicles Act. 2. Vehicle components per vehicle and have been treated as components since Chg. (%) means change from the previous year (with the previous year s result indexed at ). 3

15 MOTOR VEHICLE EXPORT TRENDS (BY REGION OF DESTINATION) Asia Middle East Europe North America Latin America Africa Oceania Other (EU) (U.S.A.) ,, ,, 5,, 4,, 3,, 2,,,, Asia Middle East Europe (EU) North America (U.S.A.) Latin America Africa Oceania Other Chg. (%) 524,93 439,587,59,76,9,58,786,387,594,57 272,297 46,269 48,22 9,82 4,756, , ,46,275,229,36,27,726,465,559,67 344,844 82,45 448,67,658 4,957, ,67 59,594,78,97 895,728,854,438,662,939 43,259 29, ,922,36 5,53,6.9 38,56 59,34,35,86 92,837 2,488,373 2,26, , ,956 44,92 9,344 5,966, ,92 8,887,497,8 99,42 2,455,99 2,25, ,945 33, ,268 9,277 6,549, ,8 952,749,589,54 82,63 2,38,254 2,68,62 57,9 35,762 46,56,73 6,727, ,84 428,42 685,26 542,25,379,5,22, ,96 45,3 347,394 8,389 3,66, ,44 583, , ,58,727,35,53,26 396,499 88, ,26 7,86 4,84, ,47 49,75 995,33 52,84,585,327,426, ,375 48, ,747 4,92 4,464, , , ,688 4,286,886,386,698,52 346,86 68,36 448,969 5,452 4,8,9 7.5 Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ). Subtotal 35,6 833,673,953,685 2,238,4,39,2 849,859 67,87 63, ,795 6, ,974 66,45 658,28 35,57 45,32 423, ,99 Buses Chg. (%) Large Small Subtotal Chg. (%) Chg. (%) 2.9 4,52 5,59 9, ,86, ,46,247 6, ,677, ,66 58,5 66, ,966, ,249 59,357 65, ,73, ,66 33,895 39, ,83, ,28 36,76 44, ,79, ,3 34,32 4, ,454, ,3 37,29 45, ,756, ,692 44,49 55, ,957, ,957 67,98 77, ,53, ,567 8,634 93, ,966, ,887 7,644 2, ,549, ,574 35,87 53, ,727, ,6 8,96 92, ,66, ,969,83 5, ,84, ,495 96,247, ,464, ,26 9,52 28, ,8,9 7.5 type classification in this table differs somewhat from that used in Ministry of Finance export data. 3. KD sets have been excluded since 979; they represent less than 6% of the cost of compositional Source: Japan Automobile Manufacturers Association

16 Motor Vehicles Exports by Destination An Increase in Motor Vehicle Exports to the Middle East, North America, Oceania, and Africa Compared to the previous year, motor vehicle exports in 22 climbed 25.3% to the Middle East, 9.% to North America, 8.2% to Oceania, and 3.3% to Africa, but declined 4.7% to Europe, 3.2% to Latin America, and.3% to Asia. MOTOR VEHICLE EXPORTS BY DESTINATION IN 22 Europe 848,688 (7.7%) of which EU 4,286 (8.4%) North America,886,386 (39.3%) of which U.S.A.,698,52 (35.4%) Middle East 525,954 (.%) 4,8,9 (%) Asia 57,576 (.9%) Latin America 346,86 (7.2%) Africa 68,36 (3.5%) Note: The figure includes 5,452 units (.%) shipped to other destinations. Oceania 448,969 (9.3%) million units, units, units MOTOR VEHICLE EXPORT TRENDS (BY REGION OF DESTINATION) In % Asia Middle East Europe (EU) (2.8) (2.9) 23.3 (7.7) 2.9 (5.4) 22.9 (4.) 23.6 (2.) 9. (5.) 9.3 (.7) 22.3 (.7) 7.7 (8.4) North America (U.S.A.) (33.5) (3.5) 36.7 (32.9) 4.7 (37.9) 37.5 (33.8) 34.5 (3.7) 38. (33.3) 35.7 (3.6) 35.5 (32.) 39.3 (35.4) Latin America Africa Oceania Other

17 MOTOR VEHICLE EXPORTS BY DESTINATION IN 22 Standard Small Mini Subtotal Passenger Cars Standard Small Mini Subtotal Trucks Large Small Subtotal Buses Asia Middle East Europe North America Latin America Africa Oceania Other Grand s South Korea China Taiwan Hong Kong Thailand Singapore Malaysia Philippines Indonesia Pakistan Other Subtotal Bahrain Saudi Arabia Kuwait Oman Israel United Arab Emirates Qatar Other Subtotal Sweden Denmark UK Netherlands Belgium France Germany Spain Italy Finland Poland Austria Greece Other Subtotal Norway Switzerland Russia Turkey Ukraine Other Subtotal Canada U.S.A. Subtotal Mexico Puerto Rico Colombia Ecuador Peru Chile Brazil Other Subtotal Algeria Egypt Nigeria Kenya South Africa Other Subtotal Australia New Zealand Other Subtotal Destination E U Source: Japan Automobile Manufacturers Association 2,38 84,4 34,588,576 2,327 3,456 25,6,889 23, ,3 325,3 3,498 66,38 35,728 53,94 3,44 7,447 22,49 3,275 36,643 4,69 2,355 49,478 27,26,956 65,294 85,523 8,4 7,776 7,874 8,29 3, , ,574 8,2 22,8 34,699 2,923 7,936,745 72,88 69,4,57,3,676,35 42,652 8,6 2,674 9,959,62 23,753 3,679 4,282 89,77 2,65,287 2, ,745,56 35,3 277,252 2,599 2,85 3,72,722 3,547,6,267 2,997 3,27 5,248 4, ,86,833 4,92 8,353 2,525 5,267,47 43,294 2,565 2,348 9,7 4, ,984 8,86, ,75 3,865 3,42 5,29 5, , , ,564 2,25 6,488 36,6 8,362 2, ,75 6,934 68,783 85,77,97,2 4,48 2,938 6,537 3, ,45 83,529 4,72 3, ,42 6,56 3,47 82,257,442,3 94, 28 64, , , , ,422, ,735 3,45 87, 37,859 5,922 6,456 4, 4,23 3,723 28,67 8,475 9, ,49 4,545 9,62 38,293 56,262 22,43 84,543 22,784 38, ,729 5,834 3,8 66,653 3,999 4,377 73,833,326 9,329 23,7 8,38 8,538 7, ,33 398,27 2,845 29,59 35,855,285 2,748 2,28 833,397 86,72,677,56,863,688 53,559 29,37 7,2 2,897 27,699 37,279 3,63 63, ,74 6,37 5,97 2, ,887 7,22 66, ,569 3,4 4,52 394,762,75 4,96,94 7 7,693 8,352 4,447 47,34,736 6,55 3,27 46,7 2,8 3,948 4,884,42 32,57,94 2, ,54,857,736 87, ,269 3, ,28 4, ,558 2,6 8,27 2,268 2,865 5,96 3,554 2,877 2,33 4,636 52,69,27, ,58 5,55 8,772 5,264 34,46 4,636 4,732 43,774,66 4, , ,742 9, , ,684 3,373, ,445, ,7 2,428 2, ,374 6, , ,822 2,87 2, ,62 66, ,693 8,987 4,9 47,64 2,9 2,59 3,835 46,73 2,273 6,72 5,759,85 35,85 2,883 22, ,527 3,99,275 9, ,269 3, ,743 5, ,665 2,62 2,636 22,698 3,496 6,89 3,664 3,375 2,755 9, 58,489,47 3, ,554 5,94,594 73,34 36,49 4,879 5,25 46,395,66 476,99, , ,92 6, , , ,886 3,38 2, , , , ,858 9, ,76 38,235,238 5, ,66 6,86,795,86 23, , , ,643 2,25,8 3,448 3,9 48,484 3,98 24,32 3, ,64 7,754 2,8 9, , , ,272 9,69, ,277 43,327,398 6,95,247 7,635 9,24 2,23,549 3, , , 25 6,529 5,63 3,525 3,893 4,558 56,484 4,65 28,635 3, ,99 7,82 2,42 28,78 3,476 95,727 49,74 2,675 82,889 6,44 67,66 27,77 76,725,692 8,534 57,576 7,748 52,367 42,423 86,788 23,265 24,94 28,86 5,83 525,954 5,84 3,8 66,655 3,999 4,377 73,833,326 9,329 23,828 8,38 8,538 7, ,42 4,286 2,845 29, ,7 6,547 2,5 2,7 848,688 88,234,698,52,886,386 7,4 29,37 34,56 7, 34,74 4,284 3,63 88, ,86 2,33 49,44 7,478 5,88 52,32 32,42 68,36 399,498 36,95 3, ,969 5,452 4,8,9 6

18 Motorcycles Production Motorcycle Production Declines for Second Consecutive Overall domestic motorcycle production in 22 decreased 6.8% from the previous year to 595, units. While smallsized motorcycles (over 25cc) grew 2.2% to 373, units, Class motordriven cycles (5cc and under), Class 2 motordriven cycles (5cc to 25cc) and minisized motorcycles (26cc to 25cc) shrank 3.4% to 9, units, 38.7% to 4, units, and 2.% to 92, units, respectively. The combined total for larger motorcycles (all those over 5cc) dropped 5.6% from 2 to 55, units. MOTORCYCLE PRODUCTION BY ENGINE CAPACITY IN 22 TRENDS IN MOTORCYCLE PRODUCTION x million units 3 5cc & Under 9,886 (5.3%) 2 Over 25cc 373,93 (62.7%) 595,473 (%) 5cc25cc 39,569 (6.6%) 26cc25cc 9,925 (5.4%) Over 5cc 5cc & Under MOTORCYCLE PRODUCTION MotorDriven Cycles Class (5cc & Under) 895,599,3,822 2,493,9 2,4,85,343,22 95,83 636, ,72 33, ,549 36, ,336 62,928 8,47 87,53 4,936 9,886 MotorDriven Cycles Class 2 (5cc25cc),47,25,887,7 2,8,26,373, ,734,38,938 63,22 376,8 34,622 26,343 49,868 78,827 28,38 57,424 8,63 64,57 39,569 MiniSized Motorcycles (26cc25cc) Over 5cc 259,45 33,733 66,83 469,728 27,34 27, , ,499 27,26 279, ,43 269,689 92,863 25,384 8,95 4,636 9,925 SmallSized Motorcycles (Over 25cc) Subtotal Chg. (%) Notes:. KD sets have been excluded since 979; they represent less than 6% of the cost of compositional components per vehicle and have been treated as components since Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Automobile Manufacturers Association , ,29,98, ,346 56, ,76 85,9 76, , ,49,39, , , , ,82 365,8 373, ,52,73 2,77,725 3,94,64 2,52,497,463,675,8,436,778,845,372,833,48,35,493,36,465,4,4,76,63,9 536, , ,25 54,587 2,947,672 3,82,547 6,434,524 4,536,347 2,86,895 2,753,239 2,45,39,83,95,739,584,79,585,77,386,676,97,226, ,9 664,75 639,87 595,

19 Motorcycles Sales Growth in Sales of MiniSized and SmallSized Motorcycles Domestic motorcycle sales (defined here as exfactory shipments to domestic dealers, not as new registrations) in 22 totalled 42, units, down.9% from the previous year. By engine capacity, sales of Class motordriven cycles (5cc and under) and Class 2 motordriven cycles (5cc to 25cc) dropped 4.3% and 5.7%, to 246, and 9, units respectively, whereas sales of minisized motorcycles (26cc to 25cc) climbed 25.% to 4, units and those of smallsized motorcycles (over 25cc) grew 22.8% to 26, units. Overall sales of motorcycles with engine capacity over 5cc thus totalled 56, units, an increase of 4.9% over 2. MOTORCYCLE SALES BY ENGINE CAPACITY IN 22 TRENDS IN MOTORCYCLE SALES x million units 26cc25cc 39,77 (9.9%) Over 25cc 25,82 (6.4%).75 5cc25cc 9,29 (22.5%) 4,895 (%) 5cc & Under 246,95 (6.2%) 5cc & Under.5.25 Over 5cc MOTORCYCLE SALES (SHIPMENTS TO DOMESTIC DEALERS) MotorDriven Cycles Class (5cc & Under),978,426,646,5,23,52 884,78 558, ,6 5,388 47, ,96 458,23 295,98 255,56 23, ,45 246,95 MotorDriven Cycles Class 2 (5cc25cc) 2,238 3,574 69,68 38,5 2,6 89,96 62,78 88,747 82,2,72 2,99 65,888 96,368 95,72 9,29 MiniSized Motorcycles (26cc25cc) Over 5cc 88,88 73,887 58,882 98,833 72,886 87,88 97,35 99,658 9,395 86,8 55,674 37,8 27,275 3,767 39,77 SmallSized Motorcycles (Over 25cc) 3,84 45,674 76,92 9,86 46,46 42,724 39,78 47,86 48,564 4,2 49,743 22,48 25,352 2,9 25,82 Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ). Subtotal 39,6 45,35 45,42 328,34 22,48 22,5 99, ,59 222,7 226,92 226,47 25,26 48,995 48,488 55,8 Chg. (%) 2,37,36 2,96,25,68,933,22, ,877 76,2 7,2 76,53 7, , ,35 38,777 38,242 45,533 4, Source: Japan Automobile Manufacturers Association 8

20 Motorcycles Motorcycles in Use Rise in Number of Class 2 MotorDriven Cycles and SmallSized Motorcycles in Use As of March 3, 22, the number of motorcycles in use in Japan dipped to.99 million, down.8% from the previous year. By engine capacity, Class motordriven cycles, which account for 57.6% of all motorcycles in use, dropped 3.6% to 6.9 million units and minisized motorcycles in use slipped.8% to.96 million units. On the other hand, Class 2 motordriven cycles and smallsized motorcycles in use rose 2.7% and.5%, to.58 million and.54 million units respectively. Thus, motorcycles over 5cc in use increased.7%, to a total of 5.9 million units. MOTORCYCLES IN USE BY ENGINE CAPACITY (at March 3, 22) TRENDS IN MOTORCYCLES IN USE (at March 3 yearly) x million units 2 6 Over 25cc,542,856 (2.9%) 26cc25cc,959,845 (6.3%) 5cc25cc,582,925 (3.2%),985,85 (%) 5cc & Under 6,899,459 (57.6%) 5cc & Under Over 5cc MOTORCYCLES IN USE (at March 3 yearly) MotorDriven Cycles Class (5cc & Under) 3,727,426 4,85,4 8,794,335 4,69,399 3,539,269,65,39 9,643,487 8,95,37 8,739,686 8,566,63 8,345,225 8,34,692 7,92,5 7,694,9 7,448,862 7,54,455 6,899,459 MotorDriven Cycles Class 2 (5cc25cc) 4,43,745 3,32,88 2,28,6,747,957,57,228,42,3,337,395,329,4,34,88,353,732,378,74,397,85,429,738,479,588,5,44,54,667,582,925 MiniSized Motorcycles (26cc25cc) 583,36 492,37 56,567,47,426,669,77,823,446,74,522,772,545,8,594,857,439,98,42,95,52,976,829,996,3,992,939,975,623,959,845 Over 5cc SmallSized Motorcycles (Over 25cc) 9,77 276,75 383, ,627,45,59,77,229,288,399,352,99,37,33,397,392,428,49,452,893,478,724,55,34,524,76,535,8,542,856 Subtotal 5,24,832 3,9,84 3,7,22 3,57, 4,232,58 4,42,76 4,33,36 4,454,54 4,522,3 4,68,563 4,75,265 4,8,49 4,885,29 4,98,23 5,28,555 5,5,47 5,85,626 Chg. (%) 8,852,258 8,752,98,965,547 8,8,49 7,77,787 5,587,96 3,973,83 3,369,9 3,26,699 3,75,76 3,6,49 2,935,82 2,787,342 2,675,22 2,477,47 2,25,926,985, Notes:. Motordriven cycle data is as at April, and since 26 motorcycles with engine capacity of 25cc and under whose owners fail to pay the mandatory motorcycle ownership tax are not included in this data. 2. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Sources: Ministry of Land, Infrastructure, Transport and Tourism; since 26 (only for the 25ccandunder categories), Ministry of Internal Affairs and Communications 9

21 Motorcycles Exports Motorcycle Exports Slip from Previous Motorcycle exports in 22 declined 5.% from the previous year to 479, units. By engine capacity, exports of Class motordriven cycles, Class 2 motordriven cycles and minisized motorcycles dropped 9.9%, 22.4%, and 6.3%, to 8,, 36,, and 7, units respectively, whereas exports of smallsized motorcycles, at 356, units, remained unchanged from the previous year s level. In 22 the total value of motorcycle and motorcycle components exports decreased 2.8% to US$ 4.6 billion, with the value of motorcycle exports dipping.2% to US$ 3.2 billion and the value of components exports falling 8.2% to US$.4 billion. MOTORCYCLE EXPORTS BY ENGINE CAPACITY IN 22 TRENDS IN MOTORCYCLE EXPORTS x million units.6 5cc & Under 7,794 (3.7%) 5cc25cc 35,579 (7.4%).2 479,63 (%) 26cc25cc 69,963 (4.6%) Over 5cc.8 Over 25cc 355,827 (74.3%).4 MOTORCYCLE EXPORTS 23 5cc & Under MotorDriven Cycles Class (5cc & Under) 326,85 288,843 5,27 369,67 47,3 6,627 82,38 4,35 84,832 57,86 57,558 34,92 36,234 4,493,522 9,745 7,794 MotorDriven Cycles Class 2 (5cc25cc) 94,325,546,7,97,48,35,42 57,84 69, ,4 32, ,245 97,378 24,335 34,57 95,4 44,78 48,976 45,853 35,579 MiniSized Motorcycles (26cc25cc) Over 5cc 87,85 328,33 548,36 296,865 7,222 29,96 24,59 44,873 73,37 77,824 83,98 77,673 49,53,298 85,56 83,594 69,963 SmallSized Motorcycles (Over 25cc) 39, , , ,38 4,38 442,689 85,58 78,999 84,3 899,6 968,53 886,36 72,39 383,38 347,46 355, ,827 Subtotal,4,787 2,4,827 3,428,3 2,72,35,36,443,264,83,559,39,66,64,242,32,274,363,276,468,98,64 965, ,386 48, ,24 46,369 Chg. (%),737,62 2,69,67 3,929,4 2,54,482,83,744,325,7,64,77,28,955,327,44,332,223,334,26,232,796,2,87 543, ,464 54, , Notes:. Figures represent exfactory export shipments of motorcycles manufactured in Japan. 2. Class 2 motordriven cycles include threewheeled motordriven cycles. 3. KD sets have been excluded since 979; they represent less than 6% of the cost of compositional components per vehicle and have been treated as components since Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Automobile Manufacturers Association 2

22 Motorcycles Exports by Destination A Rise in Motorcycle Exports to the Middle East and the Americas Whereas motorcycle exports in 22 increased 5.% to the Middle East, 4.4% to Latin America, and 2.8% to North America over the previous year, they declined 4.% to Asia, 5.5% to Oceania, 9.2% to Africa, and 6.2% to Europe. MOTORCYCLE EXPORTS BY DESTINATION IN 22 Europe 63,533 (34.%) of which EU 52,992 (3.9%) North America 84,65 (38.4%) of which U.S.A. 66,6 (34.8%) Middle East 5,7 (.2%) 479,63 (%) Asia 23,275 (4.9%) Latin America 48,27 (.%) Africa 9,7 (4.%) Oceania 35, (7.3%), units, units, units MOTORCYCLE EXPORT TRENDS (BY REGION OF DESTINATION) Asia Middle East In % Europe (EU) (32.5) (35.) 35. (33.8) 34.9 (33.7) 37.7 (36.5) 36.9 (35.6) 38.8 (37.) 46.2 (44.4) 34.5 (33.) 34. (3.9) North America (U.S.A.) (43.4) (39.6) 47. (42.6) 48. (44.7) 4.4 (36.9) 4.9 (37.2) 33.6 (29.5) 2.5 (7.8) 35.5 (32.6) 38.4 (34.8) Latin America Africa Oceania

