Shiotsu Autotrade Japan – President’s Blog

Isuzu Trucks targets India and Saudi Arabia in 2011

The Japanese auto maker Isuzu Motors Ltd. recently announced that to increase its presence in India’s booming market, it was going to enter into a joint venture for manufacturing  heavy-duty trucks in the country from April 2011.  The company also has plans for entering the Saudi Arabian market through setting up an assembly unit for trucks there.

Isuzu’s Plans for India

SML Isuzu Ltd., the Japanese truck maker’s joint venture in India with Swaraj Mazda Ltd. and Sumitomo, will manufacture 12-ton payload trucks.  (Three years ago, Mazda Motor Corp. had withdrawn from its partnership in Swaraj Mazda Ltd., but agreed to allow the use of the Mazda brand name for the new joint venture.)  The engines, transmissions and other components for assembling the trucks will be imported into the country from Japan.  Isuzu expects to achieve annual sales of about 1,000 trucks in India and plans to manufacture around 6000 small and mid-size buses a year by 2012.

Isuzu Trucks has invested Rs3 billion for the factories where the Isuzu heavy trucks and luxury buses will be assembled, and hopes to increase profits by 40% by 2011 through collaborations with other auto manufacturers and overseas sales.  In India, Isuzu Trucks provides engines to Ashok Leyland Ltd., Hindustan Motors Ltd., and Hero Group, the 2-wheel leader.

Isuzu’s Plans for Saudi Arabia

Isuzu Motors will soon be the first auto manufacturer from Japan to establish a production unit in Saudi Arabia.  As part of the strategy for accelerating operations in emerging markets, the company is going to set up a plant in Saudi Arabia next year, planning to produce around 500-600 medium-duty trucks in its very first year.  The order from the government of Pakistan to provide 300 trucks per year will increase the production at this plant.

Towards the close of 2012, Isuzu plans to commence the assembly of a medium-duty “F-Series” truck at the Saudi Arabia plant.  Starting with around 600 units, the annual production is eventually expected to reach 25,000.  In future, the factory will also produce light-duty and heavy-duty models.  Isuzu will export engines as well as other key components from Japan to the assembly plant in the Kingdom.

Till now, like other Japanese auto manufacturers, Isuzu Motors has catered to the Middle East market, a very important market for the company, by way of direct exports.  In the harsh Middle East desert terrains, drivers have been finding Isuzu light-duty trucks and pickups to be very reliable and having a long service life.  In 2010, it is estimated that Isuzu sold more than 32,000 trucks in the Middle East.  The new assembly line in Saudi Arabia will enable the company to serve this market more effectively.

Besides India and the Middle East, Isuzu is now focusing also on prospective high-growth markets such as China, and ASEAN – the Association of Southeast Asian Nations.  Currently, Isuzu vehicles enjoy huge popularity in the ASEAN nations of the Philippines, Malaysia, and Vietnam.  Obviously, the Japanese truck manufacturer is taking the international markets route to propel its growth.

To our customers in Saudi Arabia, Philippines and Malaysia and other Middle Eastern countries – we will continue our support for exporting used Isuzu trucks and spare parts to your countries.

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Honda Fit overtakes Toyota Prius to become the top selling car in Japan

In its monthly report, Japan Automobile Dealers’ Association said that in January 2011 Toyota’s Prius had been knocked off the number one position it had occupied for the last twenty months in the country by Honda’s Fit supercompact.  In January, Toyota had sold 13, 711 of its Prius cars, which was 38.5% lower as compared to sales figures in January last year, while Honda sold 14,873 Fit cars, an improvement of 13.9% over the previous year.

Honda’s Fit had last overtaken Toyota’s Prius in March 2009 to emerge as Japan’s best-selling car, before it was toppled off that position by Toyota Prius.  So now the Honda Fit occupies the top slot in Japanese sales charts for the second time.  In total, in July 2010, Honda recorded sales of 3.5 million Fit cars, while in comparison the sales figures for Toyota were about two million Prius cars in September 2010.

Undoubtedly, Toyota’s gas-electric Prius is the best selling hybrid in the world, and was also  Japan’s favorite for close to two years till in January this year Honda’s Fit subcompact which is a much more traditional vehicle and much cheaper too, dealt it a knockout punch.

