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Car Industry in Japan Essay

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Updated: Jul 20th, 2021

The sphere of producing automotive vehicles is evolving and gaining more influence around the globe. The industry emerged in its specific way in different countries showing their exposure to the demands of the competitive world of economy and high expectations of customers. Many experts in the field of car industry consider Japan to be an influential participant of the international market of vehicles which leads the sphere of automobile manufacturers (Farhana & Bimenyimana, 2015). Between the years 2000 and 2017, the Japanese car industry acquired a new level of innovation, developed environment-friendly engine systems, and established a unique approach to supplying organization, thus preserving the tradition of high-quality vehicles production.

Innovation is a priority in the Japanese attitude to making cars. Such famous automobile manufacturers as Honda, Toyota, Nissan, Mitsubishi, Suzuki, and Subaru have already proved themselves to be highly competitive setting a benchmark for the global car industry. According to Farhana & Bimenyimana (2015), the car industry develops a strategy of implementation of technological inventions to its products.

For example, Toyota, as the largest manufacturer in the country, is currently dealing with innovation and design for new car-making policies to produce better products (Farhana & Bimenyimana, 2015). To succeed in its global expansion, Toyota abides by a solid corporate philosophy that prioritizes quality, innovation, and design that are capable of meeting the highest expectations of the customers (“Company profile,” 2018). Therefore, the example of the biggest car manufacturers shows the significant advancement of the Japanese vehicle industry concerning innovation over the past two decades.

With a great variety of competitive products on the market, it is a primary task of a manufacturer to address the needs of a demanding customer. Environmental concerns that exist today influence the decision-making process of the big corporations in Japan that are ready to implement innovative approaches to the problem solution. The acute issues of “fuel economy and vehicle emissions” are taking into consideration by the main participants of the industry (Pinkse, Bohnsack, & Kolk, 2014, p. 43). They attract the best professionals and employ progressive ideas to produce hybrid or electric cars that are less harmful to the environment. Thus the corporations demonstrate their concerns about the acute problems and empower their stable position at the higher levels of the car industry.

Moreover, during the last decades, Japan has illustrated its unique attitude to supply chain organization. Keiretsu partnership is a specific term that refers to the concept of Japanese firms’ relations with their suppliers. As Kato, Nunes, and Dey (2016) state, the car industry in Japan is a complex hierarchical system that incorporates an original equipment manufacturer on the top which is followed by a chain of suppliers of different levels. Such a method of relations establishment allows creating a global group of firms that would produce the vehicles of the same high quality.

All these changes in the car industry can be explained in a variety of ways. For example, a serious competition across the existing model lines is one of the possible causes of change in the car industry. Companies want to demonstrate the best results and continue challenging each other by offering new ideas and approaches. In addition, the development of supply relationships between carmakers and suppliers cannot be ignored because some companies like to established long-term close relationships and avoid unpredictable losses (Kito, New, & Reed-Tsochas, 2018). Finally, such common causes of change as globalization, industrialization, the spread of the Internet and social media services, and the possibility to establish international relationships at different levels predetermine the development of the car industry.

In conclusion, the Japanese car manufacturers entered the industry approximately a century ago and since then has emerged into a powerful influencer in the sphere capable of setting benchmarks for other competitive states. It introduced such leading corporations as Toyota, Suzuki, Mitsubishi and many others that employ innovation, high-quality, and modern design to provide their customers with the best vehicles. Meeting the technological expectations of time and addressing the acute environmental issues, Japanese automotive firms introduce the world with cars that lead the global market.


Company profile. (2018). Web.

Farhana, M., & Bimenyimana, E. (2015). Design driven innovation as a differentiation strategy – In the context of automotive industry. Journal of Technology Management & Innovation, 10(2), 24-38. Web.

Kato, T., Nunes, B., & Dey, P. K. (2016). Is keiretsu really a source of competitive advantage for Japanese automotive suppliers? Journal of Manufacturing Technology Management, 27(1), 62-81. Web.

Kito, T., New, S., & Reed-Tsochas, F. (2018). Disentangling the complexity of supply relationships formations: Firm product diversification and product ubiquity in the Japanese car industry. International Journal of Production Economics, 206, 159-168.

Pinkse, J., Bohnsack, R., & Kolk, A. (2014). The role of public and private protection in disruptive innovation: The Automotive industry and the emergence of low-emission vehicles. Journal of Product Innovation Management, 31(1), 43-60. Web.

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IvyPanda. "Car Industry in Japan." July 20, 2021. https://ivypanda.com/essays/car-industry-in-japan/.


IvyPanda. 2021. "Car Industry in Japan." July 20, 2021. https://ivypanda.com/essays/car-industry-in-japan/.


IvyPanda. (2021) 'Car Industry in Japan'. 20 July.

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