23 MOTORCYCLE EXPORTS BY DESTINATION IN 22 Asia Middle East Europe North America Latin America Africa Oceania Grand s South Korea Taiwan Hong Kong Singapore Malaysia Philippines Other Subtotal Saudi Arabia Israel United Arab Emirates Other Subtotal Sweden Denmark UK Netherlands Belgium France Germany Portugal Spain Italy Finland Poland Hungary Greece Slovenia Czech Republic Other Subtotal Norway Switzerland Turkey Russia Other Subtotal Canada U.S.A. Subtotal Mexico Guatemala Nicaragua Panama Colombia Venezuela Peru Chile Brazil Argentina Other Subtotal Guinea Ghana Togo Niger Rwanda Dem Rep Congo Ethiopia Kenya Uganda Tanzania Namibia South Africa Other Subtotal Australia New Zealand Other Subtotal , , ,4 943,796, , ,45 7, , , , ,262,43,298, , ,2 2,93 9,828 5,435, ,546 35, ,8 34 8,56 2, , ,836 2,7, , , ,89 2,958 26,459 29, ,553 9, , , ,9,576 6,63 5,97, ,44 69,963 94,354 3,355,269 4,854 29,68 3, , ,95 2, ,97 28,775,99 8,89 27, , , , ,377 2,25 9,48 3,298, ,824 2, , , , ,237 6,454, , , ,334 3,445,289 4,877 8,9,849 22,744 2,59 97, , ,37 23, ,358 3,669,26 9,38 29, , ,6 59 5, , ,529 6,62 55,85 72,426, ,49 3,,64,364 3,875 48,83 48, , , ,735 5,22 9,28 27,86 3, ,696 46, ,84 3,48,289 4,879 8,2,859 23,275 2,59 97, , ,56 23, ,659 3,925,26 9,424 29,399 83, , , , ,533 7,564 66,6 84,65, ,49 3,,64,39 3,875 48,832 48, , , ,772 5,226 9,7 3,924 3, , 479,63 MotorDriven Cycles Class 2 (5cc25cc) MiniSized Motorcycles (26cc25cc) SmallSized Motorcycles (Over 25cc) Subtotal Over 5cc Destination MotorDriven Cycles Class (5cc & Under) E U Source: Japan Automobile Manufacturers Association 22

24 Automobiles and Society Attention to the Environment Climate Change Climate Change and CO2 Emissions Reduction: The Response of the Transport Sector Under the Kyoto Protocol, adopted in 997 by most industrialized countries to reduce CO2 and other greenhouse gas emissions and enforced in February 25, Japan pledged to reduce its average GHG emissions volume in the first commitment period (28 22) to 6% below the 99 level. In April 25, the Japanese government formulated a target achievement plan (revised in March 28) and then promoted diverse CO2 reduction measures in all major sectors including the industrial, consumer, and transport sectors. In line with the national initiative, the automobile industry has been making vigorous efforts with respect to increasing vehicle fuel efficiency, developing and promoting alternative energypowered vehicles, raising public awareness of ecofriendly driving practices, and supporting the government s efforts to improve traffic flow. After peaking in 2, CO2 emissions in Japan s transport sector have been on a steady decline, owing largely to increased fuel efficiency in passenger cars, greater efficiency in goods distribution, and the widespread adoption of fuelconserving ecodriving. JAPAN S GHG EMISSION VOLUMES: ACTUAL & TARGETED under the Kyoto Protocol Japan s GHG emissions in 99 totalled,26 million tons (in equivalent tons of CO2). In order for Japan to meet its target under the Kyoto Protocol, it was determined that its average GHG emissions volume during the first commitment period (2822) would have to be reduced to,86 million tons. GHG emissions in 2 rose 3.9% from 2 to,37 million tons, 3.6% above the 99 level or 9.6% higher than the target volume. This is largely attributable to Japan s increased consumption of fossil fuels for thermal power generation following the March, 2 earthquake and tsunami, which outweighed the decline in GHG emissions in the manufacturing sector caused by decreased production resulting from that disaster. In order to achieve the 6% below 99 target, therefore, further reduction efforts are urgently required. x million tons,4,3,2,,26,352,334,365,28,26,258,37 (+3.6%),86 (6.%) Forest sink (3.8%) Kyoto mechanisms (.6%), 99 (Baseline) Fiscal year Targeted under the Kyoto (Preliminary Protocol (2822) figure) Source: Ministry of the Environment ACTUAL & TARGETED CO2 EMISSION VOLUMES IN JAPAN S TRANSPORT SECTOR Of Japan s total CO2 emissions, the transportation sector accounts for roughly 2%, of which 9% are autoemittedmaking CO2 reduction in road transport a priority concern. After peaking in 2, CO2 emission volumes in Japan s transport sector have been steadily declining, registering 23 million tons in 2 and thus considerably surpassing the 2 target, for the fourth consecutive year. This was achieved by means of increased vehicle fuel efficiency, road congestion mitigation, and the wider practice of ecodriving, among other measures. x million tons 32 3 Compliance with vehicle fuel efficiency targets, etc If no CO2 countermeasures taken Fiscal year (Preliminary figure) Through increased vehicle fuel efficiency: Down million tons Through improved traffic flow: Down 32.3 million tons Through other measures: Down million tons reduction: Down million tons 2 Targeted Sources: Kyoto Protocol Target Achievement Plan, etc. 23

25 Automobiles and Society Attention to the Environment Climate Change CO2 Emissions Reduction: Improving Vehicle Fuel Efficiency For gasolinepowered passenger cars and trucks weighing 3.5 tons or less, fuel efficiency targets for 25 were formulated in 27, applying top runner criteria whereby the leading fuel efficiency performance to date (27) for a given vehicle weight category was used as the target value. The 25 target for passenger cars signifies a nearly 24% increase in average fuel efficiency compared to the 24 level. For heavyduty vehicles (trucks and buses with GVW>3.5 tons), fuel efficiency targetsthe first in the worldwere introduced in 26. Compliance here will mean that by 25 the average fuel efficiency of heavyduty vehicles will increase by over 2% compared to the 22 level. Japan s automakers are working hard to further advance fuel efficiency technologies, aiming now to comply with an even more stringent target established in 22 for passenger cars for enforcement in AVERAGE FUEL EFFICIENCY TARGETS FOR NEW PASSENGER CARS & TRUCKS/SMALL BUSES Passenger cars Trucks (GVW 3.5tons) 25 target value 6.8 km/ 24 actual value 3.6 km/ 25 target value 5.2 km/ 24 actual value 3.5 km/ (Percentage gain) (23.5%) (2.6%) 25 target value 8.9 km/ Small buses (7.2%) 24 actual value 8.3 km/ km/ Note: Fuel efficiency here is JC8 test cyclebased (see page 67), and targets were established assuming the same respective shipment volume ratios by vehicle weight category for 25 as those recorded in 24. Sources: Ministry of Economy, Trade and Industry; Ministry of Land, Infrastructure, Transport and Tourism AVERAGE FUEL EFFICIENCY OF DOMESTIC NEW GASOLINEPOWERED PASSENGER CARS In km/ Fiscal year Note: All figures here are 5mode test cyclebased (the JC8 test cyclebased 25 target of 6.8 km/ is equivalent here to 8.6 km/ ) and apply only to domesticbrand new passenger cars. Source: Japan Automobile Manufacturers Association 25 AVERAGE FUEL EFFICIENCY TARGETS FOR NEW HEAVYDUTY VEHICLES (GVW 3.5t) VEHICLE TECHNOLOGIES FOR INCREASED FUEL EFFICIENCY (Percentage gain) 25 target value 7.9 km/ Trucks (2.2%) 22 actual value 6.32 km/ 25 target value 6.3 km/ Buses (2.%) 22 actual value 5.62 km/ km/ Note: Fuel efficiency here is JE5 test cyclebased (see page 67), and targets were established assuming the same respective shipment volume ratios by vehicle weight category for 25 as those recorded in 22. Sources: Ministry of Economy, Trade and Industry; Ministry of Land, Infrastructure, Transport and Tourism Improved engine efficiency Improvements in thermal efficiency: Direct injection Variable mechanisms (variable cylinder activation, VVT&L, etc.) Reduction of friction loss: Reduction of piston & piston ring friction loss Lowviscosity lubricating oil Reduced aerodynamic drag Improved body configuration Reduced vehicle weight Expanded use of lightweight materials Improved body structure 22 AVERAGE FUEL EFFICIENCY TARGET FOR NEW PASSENGER CARS Passenger cars 22 target value 2.3 km/ 29 actual value 6.3 km/ (Percentage gain) (24.%) km/ 2 3 Note: Fuel efficiency here is JC8 test cyclebased (see page 67), and the target was established assuming the same respective shipment volume ratios by vehicle weight category for 22 as those recorded in 29. Sources: Ministry of Economy, Trade and Industry; Ministry of Land, Infrastructure, Transport and Tourism Improved powertrain performance Expansion of lockup area Expanded number of transmission gears Continuously variable transmission Reduced rolling resistance Low rollingresistance tires Other Electric power steering Idling prevention (stopstart) Hybridization 24

26 Automobiles and Society Attention to the Environment Climate Change Promoting FuelConserving Ecodriving Individual drivers can increase fuel efficiency and thus help reduce CO2 emissions by improving their driving habits. JAMA has therefore been conducting an ongoing publicawareness campaign, in collaboration with the government and industry partners, to promote sound, fuelconserving ecodriving practices, urging drivers to adopt the ten smart tips listed below. While the already widespread use of digital tachographs in truck fleet operations in Japan continues to expand, automakers are equipping more and more passenger cars not only with fuel efficiency gauges and systems for navigatoraided, realtime onscreen displays of fuel efficiency performance, but also with idlingprevention (stopstart) systems and ecomode buttons that activate fuel efficiencypromoting functions. TEN TIPS FOR FUELCONSERVING ECODRIVING as promoted in Japan. Accelerate gently. Think ecostart when you accelerateincreasing your speed at a relaxed pace, to 2km/h in 5 seconds, boosts fuel efficiency by %. Gentle acceleration also contributes to safer driving. 2. Maintain a steady speed and keep your distance. Maintain a suitably steady speed for safe and fuelefficient driving. Tailgating leads to unnecessary acceleration/deceleration, resulting in 2% and 6% less fuel efficiency in urban and suburban areas, respectively. 3. Slow down by releasing the accelerator. Releasing the accelerator when recognizing the need to slow down (e.g., at changing traffic lights) stops the fuel supply, resulting in a 2% gain in fuel efficiency. Use your engine s braking function whenever appropriate, including on downhill descents. 4. Make appropriate use of your air conditioner. The AC function is for cooling and dehumidifying only, so don t leave your AC on when you re heating the cabin. When you do use it, be sure not to set it too low. (Continuous use of the AC functioning at 25 o C when the outdoor temperature is 25 o C results in a fuel efficiency loss of 2%.) 5. Don t warm up or idle your engine. Today s passenger cars don t require warming up, so start off slowly right after turning on the ignition. When waiting or loading/unloading, make a habit of turning your engine off instead of letting it idle. Ten minutes of engine idling (with the AC off) wastes 3cc of fuel. (See notes below.) 6. Plan your itinerary to avoid congested routes. Plan the route to your destination using a map or your navigation system before starting off. Check traffic information to avoid congested areas and save time and fuel. Ten minutes of unnecessary driving in a onehour trip results in a 7% drop in fuel efficiency. 7. Check your tire pressure regularly. Driving on tires whose air pressure is 5kPa (.5kg/cm 2 ) lower than it should be decreases fuel efficiency by 2% in urban areas and 4% in suburban areas. Timely replacement of engine oil and items such as oil filters and air cleaner elements also contributes to increased fuel efficiency. 8. Reduce your load. Onboard weight is a key factor in fuel efficiency performance. Driving with kg of unnecessary onboard weight causes a 3% loss in fuel efficiency. Another factor is your vehicle s aerodynamic drag, which you can reduce by removing exterior rack equipment when not in use. 9. Respect parking rules and regulations. Don t leave your vehicle where it blocks traffic. Illegal or imprudent onstreet parking causes traffic congestion which leads to increased emissions and a greater risk of accident. Roads that are not encumbered by illegally or improperly parked vehicles promote smoother traffic flow and higher fuel efficiency.. Check the readings on your fuel efficiencymonitoring equipment. Be aware of your vehicle s fuel efficiency performance by consulting onboard equipment that monitors it. Notes:. Warming up a vehicle engine is necessary only in extremely cold climates (2 o C or colder) or after long periods of nonuse. 2. For drivers stopping engine idling manually, i.e. by turning their vehicle s ignition off and then back on again, caution is advised as follows (but does not apply to drivers of vehicles equipped with idlingprevention systems): ) Stepping on the brake pedal repeatedly during engine shutdown may diminish braking power; 2) Drivers not accustomed to shutting down their engines and starting them up again may experience slow or faulty restarts; 3) Excessive shutting down and restarting may drain the batteries, resulting in engine startup failure; 4) Do not use this method when stopped at the head of a line or on a gradient, because turn signals and windshield wipers, as well as airbags and other safety features, will not function during engine shutdown. 25

27 Automobiles and Society Attention to the Environment Climate Change CO2 Emissions Reduction: Improving Traffic Flow Improved road traffic flow enables increased vehicle speed and increased fuel efficiency, which in turn contributes to CO2 reduction. Improving traffic flow by upgrading road networks and overall infrastructure is therefore urgently required. JAMA advocates such upgrades, including measures to mitigate congestion at intersections, as well as the early completion of the Tokyo metropolitan area s three major ring roads and the greater use of expressways. To help ensure steady progress in this regard, the government and other relevant publicsector players must jointly establish a data compilation/analysis and response formulation/implementation scheme to evaluate the impact of traffic flowrelated measures on CO2 reduction and to follow up accordingly. JAMA in fact conducted a quantitative assessment of the impact on CO2 reduction of the operation of the Oji section (opened for service in December 22) of the Tokyo Metropolitan Expressway s inner ring road. This study determined that operation of the new section enabled increased average vehicle speed on that ring road and on surrounding local roads, resulting in an estimated reduction in CO2 emissions of 2, to 3, tons annually. IMPACT OF VEHICLE SPEED ON CO2 EMISSIONS CO2 emission 6 levels 5 (%) km/h 2km/h 3km/h Average vehicle speed Source: Japan Automobile Research Institute IMPACT OF THE OJI SECTION S OPERATION ON CO2 REDUCTION Average vehicle speed in km/h CO2 emissions volume x, tons/year Tokyo Metropolitan Expressway Local roads Tokyo Metropolitan Expressway Local roads Before Operation Note: Vehicle speed and CO2 emissions were calculated on the basis of three established models, including that of the Japan Automobile Research Institute. The estimated annual CO2 reduction volume varies between 2, and 3, tons depending on the model used. Source: Japan Automobile Manufacturers Association PROPOSED DATA INPUT/ANALYSIS & RESPONSE FORMULATION SCHEME FOR IMPROVED TRAFFIC FLOW After Operation Increase/ Decrease General Statistical Data: Road transport statistics Relevant national energy statistics Ministry of Land, Infrastructure, Transport and Tourism Data: Odometer data (collected at vehicle inspections) Road transport surveys Traffic volume data (via monitoring) Road congestion monitoring Data Compilation and Processing Data Analysis/Evaluation Response Formulation and Implementation National Police Agency Data: Road traffic data from sensors Uplink data from ITS optical beacons Status Reports on the Impact of: Use of advanced signalcontrol systems Onstreet parking bans Measures for smoother flow at intersections Construction of bypass routes Source: Japan Automobile Manufacturers Association CO2 Reductions at Production Plants Japan s automakers have implemented multiple measures to reduce energy consumption and otherwise cut CO2 emissions at their production facilities. Since 28, their plantemitted CO2 reduction goals have been achieved jointly with the members of the Japan AutoBody Industries Association (JABIA). Although those combined emissions increased in 2 to 5.48 million tons as a result of the discontinuance of nuclear power generation, that figure nevertheless represents a 35.% decrease from the 99 level, underscoring expectations that the 2822 target (a reduction of 25% from the 99 level) will be achieved. PRODUCTION PLANTGENERATED CO2 EMISSION VOLUMES, 992 CO2 emissions (x million tons) Target Fiscal year (2822 average) CO2 emissions/ production value (x, tons CO2 per trillion yen) Source: Japan Automobile Manufacturers Association 26

28 Automobiles and Society Environmental Performance Vehicle Certification Promoting Vehicles with Greater Fuel Efficiency and Lower Emissions Vehicles with greater fuel efficiency help counter global warming through their reduced emission of CO2, while vehicles with reduced tailpipe emissions help improve air quality. For gasoline, diesel, and LPG vehicles, the Japanese government has established environmental performance certification criteria keyed to Japan s latest fuel efficiency and emission standards. Trucks and buses that comply with NOx (nitrogen oxides) and PM (particulate matter) emissions requirements are also certified, separately. To boost widespread public awareness of vehicles with advanced fuel efficiency and/or low emissions, such vehicles are identified with appropriately coded stickers. CERTIFICATION FOR VEHICLES WITH ADVANCED FUEL EFFICIENCY For Gasoline and Diesel Vehicles Including Trucks and Buses with GVW 2.5t Rating/Performance Level Vehicle Sticker CERTIFICATION FOR VEHICLES WITH LOW EMISSIONS Rating/Performance Level Emissions down by % from 29 standards Vehicle Sticker Compliant +2% compared to standards Compliant +% compared to standards Compliant with standards Performing at least 2% better compared to 25 fuel efficiency standards Performing at least % better compared to 25 fuel efficiency standards Compliant with 25 fuel efficiency standards Emissions down by 75% from 25 standards Emissions down by 5% from 25 standards Note: Fuel efficiency is JC8 test cyclebased. For Trucks and Buses with GVW 2.5t Compliant +% compared to standards Compliant +5% compared to standards Compliant with standards Rating/Performance Level Performing at least % better compared to 25 fuel efficiency standards Performing at least 5% better compared to 25 fuel efficiency standards Compliant with 25 fuel efficiency standards Vehicle Sticker CERTIFICATION FOR TRUCKS AND BUSES WITH LOW NOx & PM EMISSIONS Rating/Performance Level Compliant with 29 emission standards Compliant with 25 emission standards Compliant with other certification criteria (see above) Vehicle Sticker Note: Fuel efficiency is JC8 or JE5 test cyclebased. For Gasoline and LPG Vehicles Including Gasoline Trucks with GVW 2.5t Rating/Performance Level Vehicle Sticker Compliant +5% compared to standards Compliant +38% compared to standards Compliant +25% compared to standards Performing at least 5% better compared to 2 fuel efficiency standards Performing at least 38% better compared to 2 fuel efficiency standards Performing at least 25% better compared to 2 fuel efficiency standards Note: Fuel efficiency is 5mode test cyclebased. 27

29 Automobiles and Society Attention to the Environment Emissions Vehicle Exhaust Emissions: New Regulations Enforced in 29 Japan s vehicle exhaust emissions regulations have always been among the strictest in the world, and its automakers have worked very hard to develop the advanced technologies required to comply with them. As a result, NOx and other atmospheric pollutant levels have been on a steady decline even in large urban areas. Based on the Ministry of the Environmentaffiliated Central Environment Council s policy recommendations for future reductions in motor vehicle exhaust emissions (released in April 25), comprehensive new regulations were implemented by the Japanese government in 29, of which the regulations for trucks and buses were, at the time of their enforcement, the most stringent in the world. Starting in 26, the NOx regulation for heavyduty diesel vehicles will be even stricter, as will be the NOx, THC and CO emission limit values for motorcycles. COMPARISON OF HEAVYDUTY DIESEL TRUCK EMISSIONS REGULATIONS Japan (GVW=Over 3.5 tons) () Longterm regulations (997, 998, 999) New shortterm regulations (23, 24) New longterm regulations (25) (2) Postnew longterm regulations (29, 2) Future regulations (26, 27, 28) U.S.A. (GVW=Over 3.85 tons) 998 standard 24 standard 27 standard (3) 2 standard Europe (GVW=Over 3.5 tons) EURO (995) EURO (2) (4) EURO (25) EURO (28) EURO (23) EEV (5) Transient mode Steady state mode Transient mode Steady state mode Transient mode Steady state mode Transient mode Steady state mode Transient mode Steady state mode NOx Nitrogen oxides THC hydrocarbons NMHC Nonmethane hydrocarbons Automobile manufacturers must comply with one of the following: ) NOx + NMHC ) NOx + NMHC 3.35 with mandatory NMHC value of (.6) (5.) 3.5 (3.5) 2. (2.).46 (.4) 2. (2.) All regulatory values below apply to the heaviest truck categories. In g/kwh CO Carbon monoxide (2.) 4. (.5) 4. (.5) 4. (.5) 3. (.5) PM Particulate matter () GVW (gross vehicle weight) (Japan) = Vehicle weight + Maximum load + Maximum occupants x 55 kg. Weight per occupant and other details slightly differ from those of U.S. and European regulations. (2) Japan s regulations applied to the over2.5t GVW vehicle category; regulations as of 25 apply to the over3.5t GVW vehicle category. (3) The U.S. s 27 standard permitted an NOx compliance level of around.6g until 2 depending on engine family type. (4) EURO (Europe): All vehicle categories were regulated in the steady state (ESC) mode only, except DPF and NOx reduction catalystequipped vehicles, which were regulated in both the steady state (ESC) and transient (ETC) modes. Beginning with EURO, all vehicle categories, whether DPF and NOx reduction catalystequipped or not, are regulated in both modes. (5) EEV (Europe): Enhanced Environmentally Friendly Vehicles. EEV regulations constitute a special category and are applied by EU member countries only in specific instances when urban air quality is particularly poor (for example, when temporary restrictions on vehicle circulation in cities are enforced). Emission values indicated are provisional (.66) (.46) (.46).6 (.3) (.25) (.).3 (.2).3 (.2). (.).2 (.2) COMPARISON OF HEAVYDUTY DIESEL TRUCK EMISSIONS REGULATIONS (PM and NOx) More stringent PM (Particulate matter).3.3. U.S.A. (2) Japan (26) Europe (23) Japan (29) U.S.A. (27) Europe (28) NOx (Nitrogen oxides) More stringent In g/kwh Note: Countries apply different test cycles based on different vehicle running patterns. 28

