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Japanese automakers' domestic output falls to lowest level in 45 years in 2021

TOKYO
2022-02-28 17:40

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TOKYO, Feb. 28 (Xinhua) -- Japanese automakers' total domestic output in 2021 tumbled 2.7 percent on year to hit its lowest level in 45 years, owing to the global chip crunch and supply chain disruptions triggered by the COVID-19 pandemic, the Japan Automobile Manufacturers Association (JAMA) said in a report on Monday.

According to the association, the total output of vehicles in 2021 was 7.85 million, with the figure falling for the third consecutive year, with the outlook looking uncertain as the global semiconductor crush and COVID-19 pandemic continue to hamper automakers' production.

Sources with knowledge of the matter said that the output figure for 2021 was roughly 42 percent lower than its 1990 peak of 13.49 million units produced.

They said that should the current low level of output continue, it could put a dire strain on employment levels in the industry and the continued operation of some factories could be put in jeopardy.

According to JAMA, the total number of passenger cars produced in the recording period came to 6.62 million vehicles, which was 4.9 percent lower when compared to figures from 2020.

Losses were trimmed, however, by the production of trucks and buses increasing 11.2 and 5.5 percent, to 1.15 million and 73,659 units, respectively.

The rate of domestic automakers' production has been consistently falling commensurate with the rise of the Japanese yen against its major counterparts in twine with Japanese automakers shifting facilities overseas due to cheaper production and labor costs.

JAMA's latest data was based on figures taken from eight major Japanese automakers, including heavyweights Toyota Motor Corp. and Honda Motor Co.

The latest figures showed that among the eight, only Mitsubishi Motors Corp. booked an increase in output in the recording period.
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