Toyoda Calls for Auto Output of 10 M. Units in Japan

May 19, 2018

Tokyo- Japan Automobile Manufacturers Association Chairman Akio Toyoda has stressed the need for recovering domestic vehicle production in Japan to 10 million units per year.

"Production of 10 million units will help (Japanese automakers and related businesses) remain competitive in the world," Toyoda told reporters on Friday.

"We have infrastructure for operating on this scale for long years," said Toyoda, also president of industry leader Toyota Motor Corp. <7203>.

Annual vehicle production in Japan has remained below 10 million units since 2009, standing at some 9.7 million units in 2017.

Toyoda suggested that production of 10 million units is needed to maintain the global competitiveness of a wide range of automobile-related businesses in Japan, including materials and auto parts makers.

On lowered levels of vehicle ownership among Japanese consumers, Toyoda pointed to high maintenance costs for automobiles as a factor.

"JAMA will take the leadership in creating an environment conducive to pushing up ownership," he said.

Toyoda called for a review of the automotive tax system in order to shore up vehicle sales. "Taxes in Japan are high and need to be brought into line with at least international standards," he said. Jiji Press