30 MOTOR VEHICLE EMISSIONS REGULATIONS IN JAPAN Gasoline and LPG Vehicles Diesel Vehicles Motorcycles Vehicle Type Passenger cars Trucks and buses Mini Lightduty (GVW.7t) Mediumduty (.7t<GVW 3.5t) Heavyduty (GVW>3.5t) Passenger cars (3) Trucks and buses Lightduty (GVW.7t) Mediumduty (.7t<GVW 3.5t) Heavyduty (GVW>3.5t) Motordriven cycles Class Motordriven cycles Class 2 Class motorcycles* Minisized motorcycles Class motorcycles* Smallsized motorcycles Class motorcycles* Test cycle 5M + M (g/km) () 5M + M (g/km) () 5M + M (g/km) () 5M + M (g/km) () JE5 (g/kwh) 5M + M (g/km) 5M + M (g/km) 5M + M (g/km) JE5 (g/kwh) Motorcycle test cycle (g/km) enforced Regulatory value (Average) NOx.5 Under.5 in engine capacity with a maximum speed of 5km/h, or under.5 in engine capacity with a maximum speed of 99km/h. *Equivalent to motordriven cycles, Class and Class 2. Motorcycle test cycle (g/km) 26 CO HC 2..3 NOx.5 Under.5 in engine capacity with a maximum speed of 29km/h, or.5 or over in engine capacity with a maximum speed of 29km/h. *Equivalent to minisized motorcycles with a maximum speed of 29km/h. 27 Motorcycle test cycle (g/km) Previous Regulations CO NMHC NOx CO NMHC NOx CO NMHC NOx CO NMHC NOx CO NMHC NOx CO NMHC NOx PM CO NMHC NOx PM CO NMHC NOx PM CO NMHC NOx PM CO HC NOx CO HC CO HC Emission Smallsized Midsized Smallsized Midsized NOx With a running speed capacity of over 3km/h. *Equivalent to minisized motorcycles with a running speed capacity of over 3km/h and smallsized motorcycles. Current/Future Regulations Test cycle JC8 (g/km) () JC8 (g/km) JC8 (g/km) () JC8 (g/km) JC8 (g/km) () JC8 (g/km) JC8 (g/km) () JC8 (g/km) JE5 (g/kwh) JC8 (g/km) JC8 (g/km) JC8 (g/km) JE5 (g/kwh) WHTC (g/kwh) (5) WMTC (g/km) (7) WMTC (g/km) (7) WMTC (g/km) (7) WMTC (g/km) (7) WMTC (g/km) (7) WMTC (g/km) (7) WMTC (g/km) (7) enforced Emission Regulatory value (Average) () All vehicles weighing 3.5t or less are regulated as follows: Beginning in 28, on the basis of (values measured in coldstart state in JC8 test cycle) x.25 + (values measured in 5 mode test cycle) x.75; and beginning in 2, on the basis of (values measured in coldstart state in JC8 test cycle) x.25 + (values measured in warmstart state in JC8 test cycle) x.75. (2) PM values apply only to directinjection, leanburn vehicles equipped with absorptiontype NOx reduction catalysts. (3) Smallsized diesel passenger cars have an equivalent inertia weight (EIW) of.25t (GVW of.265t) or less, and midsized diesel passenger cars have an E W over.25t. (4) Enforced since 2 for mediumduty diesel vehicles (.7t<GVW 2.5t) and heavyduty diesel vehicles (3.5t<GVW 2t). (5) On the basis of (values measured in coldstart state in WHTC (World Harmonized Transient Cycle) test cycle) x.4 + (values measured in warmstart state in WHTC test cycle) x.86. (6) Enforcement: 26 for GVW>7.5t; 27 for tractors; 28 for 3.5t<GVW 7.5t. (7) WMTC: A forthcoming worldwide harmonized motorcycle test cycle. Note: CO: carbon monoxide; NMHC: nonmethane hydrocarbons; THC: total hydrocarbons; NOx: nitrogen oxides; PM: particulate matter. Sources: Ministry of the Environment; Ministry of Land, Infrastructure, Transport and Tourism (4) 29 (4) 26 (5) CO NMHC NOx PM (2) CO NMHC NOx PM (2) CO NMHC NOx PM (2) CO NMHC NOx PM (2) CO NMHC NOx PM (2) CO NMHC NOx PM CO NMHC NOx PM CO NMHC NOx PM CO NMHC NOx PM CO NMHC NOx (6) PM CO THC NOx CO THC NOx CO THC THC NOx NOx CO THC NOx CO THC THC NOx NOx CO THC NOx CO THC NOx

31 Automobiles and Society Attention to the Environment Emissions Improving Air Quality Japan s central government as well as local governments in the greater Tokyo area have implemented measures to address air quality problems caused by motor vehicles. In accordance with national legislation aimed at curbing nitrogen oxide (NOx) and particulate matter (PM) emissions in major metropolitan areas, the issuance of inspectioncompliance certification is prohibited for vehicles that fail to meet the legal standards at inspection time. Moreover, the Tokyo metropolitan and surrounding prefectural governments have introduced additional regulations for diesel trucks and buses for the specific purpose of reducing PM emissions. Enforcement of these regulations means that restrictions are imposed on diesel vehicle circulation in the areas concerned. PROVISIONS OF THE NATIONAL AUTOMOTIVE NOx AND PM EMISSIONS ACT/ DIESEL TRUCK & BUS PM EMISSION REGULATIONS FOR THE GREATER TOKYO AREA Provisions of the National Automotive NOx and PM Emissions Act (Major Metropolitan Areas) Provisions of PM Emission Regulations for Diesel Vehicles (Greater Tokyo Area Only) Areas Regulated Vehicle Types Regulated Substances Regulated Regulatory Values in Force Specific Provisions Grace Periods Tokyo, Osaka, and Aichi, Chiba, Hyogo, Kanagawa, Mie, and Saitama prefectures (designated areas) Diesel, gasoline, and LPG trucks and buses Diesel passenger cars NOx and PM Trucks and Buses GVW = Gross vehicle weight GVW=.7 tons & under: NOx Same as 988 regulatory values for new gasoline vehicles PM Half the 22 regulatory values for new diesel vehicles GVW=Over.7 tons to 2.5 tons: NOx Same as 994 regulatory values for new gasoline vehicles PM Half the 22 regulatory values for new diesel vehicles GVW=Over 2.5 tons to 3.5 tons: NOx Same as 995 regulatory values for new gasoline vehicles PM Half the 23 regulatory values for new diesel vehicles GVW=Over 3.5 tons: NOx Same as regulatory values for new diesel vehicles PM Same as regulatory values for new diesel vehicles Passenger Cars NOx Same as 978 regulatory values for new diesel vehicles PM Half the 22 regulatory values for new diesel vehicles New Vehicles In regulated areas, new vehicles not meeting the standards cannot be registered. Vehicles in Use Regulated vehicles whose principal places of use (as declared in their inspection certificates) fall in regulated areas and that do not meet the standards will not be granted inspection certification after grace periods have expired. Note: Vehicles whose principal places of use (as declared in their inspection certificates) do not fall in regulated areas can travel through regulated areas even if they do not meet the standards. From first registration: Small trucks... 8 years etc. Diesel passenger cars... 9 years etc. Standard trucks... 9 years etc. Minibuses... years etc. Large buses... 2 years etc. Tokyo (except for islands) and Chiba, Kanagawa, and Saitama prefectures (all areas) Diesel trucks and buses Note: Not applicable to diesel passenger vehicles with up to passenger occupancy PM only In Chiba and Kanagawa, same as 997, 998, and 999 regulatory values for new diesel trucks and buses In Tokyo and Saitama, same as 22, 23, and 24 regulatory values for new diesel trucks and buses New Vehicles No restriction. Vehicles in Use Vehicles not meeting the standards will be prohibited from travelling through regulated areas after grace periods have expired. Vehicles equipped with local governmentspecified PM reduction systems are deemed to be in compliance with the standards. Note: Applicable to diesel trucks and buses registered anywhere in Japan and travelling through regulated areas. Seven years from first registration, regardless of vehicle type (truck or bus) Note: Except in Chiba Prefecture, where vehicles neither registered in nor travelling through areas designated under the national Automotive NOx and PM Emissions Act will be exempted for a period of 2 years, provided vehicle owners apply for such an exemption. 3

32 Automobiles and Society Attention to the Environment Noise Reducing AutomobileEmitted Noise Automobiles generate various kinds of noise, including the noise emitted by the engine, intake system, powertrain, and cooling and exhaust systems. Tires also generate tire/road noise. Automotive noise in Japan is regulated by standardson accelerated running noise, steady running noise, and stationary exhaust proximity noisewhich have become progressively more stringent, requiring automakers to develop the technologies necessary for compliance. As regards the noise intentionally emitted through tampered mufflers, which has been recognized as a public nuisance, strengthened regulations in effect since April 2 mandate a) that mufflers be tamperresistant so as to prevent the alteration of their noisesuppression mechanism, and b) that replacement mufflers not only meet Japan s relevant noise standards through type approval compliance but also be IDmarked accordingly. Although very significant progress has been made as a result of all of these efforts, the Japanese government s Central Environment Council is nevertheless working on the updating of noise regulations in line with the results of studies conducted under the United Nations World Forum for Harmonization of Vehicle Regulations (WP.29). Accordingly, in its New Measures for Reducing AutomobileEmitted Noise released in April 22, the government announced its intention to introduce, beginning in 24, UN R44, the new international standard on motorcycle acceleration noise, as well as UN R72, to regulate tire noise generated by passenger cars, trucks and buses. Meanwhile, the Forum s Working Party on Noise has undertaken discussion of the quietness of electric vehicles and hybrid vehicles running at low speed, with a view to creating a global technical standard in this regard. PROCEDURES FOR TESTING MOTOR VEHICLE NOISE LEVELS Accelerated running noise Noiselevel measurement span m m After running at a steady speed up to this point, fullthrottle acceleration Steady running noise Noiselevel measurement span m m Running at a constant speed 7.5m 7.5m Microphone (.2m above ground level) Microphone (.2m above ground level) OVERVIEW OF JAPAN S MOTOR VEHICLE NOISE REGULATIONS (for accelerated running noise) Largesized vehicles Mediumsized vehicles Smallsized vehicles Passenger cars Vehicle Type Vehicles with GVW>3.5 tons and maximum engine output>5 kw Vehicles with GVW>3.5 tons and maximum engine output 5 kw Vehicles with GVW 3.5 tons Vehicles exclusively for the transport of passengers, with up to passenger occupancy Passenger Cars, Trucks and Buses 4WD vehicles, etc. Trucks Buses 4WD vehicles, etc. Trucks Buses Other than minivehicles Minivehicles Over 6 occupants 6 occupants or fewer Notes:. In pre987 regulations, 5 kw reads 2 horsepower. 2. 4WD vehicles, etc. includes 4WDs, tractors, and cranes In db(a) Regulation Smallsized motorcycles Minisized motorcycles Class (see note) Motordriven cycles Class 2 Class (see note) Motordriven cycles Class Class (see note) Vehicle Type Over 25cc 26cc25cc Over 5 (PMR*based) 5cc25cc 265 (PMR*based) 5cc & under 25 & under (PMR*based) Motorcycles Minisized and smallsized motorcycles under the current classification Mostly Class 2 but also some Class motordriven cycles and some minisized motorcycles under the current classification Class motordriven cycles under the current classification Regulation *PMR: Powertomass ratio. Note: Beginning in 24, for noise regulation purposes, motorcycles in Japan will be classified (based on their PMR values) under the Class, and categories, and the Class motordriven cycle, Class 2 motordriven cycle, minisized motorcycle and smallsized motorcycle categories will no longer apply. Source: Ministry of the Environment

33 Automobiles and Society Attention to the Environment Recycling Vehicle Recycling and Waste Reduction Under Japan s EndofLife Vehicle (ELV) Recycling Law which entered into force in January 25, automobile manufacturers and importers are responsible for recovery, recycling and appropriate disposal with respect to fluorocarbons, airbags, and automobile shredder residue (ASR). Compliance with the law was anticipated to enable ASR to be recycled at a rate of 7% by 25, resulting in an automobile recycling rate, by vehicle weight, of 95% (as compared with the 8% rate prevailing prior to the introduction of the law); those rates were in fact surpassed in 28. Japan s vehicle recycling infrastructure as mandated by its ELV Recycling Law is the first in the world to administer the entire process of auto recyclingfrom ELV recovery to final disposalon the basis of electronic manifests (or compliance checklists). JAMA itself played a central role in the development and implementation of this advanced vehicle recycling system. It also provided financial support for related software development and continues to help finance system maintenance and upgrades. In line with national efforts to reduce, reuse, recycle, Japan s automakers are also striving to design vehicles using lightweight materials that are easy to dismantle and recycle, and to reduce and recycle waste generated in the manufacturing process. In 2 the volume of auto plantgenerated waste destined for landfill disposal totalled,3 tons, a 99.6% decrease from the 99 level, very largely surpassing the 25 target of, tons. INDUSTRY MEASURES IN LINE WITH NATIONAL LEGISLATION Promotion of Effective Utilization of Resources Law (the 3R Law) EndofLife Vehicle Recycling Law Product Design Waste Management ELV Recycling Reduce initiatives Reuse initiatives For designated products: Weight reduction/ Downsizing Longer product life Reduced use of hazardous substances For designated products: Use of recyclable materials Ease of dismantling For designated areas of activity: Reduction/recycling of designated waste products generated in vehicle manufacturing operations: ) Scrap metals 2) Casting sand residue waste volume*: 99 (baseline): 352, tons Distribution, Servicing and Use Recovery and recycling of: ) Fluorocarbons 2) Airbags 3) ASR Note: Motorcycles are not covered by the ELV Recycling Law. Recycle initiatives Ease of sorting Nonhazardous recycling 2:,3 tons (a 99.6% reduction from 99) JAMA target:, tons by FY 25 Materials identification *For landfill disposal, including scrap metals, casting sand residue, and other waste ELV RECOVERY IN NUMBERS RECYCLING RATES: TARGETED & ACHIEVED Fiscal No. of ELVs recovered Appropriate disposal of 3 designated items Fluorocarbons Airbags () ASR (2) 2 2,963,642 2,374,587,645,528 2,87, ,45,662 2,57,945 2,86,486 3,39,787 () Through recovery/appropriate disposal of inflators or through onboard deactivation. (2) Covers all categories of processors, whether for direct disposal or for transfer to other markets. Source: Japan Automobile Recycling Promotion Center Three Designated Items Fluorocarbons Airbags ASR Target Destruction 85% 25: 3% 2: 5% 25: 7% Achieved 2.58 million vehicle units (22) 92.% (2) % (2) Sources: Governmentaffiliated entities 32

34 THE ELV RECYCLING FLOW (as per the provisions of the EndofLife Vehicle Recycling Law) ELV flow Information flow Payment/funds remittance flow Payment of recycling fee Purchasers of New Vehicles Purchasers of Used Vehicles Fluorocarbon Disposal* Facilities Delegated Funds Management Entity (Japan Automobile Recycling Promotion Center) Automobile Manufacturers/Importers/Delegated Organization (Japan Automobile Recycling Promotion Center) *Fluorocarbons are destroyed. Airbag Disposal Facilities Fluorocarbon & airbag disposal managed by Japan Auto Recycling Partnership (JARP) Remittance of recyclingfee funds Shredder Residue Recycling Facilities Designated Handling Agent Shredder Residue Recycling Facilities Designated Handling Agent Final Owners Fluorocarbons Payment for recovery Airbags Payment for recovery To markets for recyclable parts, metals, etc. Shredder residue ELVs ELV Collectors ELVs Fluorocarbon Recovery Operators ELVs Dismantlers Vehicle carcasses Press & Shear Operators Shredder Residue Processors Shredding & Sorting Operators Recovery manifests Delivery manifests Recovery manifests Delivery manifests Recovery manifests Delivery manifests Recovery manifests Delivery manifests Delegated Information Management Entity (Japan Automobile Recycling Promotion Center) Inspection & registration verification (MOTAS) MOTAS: Japanesederived acronym for motor vehicle inspection & registration system. Minivehicle inspection Note: The Japan Automobile Recycling Promotion Center assumes the same responsibilities as automobile manufacturers and importers when an ELV has no manufacturer representation under the provisions of this law. It also assumes transporttomainland costs for ELVs turned in on Japan s smallest islands. In addition, this organization provides financial assistance in the disposal of illegally abandoned vehicles. REDUCTIONS IN PRODUCTION PLANTGENERATED WASTE As a result of the efforts made by Japan s automobile manufacturers, the total volume of auto plantgenerated waste destined for landfill has decreased dramatically. It surpassed the 25 target of, tons for the first time in 25, shrinking more than 97% from the 99 baseline level to 8, tons. In 2 plantgenerated waste totalled,3 tons, slightly increasing over the previous year but largely (99.6%) decreasing from the baseline and fully meeting the target. Waste for landfill disposal (x, tons) value of vehicle production including motorcycles (x billion yen) Fiscal year Target Source: Japan Automobile Manufacturers Association 5 33

35 Automobiles and Society Attention to the Environment Recycling Voluntary Initiatives to Recycle Commercial Vehicle Rack Equipment and Motorcycles Japan s EndofLife Vehicle Recycling Law does not cover some types of commercial vehicle rack and custom equipment, nor does it cover motorcycles. In response, JAMA, in cooperation with the Japan AutoBody Industries Association, promotes the development and use of rack equipment that is easy to dismantle and contains minimal amounts of hazardous substances. JAMA has also introduced a recyclinganddisposal system for such equipment. As of January 23, a total of 63 operators across Japan are participating in the system voluntarily. Since October 24, JAMA s four motorcyclemanufacturing members, along with 2 motorcycle importers, have been voluntarily operating a recycling system under which motorcycle dealers nationwide sell only vehicles that feature an official motorcycle recycling mark, enabling, without any additional charge to their final owners, their recovery and processing through the proper disposal channels at the end of their service life. In October 2, the motorcycle recycling fee was eliminated for vehicles sold prior to the introduction of the motorcycle recycling system seven years earlier. Municipallyowned motorcycles require a preapproval by the Japan Automobile Recycling Promotion Center prior to their appropriate disposal. COMMERCIAL VEHICLE RACK EQUIPMENT NOT COVERED BY THE ENDOFLIFE VEHICLE RECYCLING LAW Voluntary Recovery (from CabType Vehicles) Voluntary Recovery (from SingleBody Vehicles) Vehicles Not Covered by the EndofLife Vehicle Recycling Law (Color code explains cost burden placement.) Cost Burden for Equipment Not Covered by the Law All equipment whose recovery is not mandated by law (Color code explains cost burden placement.) Custom and other equipment The EndofLife Vehicle Recycling Law does not cover some types of rack and custom equipment for commercial vehicles. Recovery costs through final disposal are therefore not included in the vehicle recycling fee but rather marketdetermined. Vantype CVs such as: Tanktype CVs such as: Hauling CVs such as: Freezer trucks/vans, refrigerator trucks/vans, dry vans, etc. Tank trucks, cement mixers, waterspraying trucks, watersupply trucks, sewage removal trucks, etc. Specialized hauling trucks, vehicle carriers, container trucks, liftequipped vehicles, etc. Cost Burden for Equipment Covered by the Law For all commercial vehicle rack equipment covered by the Endof Life Vehicle Recycling Law, including singlebody vehicle equipment (exclusive of custom equipment), the vehicle recycling fee covers the entire cost of recovery through final disposal. Specialpurpose CVs such as: Special allterrain vehicles, fire trucks, wreckers, pump trucks, ladderequipped vehicles, etc. THE MOTORCYCLE RECYCLING FLOW Final Owners Delivery of endoflife motorcycle directly to a certified collection center Delivery of endoflife motorcycle to an ELV motorcycle dealer Motorcycle Recycling Mark EndofLife Motorcycle Dealers ELV Motorcycle Dealer Designation Digits represent dealer s ID code. Verification of ownership Verification of recycling documentation Delivery to certified collection centers EndofLife Motorcycle Processing (nationwide operations) Certified Collection Centers (9) Verification of ownership Verification of recycling documentation Disposal/ Recycling Facilities (4) Note: The cost of ELV motorcycle delivery from ELV dealers to certified collection centers is financed by the motorcycle manufacturers on the basis of the consumer s recycling fee paid at the time of motorcycle purchase. Source: Japan Automobile Recycling Promotion Center 34