The redesigning of the Prius two years ago saw its sales zooming, and for very sound reasons too.  The new third-generation Prius not only looks better and drives better, it also has more equipment and gives amazingly good fuel mileage.  Despite this, now Toyota’s Prius has been overshadowed by its top rival Honda’s Fit.  One possible reason why the Japanese seem to favor the Fit over the Prius now could be the large size of the Prius and its expensive price tag in a country mostly dominated by small cars.  Honda’s subcompact gas-electric Fit with a price tag of around ¥1.59 million (approximately $19,331 U.S. calculated at the present exchange rate), costs about $3,500 less than Honda’s Insight as well as Toyota’s Prius.  Commenting on this difference, an analyst had previously suggested it was time Toyota considered slashing the price of the Prius.

Toyota Prius sales also took a beating after most incentives from the government for green cars ended in September.  However, though the incentives have been withdrawn, tax benefits for green cars will continue till April 2012.  Sales of the Honda Fit were not affected as much since it is much cheaper and underwent remodeling recently.  The Honda Fit – the gas-electric hybrid model and the traditional gas-engine models – went on sale in Japan in October 2010.  The new hybrid Fit will also go on sale this year as the Jazz model in Europe, though not in North America.

But it is not just better sales figures and a better price that distinguishes the Fit.  It has also won several awards, such as Japan Car of the Year for 2001-2002 as well as 2007-2008.  Also, it was declared as best small car in 2006 by Top Gear, and as the Best Hatchback for the Money by the U.S. News and World Report.

Technorati Tags: Japan, Toyota Prius, Honda Fit

Giant ice sculptures at Sapporo Yuki Matsuri 2011

One of the biggest tourist attractions in Japan is the Giant ice sculptures at the Sapporo Snow Festival also known as Sapporo Yuki Matsuri in Japanese language.  This is the 62nd year of this winter event which has started yesterday being held at a former paralympics site in Sapporo city located in Hokkaido Prefecture of northern Japan.  The Sapporo Snow festival will last for one week, till Sunday, February 13.   The snow festival gets millions of visitors who brave sub-freezing temperatures to watch these awesome pieces of creation.

The sculptures in past years have varied from Japanese traditional cultural monuments like pagodas to other world famous monuments like the Taj Mahal.  Japanese anime cartoon characters and popular western characters like Spongebob Squarepants  have also found their way in the snow sculptures.   The sculptures also feature complex architectural feats and Japanese sports icons.

This year, there are more than 250 ice sculptures as well as snow sculptures displayed at the 62nd Snow Festival at Sapporo.  The works on display a variety of sculptures ranging from that of  Yuki Saito,  a famous baseball player in Japan who currently enjoys huge popularity in Japan to Disney characters.

Many of the sculptures this year have Asian themes to greet international visitors. This year an intricately carved Temple of Heaven – a UNESCO World Heritage site in China, has been recreated in ice during this winter event.  Daejeon, Sapporo’s sister city in South Korea has also been represented with snow sculptures of its modern buildings.  You can also find snow sculptures of Sazae-san a popular Japanese comic and TV show character.  And, you can also see a sculpture of the Nobel Prize winner in Chemistry, Professor Emeritus Akira Suzuki of the Hokkaido University, in this snow festival.

This year’s international team participants are from countries like the Netherlands, Finland, Hong Kong, Thailand, Lithuania, New Zealand, Portland and Oregon.

The Sapporo snow festival has begun in 1950 when high school students build six snow statues in Odori Park in Sapporo.  Since then, this winter festival has become one of the biggest and most popular winter events of Hokkaido.

This event requires a lot of planning and its preparation started a month ago.   More than 6,000 truckloads of snow has been used for the creation of these sculptures.

This ice and snow sculptures turns Sapporo city into a winter crystal dreamland.  This snow festival is one of the biggest tourist attractions of Japan.  Last year about 2.5 million people visited this event.  Even sub-zero temperature cannot stop visitors from enjoying these wonderful sculptures.

If any of our customers is planning to visit us this week, please reserve your weekend for enjoying this beautiful snow sculptures in Sapporo.

Technorati Tags: Sapporo snow festival, Japan