The Japanese economy has suffered from recession for most parts of this decade. The Japanese auto industry was severely affected by the global recession. Sudden appreciation of the yen against the U.S. dollar also had a negative impact on the auto export business. Top automobile manufacturers like Toyota Motor Corp posted operating losses of billions of yen in the last few years. Major auto makers in Japan slashed their production to minimize the losses. However, gradually the Japanese auto industry is rebounding from the effects of the recession, by boosting export sales.
Japanese truck makers realized well that expanding sales to cover global markets is the only way to achieve sustainable growth. The exports not only increase the revenues for truck makers in Japan and the supportive industries, but it also offers some level of protection from the weak local markets in Japan. As per a report published by Frost and Sullivan, roughly 49% of all trucks sold in 2008 by Japanese truck makers were actually sold in export markets which included emerging economies such as China, Russia and India apart from established markets like Europe and North America. Major portion of these exports – 64% – go to Asia, the Middle East, Africa, Latin America and Europe. At present, just about 2% of Japan’s commercial truck exports are made to North America.

The urbanization of many developing countries is giving rise to many compact cities, characterized by narrow roads. These cities require smaller light trucks which could be easily maneuvered. Heavy trucks would still be needed to move freight between these cities. Japanese truck makers are also taking steps to promote sales of mini-trucks, light trucks and other light commercial vehicles to capture this market in the world’s emerging economies. Japanese truck makers are also targeting the North American market for mini trucks.
Japanese automakers are also focusing to capture larger shares of the Indian and Chinese car and truck market, which is growing by leaps and bounds. Japanese truck maker Hino Motors recently had a technology tie-up with Ashok Leyland in India and would soon launch its premium range of trucks in the fast growing Indian market, competing with Tata Motors, Volvo, and MAN.
To summarize, exports to developed nations as well as emerging economies have helped Japanese truck makers to sustain their business and grow in spite of the recession.
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