36 Automobiles and Society Attention to the Environment Hazardous Substances Voluntary Initiatives to Reduce the Use of Hazardous Substances in Motor Vehicles In addition to their recycling and wastereduction activities, Japan s automakers have, on a voluntary basis, eliminated the use of four socalled substances of concern (SOCs)lead, mercury, hexavalent chromium and cadmiumin new vehicles (motorcycles have separate restrictions) to lessen their environmental impact, particularly when they are dismantled and processed at the end of their service life. Meanwhile, JAMA itself is promoting the voluntary reduction of volatile organic compounds (VOCs) in vehicle cabins and has formulated test methods for that purpose. In response, automakers are eliminating VOCs in adhesive and paint solvents and developing waterbased solvents to replace them. RESTRICTIONS ON THE USE OF SUBSTANCES OF CONCERN IN NEW VEHICLES & COMPLIANCE STATUS SOC Lead Mercury Hexavalent chromium Cadmium Restrictions As of January 26, a 9% decrease or more from the 996 level of,85 grams (i.e., a maximum permissible level of 85 grams); for large commercial vehicles including buses, a 75% decrease or more from the 996 level (or a maximum level of grams). Batteries are exempt. As of January 25, banned except for trace amounts in safetyrelated components such as: Instrument panel displays Liquid crystal displays in navigation devices Discharge headlamps Fluorescent cabin lamps Banned as of January 28. Banned as of January 27. Compliance Status All models complied by the end of 25. All models complied by the end of 22. Instrument panel displays are now mercuryfree in all models, as are fluorescent cabin lamps in passenger cars. Navigationdevice liquid crystal displays and discharge headlamps will be mercuryfree in the near future. All passenger car models complied by the end of 27. All large commercial vehicle models complied by the end of 2. All models complied by the end of 25. A VOLUNTARY APPROACH TO REDUCING VEHICLE CABIN VOCs Newmodel passenger cars marketed in and after 27 and newmodel commercial vehicles sold in and after 28 have met the target values established by Japan s Ministry of Health, Labor and Welfare for indoor concentration levels of 3 different substances. Automakers will work to lower vehicle cabin VOC concentration levels even further in future. This voluntary initiative applies only to vehicles that are manufactured and sold in Japan. VEHICLE CABIN VOC TEST CONDITIONS & PROCEDURES (Summary Outline) Pretest conditions (ventilated cabin) Cabin doors and windows are open for at least 3 minutes for ventilation. Test conditions & procedures, Step (airtight heated cabin) [Formaldehyde] All cabin doors and windows are closed and radiation lamps are used to heat the cabin in an airtight state, maintaining cabin temperature at 4 C (35 C for buses) for a period of 4.5 hours. Cabin air is then sampletested over a period of 3 minutes. Test conditions & procedures, Step 2 (engine & AC running) [Toluene, etc.] After completing Step, engine is started and AC turned on. Cabin air is then sampletested in that state over a period of 5 minutes for passenger cars, 3 minutes for trucks, and 2 minutes for buses. TARGET VALUES FOR INDOOR CONCENTRATION LEVELS OF 3 SUBSTANCES (VOCs) Substance Formaldehyde Toluene Xylene Paradichlorobenzene Ethylbenzene Styrene Chlorpyrifos Dinbutyl phthalate Tetradecane Di2ethylhexyl phthalate Diazinon Acetaldehyde Fenobucarb Note:. g/m 3 (.7 ppb) for children. Target Value for Indoor Concentration Level g/m 3 (.8 ppm) 26 g/m 3 (.7 ppm) 87 g/m 3 (.2 ppm) 24 g/m 3 (.4 ppm) 3,8 g/m 3 (.88 ppm) 22 g/m 3 (.5 ppm) g/m 3 (.7 ppb) (see note) 22 g/m 3 (.2 ppm) 33 g/m 3 (.4 ppm) 2 g/m 3 (7.6 ppb).29 g/m 3 (.2 ppb) 48 g/m 3 (.3 ppm) 33 g/m 3 (3.8 ppb) Principal Sources Adhesives for plywood, wallpaper, etc. Adhesives/paints for interior finishing materials, furniture, etc. Adhesives/paints for interior finishing materials, furniture, etc. Moth repellents, lavatory air fresheners Adhesives/paints for plywood, furniture, etc. Insulation materials, bath units, tatamimat core materials Insecticides (esp. ant exterminators) Paints, pigments, adhesives Kerosene, paints Wallpaper, flooring materials, wirecoating materials Pesticides Adhesives for construction materials, wallpaper, etc. Insecticides (esp. termite exterminators) 35

37 Automobiles and Society Road Safety Status of Road Accidents Road Accidents and Resulting Fatalities and Injuries Continue to Decline In 22 road fatalities (defined as occurring within 24 hours after the accident) in Japan fell for the twelfth straight year, to a total of 4,4. Road accidents and road injuries also declined, for the eighth consecutive year, to 665,38 and 825,396 respectively. Increased seatbelt use is one of the major factors behind the downward trend in road fatalities. The June 28 revision to the Road Traffic Act requires all automobile passengers, including rearseat occupants, to use seatbelts. Although the rate of use of rear seatbelts in 22 stood at 33.2% on regular roads and at 65.4% on expressways, those rates remain low compared to the rate of use of front seatbelts, which approaches %. Further measures are needed to encourage rearseat occupants to buckle up. ROAD ACCIDENTS/INJURIES/FATALITIES Injuries (Number of persons) 2,,,5, 2, 5, Fatalities (Number of persons) Accidents (Number of accidents),, 5,, 5, ROAD ACCIDENTS/INJURIES/FATALITIES (exact figures) Accidents 78,8 472, , , ,97 76,794 93,95 934, , , ,93 692,56 665,38 Injuries (Number of persons) Fatalities (Number of persons) 98,96 6, ,467, ,79 8,76 68,346 9,26 79,295, ,677,55,77,57,5,684 9,73 6, ,73 5,97 9,25 4, ,294 4, ,6 4, ,396 4,4 Source: National Police Agency SEATBELT USE RATES BY SEAT POSITION Driver s seat Front passenger s seat Rear seat Regular Roads Expressways In % Notes:. The survey on seatbelt use is conducted annually in October survey samples totalled roughly 44, on regular roads and 88, on expressways. Sources: National Police Agency; Japan Automobile Federation ROAD ACCIDENTS IN 22 BY ROAD CONFIGURATION Straightaway 28,987 (42.4%) Other 24,659 (3.7%) Number of Accidents 665,38 (%) Near intersection 88,2 (3.3%) Number of accidents Intersection 358,492 (53.9%) Within intersection 27,29 (4.6%) Notes:. Straightaway includes some curves and tunnels. 2. Other includes railroad crossings. Source: National Police Agency 36

38 Automobiles and Society Road Safety Vehicle Safety Equipping More Vehicles with Advanced Safety Features Road safety involves three factorsvehicles, road users, and road infrastructureand greater road safety requires that progress be made in all three areas. The automotive industry continuously strives for greater active safety by upgrading vehicle safety equipment and expanding its onboard installation rates, to help prevent accident occurrence. At the same time, it seeks to increase passive safety through enhanced structural safety and vehicle features designed to mitigate injury when accidents do occur. VEHICLE SAFETY FEATURES & YEAR OF INTRODUCTION Active Safety Intervehicle distance warning Adaptive cruise control ( With lowspeed following mode) ( Fullrange) Lanekeeping assist Blindcorner monitoring Night vision monitoring Navigatorbased gearshift control (ATs only) Adaptive frontlighting system (AFS) Park assist Collisionmitigation braking system (precrash safety) Passive Safety Active head restraints Curtain airbags Pedestrian protection vehicle design ISOFIX anchorages (for child safety seats) Advanced compatibility vehicle structure Rollover curtain airbags Knee airbags Precrash seatbelts Automatic popup hood Motorcycle airbags Source: Japan Automobile Manufacturers Association SAFETY FEATURE ONBOARD INSTALLATION STATUS (for passenger cars produced in 2 for home market) Active Safety Passive Safety Antilock braking system (ABS) Brake assist Unfastened seatbelt warning (driver s seat) Unfastened seatbelt warning (front passenger s seat) Powerwindow jamming prevention (with autoup function) Powerwindow jamming prevention (without autoup function) Highintensity discharge headlamps Adaptive frontlighting system (AFS) Backup monitoring (rear obstacle detection) Vehicle perimeter monitoring Vehicle perimeter obstacle warning Blindcorner monitoring Night vision monitoring Night vision pedestrian ahead warning Curve detection Tire pressure monitoring Driver inattention warning Intervehicle distance warning Lane deviation warning Rear collision warningequipped headrest control Collisionmitigation braking system (precrash safety) Adaptive cruise control Adaptive cruise control with lowspeed following mode Fullrange adaptive cruise control Lanekeeping assist Backup monitoring (parking assistance) Navigatorbased gearshift control Precrash seatbelts Electronic stability control Traction control with ABS Navigatorbased stop sign alert with brake assist Rearwardapproachingvehicle warning Emergency braking warning Vehicle proximity warning (for HVs/EVs) (3) Side airbags Curtain airbags Active head restraints ISOFIX anchorages (for child safety seats) Threepoint seatbelt for rear center seat (4) Safety Feature Installation Status In no. of models () In % (2) In % (2) (72) (63) (85) (66) (78) (33) (56) (5) (22) (6) (6) () () () () (6) () (2) () () (2) (2) () () () () (6) (5) (75) (72) (6) () (2) () (55) (54) (3) (39) (83) ,87,34 3,75,7 3,279, ,88 3,26,4 57,943,38,72 49,9 457,993 8,99 7,878 43, ,76 82,8 82,4 47,4 27,436,493 46,627 43,995 9,956 24,843 4, 8,99 52,67 27,48,42,396,3,9 7,446 3, 368,578,88 83, ,583 2,32,62 2,755,9,7, ,34,359 () In no. of models indicates the number of models in which the safety feature is installed as standard or optional equipment. Figures in parentheses indicate the number of models in which the safety feature is standard equipment. (2) In % means as a percentage of the total number of models/units produced. (3) In 2 a total of 38 hybrid/electric car models (97,44 vehicle units) were equipped with a vehicle proximity warning system. (4) In 2 a total of 4 passenger car models (2,322,533 vehicle units) featured a rear center seat. Minicars do not feature a rear center seat. Note: Passenger cars here include minicars. Source: Japan Automobile Manufacturers Association 37

39 Automobiles and Society Road Safety JAMA Initiatives JAMA Initiatives in Promoting Greater Road Safety In April 24, JAMA pledged its support of the Japanese government s goal to reduce road fatalities by 5% over a period of ten years. JAMA s own initiatives towards that goal are outlined below. JAMA S ROAD SAFETY INITIATIVES IN EIGHT PRIORITY AREAS Priority Area Accidents involving pedestrians or cyclists Special measures for the elderly Greater use of seatbelts Delays in driver recognition and incorrect vehicle control Accidents occurring at twilight/night Accidents occurring at intersections Collisions with stationary objects Compatibility Road Users: Public Awareness Campaigns Continued implementation of road safety public awareness campaigns, based on the results of accident causation studies. Development of road safety educational programs specifically for the elderly. Public awareness campaigns to promote the use of seatbelts. Campaigns aimed at preventing faulty driver recognition and incorrect vehicle control. Campaigns to promote the early lighting of automobile headlamps. Public awareness campaigns to encourage drivers to exercise greater caution at intersections, where the majority of fatal road accidents occur. () Adaptive frontlighting systems. (2) Antilock braking systems. (3) Brakeassist systems. Vehicles: Safety Measures More widespread application of AFS (), ABS (2), BA (3), and stability control. Development of technologies specifically geared to agingrelated physical changes. Research into the mechanisms of accident causation and humanmachine interface conditions using data recorders, etc. More widespread application of AFS. More widespread application of ABS, BA, and stability control. Improvement of sideimpact protection performance. Improvement of sideimpact and vehicle occupant protection performance and of side and curtain airbags. R&D on crashcompatible vehicle bodies and compatibility evaluation methods to improve vehicle performance. Road Infrastructure: Proposals to Government For infrastructural improvements, based on the results of accident causation studies. For more widespread roadway/sidewalk demarcation and greater barrierfree mobility. For improved nighttime road illumination. For road infrastructure regulations for effective utilization of ITS technologies. For expanded provision of underground power lines and impactabsorbing road installations. Automobiles and Society Road Safety National Initiatives Japan s 9th Basic Plan for Road Safety Japan s road safety measures are promoted on the basis of its succession of consecutive basic plans for road safety, the first of which was implemented in 97. In line with the government s goal of eventually achieving zero road accidents nationwide, Japan s ninth road safety plan (225) aims to create a highly road safetyconscious society that places maximum priority on human life and, in particular, the safety of those of its members who are most vulnerable to road accidentsnamely, pedestrians, senior citizens, and persons who are disabled. The plan emphasizes the need to pursue aggressive measures targeting further reductions in the occurrence of road accidents and fatalities. JAPAN S ROAD SAFETY TARGETS To reduce the annual number of road fatalities (occurring within 24 hours postaccident) to below 3, by 25, and thus to make Japan s roads the safest in the world. To reduce the total annual number of road fatalities (occurring within 24 hours postaccident) and injuries to below 7, by 25. EIGHT MAJOR AREAS OF ROAD SAFETY PROMOTIONAL ACTIVITY Road Infrastructure Improvements Sidewalk construction/upgrades, especially in school zones More pedestrian routes suitable for the elderly and disabled Increased use of ITS Promotion of Safe Driving Implementation of special drivereducation programs for the elderly Vehicle fleet operationrelated road accident analysis Enforcement of Road Traffic Laws Strict enforcement of traffic regulations Stronger crackdowns on hotrodding motorcyclists Provision of Fair Compensation for Road Accident Victims Enhanced support for the provision of fair damages compensation Road Safety Public Awareness Campaigns Promotion of safe cycling Promotion of road safety education for the elderly Promotion of seatbelt use by all vehicle occupants Promotion of road safety activities in local communities with the participation of residents Enhancement of Vehicle Safety Expanded development and onboard application of Advanced Safety Vehicle technologies Implementation of improvements to the national vehicle recall system Promotion of regular vehicle checks and maintenance Reinforcement of Emergency Rescue Operations Infrastructure Improved training and deployment of emergency rescue personnel Upgrading of emergency dispatch support systems Promotion of doctorstaffed helicopters Promotion of Road Safety Research and Analysis Promotion of further safedriving research Promotion of comprehensive analysis of road accident causation Source: Japan s 9th Basic Plan for Road Safety 38

40 Automobiles and Society Motor Vehicle Thefts Efforts to Prevent Theft After peaking at 64,223 in 23, the annual number of automobile thefts in Japan shrank for seven consecutive years, registering 23,775 in 2. Although increasing slightly in 2, automobile thefts continued their downward trend (attributable to the widespread use of immobilizers, or portable electronic lock systems) in 22, dropping to 2,7. Meanwhile, although 59,469 motorcycle thefts were reported in 22, that figure nevertheless extends the uninterrupted decline in such thefts since 2. To enhance motor vehicles theftresistance, the automobile industry has very significantly expanded the supply of smart keys equipped with immobilizers. TRENDS IN CONFIRMED MOTOR VEHICLE THEFTS TRENDS IN CONFIRMED MOTORCYCLE THEFTS With key Without key number of confirmed thefts With key Without key number of confirmed thefts Number of thefts Number of thefts 23 8,568 45,655 64, ,969 2, 54, ,999 42,738 58, ,574 98,43 26,77 5 3,86 33,542 46, ,758 8,397 4,55 6,355 25,73 36,58 6 2,45 72,49 93, ,695 23,95 3,79 7 9,686 63,342 83,28 8 7,628 9,887 27,55 8 8,496 6,858 8, ,38 8,777 25,85 9 8,458 63,658 82,6 6,355 7,42 23,775 7,349 56,42 73,49 6,295 8,633 24,928 6,364 5,42 67, ,486 5,584 2,7 2 4,547 44,922 59,469 2, 4, 6, 8, 5,, 5, 2, Source: National Police Agency Source: National Police Agency A SAMPLE IMMOBILIZER DEVICE AND HOW IT WORKS Transponder Key Vehicle manufacturer s original product ID code ID accepted ID verification ID rejected Ignition turned on Ignition not turned on The transponder incorporated in the key transmits a signal (ID code) to the computer installed onboard the vehicle. The ignition is turned on electronically only when the ID has been accepted. This technology combining a sophisticated lock function and electronic coding effectively protects the vehicle against theft. Note: The above diagram illustrates the operation of a vehicle manufacturersupplied original product. Other types of immobilizers are available in the aftersales market. 39

41 Automobiles and Society Driver s Licenses and the Driving Population 8.5 Million People Hold Driver s Licenses At the end of 22 there were 8.5 million people, or 45.4 million men and 36. million women, holding valid driver s licenses in Japan. The number of driver s licenses held totalled 27.9 million (with one count allotted to each vehicle category covered, whenever a license covers multiple vehicle categories). By license category, Class 2 licenses were held by 2.38 million people, or 2.32 million men and.6 million women, and Class licenses by 25.5 million people, or 8.68 million men and million women. GENDER TRENDS IN DRIVER S LICENSE HOLDERS (at end of every calendar year) Number of persons Men 44,786,48 45,2,226 45,35,94 45,257,39 45,42,64 45,57,585 45,539,49 45,487, 45,448,263 45,437,26 Women 32,68,58 33,226,722 33,662,88 34,72,475 34,494,598 34,93,257 35,272,526 35,523,236 35,767,3 36,5,586 77,467,729 78,246,948 78,798,82 79,329,866 79,97,22 8,447,842 8,8,945 8,,246 8,25,266 8,487,846 TOTAL NUMBER OF LICENSES HELD, BY YEAR & LICENSE/VEHICLE CATEGORY Number of licenses held Class 2 Licenses Large motor vehicle Middlecategory motor vehicle,34,485,22,994,234,75,6,74,2,328,89,35,62,25,68,347,2,287,46,36,8,474,26,8,42,2 Ordinary motor vehicle,4,85 56,965 68,575 9,98 2,96 28,6 24,555 Large specialpurpose vehicle 47,95 48,3 47,753 47,238 46,698 46,55 45,463 Traction vehicle 54,28 54,5 53,73 53,25 52,48 5,76 5,35 Subtotal 2,647,268 2,66,69 2,577,63 2,54,946 2,489,773 2,433,666 2,379,353 Class Licenses Large motor vehicle Middlecategory motor vehicle 5,472,55 5,523,9 75,632,238 5,499,24 75,59,457 5,464,835 74,378,38 5,45,73 73,587,938 5,375,268 72,84, 5,337,727 72,7,665 Ordinary motor vehicle 75,565,59 75,387,96,68 3,77,24 4,37,5 5,55,78 6,749,966 Large specialpurpose vehicle 2,377,493 2,42,92 2,47,497 2,428,9 2,435,324 2,443,687 2,454,23 Traction vehicle,95,585,5,34,3,86,39,434,45,69,52,732,6,59 Large twowheeler 2,382,886 2,95,8 2,6,75,765,267,472,937,97,93,938,93 Ordinary twowheeler 8,245,56 8,454,67 8,663,75 8,839,4 8,996,934 9,54,873 9,3,786 Small specialpurpose vehicle 685, , ,5 598,36 565,3 532,892 53,338 Motorized bicycle 7,378,98 7,365,524 7,358,87 7,34,896 7,9,548 7,75,472 6,977,729 Subtotal 23,24,44 24,5,386 24,724,35 25,96,4 25,8,633 25,297,646 25,53,773 25,85,32 26,667,455 27,3,43 27,638,347 27,67,46 27,73,32 27,883,26 Note: In the above figures, one count is allotted to each vehicle category covered, whenever a license covers multiple vehicle categories. CLASS LICENSES & THE VEHICLE CATEGORIES THEY COVER Vehicle Category Large motor vehicle Middlecategory motor vehicle Ordinary motor vehicle Large specialpurpose vehicle Large twowheeler (over 4cc) Ordinary twowheeler 26cc4cc 5cc25cc Small specialpurpose vehicle Motorized bicycle (5cc & under) Large motor vehicle Middlecategory motor vehicle Ordinary motor vehicle Large specialpurpose vehicle Class Licenses Large twowheeler Ordinary twowheeler Ordinary twowheeler (5cc25cc) Small specialpurpose vehicle Motorized bicycle Notes:. As per a revision to the Road Traffic Act, the middlecategory motor vehicle license went into effect from June 2, The ordinary motor vehicle and large twowheeler license categories include licenses restricted to automatic transmission (AT) cars/motorcycles; the ordinary twowheeler license category includes licenses restricted, respectively, to AT motorcycles, to smallsized (over 25cc) motorcycles, and to smallsized AT motorcycles. Source for all statistical data on this page: National Police Agency 4

42 Automobiles and Society Automotive Freight Transport Motor Vehicles Are Vital to Goods Distribution Accounting at present for 54% of Japan s total freight transport, road transportation plays an essential role in goods distribution. With the continuous expansion of goods distribution, the role of motor vehicles in freight transport, especially small cargo transport, will become even more significant in the years ahead. TRENDS IN DOMESTIC FREIGHT TRANSPORT VOLUMES, BY MODE x million tons/km 6, 5, 4, 3, 2,, Air Maritime Rail Road, ,66.52,836 47,297 4, , ,59 5, , ,946 5,763 5,69 5,623 5,684 5,688 5,77 5,86 5, , ,78 2,3 2,47 2,356 2,82 2,88 2,6,879, ,335 3,45 3,533 3,449 3,6 3,6 3,25 3,332 3,262 4, , ,432 4, , , Fiscal year Notes:. Since 987, Road includes transport by minivehicles. 2. Survey and calculation methods for Road data changed in Road figures for fiscal 2 (ending March 3, 2) and 2 do not include data from the Tohoku region and Hokkaido as a consequence of the March, 2 earthquake. Sources: Ministry of Land, Infrastructure, Transport and Tourism, etc. Automobiles and Society Automobile Customs Tariffs Automobile Customs Tariffs After repeated reductions in tariff rates, import tariffs in Japan on finished motor vehicles and major auto components were completely abolished in 978. Meanwhile, some countries still impose high tariffs on imported vehicles. The United States imposes a 25% tariff on imported trucks, and EU import tariffs range from % (on finished passenger cars) to 22% (on largersized trucks). China s auto tariffs remain high despite having been progressively lowered after the country s accession to the World Trade Organization. AUTOMOBILE CUSTOMS TARIFFS, JAPAN/U.S.A./EU/CHINA Passenger Cars Trucks Buses Components, etc. None None None Japan U.S.A. EU Major components: None 2.5% 25% Cab chassis, 5t or greater in GVW... 4% China As of February 23 % 25% Gasoline trucks, over 28cc Trucks, under 5t in GVW... 25% Diesel trucks, over 25cc... 22% Gasoline trucks, 5t or greater in GVW Gasoline trucks, 28cc or under Diesel trucks, from 5t up to 2t in GVW... 2% Diesel trucks, 25cc or under... % Diesel trucks, 2t or greater in GVW... 5% Vehicles for the transport of or more persons, incl. the driver... 2% Vehicles for the transport of or more persons, incl. the driver Gasoline buses, over 28cc Diesel buses, over 25cc... 6% 25% Gasoline buses, 28cc or under Diesel buses, 25cc or under... % Bodies, parts and accessories % Bodies, parts and accessories % Major components... 6% Sources: Customs tariff schedules of countries/region concerned 4

43 Automobiles and Society ITS and ASV Evolution of Intelligent Transport Systems (ITS) in Japan Intelligent Transport Systems aim to radically improve transport safety, efficiency and convenience through the use of information and communication technologies integrating road users, road infrastructure, and vehicles. In 996 the Japanese government formulated its Comprehensive Concept for the Promotion of ITS, on the basis of which it has promoted, as a national project, ITS development in a number of areas. Advanced navigation systems are already widely in use, as are ETC (electronic toll collection) and smart highway toll stations using ETC exclusively. In 2 a strategic government plan called for the introduction of roadtovehicle safedriving support systems and the halving of road congestion on major highways by 22. Accordingly, on the basis of advanced safety vehicle (ASV) development, an ITS spot service system and a safedriving support system were both launched that year. In line also with the additional government goal of reducing road fatalities to below 3, by 25 (see page 4), the use of such systems is expected to expand significantly. INTRODUCTION OF ROADTOVEHICLE SAFEDRIVING SUPPORT SYSTEMS Incorporating ITS technologies, roadtovehicle systems providing safedriving support and cruise assistance have been in operation in Japan since 2, when an ITS spot service system (for use mainly on urban expressways) and a DSSS (for Driving Safety Support System ) system were launched on a fullscale basis. DSSS SYSTEM FEATURES (EXAMPLES). Oncoming traffic warning (here, on right turn) 2. Entering traffic ahead warning Source: Universal Traffic Management Society of Japan SPOT SERVICE SYSTEM FEATURES (EXAMPLES) ETC UTILIZATION STATUS, 8 x,/day In % Number of invehicle units in use Utilization rate Visual traffic congestion ahead warning Visual sharp curve ahead warning Audio warning Audio warning Sources: Ministry of Land, Infrastructure,Transport and Tourism, etc. Jan. 26 Jan. 27 Jan. 28 Jan. 29 Jan. 2 Jan. 2 Jan. 22 Dec. 22 Notes:. Data was not collected from roads that were made tollfree on a trial basis from July 2 through June No data was collected from the entire Tohoku region in and after June 2, when all toll roads there were made tollfree. Source: Ministry of Land, Infrastructure, Transport and Tourism 42

44 EXPANDING AVAILABILTY OF ASV TECHNOLOGIES IN THE MARKET In the area of safedriving assistance using ITS technologies, a wide range of vehicle safety features, including adaptive frontlighting systems, lanekeeping assist systems, fullrange adaptive cruise control systems and collisionmitigation braking systems, have been developed based on the results of research conducted on the Advanced Safety Vehicle (ASV) concept. Most of these advanced technologies have already been introduced to the market (see page 39 for details on the status of their onboard installation). THE ADVANCED SAFETY VEHICLE (ASV) PROJECT, PHASES 5: Summary of Contents and Scheduling Phase (Five Plan) Phase 2 (Five Plan) Phase 3 (Five Plan) Phase 4 (Five Plan) Phase 5 (Five Plan) Implementation Period FY 99 through FY 995 FY 996 through FY 2 FY 2 through FY 25 FY 26 through FY 2 FY 2 through FY 25 Objectives Technological verification R&D for market introduction Preparation for widespread use Development of new technologies Promotion of widespread use Practical application of some systems (see page 44) Breakthroughs in active safety technologies Preparation for implementation of telecommunicationsbased systems to help prevent accidents involving pedestrians Source: Ministry of Land, Infrastructure, Transport and Tourism PRINCIPAL ASV SAFETY TECHNOLOGIES DEVELOPED CollisionMitigation Braking System 6 Vehicle Perimeter Obstacle Warning Driver Inattention Warning System 2 Curve Detection System 7 Adaptive FrontLighting System Electronic Stability Control System 3 FullRange Adaptive Cruise Control 8 Rear Collision WarningEquipped 2 Rear/Side Obstacle Detection 4 Lane Deviation Warning System Headrest Control 3 Emergency Braking Warning 5 LaneKeeping Assist System 9 PreCrash Seatbelts 4 Night Vision Pedestrian Ahead Warning Source: Ministry of Land, Infrastructure, Transport and Tourism PRACTICAL APPLICATION OF ASV TECHNOLOGIES. LaneKeeping Assist Sensors (cameras) positioned on the vehicle monitor the road ahead and, through auxiliary control of the steering wheel, help keep the vehicle centered in the lane whenever the vehicle deviates from its course because of, for example, a crosswind or road surface unevenness. Lanekeeping assist Lane deviation warning Area monitored Area monitored 2. FullRange Adaptive Cruise Control Information from front sensors helps a vehicle keep a safe distance from the vehicle ahead through brake or speed control according to a preset vehicle speed. Monitoring of distance to the vehicle ahead When vehicle ahead slows down, auxiliary braking is activated. 3. CollisionMitigation Braking System (precrash safety) Based on the distance from and speed relative to the vehicle ahead obtained principally by means of radar technology, the system s electronic control unit calculates the risk of collision. In the event of such a risk, multiple warnings are emitted and auxiliary braking is applied. When a collision is imminent, full braking power is applied and seatbelts are retracted automatically. 4. Vehicle Perimeter Monitoring & BlindCorner Monitoring In blindcorner monitoring (bottom image), front cameras with builtin prisms transmit both left and right views to the incabin display screen. Sideview camera Millimeterwave radar continuously monitors the distance to the vehicle ahead. Forwardview camera Rearview camera Sideview camera Auxiliary braking activated When the distance to the vehicle ahead narrows dangerously, multiple warnings are emitted and auxiliary braking is automatically applied. Full braking power activated When a collision is imminent, full braking power is automatically applied and seatbelts are rapidly retracted. 43

45 Automobiles and Society Taxes Taxes on Automobiles Eight Trillion Yen in Annual AutomobileRelated Tax Revenue Since the initial earmarking of funds for road construction and road maintenance programs in line with Japan s first fiveyear road improvement plan in 954, there has been a steady increase both in the number of automobilerelated taxes assessed on users and in their respective rates. Currently, the automobile tax structure consists of nine different taxes, creating a very heavy tax burden for Japanese motor vehicle owners. Under the government s budget for fiscal 23, the total value of tax revenue from these automobilerelated taxes was estimated at 7.7 trillion yen, or 9.5% of Japan s projected total tax revenue of 8 trillion yen in fiscal 23. TAX REVENUE (Estimated) BY SOURCE IN FISCAL 23 (as per Japan s fiscal 23 budget) Consumption tax (on fuels) 6,74 x million yen Consumption tax 2,4 (4.8%) Income tax 38,98 (7.2%) Fixed asset tax 85,986 (.6%) Tax Revenue (national and local taxes) 88,365 (%) Other 249,94 (3.9%) Corporate tax 87,4 (.8%) Breakdown of AutomobileRelated Tax Revenue (estimated) 76,752 (9.5%) Stamp tax,2 (.4%) Liquor tax 3,47 (.7%) Business tax 25,9 (3.%) LPG tax 22 Regional gasoline excise tax 2,745 Diesel handling tax 9,233 Gasoline tax 25,66 Taxes on Taxes on Fuels Automobiles 44,32 32,72 While in use Acquisition tax Consumption tax,9 (on automobiles) 6,962 On acquisition During ownership Minivehicle tax,852 Tonnage tax 6,59 Automobile tax 5,497 Notes:. Automobilerelated consumption tax revenue is not included in the Consumption tax segment in the chart on the left, but is included in the breakdown of automobilerelated tax revenue appearing in the chart on the right. 2. Automobilerelated consumption tax revenue values (including the consumption tax revenue from automobile servicing, not shown but included in figures here) have been calculated by JAMA. 3. The consumption tax is a national sales tax, of which % of the revenue is redistributed to local government coffers. Sources: Ministry of Finance; Ministry of Internal Affairs and Communications AUTOMOBILERELATED TAXES IN JAPAN (as of May, 22) On Acquisition Tax Category Acquisition Tax Consumption Tax Tonnage Tax During Ownership How Assessed Assessed on the acquisition of an automobile, whether new or used, based on the purchase price Assessed on the purchase price of the automobile Assessed according to vehicle weight at each vehicle inspection National/Local Tax Prefectural tax National and local tax National tax Tax Rate/ Amount (Private use) 5% of purchase price (3% for commercial and minivehicles) Exempted for vehicles purchased for 5, yen or less Notes:. Acquisition tax reductions/exemptions are in effect from April, 22 through March 3, 25 for ecofriendly vehicles (see pages 485). 2. Reduction of the acquisition tax (in a twostage process) to % is to coincide with a projected increase in the national consumption tax to %. 5% (of which % is a local tax) ) Vehicles complying with 25 fuel efficiency standards: Original rates apply ( 2,5/.5t per year for private passenger cars) 2) Vehicles on the road 8 years or longer since first registration: Previous rates apply ( 6,3/.5t per year for private passenger cars) 3) Vehicles on the road 3 years or longer since first registration: Temporary rates apply ( 5,/.5t per year for private passenger cars) 4) Other vehicles for private use: Passenger cars: 4,/.5t per year Trucks (GVW>2.5t): 4,/t per year Trucks (GVW 2.5t): 3,3/t per year Buses: 4,/t per year Minivehicles: 3,3 per year Motorcycles (25cc and over):,9 per year Motorcycles (26 to 25cc): 4,9 upon registration Note: Additionally, tonnage tax reductions/exemptions are in effect from May, 22 through April 3, 25 for ecofriendly vehicles (see pages 485). 44

46 JAPAN S ESTIMATED AUTOMOBILERELATED TAX REVENUE IN FISCAL 23 Taxes on Automobiles Taxes on Fuels Grand Notes:. Consumption tax revenue values (including the consumption tax revenue from automobile servicing, not shown but included in figures here) have been calculated by JAMA. 2. Tax rates indicated effective as of May, 22. TAX RATES IN EFFECT (Examples), 95422, TO SUPPORT ROAD NETWORK IMPROVEMENTS First Five Plan Second Third Fourth Fifth Sixth Seventh On acquisition During ownership While in use Eighth Ninth Tenth Eleventh Twelfth As per the national priority infrastructure development plan As per the national mediumterm road infrastructure plan Acquisition tax Consumption tax (on automobiles) Tonnage tax Automobile tax Minivehicle tax Gasoline tax Regional gasoline excise tax Diesel handling tax LPG tax Consumption tax (on fuels) Acquisition Tax Commercial and minivehicles excluded 3% 5% Tax Revenue (x million yen),9 6,962 6,59 5,497,852 32,72 25,66 2,745 9, ,74 44,32 76,752 Tonnage Tax Yen/.5t per year In the case of a passenger car for private use 2,5 5, 6,3 Original Tax Rate Gasoline Tax Yen/ 3.. 6,3 5, 2 5% 4, (2,5*) Comparison with original tax rate (multiplier value) Original tax rate *The original tonnage tax rate ( 2,5/.5t per year) is applied to vehicles compliant with 25 fuel efficiency standards. Note: Tax rates indicated effective as of May, 22. Source: Japan Automobile Manufacturers Association 3% 5% 2,5/.5t per year (Registered vehicles for private use) Based on engine capacity 7,2/year (Passenger cars for private use) 24.3/ 4.4/ 5./ 7.5/kg 5% Regional Gasoline Excise Tax Yen/ Current Tax Rate 5% (Excluding commercial/minivehicles) 4,/.5t per year (Registered vehicles for private use) No change No change 48.6/ 5.2/ 32./ No change Diesel Handling Tax Yen/ Comparison with Original Tax Rate (multiplier value) LPG Tax Yen/kg While in Use Automobile Tax MiniVehicle Tax Gasoline Tax Regional Gasoline Excise Tax Diesel Handling Tax LPG Tax Consumption Tax Fixed amount assessed on the owner each year as of April Fixed amount assessed on the owner each year as of April Assessed on gasoline Included in the fuel price Assessed on light oil Assessed on LPG Assessed on the purchase price of fuels Prefectural tax Municipal tax National tax Prefectural tax National tax National and local tax Passenger cars (for private use) Up to,cc 29,5 yen/year, to,5cc 34,5 yen/year,5 to 2,cc 39,5 yen/year 2, to 2,5cc 45, yen/year 2,5 to 3,cc 5, yen/year 3, to 3,5cc 58, yen/year 3,5 to 4,cc 66,5 yen/year 4, to 4,5cc 76,5 yen/year 4,5 to 6,cc 88, yen/year Over 6,cc, yen/year ) Minivehicles (for private use) Passenger cars 7,2 yen/year Trucks 4, yen/year 2) Motorcycles Up to 5cc, yen/year 5 to 9cc,2 yen/year 9 to 25cc,6 yen/year 26 to 25cc 2,4 yen/year 25cc and over 4, yen/year 48.6 yen/ 5.2 yen/ 32. yen/ (light oil) 7.5 yen/kg (LPG) 5% of the purchase price of fuels (of which % is a local tax) For light oil, imposed on the light oil price excluding the diesel handling tax Source: Japan Automobile Manufacturers Association 45

47 Automobiles and Society Taxes Tax Incentive Measures for EcoFriendly Vehicles Tax Incentives to Promote the Wider Use of EcoFriendly Vehicles To help expedite the shift to lowcarbon road transport in the interest of curbing global warming, the Japanese government has, since April 29, applied both new and extended autorelated tax incentives to promote the wider use of ecofriendly vehicles. For the purchase of new vehicles that comply with Japan s 25 fuel efficiency standards, reductions/exemptions are applicable to the acquisition tax and tonnage tax since April and May, 22, respectively. INCENTIVES & ELIGIBILITY REQUIREMENTS FOR NEW VEHICLES ACQUISITION AND TONNAGE TAX REDUCTIONS/EXEMPTIONS Period in effect: April, 22 through March 3, 25 for the acquisition tax; May, 22 through April 3, 25 for the tonnage tax. Vehicle Type Reductions/Exemptions Requirements Certification Sticker(s) Acquisition Tax (4) Tonnage Tax Passenger Cars and Small Trucks and Buses (GVW 2.5t) Electric Vehicles (including fuel cell vehicles), PlugIn Hybrid Vehicles, Clean Diesel Vehicles (), Natural Gas Vehicles (2) Exempt Exempt at time of st vehicle inspection; 5% reduction at 2nd inspection Gasoline Vehicles (including hybrid vehicles) Compliant +2% compared to 25 fuel efficiency standards, with emissions down by 75% from 25 standards (3) Compliant +% compared to 25 fuel efficiency standards, with emissions down by 75% from 25 standards (3) Exempt 75% reduction Exempt at time of st vehicle inspection; 5% reduction at 2nd inspection 75% reduction Compliant with 25 fuel efficiency standards, with emissions down by 75% from 25 standards (3) 5% reduction 5% reduction MidSized Trucks and Buses (2.5t GVW 3.5t) Electric Vehicles (including fuel cell vehicles), PlugIn Hybrid Vehicles, Natural Gas Vehicles (2) Exempt Exempt at time of st vehicle inspection; 5% reduction at 2nd inspection Diesel Vehicles (including hybrid vehicles) Compliant +% compared to 25 fuel efficiency standards, with NOx and PM emissions down by % from 29 standards Compliant +5% compared to 25 fuel efficiency standards, with NOx and PM emissions down by % from 29 standards Exempt 75% reduction Exempt at time of st vehicle inspection; 5% reduction at 2nd inspection 75% reduction Compliant +% compared to 25 fuel efficiency standards, and compliant with 29 emission standards 75% reduction 75% reduction Compliant with 25 fuel efficiency standards, with NOx and PM emissions down by % from 29 standards 5% reduction 5% reduction Compliant +5% compared to 25 fuel efficiency standards, and compliant with 29 emission standards 5% reduction 5% reduction Gasoline Vehicles (including hybrid vehicles) Compliant +% compared to 25 fuel efficiency standards, with emissions down by 75% from 25 standards Compliant +5% compared to 25 fuel efficiency standards, with emissions down by 75% from 25 standards Exempt 75% reduction Exempt at time of st vehicle inspection; 5% reduction at 2nd inspection 75% reduction Compliant +% compared to 25 fuel efficiency standards, with emissions down by 5% from 25 standards 75% reduction 75% reduction Compliant with 25 fuel efficiency standards, with emissions down by 75% from 25 standards 5% reduction 5% reduction Compliant +5% compared to 25 fuel efficiency standards, with emissions down by 5% from 25 standards 5% reduction 5% reduction 46

48 Vehicle Type Reductions/Exemptions Requirements Certification Sticker(s) Acquisition Tax (4) Tonnage Tax HeavyDuty Trucks and Buses (GVW 3.5t) Electric Vehicles (including fuel cell vehicles), PlugIn Hybrid Vehicles, Natural Gas Vehicles (2) Exempt Exempt at time of st vehicle inspection; 5% reduction at 2nd inspection Diesel Vehicles (including hybrid vehicles) Compliant +% compared to 25 fuel efficiency standards, with NOx and PM emissions down by % from 29 standards Compliant +5% compared to 25 fuel efficiency standards, with NOx and PM emissions down by % from 29 standards Exempt 75% reduction Exempt at time of st vehicle inspection; 5% reduction at 2nd inspection 75% reduction Compliant +% compared to 25 fuel efficiency standards, and compliant with 29 emission standards 75% reduction 75% reduction Compliant with 25 fuel efficiency standards, with NOx and PM emissions down by % from 29 standards 5% reduction 5% reduction Compliant +5% compared to 25 fuel efficiency standards, and compliant with 29 emission standards 5% reduction 5% reduction () Passenger cars complying with 29 emission standards. (2) With NOx emissions down by % from 29 emission standards. (3) Fuel consumption and exhaust emission requirements are JC8 test cyclebased. The Compliant +2% compared to 25 fuel efficiency standards, Compliant +% compared to 25 fuel efficiency standards, and Compliant with 25 fuel efficiency standards requirements are equivalent to Compliant +5% compared to 2 fuel efficiency standards, Compliant +38% compared to 2 fuel efficiency standards, and Compliant +25% compared to 2 fuel efficiency standards, respectively, when measured in the 5mode test cycle, on which basis the 2 fuel efficiency standards were established. (4) Acquisition tax reductions/exemptions are applied once, at the time of new vehicle purchase during the period in which these reductions/exemptions are in effect. ACQUISITION AND TONNAGE TAXES ON NEW VEHICLES: EXAMPLES OF AMOUNTS ASSESSED, BY VEHICLE TYPE In yen Passenger Cars MiniVehicles HeavyDuty Vehicles Tax Status Exempt With 75% reduction With 5% reduction Exempt With 75% reduction With 5% reduction Exempt With 75% reduction With 5% reduction Acquisition Tax As of April, 22 2,2 4,5 6,7 3,5 9, 8, Without reductions/ exemptions 8, 8, 8, 27, 27, 27, 36, 36, 36, Tonnage Tax As of May, 22 5,6,2,8 3,7 9,3 8,7 Without reductions/ exemptions 22,5 22,5 22,5 7,5 7,5 7,5 37,5 37,5 37,5 Reduction (acquisition tax + tonnage tax) 3,5 77,7 5,8 34,5 26, 7,3 397,5 298,2 98,8 Assumptions: For passenger cars: purchase price =.8 million, GVW<.5t; For minivehicles: purchase price = million; For heavyduty vehicles: purchase price = 8 million, GVW=5t. Note: Reductions are applied on the basis of compliance with stipulated requirements, and reduction amounts vary according to vehicle purchase price and weight. 47

49 Automobiles and Society Taxes Tax Incentive Measures for EcoFriendly Vehicles ACQUISITION AND TONNAGE TAX REDUCTIONS/EXEMPTIONS FOR HEAVYDUTY VEHICLES EQUIPPED WITH ADVANCED SAFETY FEATURES AND PUBLICUSE ASSISTEDMOBILITY VEHICLES Period in effect: April, 22 through March 3, 25 for the acquisition tax; May, 22 through April 3, 25 for the tonnage tax. Vehicle Type Trucks (GVW>8t), Tractors (GVW>3t) and Buses (GVW>5t, for seated passengers only) equipped with a collisionmitigation braking system Reductions/Exemptions Acquisition Tax 3.5 million deduction from purchase price (), (2) Tonnage Tax 5% reduction (), (3) AssistedMobility Vehicles Lowfloor ( nonstep ) buses (for use in public transport) million deduction from purchase price (2) Exempt (3) Buses equipped with an electric lift (for use in public transport) For large buses (occupancy 3 persons), 6.5 million deduction from purchase price (2) For small buses (occupancy<3 persons), 2 million deduction from purchase price (2) Exempt (3) Universal designbased taxis (for use in public transport). million deduction from purchase price (2) Exempt (3) () For large trucks (GVW>22t), some tractors (GVW>3t) and buses (GVW>2t, for seated passengers only), period in effect: April, 22 through October 3, 24. (2) Deductions are applied once, at the time of first registration. (3) Reductions/exemptions are applied once, at the time of first mandatory vehicle inspection. Notes:. Acquisition tax is assessed on the amount remaining after deduction. 2. The above tonnage tax reduction/exemptions do not apply to vehicles targeted by this scheme that are eligible for the tonnage tax reductions/exemptions prescribed for ecofriendly vehicles (see page 48), to which the latter measures only are applied. Regarding the acquisition tax, owners of vehicles covered under this scheme can opt either for the deductions indicated here or for the acquisition tax reductions/exemptions prescribed for ecofriendly vehicles (see page 48). FISCAL 2223 AUTOMOBILE TAX REDUCTIONS FOR PASSENGER CARS AND SMALL TRUCKS AND BUSES (GVW 2.5t) * Requirements () Certification Stickers Reduction Compliant +% compared to 25 fuel efficiency standards, with emissions down by 75% from 25 standards (2) Compliant with 25 fuel efficiency standards, with emissions down by 75% from 25 standards (2) 5% reduction approximately (3) 25% reduction approximately (3) *Also applies to trucks and buses (2.5t<GVW>3.5t, gasoline vehicles only) certified as fuelefficient and lowemission vehicles. () Applies additionally to electric (including fuel cell) vehicles, plugin hybrid vehicles and natural gas vehicles (with NOx emissions down by % from 29 standards). (2) Fuel consumption and exhaust emission requirements are JC8 test cyclebased, with Compliant +% compared to 25 fuel efficiency standards and Compliant with 25 fuel efficiency standards being equivalent to Compliant +38% compared to 2 fuel efficiency standards and Compliant +25% compared to 2 fuel efficiency standards, respectively, when measured in the 5mode test cycle, on which basis the 2 fuel efficiency standards were established. (3) For eligible vehicles newly registered in 22 and 23, the automobile tax reduction is applied in the year subsequent to the year of registration. Note: This scheme also mandates a yearly % surcharge on the automobile tax for diesel vehicles on the road years or longer, and for gasoline and LPGpowered vehicles on the road 3 years or longer, since first registration. INCENTIVES & ELIGIBILITY REQUIREMENTS FOR USED VEHICLES FISCAL 2223 ACQUISITION INCENTIVES FOR PASSENGER CARS AND SMALL TRUCKS AND BUSES (GVW 2.5t) * Requirements () Compliant +2% compared to 25 fuel efficiency standards, with emissions down by 75% from 25 standards (2) Compliant +% compared to 25 fuel efficiency standards, with emissions down by 75% from 25 standards (2) Compliant with 25 fuel efficiency standards, with emissions down by 75% from 25 standards (2) Certification Stickers Incentive 45, deduction from purchase price 3, deduction from purchase price 5, deduction from purchase price *Also applies to trucks and buses (gasoline vehicles only) and heavyduty trucks and buses (hybrid vehicles only) certified as fuelefficient and lowemission vehicles. () Applies additionally to electric (including fuel cell) vehicles, plugin hybrid vehicles, natural gas vehicles (with NOx emissions down by % from 29 standards) and clean diesel passenger cars (compliant with 29 emission standards). (2) Fuel consumption and exhaust emission requirements are JC8 test cyclebased, with Compliant +2% compared to 25 fuel efficiency standards, Compliant +% compared to 25 fuel efficiency standards, and Compliant with 25 fuel efficiency standards being equivalent to Compliant +5% compared to 2 fuel efficiency standards, Compliant +38% compared to 2 fuel efficiency standards, and Compliant +25% compared to 2 fuel efficiency standards, respectively, when measured in the 5mode test cycle, on which basis the 2 fuel efficiency standards were established. Note: Acquisition tax is assessed on the amount remaining after deduction. 48

50 Automobiles and Society Taxes The Burden on Motor Vehicle Users AutomobileRelated Taxes are Onerous Consider the case of a passenger car costing.8 million yen when purchased new and providing 2 years of service to the original owner for private use. During that period, six different categories of taxes (including consumption tax at the time of vehicle purchase and on fuel) will be assessed on the owner/user, amounting to a grand total of roughly.53 million yen, which is equivalent to the purchase price of a new cc passenger car. In addition to these various taxes (totalling about 3, yen yearly), the user will also be required to pay onerous highway tolls, automobile insurance premiums (mandatory and optional), a recycling fee, periodic inspection fees and maintenance costs. INTERNATIONAL COMPARISON OF AUTOMOBILERELATED TAXES Taxes on automobiles 7.3 Consumption tax 9. Acquisition tax 8. Tonnage tax 4.8 Automobile tax 47.4 Japan Added value tax 36. Automobile tax 25. Added value tax 34.2 Automobile tax 2. Added value tax 35.3 Registration tax 4. Retail tax 5.5 Taxes on automobiles.5 UK Germany France U.S.A. x, yen Assumptions: ) Engine capacity: 8cc. 2) GVW: Under.5t. 3) Purchase price:.8 million. 4) Fuel consumption (JC8 test cyclebased): 5.km/ (CO2 emissions: 55g/km). 5) France = Paris. U.S.A. = New York City. 6) France: Vehicle in no. 8 horsepower class. 7) Service life: 2 years. 8) Currency exchange rates: = 9, = 35, US$ = 84 (averaged April 22March 23). Notes:. As shown here, tax amounts other than Japan s may not be the most current. 2. Does not include any green tax regimens that may apply. 3. Does not include registration fees. 4. Automobile tax on private vehicles (i.e. for personal use only) was abolished in France as of 2. Source: Japan Automobile Manufacturers Association TAXES ASSESSED ON PASSENGER CAR OWNERSHIP/USE (PRIVATE) (assuming a 2year service life),2, Yen,, 8, 6, 4, 2, Consumption tax (on automobile) 2nd to 2th year st year (on acquisition) 9, (9,) 8, (8,) Acquisition tax 47,6 (36,9) Tonnage tax 474, (39,5) Automobile tax 583,2 (48,6) Gasoline tax 62,4 (5,2) Regional gasoline excise tax 93,6 (7,8) Consumption tax (on fuel) 327,6 (27,3) Highway tolls 66,83 (39,2) Mandatory insurance, (,) Recycling fee Baseline = New vehicle purchase price Assumptions: ) A passenger car with 8cc engine capacity and purchase price of.8 million (retail price, excluding consumption tax). 2) GVW: Under.5t. 3) Annual fuel consumption:, liters. 4) Tonnage tax imposed yearly, but collected only at time of mandatory vehicle inspection. 5) Tax amounts reflect rates in effect from April, 23. 6) Consumption tax = 5% of retail price. 7) The recycling fee indicated is the average rate for an 8cc passenger car. Notes:. Estimated highway tolls, mandatory insurance premium payments and recycling fee are included here because they can be considered similar to taxes. (Mandatory insurance premium values indicated effective as of April, 23.) 2. Value of highway tolls was estimated by JAMA based on highway toll revenue in 2. Source: Japan Automobile Manufacturers Association 2,37,23 (386,42),8, 49

51 Global Operations Overseas Production Global Manufacturing Operations Expand Their Range Japanese automobile manufacturers have continued to develop local production operations, whether as whollyowned subsidiaries or as joint ventures, in the United States, Europe, Southeast Asia, China and, recently, Russia and other countries with emerging markets. These operations contribute to the strengthening of local economies GEOGRAPHICAL DISTRIBUTION OF JAPANESE AUTOMAKERS OVERSEAS PRODUCTION BASES Belgium 8 Russia UK 3 France Poland Czech Republic Hungary 9 Spain 7 Portugal 4 Morocco 5 Italy 7 Tunisia Turkey 2 Egypt 2 Bangladesh 29 Pakistan 23 China 28 Myanmar 3 Taiwan 5 Nigeria 9 Saudi Arabia 24 India 26 Laos 32 Thailand 27 Malaysia 33 Vietnam 22 Cambodia 3 Philippines 3 Kenya 25 Indonesia 8 Zimbabwe 2 Australia 6 South Africa JAPANESE AUTOMAKERS OVERSEAS PRODUCTION BASES: Number of Plants by Country & Country/ Territory Europe Belgium Czech Republic France Hungary Italy Poland Portugal Russia Spain Turkey UK Europe Country No. (see map) Motor Vehicles (incl. parts) Motorcycles (incl. parts) 3 Motor Vehicles & Motorcycles (incl. parts) Parts Only 3 6 Country/ Territory Africa Egypt Kenya Morocco Nigeria South Africa Tunisia Zimbabwe Africa Middle East Saudi Arabia Middle East Oceania Australia Oceania Country No. (see map) Motor Vehicles (incl. parts) Motorcycles (incl. parts) 2 2 Motor Vehicles & Motorcycles (incl. parts) Parts Only 5

52 through employment creation, local parts purchasing and, in many cases, export revenue for the host countries. Locallyproduced automobile parts such as engines and transmissions, as well as finished vehicles of some models, are exported to Japan and other destinations. 34 Canada 35 U.S.A. 4 Mexico 42 Venezuela 38 Colombia 39 Ecuador 4 Peru 37 Brazil 36 Argentina Items Produced Country/ Territory Asia Bangladesh Cambodia China India Indonesia Laos Malaysia Myanmar Pakistan Philippines Taiwan Thailand Vietnam Asia Country No. (see map) Motor Vehicles (incl. parts) Motorcycles (incl. parts) Motor Vehicles & Motorcycles (incl. parts) 3 Parts Only Country/ Territory Country No. (see map) North America Canada U.S.A. North America Latin America Argentina Brazil Colombia Ecuador Mexico Peru Venezuela Latin America World Motor Vehicles (incl. parts) Motorcycles (incl. parts) Motor Vehicles & Motorcycles (incl. parts) Parts Only Source: Japan Automobile Manufacturers Association

53 Global Operations Overseas Production Volumes Overseas Production Benefits Local Economies The global operations of Japanese automobile manufacturers continue to grow, focusing increasingly on onsite manufacturing to meet local needs. Whether as independent operations, joint ventures or technical tieups, local manufacturing activities are conducted in numerous countries around the world (see pages 5455). Overseas production brings significant benefits to local economies and host countries, including employment, industrial development, and technology transfer. OVERSEAS PRODUCTION BY JAPANESE AUTOMOBILE MANUFACTURERS Asia Middle East Europe EU North America U.S.A. Latin America Africa Oceania ,589 44,658 43,75 296, ,569 9,252 99,5 5,574 89, ,92 75,63 73,93 426,87 425,644 87,5 9, 33,9,23, ,758 2,943,794 68, ,76 4,925 34, 27,3,433, ,489 32,29 3, , ,766 25,53 45, 52,334,734, ,42 25,5 23,25,4, ,242 44,8 84,5 66,54 2,339, ,39 226,63 223,64,57,4,298,878 6,654 86, 69,69 3,264,94 99,35,75 285, ,278,684,964,378,97 69, 72, 34,5 3,48, ,2,43 358,6 35,296,853,97,547,36 95,6 67,5 9,276 3,84,65 993,35, , ,744 2,3,478,69,239 2,82 79, 6,754 4,339, ,553,585 52, ,728 2,346,69,982,29 97,325 68, 28,23 4,896,74 995,882,85 64, ,852 2,595,436 2,25,657,66 226, 2,96 5,559,48 996,95,62 738,378 65,99 2,64,45 2,275,525 4,3 95,674 8,97 5,784, ,3,286 84,689 74,699 2,664,588 2,29,685 9,596 82,28 36,7 5,99, ,25,22 5,688 92,985 84,847 2,674,299 2,27,56 26,3 44,8 5,685 5,37,7 999,547,67 3, ,33 835,582 2,797,75 2,3,63 246,7 3,26 25,575 5,78,43 2,673,74 4, ,7 837,679 2,99,924 2,48,69 387,732 46,435 3,933 6,288,92 2,872,52 5,66,32,4 939,34 3,6,62 2,45,496 47,887 62,825 37,84 6,679, ,38,62 6,,53,59,5,748 3,375,453 2,72, ,862 55,973 35,498 7,652, ,7,348 5,82,338,476,245,469 3,487,2 2,82, ,467 62,969 48,47 8,67, ,638,978,8,454,93,296,56 3,84,744 3,43,63 534,863 9,537 25,726 9,797, ,964,29,5,545,355,369,556 4,8,73 3,383, ,74 225,725 34,58,66, ,29,856,4,72,836,59,42 4,,639 3,28,73 745, ,5 2,635,972, ,523,75 3,342,976,47,789,875 4,49,68 3,324, ,99 252,332 59,7,859, ,877,74,876,9,693,5 3,576,246 2,893,466 92, ,646 43,74,65, ,45,48,228,294,36,45 2,687,527 2,8,6 79,794 68,65 96,836,7,52 2 7,27,42,356,26,25,226 3,39,95 2,653,23 982,342 26,476 9,473 3,8, ,547,27,4,628,32,277 3,68,979 2,422,52,29,5 233,79 93,675 3,383, ,52,74,484,,383,583 4,253,87 3,324,75,234, ,7,38 5,825,398 Notes:. Data in principle is for Japanesebrand vehicles only. 2. Until 997, data was based on statistics supplied by the national automobile trade associations of respective countries. 3. Mexico is included in Latin America and Turkey in Europe. 4. Data excludes vehicles produced with technical assistance only provided by Japanese automakers. 5.The figures reflect the use of a new method, adopted as of January 27, for computing overseas unit production. Source: Japan Automobile Manufacturers Association 52

54 Global Operations Global Industry Ties Japanese Automakers Forge Extensive International Alliances With economic globalization, Japanese automobile manufacturers have rapidly adapted to the needs of individual markets, not only by shifting production to those markets but also by forging extensive alliances with overseas manufacturers. Various forms of partnership currently exist between Japanese, U.S. and European automakersincluding capital and technical tieups, joint R&D and production operations, and cooperative sales tiesand such arrangements are expanding yearly. With the rapid spread of motorization in China and Southeast Asia, Japanese automakers are actively building relationships with local manufacturers there on the basis of capital tieups and the supply of production as well as environment and safetyrelated technologies. At March 3, 23 Japan Yamaha Technical cooperation Daihatsu 5.9% equity stake and business tieup 3.6% equity stake and business tieup 5.6% equity stake Supply of finished vehicles Supply of finished vehicles Hino 5.7% equity stake Toyota 6.5% equity stake and business tieup Production outsourcing in Japan and U.S.A.; Supply of finished vehicles Fuji Heavy Industries Mutual capital participation Joint venture in bus business Supply of CVs Suzuki Supply of finished vehicles Mitsubishi Supply of minicars Mutual supply of finished vehicles Mutual supply of finished vehicles 5% equity stake UD Trucks Supply of CVs Nissan 5% equity stake NMKV Mutual supply of CVs Supply of CVs Mutual supply of finished vehicles Mutual supply of CVs Isuzu Supply of CVs Mazda Mitsubishi Fuso Supply of hybrid technologies under licence Note: In principle, the tieups shown above cover only technical cooperation related to motor vehicle production and exclude sales tieups. Source: Japan Automobile Manufacturers Association 53

55 Global Operations Global Industry Ties Japan U.S.A. Isuzu Ford 2.% equity stake Mazda Supply of diesel engines Collaborative development of hybrid systems for light trucks, SUVs 5% equity stake 5% equity stake General Motors Toyota Auto Alliance International Inc. % equity stake EVdevelopment Business tieup GM Japan Tesla Motors, Inc. Japan Europe Daimler AG (Germany) 89.29% equity stake Mitsubishi Fuso Aston Martin (UK) Supply of finished vehicles.55% equity stake 3.% equity stake Nissan 5% equity stake 43.4% equity stake.55% equity stake 3.% equity stake Renault (France) Supply of diesel engines Supply of finished vehicles Opel (Germany) Supply of diesel engines in Europe Toyota Environmental technologies collaboration 5% equity stake Toyota Peugeot Citroën Automobile Czech (TPCA) (Czech Republic) 5% equity stake Suzuki Supply of diesel engines Supply of finished vehicles jointly developed in Europe Fiat (Italy) BMW (Germany) PSA Peugeot Citroën (France) Supply of finished vehicles in Europe Mitsubishi Fuji Heavy Industries Isuzu UD Trucks Cooperative sales ties on Japanese market Supply of diesel engines from Poland % equity stake Porsche (Germany) GM Europe Volvo (Sweden) 54

56 At March 3, 23 Japan China GAC Toyota Motor Co., Ltd. FAW Cars Co., Ltd. Production outsourcing of Mazda 6 and Mazda 8 Tianjin FAW Xiali 3.5% equity stake; Automobile Production of Camry, Co., Ltd. Camry Hybrid, Yaris, E Z and Highlander Production of 3% equity stake Vitz, Belta and Platz 47.7% equity stake 2% equity stake FAW Group Corporation 5% equity stake Mazda 25% equity stake Toyota 4% equity Tianjin FAW stake; Toyota Motor Production Co., Ltd. of Vios, Corolla, Crown, Reiz, Corolla EX and RAV4 5% equity stake; Production of Coaster, Land Cruiser, Prado, Corolla and Prius Sichuan FAW Toyota Motor Co., Ltd. 5% equity stake Changang Mazda Automobile Co., Ltd. Ford 25% equity stake 5% equity stake Changan Ford Mazda Engine Co., Ltd. 5% equity stake Chongqing Changan Automobile Co., Ltd. Suzuki 49% equity stake; Production of Alto, Cultus,Swift and SX4 Chongqing Changan Suzuki Automobile Co., Ltd. 46% equity stake; Production of WagonR Wide, Liana, Landy and Splash 5% equity stake 5% equity stake Changan Automobile Liability Co., Ltd. Jiangxi Changhe Suzuki Automobile Co., Ltd. Changhe Group Isuzu 2% equity stake; Production of Elf and Forward Qingling Motors Co., Ltd. Qingling Motors Group Co., Ltd. 2.5% equity stake JianglingIsuzu Motors Co., Ltd. 5% equity stake 75% equity stake Jiangling Motors Group Co., Ltd. GAC Mitsubishi Motors Co., Ltd. 33% equity stake; Production and sales of ASX and Pajero Mitsubishi 25% equity stake; Production and sales of Galant and Lancer Southeast (Fujian) Motor Co., Ltd. Dongfeng Motor Group Co., Ltd. 5% equity stake 5% equity stake 5% equity stake % equity stake Dongfeng Nissan Diesel Motor Co., Ltd. Dongfeng Motor Co., Ltd. Dongfeng Honda Automobile Co., Ltd. Honda Automobile (China) Co., Ltd. 5% equity stake 5% equity stake 5% equity stake; Production of CRV and Civic 65% equity stake; Production of Jazz to Europe UD Trucks Nissan Honda % equity stake; Production of NV2 and Paladin 5% equity stake; Production of Accord, Odyssey, City and Fit 25% equity stake Guangzhou 5% equity stake Automobile Group 3% equity stake Co., Ltd. 5% equity stake Zhengzhou Nissan Automobile Co., Ltd. Guangqi Honda Automobile Co., Ltd. Shanghai Electric Group Corp. 2% equity stake Shanghai Hino Engine Co., Ltd. 5% equity stake Hino 5% equity stake Guangqi Hino Motors Co., Ltd. 55

57 Motor Vehicles Worldwide Global Production (Including Motorcycles) Motor Vehicle Production Increases Worldwide Except in Europe In 22 worldwide motor vehicle production (excluding motorcycles) increased 5.3% from the previous year to a total of 84.4 million units. By region, production increased in North America (up 8.5% to 2.79 million units), AsiaOceania (up 7.7% to 43.7 million units), Africa (up 5.3% to 586, units), and Latin America (up 3.3% to 7.23 million units), but decreased in Europe (down 5.4% to 9.82 million units). MOTOR VEHICLE PRODUCTION EXCLUDING MOTORCYCLES (MAJOR PRODUCING COUNTRIES) x, units UK Germany Russia Canada U.S.A , , France Italy China , , , , Spain 239 India 356 South Korea 427 Japan 963 Mexico , 2 3 South Africa 47 Thailand 64 Australia 6 Brazil GLOBAL MOTORCYCLE PRODUCTION (BY COUNTRY/TERRITORY) Country/ 29 2 Territory Mopeds Motorcycles Mopeds Motorcycles Austria Czech Republic 74 France Germany Italy Spain UK Russia Brazil China India Indonesia Japan Malaysia Pakistan Philippines South Korea Taiwan Thailand Note: means data is not available. 5, ,438,539,473 23,592,594 3,658,44 644,9 68,497 5, ,75 82, , 5,62 22,658 22,,539,473 25,427,676,52,93 5,884,2 644,9 436,43 736,86 68,497 96,583,6,796,634, Mopeds Motorcycles 39, ,244,83,64 24,476,48 664,75 83,26 39, ,9 99, ,76 23,23 23,455,83,64 26,68,87 3,349,349 7,395,39 664,75 467,94 838,665 83,26,28,57 2,24, ,7,6,84 2,36,89 24,654, ,87 762,947 48,7,55 74,359,84 44, 95,399 23,886 2,36,89 27,5,224 5,453,69 8,6, ,87 498,76 828, ,947,27,428 2,43,39 Sources: Motorcycle manufacturers associations of individual countries, etc. 56

58 Austria Belgium Finland France Germany Italy Netherlands Portugal Spain Sweden UK Czech Republic Hungary Poland Romania Slovakia Slovenia Double Countings Germany/Belgium Double Countings Germany/Italy Double Countings Portugal/Japan European Union (EU27) Turkey Serbia Russia Belarus Ukraine Uzbekistan Double Countings Ukraine/World CIS Europe Canada U.S.A. North America Mexico Argentina Brazil Venezuela Double Countings Venezuela/World Other Latin America North and Latin America Australia China India Indonesia Iran Japan Malaysia Pakistan Philippines South Korea Taiwan Thailand Vietnam Double Countings China/World AsiaOceania Egypt Morocco South Africa Double Countings Egypt/World Double Countings South Africa/World Other Africa Grand s 2 Country/Region/ Territory 86,83 528,996 6,385,924,7 5,552,49 573,69 48,25 4,563,93,53 77,84,27,444,69,58 28,57 785, 323,587 56,933 2,39 8,5 4,346 5,26,94 63,394 7,384,28,362 75,26 3,4 52,33,36,693 7,242, ,77 2,73,5 3,698,82,386,48 58,4 2,584,69 73,757 6,38 37,97 4,529,885 8,228,67 25,334 3,897,83 2,83, ,524,367,4 8,3, ,568 3,625 56,28 3,866,26 25,49 554,387 4,334 4,774 32,44,823 76,42 35, ,394 26,79 23,69 356,872 58,242,327 Passenger Cars 8,84 26, ,25 353, ,7 46,7 44,66 474,387 4, 23,9 6,866 2,89 84,474 27,325,3,47,88,73 49, ,882 5,249 7,872 26,48 244,483 2,555,26,,2 5,3,439 6,32,55 956,34 28,39 797,38 3,6 6,683 3,552 2,6,78 8,39,33 38,673 4,367, ,53 25, ,44,38,53 45,47 22,345 9,497 45,535 5,966,9,26,952 8,55,387 4,27 6,52 76,655 2,85 56, 3,78 58,24 9,367,948 Trucks & Buses 4, ,32 6,665 2,229,42 5,95, ,86 94,32 58,729 2,387,9 27,84,393,463,76,384 2,46 869,474 35,92 56,933 2,34 8,5 4,346,47 7,78,825,94,557 8,33,43,244 5,249 83,33 56,88 52,33,66,76 9,797,59 2,68,89 7,762,544 9,83,733 2,342,282 76,54 3,38,728 4,357 76,99 68,749 6,536,665 6,367, ,7 8,264,76 3,557,73 72,58,599,454 9,628, ,75 52,97 65,625 4,27,74 33,456,644,53 42,286 4,774 4,93,2 6,683 42,66 472,49 39,64 79,8 3,78 55,76 77,6, Passenger Cars Trucks & Buses 2 Passenger Cars Trucks & Buses GLOBAL MOTOR VEHICLE PRODUCTION (BY COUNTRY/REGION/TERRITORY) Sources: International Organization of Motor Vehicle Manufacturers (OICA); for Japan, Japan Automobile Manufacturers Association Note: Japan and Japanrelated figures differ from OICA s. 3,343 56,779 2,54,93,3 5,87,98 485,66 4,772 4,779,839,68 88,969,343,8,9,968 2,28 74, 3, ,763 68,955 85, 6,57 5,78,9 639,734,227,744,97 97,585 46,3 67,5,92,932 8,279,84 99,482 2,976,99 3,967,473,657,8 577,233 2,59,389 69,5 56,52 28,3 4,794,327 8,76,8 89,53 4,485,326 3,4,44 562,25,43,276 7,58, ,44 39,7 45,75 4,22,67 288, ,987 29,94 9,67 32,48,277 53,72 54,638 32,265 8,6 25,78 375,585 59,897,746 22,62 34,35 3, ,35 34,742 32,379 5, ,26 2,89 7,877 2,33 97,33 24,989 5,64 8,847,84,63 549, ,58 24,343 7,69 33,26 3,73 2,674,986,44,639 5,684,544 6,829,83,23,97 25, ,472 33,294 8,77 24,322 2,22,826 9,32,9 34,69 3,933,55 887, ,38 235,229,24,5 45,254 22,494 8,7 435,477 54,773 99,8,277 8,94,235 28,659 4,839 22,28 9,22 69,4 5,634 8,52 9,982,282 52,55 595,84 2,54 2,242,928 6,46,953 79,348 73,5 92,242 2,373,329 88,969,463,999,99,845 23,53 838,33 335, ,763 74,9 85, 6,57 8,847 7,522,254,89,3,23,99,55 24,343 4,654 79,56 67,5 2,23,662 2,954,7 2,35,2 8,66,535,796,656 2,68,5 828,77 3,47,86 2,49 75,29 52,352 6,997,53 7,793,89 224,93 8,48,876 3,927,4 838,388,648,55 8,398,63 533,695 62,94 53,92 4,657,94 343,296,457,798 3,8 9,67 4,575,52 8,73 59, ,545 27,83 94,92 5, ,637 79,88,28 24, 57,24 2,9,682,84 5,388, ,87 28, 5,735,539,68 62,84,464,96,7,774 25,44 54, 326,556 9, 26,836 76,85 5,4 4,6, ,66,227,968,789 69,687 44,98 2,83,456 7,382,25,4,298 4,5,853 5,46,5,8,7 497,376 2,623,74 67,226 55,8 7,686 5,3,99,59,35 78,48 5,523,658 3,285, ,5 848, 8,554,29 5,4 42,6 46,39 4,67,89 278,43 957,623 38,9 27,6 35,46,789 36,88 3, ,873,66 22,8 38,377 63,69,54 9,6 34,67 284,95 26,83 274,95 29,462 47, ,499 2,39 7,64 2,4 7,83,29 4,3 7,66,628, , ,948 25,425 6,594 9,2 34,67 2,439,436,423,434 6,223,3 7,646,465,9, ,9 78,93 36,857 2,64 24,322 2,27,538 9,864,3 3,25 3,748,5 859, ,56 4,,388,574 6,75 23, 8,97 39,649 6,995,525,42,57 8,563,292 9,6 5, ,55 6,4 84,4 5,769 25,9 2,7,75 43,6 54,874 2,9,967,765 5,649,269 67,768 57,462 63,56,979,79 62,84,576,945,78,938 27,84 647,83 337,765 9, 3,949 76,85 5,4 7,66 6,24,476,72,339,23 2,23,737 25,425 76,28 64,8 2,497,623 9,82,46 2,463,732,328,884 2,792,66 3,, ,495 3,342,67 4,83 77,44 95,8 7,23,737 2,23,353 29,73 9,27,88 4,45,94,65, , 9,942, ,5 65,7 55,36 4,557, ,38 2,483,43 4,47 27,6 43,7,8 56,48 8, ,424 7,8 6,22 5, ,396 84,4,29 57

59 Motor Vehicles Worldwide New Registrations Motor Vehicle Sales Rise Across the Globe, Except in Japan, Italy, the UK, and France In 2 overall new motor vehicle registrations (excluding motorcycles) increased 4.% over the previous year to a global total of 77.2 million units. Vehicle sales rose in Russia (up 38.3% to 2.79 million units), the United States (up.8% to 3.4 million units), Germany (up 9.7% to 3.5 million units), India (up 8.6% to 3.3 million units), Australia (up 6.3% to. million units), Brazil (up 3.4% to 3.63 million units), China (up 2.5% to 8.5 million units), Canada (up 2.3% to.62 million units), and South Korea (up.6% to.47 million units). On the other hand, new registrations dropped from the previous year in Japan (down 5.% to 4.2 million units), Italy (down.3% to.94 million units), the United Kingdom (down.9% to 2.25 million units), and France (down.8% to 2.69 million units). NEW REGISTRATIONS OF MOTOR VEHICLES EXCLUDING MOTORCYCLES (SELECTED COUNTRIES) x, units Sweden Netherlands UK Germany Italy France Spain South Africa Russia China ,364 22,86 279,85 8,9 South Korea Japan India Australia Canada U.S.A. 9,6,77,34,4 Mexico Brazil

60 NEW REGISTRATIONS OF PASSENGER CARS AND COMMERCIAL VEHICLES (BY COUNTRY) Austria Belgium Czech Republic Denmark Finland France Germany Greece Hungary Italy Netherlands Poland Portugal Romania Slovakia Spain Sweden UK Russia Switzerland Turkey Canada U.S.A. Mexico Brazil Argentina Venezuela China India Japan South Korea Malaysia Indonesia Thailand Australia Egypt South Africa Other Country Grand s World * Passenger Cars 39,43 476,94 6,659 2,436 9,574 2,32,398 3,87,75 22,548 6,89 2,59,92 387,699 32,9 6,996 3,93 74,77 952,772 23,48,997,87,465,97 266,8 365,52 729,23 5,4,89 434,679 2,474, ,23,33,35,425,933 3,923,74,74, ,342 36,97 238, ,476 58, ,75 956,57 45,42,42 29 Commercial Vehicles 3,26 6,587 24,962 9,36 2,442 46,83 242,84 7,438 4,56 97,46 64,28 5,76 42,686 7,769 8,44 2,45 34,5 225,455 79,78 28,68 99, ,29 5,2, ,76 666,476 3,9 3,33, , ,55 29,257 5,563 24,8 3,98 86,44 46,595 29,56 339,95 5,234,975 65,2, 35, ,78 86,62 3,752 3,6 2,78,58 4,49, ,986 74,75 2,357,373 45,97 37,835 23,682 47,962 92,76,74, ,53 2,222,542,545, , ,68,482,232,6, ,385 3,4,24 487,42 36,57 3,644,794 2,263,68 4,69,256,394, 536,95 486,88 548,87 848,62 25,52 353,76,296,457 6,773,93 Passenger Cars 328, ,347 69,236 53,562,956 2,25,669 2,96,26 4,499 46,69,962,42 482,53 333, ,49 6,328 64,33 982,5 289,684 2,32,977,9, ,239 55, ,349 5,635, ,567 2,644,76 524,54 3,757,794,87,4 4,22,267,27, ,594 54, , ,83 92, ,8,87,45 5,769,563 2 Commercial Vehicles 34, 6,77 7,772 9,675 4, ,25 282,57 2,34,424 22,566 59,78 54,26 49,27 3,89 9,8 32,4 44,45 26,599 4,8 3,54 28,6 889,39 6,36, ,34 87,358 73,785 4,34,42,68, , ,662 6, , ,73 9,74 56,69 46, ,43 8,589,296 74,63, 362,564 68,524 87,8 73,237 26,384 2,78,884 3,98,47 53,84 56,493 2,64,68 542,32 387, ,76 9,47 73,833,4,9 334,34 2,293,576 2,5, , ,95,583,388,772,22 846,88 3,55,64 698,299 25,22 8,6,936 3,39,52 4,956,36,465,426 65,56 764,7 8, , ,97 425,737,6,88 69,484,6 Passenger Cars 356,45 572,2 73,282 69,974 26,6 2,24,229 3,73,634 97,682 45,94,749, ,82 277,43 53,433 94,624 68,23 88,59 34,984,942,995 2,653,48 38, ,37 68,956 6,89, ,56 2,647, ,853 2,24,25,95,363 3,524,788,2, ,3 6,945 36,44 83,45 33,65 33,73,268,63 5,5,846 2 Commercial Vehicles 4,5 72,27 22,68 28,47 8,32 482, ,822 6,976 5,92 93,68 7,945 6,336 37,883 6,44 9,7 23,353 54,82 36,488 33,8 36,298 3,5 938,265 6,95,2 349,37 986,3 29,497 6,29,989,349,76 685,43 263,353 65, 292,29 433,64 24,987 42,992 66, ,55 22,52,292 77,97, 396, ,238 95,35 98,445 44,48 2,687,52 3,58,456 4,658 6,996,942, , ,766 9,36,668 77,94 93,42 359,66 2,249,483 2,787,28 355,256 95,457,62,22 3,4, ,93 3,633, ,35 2,69 8,55,4 3,299,439 4,2,29,474,637 6,23 894,64 794,8,8,437 76,57 497,686,74,64 72,224,829 Note: The for some entries for Venezuela means that the relevant data is not available at the end of March 23, which accounts for the discrepancy, in the Grand s row, between the three figures and the figures (for both passenger cars and commercial vehicles) they represent. * World figures have been calculated by JAMA and rounded off. Sources: Automobile manufacturers associations of individual countries; for Japan, Japan Automobile Dealers Association; Japan Mini Vehicles Association; Japan Automobile Manufacturers Association 59

61 Motor Vehicles Worldwide Motor Vehicles & Motorcycles in Use/Motor Vehicle & Motorcycle Density More than One Billion Motor Vehicles in Use Worldwide There were.7 billion motor vehicles (excluding motorcycles) in use worldwide in 2, equivalent to 54 motor vehicles per, inhabitants or one vehicle for every 6.5 persons. Meanwhile, motorcycle density in recent years has been particularly high in Malaysia and Vietnam, with one motorcycle in use for every three persons; in Thailand and Indonesia, with one in use for every four persons; and in Italy, with one in use for every seven persons. In Japan, one motorcycle is in use for every ten persons. MOTOR VEHICLE DENSITY: INTERNATIONAL COMPARISONS (at end of 2) Country U.S.A. Italy Australia Canada France Spain Japan Austria Switzerland UK Belgium Germany World Average No. of Motor Vehicles per, Inhabitants Motor Vehicles Passenger Cars No. of Persons per Motor Vehicle (No. of Persons per Passenger Car).3 (2.4).4 (.6).4 (.8).6 (.7).7 (2.).7 (2.).7 (2.2).7 (.9).7 (.9).7 (2.).8 (2.).8 (.9) 6.5 (9.3) x person Sources: Ministry of Land, Infrastructure, Transport and Tourism; Ward s, etc.; for population data, OECD, UN MOTOR VEHICLES IN USE WORLDWIDE (at end of 2) Country Germany Italy France UK Spain Netherlands Belgium Austria Sweden Poland Switzerland Turkey Russia U.S.A. Canada Mexico Argentina Brazil Japan China South Korea India Thailand Indonesia Australia South Africa Other Grand s Passenger Cars 42,927,647 37,3,3 3,425, 3,362,76 22,277,244 8,35,2 5,47,5 4,53,42 4,48,749 8,25, 4,63,3 8,3, 36,45, 27,576,67 2,352, 22,75,785 8,43, 27,49,694 58,67,34 43,22, 4,36,465 4,65, 4,798, 9,685, 2,474,44 5,242, 24,572, ,358,43 Commercial Vehicles 3,55,78 4,953,778 6,56, 4,269,64 5,39,9,99,82 84,63 47,54 563,78 3,23, 43,975 3,948,93 6,446,678 2,354, , 9,83,663 2,745, 7,64,275 6,842,573 5,28, 4,3,98 9,949, 6,65, 7,7, 3,64,896 2,853, 39,458,5 323,726,784 45,983,355 42,67,78 37,94, 35,632,357 27,596,353 9,234,94 6,247,645 4,93,475 4,97,927 2,356, 4,566,978 2,62,4 42,86, ,93,633 2,3, 3,989,448,58, 34,654,969 75,52,887 93,5, 8,437,373 24,4,,43, 6,856, 5,638,94 8,95, 64,3,73,7,84,827 Sources: Ministry of Land, Infrastructure, Transport and Tourism; Ward s, etc. MOTORCYCLE DENSITY: INTERNATIONAL COMPARISONS (No. of Persons per Motorcycle) Malaysia Vietnam Thailand Indonesia Italy Switzerland Japan Spain Austria Netherlands China x person Note: Date for Japan as at March 3. Sources: Ministry of Land, Infrastructure, Transport and Tourism; Ministry of Internal Affairs and Communications; Federation of Asian Motorcycle Industries (FAMI); Motorcycle Industry in Europe (ACEM), etc.; for population data, OECD, UN MOTORCYCLES IN USE WORLDWIDE Country/Territory Italy Spain France UK Netherlands Switzerland Austria Poland Czech Republic Russia Turkey U.S.A. Mexico Colombia China Indonesia Japan Thailand Taiwan Malaysia Vietnam South Korea Pakistan Philippines 8,6, 4,7,32 3,439,47,468,8,269, ,89 72,635 2,2,75 944,7 4,7, 2,527,9 7,929,724,2,46 2,63,39 2,62,397 52,433,32 2,25,926 8,52,469 5,73,62 9,986,99 25,44,689,82,729 5,67,334 3,76,893 Sources: Ministry of Land, Infrastructure, Transport and Tourism; Ministry of Internal Affairs and Communications; Federation of Asian Motorcycle Industries (FAMI); Motorcycle Industry in Europe (ACEM), etc. 6

62 Motor Vehicles Worldwide Exports (Including Motorcycles) A Worldwide Surge in Motor Vehicle Exports, Except in Brazil and Japan Motor vehicle exports (excluding motorcycles) in 2 increased over the previous year in China (to 85, units, up 5.%), India (to 6, units, up 5.7%), the United States (to.73 million units, up 5.%), the United Kingdom (to.9 million units, up 4.%), South Korea (to 3.5 million units, up 3.7%), Germany (to 4.83 million units, up 7.7%), and France (to 4.89 million units, up 2.2%), but decreased in Brazil (to 579, units, down 24.6%) and Japan (to 4.46 million units, down 7.8%). Motorcycle exports in 2 showed a yearonyear rise in China (to.56 million units, up 27.3%), India (to.95 million units, up 27.%), and Japan (to 55, units, up 2.3%), but declined in Taiwan (to 3, units, down.8%). MOTOR VEHICLE EXPORTS (MAJOR EXPORTING COUNTRIES) x, units UK Germany China U.S.A France 6 Italy 6 Japan Spain 6 India 6 South Korea Brazil MOTOR VEHICLE EXPORTS (MAJOR EXPORTING COUNTRIES) Country Japan U.S.A. Germany UK France Italy Spain Brazil South Korea China India Passenger Cars 3,28, ,93 3,425, ,234 3,542,282 25,38,555,49 373,747 2,7,23 53,5 446,45 29 Commercial Vehicles 47,529 35,885 58,94 66,454 34,93 3,57 328,26,578 4,632 27,25 45,9 3,66,68,6,978 3,583,72 828,688 3,883,23 382,69,883,75 475,325 2,48,862 37,3 49,54 Passenger Cars 4,275,366,8,98 4,238,759 96,42 4,36,65 23,557,658,34 66,25 2,6, , ,326 2 Commercial Vehicles 566,94 42, ,47 85,547 48,43 84,833 42,44 5,37 6,58 284,285 74,43 4,84,46,5,875 4,48,96,46,967 4,786,495 46,39 2,79, ,432 2,772,7 566,653 58,369 Passenger Cars 3,929,94,3,75 4,58,973,24,676 4,336,759 23,769,642,578 43,83 2,98,659 47,9 57,38 2 Commercial Vehicles 534,59 427,562 37,96 69, ,356 29, ,49 65,545 7,49 379,78 92,663 4,464,43,727,637 4,826,933,94,52 4,893,5 423,626 2,2,68 578,728 3,5,78 849,88 599,98 Sources: Ward s, etc.; for Japan, Japan Automobile Manufacturers Association MOTORCYCLE EXPORTS (MAJOR EXPORTING COUNTRIES/TERRITORY) Country/Territory Japan China Taiwan Indonesia India Mopeds 29 Motorcycles & Scooters 543,879 6,234,32 335,33 543,879 6,234,32 335,33 29,85,4,58 Mopeds Note: means data is not available at the end of March 23. Sources: Automobile/motorcycle manufacturers associations of individual countries; for Japan, Japan Automobile Manufacturers Association 2 Motorcycles & Scooters 493,464 8,29,59 32,35 493,464 8,29,59 32,35 29,395,53,69 Mopeds 2 Motorcycles & Scooters 54,985,555, ,866 54,985,555, ,866 3,995,947,98 6

63 VehicleBased Systems Motor Vehicle Classification Classifications According to the Road Vehicles Act and the Road Traffic Act Japan classifies motor vehicles according to the provisions of two basic laws: the Road Vehicles Act and the Road Traffic Act. Road Vehicles Act classifications are used for registration statistics, vehicle inspection, and related maintenance and repair. Road Traffic Act classifications determine the different categories of driver s licenses. Vehicle registration number/character combinations are determined by vehicle type and usage in accordance with Road Vehicles Act designations, and a vanity plate system has been introduced nationwide. CLASSIFICATION UNDER THE ROAD VEHICLES ACT (for registration, inspection, etc. ) Standard Over 2m Small 2m and under Over.48m to.7m Mini 2m and under Over.7m.48m and under Over 2,cc in engine capacity, excluding diesel engines Over 4.7m Over 66cc to 2,cc in engine capacity, excluding diesel engines Over 3.4m to 4.7m 66cc and under in engine capacity 3.4m and under Note: A vehicle that exceeds any one of the requisites above is classified in the higher category. CLASSIFICATION UNDER THE ROAD TRAFFIC ACT (for driver s license issuance) CLASSIFICATION OF MOTORCYCLES Category Smallsized Minisized Large Motor Vehicles Gross vehicle weight: tons Payload: 6.5 tons or Occupancy: 3 persons Ordinary Motor Vehicles Gross vehicle weight: <5 tons Payload: <3 tons or Occupancy: < persons () As per a revision to the Road Traffic Act, the middlecategory motor vehicle classification went into application in June 27. (2) Projections on small specialpurpose vehicles should not exceed 2.8m. Note: The Road Traffic Act stipulates that the driver of any onerider, three or fourwheeled vehicle of up to 5cc in engine capacity, with a legal maximum speed of 5km/h and a maximum load of 3kg, is required to hold an ordinary motor vehicle driver s license. Motordriven cycles Class 2 Motordriven cycles Class Engine Capacity Over 25cc 26cc to 25cc 5cc to 25cc 5cc and under Road Vehicles Act Rated Output Over.kW Over.kW Over.6kW to.kw.6kw and under Width Over.3m.3m and under.3m and under.3m and under MiddleCategory Motor Vehicles () Gross vehicle weight: 5 tons< Payload: 3 tons<6.5 or Occupancy: persons<3 SpecialPurpose Motor Vehicles Motor vehicles with caterpillar treads such as bulldozers, steamrollers, graders, snowplows, tractors, etc. are classified into two categories: large and small. Small specialpurpose motor vehicles are those of up to 5km per hour in maximum speed, up to 4.7m in length, up to 2m in height (2), and up to.7m in width. Height Over 2.m 2.m and under 2.m and under 2.m and under Length Over 2.5m 2.5m and under 2.5m and under 2.5m and under Note: A motorcycle that exceeds any one of the requisites above is classified in the higher category. Road Traffic Act Category Large Ordinary Motorized bicycles Engine Capacity Over 4cc 5cc to 4cc 5cc and under SIGNIFICANCE OF VEHICLE REGISTRATION DATA & NUMBER PLATE TYPES LargeSized Number Plates Largerthanstandardsize plates are issued to vehicles weighing 8 tons or more, with payload of 5 tons or more, or 3person or more occupancy. MidSized Number Plates Standardsize plates are issued to standard and small vehicles and minivehicles with engine capacity of more than 36cc, whether for private or commercial business use. SmallSized Number Plates Smallsize plates are issued to small and minisized motorcycles and minivehicles with engine capacity of 36cc or less, excluding those designated with any one of the 4to49, 5to59 or 8to89 number categories. Usage Designations Ordinary and large motor vehicles Private use Commercial business use Rental vehicle Foreign military vehicle Minivehicles Private use Commercial business use Rental vehicle Foreign military vehicle 22cm 44cm 6.5cm 33cm 2.5cm 23cm Hiragana character indicates vehicle usage category: private, commercial business, rental or foreign military vehicle (private or official). Motor Vehicle Registry Designation: Kanji indicate geographical area of vehicle registration. Designated Number Categories Indicating Vehicle Type Ordinary trucks Ordinary buses Ordinary passenger cars Three or fourwheeled small trucks Three or fourwheeled small passenger cars and buses Specialpurpose vehicles Large specialpurpose vehicles Large specialpurpose vehicles used as construction machinery Number Assignment From to 9999 Number Plate Colors Ordinary and large motor vehicles Private use or rental vehicle Commercial business use Minivehicles Private use or rental vehicle Commercial business use, 9, 99 2, 229, , 339, , 449, , 669, , 559, , 779, , 889, , 999, 9999, 9, 99 Green characters on white background White characters on green background Black characters on yellow background Yellow characters on black background Source: Ministry of Land, Infrastructure, Transport and Tourism 62

64 VehicleBased Systems Measuring Motor Vehicle Fuel Consumption Japan s Test Cycles for Measuring Fuel Consumption and Exhaust Emissions The JC8 test cycle is now the only test cycle applied in Japan to measure fuel consumption rates and exhaust emissions in nonheavyduty vehicles, having replaced the 5mode and (less commonly used) mode test cycles. The objective in using the JC8 test cycle is to obtain test results that are as close as possible to actual onroad fuel consumption rates. Certified fuel efficiency values are therefore indicated on the basis of JC8 test cycle results and, for heavyduty vehicles, on the basis primarily of JE5 test cycle results. THE JC8 TEST CYCLE Vehicle speed (km/h) ,,2 Time (sec) The JC8 cycle reflects typical vehicle running patterns in congested urban and urban expressway traffic (including idling and frequentlyalternating acceleration and deceleration), but, compared to its predecessors, it increases the duration of the test cycle and the variation in running patterns. Measurement is made with both a cold start and a warm start, at a maximum speed of 82km/h. THE JE5 TEST CYCLE FOR HEAVYDUTY VEHICLES (GVW 3.5t) Vehicle speed (km/h) ,,2,4,6,8 Time (sec) The JE5 cycle for heavyduty vehicles includes idling and frequentlyalternating acceleration and deceleration, also reflecting a typical vehicle running pattern in today s congested urban areas, as well as an expressway runnning mode. Engine revolution and torque are predetermined to reach target speed based on test vehicle specifications. Measurement is made on the engine alone, while following the transient driving pattern. 63

65 VehicleBased Systems Automobile Certification Alternative Systems Expedite Certification Certification in Japan is based primarily on the Type Approval System, which is applied both to domestic and imported automobiles and covers most massproduced models. The Preferential Handling Procedure for imported motor vehicles is an alternative procedure which was instituted to expedite the certification of foreignmade vehicles that are imported in limited quantities. The third procedure, the Type Notification System, is mainly applied to large commercial vehicles. THE TYPE APPROVAL SYSTEM This certification procedure is applied to domestic and imported massproduced models. The Ministry of Land, Infrastructure, Transport and Tourism (MLITT) inspects a sample vehicle and the qualitycontrol system of the automobile manufacturer concerned, then completes the type approval process within two months in principle. All finished vehicles that have been granted type approval are then inspected by the manufacturer, eliminating the need to present them for new vehicle inspection. For imported vehicles, the MLITT not only dispatches officials overseas to conduct certification inspections but also accepts the test results of designated foreign testing institutes. THE PREFERENTIAL HANDLING PROCEDURE FOR IMPORTED VEHICLES This procedure is applied to models that are imported into Japan in quantities of 2, units* or less per year. Designed to make the importation of vehicles simpler and faster, it exempts the applicant from undergoing the sample vehicle inspection that is mandatory under the Type Approval System. The MLITT inspects only the application documentation and issues a form indicating completion of the procedure within one month. *In quantities of up to 5, units per year as of May, 23. RATIONALIZATION OF MOTOR VEHICLE/RECIPROCAL EQUIPMENT TYPE APPROVAL SYSTEMS Increased globalization in the automobile industry worldwide is underscoring the need for the more widespread adoption of reciprocal recognition systems, under which certification is mutually recognized between importing and exporting countries or regions. Meanwhile, the UN/ECE World Forum for Harmonization of Vehicle Regulations (also known as WP29) is making steady progress towards the establishment of global technical regulations (GTRs) focusing on vehicle safety and environmental standards. In 998 the Japanese government officially acceded to the UN/ECE 958 Agreement, under which each signatory government reciprocally recognizes certifications of vehicle structure and equipment issued by all the other signatory countries. It also introduced the Vehicle Equipment Type Approval System, which specifically addresses the expanding common use of equipment in vehicle manufacturing. This system not only allows equipment and parts that have been certified by 958 Agreement cosignatory countries to be exempted from undergoing certification procedures in Japan, but furthermore does not require them to be inspected again if they are used in other models. JAPAN S RATIONALIZATION OF MOTOR VEHICLE/RECIPROCAL EQUIPMENT TYPE APPROVAL SYSTEMS Motor Vehicle Type Approval System Vehicle Equipment Type Approval System Certification in Japan Application for vehicle type approval Vehicle Type A Vehicle Type B Vehicle Type C Omission of multiple inspections on different vehicle types Equipment type approval by Japanese government Omission of equipment type approval Vehicle type approval Certification Overseas Reciprocal recognition according to UN/ECE 958 Agreement Country X Country Y Country Z Omission of multiple inspections on different vehicle types Omission of equipment type approval Equipment type approval by other (national) government 64

66 Locations of Auto Manufacturing Plants At April, 23 Vehicle Assembly Plants Parts Plants Hokkaido Toyota Motor Hokkaido Shiga Daihatsu (Shiga) Daihatsu (Kagami) Mitsubishi (Shiga) Gunma HINO (Nitta) Fuji Heavy Industries (Main Plant) Fuji Heavy Industries (Yajima) Fuji Heavy Industries (Ota North) Fuji Heavy Industries (Oizumi) Fuji Heavy Industries (Isesaki) Osaka Daihatsu (Ikeda) Kyoto Daihatsu (Kyoto) Mitsubishi (Kyoto) Hyogo Kawasaki (Akashi) Okayama Mitsubishi (Mizushima) Hiroshima Mazda (Head Office) Mazda (Miyoshi) Yamaguchi Mazda (Hofu) Mie Honda (Suzuka) Oita Daihatsu Kyushu (Oita) Fukuoka Nissan Motor Kyushu (Kanda) Daihatsu Kyushu (Kurume) Toyota Motor Kyushu (Miyata) Toyota Motor Kyushu (Kanda) Toyota Motor Kyushu (Kokura) Kumamoto Honda (Kumamoto) Tochigi Isuzu (Tochigi) Nissan (Tochigi) Honda (Tochigi) Aichi Suzuki (Toyokawa) Toyota (Honsha) Toyota (Motomachi) Toyota (Kamigo) Toyota (Takaoka) Toyota (Miyoshi) Toyota (Tsutsumi) Toyota (Myochi) Toyota (Shimoyama) Toyota (KinuUra) Toyota (Tahara) Toyota (Teiho) Toyota (Hirose) Mitsubishi (Okazaki) Iwate Toyota Motor East Japan (Iwate) Miyagi Toyota Motor East Japan (MiyagiOhira) Toyota Motor East Japan (MiyagiTaiwa) Fukushima Nissan (Iwaki) Ibaraki Hino (Koga) Saitama UD Trucks (Ageo) UD Trucks (Konosu) UD Trucks (Hanyu) Honda (Saitama) Honda (Ogawa) Tokyo Hino (Hino) Hino (Hamura) Kanagawa Isuzu (Fujisawa) Nissan (Yokohama) Nissan (Oppama) Mitsubishi Fuso (Kawasaki) Mitsubishi Fuso (Nakatsu) Shizuoka Suzuki (Takatsuka) Suzuki (Iwata) Suzuki (Osuka) Suzuki (Kosai) Suzuki (Sagara) Toyota Motor East Japan (HigashiFuji) Toyota Motor East Japan (Suyama) Honda (Hamamatsu) Yamaha (Iwata Main) Yamaha (Iwata South) Yamaha (Hamakita) Yamaha (Nakaze) Yamaha (Fukuroi) Yamaha (Toyooka) Yamaha (Morimachi) 65

67 JAMA Member Manufacturers Daihatsu Motor Co., Ltd. Head Office : Daihatsucho, Ikeda, Osaka Tel: (72) 7588 Tokyo Branch Office : 95, Shinbashi 6chome, Minatoku, Tokyo 54 Tel: (3) Fuji Heavy Industries Ltd. Head Office : Subaru Bldg. 72, NishiShinjuku chome, Shinjukuku, Tokyo 6836 Tel: (3) HINO Motors, Ltd. Head Office : Hinodai 3chome, Hino, Tokyo 9866 Tel: (42) HONDA MOTOR CO., LTD. Head Office : MinamiAoyama 2chome, Minatoku, Tokyo Tel: (3) Isuzu Motors Limited Head Office : 26 MinamiOi 6chome, Shinagawaku, Tokyo Tel: (3) Kawasaki Heavy Industries, Ltd. Kobe Head Office : Kobe Crystal Tower, 3 Higashi Kawasakicho chome, Chuoku, Kobe, Hyogo Tel: (78) Tokyo Head Office : 45 kaigan chome, Minatoku, Tokyo 5835 Tel: (3) MAZDA MOTOR CORPORATION Head Office : 3 Shinchi, Fuchucho, AkiGun, Hiroshima Tel: (82) 282 Tokyo Head Office : NBF Hibiya Bldg. 7 Uchisaiwaicho chome, Chiyodaku, Tokyo Tel: (3) MITSUBISHI MOTORS CORPORATION Head Office : 338 Shiba 5chome, Minatoku, Tokyo 884 Tel: (3) Note: Manufacturers are listed in alphabetical order. 66

68 Mitsubishi Fuso Truck and Bus Corporation Head Office : 2, Kashimada chome, Saiwaiku, Kawasaki, Kanagawa 2258 Tel: (44) Nissan Motor Co., Ltd. Global Headquarters :, Takashima chome, Nishiku, Yokohamashi, Kanagawa Tel: (45) Suzuki Motor Corporation Head Office : 3 Takatsukacho, Minamiku, Hamamatsu, Shizuoka Tel: (53) 4426 Tokyo Branch Office : 232 Daikyocho, Shinjukuku, Tokyo 65 Tel: (3) TOYOTA MOTOR CORPORATION Head Office : Toyotacho, Toyota, Aichi Tel: (565) 2822 Tokyo Head Office : 48 Koraku chome, Bunkyoku, Tokyo 287 Tel: (3) 3877 Nagoya Office : 7 Meieki 4chome, Nakamuraku, Nagoya, Aichi 4587 Tel: (52) UD Trucks Corporation Head Office : Ageo, Saitama Tel: (2) YAMAHA MOTOR CO., Ltd. Head Office : 25 Shingai, Iwata, Shizuoka Tel: (538) 325 Tokyo Office : Marunouchi 2chome, Chiyodaku, Tokyo 5 Tel: (3) Special Friend: General Motors Japan Ltd. Head Office : 28 Higashishinagawa 4chome, Shinagawaku, Tokyo Tel: (3)

69 Related Automotive Associations At April, 23 Japan Auto Parts Industries Association (JAPIA) 65, Takanawa chome, Minatoku, Tokyo 874 (3) Nippon MotorCycle Association (NMCA) 255, MinamiOtsuka 2chome, Toshimaku, 75 (3) Japan AutoBody Industries Association Inc. (JABIA) Japan Automobile Education Foundation (JAEF) 3, ShibaDaimon chome, Minatoku, Tokyo 52 (3) , ShibaDaimon chome, Minatoku, Tokyo 52 (3) Japan Automotive Machinery and Tool Manufacturers Association (JAMTA) The General Insurance Association of Japan 58, ShibaKoen 3chome, Minatoku, Tokyo 5 (3) , KandaAwajicho 2chome, Chiyodaku, Tokyo 8335 (3) Society of Automotive Engineers of Japan, Inc. (JSAE) Institute for Traffic Accident Research and Data Analysis (ITARDA) 2, Gobancho, Chiyodaku, Tokyo 276 (3) , Kojimachi, Chiyodaku, Tokyo 283 (3) Japan Automobile Research Institute (JARI) [Tsukuba] Japan Automobile Transport Technology Association (JATA) 253, Karima, Tsukuba, Ibaraki (29) , Rokubancho, Chiyodaku, Tokyo 285 (3) Japan Automobile Research Institute (JARI) [Tokyo] Japan Automobile Standards Internationalization Center (JASIC) 3, ShibaDaimon chome, Minatoku, Tokyo 52 (3) , Rokubancho, Chiyodaku, Tokyo 285 (3) Automotive Dispute Resolution Center (ADR) ITS Japan 95, Toranomon chome, Minatoku, Tokyo 5 (2) , ShibaKoen 2chome, Minatoku, Tokyo 5 (3) 5777 Japan Automobile Recycling Promotion Center (JARC) Japan Industrial Vehicles Association (JIVA) 3, ShibaDaimon chome, Minatoku, Tokyo 52 (3) , MotoAkasaka chome, Minatoku, Tokyo 75 (3) Japan Auto Recycling Partnership (JARP) Japan Trucking Association 3, ShibaDaimon chome, Minatoku, Tokyo 52 (3) , NishiShinjuku chome, Shinjukuku, Tokyo 6359 (3) Automobile Inspection & Registration Information Association (AIRIA) Nihon Bus Association 6, Iwamotocho 3chome, Chiyodaku, Tokyo 32 (3) , Marunouchi 3chome, Chiyodaku, Tokyo 5 (3) 3264 Automobile Business Association of Japan All Japan Freight Forwarders Association 3, ShibaDaimon chome, Minatoku, Tokyo 52 (3) , KandaAwajicho, Chiyodaku, Tokyo 63 (3) Japan Automobile Dealers Association (JADA) Japan Federation of HireTaxi Associations 3, ShibaDaimon chome, Minatoku, Tokyo 5853 (3) , KudanMinami 4chome, Chiyodaku, Tokyo 274 (3) Japan Light Motor Vehicle and Motorcycle Association All Japan RentACar Association 3, ShibaDaimon chome, Minatoku, Tokyo 52 (3) , ShibaDaimon chome, Minatoku, Tokyo 52 (3) Japan Used Car Dealers Association Japan Federation of Authorized Drivers School Associations 253, Yoyogi 3chome, Shibuyaku, Tokyo 553 (3) , Yotsuya 3chome, Shinjukuku, Tokyo 64 (3) Japan Automobile Importers Association (JAIA) Japan Automobile Tyre Manufacturers Association, Inc. (JATMA) 5, Shiba 3chome, Minatoku, Tokyo 54 (3) , Toranomon 3chome, Minatoku, Tokyo 5 (3) Japan Automobile Federation (JAF) AutoParts & Accessories Retail Association (APARA) 3, ShibaDaimon chome, Minatoku, Tokyo 52 (3) , Shiba 5chome, Minatoku, Tokyo 84 (3) Japan Auto Appraisal Institute (JAAI) Japan Traffic Safety Association 344, NishiShinbashi 2chome, Minatoku, Tokyo 53 (3) , KudanMinami 4chome, Chiyodaku, Tokyo 274 (3) Automobile Fair Trade Council (AFTC) The Japan Research Center for Transport Policy 3, Nagatacho chome, Chiyodaku, Tokyo 4 (3) , KudanKita chome, Chiyodaku, Tokyo 273 (3) Japan Automobile Service Promotion Association (JASPA) Japan Road Association (JARA), Roppongi 6chome, Minatoku, Tokyo 667 (3) , Kasumigaseki 3chome, Chiyodaku, Tokyo 8955 (3) Japan Automotive Leasing Association (JALA) Express Highway Research Foundation of Japan (EHRF) 23, Shiba 2chome, Minatoku, Tokyo 54 (3) , MinamiAzabu 2chome, Minatoku, Tokyo 647 (3) Motorcycle Federation of Japan (MFJ) Vehicle Information and Communication System (VICS) 6, Tsukiji 3chome, Chuoku, Tokyo 445 (3) , Kyobashi 2chome, Chuoku, Tokyo 43 (3) Japan Motorcycle Safety Association 28, Honcho 2chome, Nakanoku, Tokyo 642 (3)

70 THE MOTOR INDUSTRY OF JAPAN 23 Published May 23 Japan Automobile Manufacturers Association, Inc. Jidosha Kaikan, 3 Shiba Daimon chome, Minatoku, Tokyo 52 Japan For inquiries about this booklet, write or telephone: Public Relations Office, JAMA Tel: +8 (3) JAMA. All rights reserved. Printed with Vegetable oil ink.