Shiotsu Autotrade Japan – President’s Blog

Toyota Parts for Japanese Cars assembled in Philippines

Michinobu Sugata, president, Toyota Motor Philippines Corp. (TMP) announced recently that the company would double the local auto parts content of its vehicles that were assembled locally by 2012, by sourcing more parts in the Philippines itself. Sugata said that TMP has plans to raise the local content for its locally assembled best selling models Innova and Vios from the current 20 to 25% to around 40 %.

Toyota Motor Philippines has urged the government to introduce measures to attract Japanese auto parts makers who have plans for diversifying their production business beyond Japan to set up operations in the Philippines.

Sugata pointed out that Japanese manufacturers are aware of the high potential of the Philippines, adding that there was an excellent investment opportunity because of the Japanese yen’s appreciation. He said now was the best time to invite the Japanese auto parts manufacturers to the Philippines because besides the robust yen and the recent disasters in Japan that are compelling them to review their current supply chain, there were also other factors in favor of the country. For instance, the Philippines has a strong BPO industry and robust OFW remittances that play an important role in maintaining a stable business environment.

Popularity of Japanese Cars in Philippines

Sugata said that with leading two-wheeler manufacturers like Honda and Suzuki making huge investments for expanding the local assembly of their motorcycles, the motorization of the Philippines was gathering speed. He added that after the two wheel makers, the four wheel manufacturers would follow. Read the rest of this entry »

Japan sets new Auto fuel efficiency standards

Just recently, a draft of a proposal specifying the fuel efficiency targets that automakers would have to meet for each type of motor by the fiscal 2020 was released by Japan’s Ministry of Economy, Trade and Industry.  As per the new standards, the average efficiency of fleets would be required to improve by around 24% from the current fuel efficiency standard of 16.3 km / liter of fuel to 20.3 km / liter in 2020. However, plug in hybrids and electric cars will be excluded from meeting the new targets, and manufacturers will be required to deliver efficiency improvements only in conventional vehicles.

The new Japanese proposal is along the lines of the recently introduced US Corporate Average Fuel Economy rules that expect auto manufacturers to work towards meeting the new average fleet efficiency standard of 54.5 miles /gallon from the present 27 miles / gallon, by 2025.  That is, manufacturers may continue to make cars that are less efficient provided that they invest in improving the current efficiency of their other models.

The new efficiency standards are being introduced in order to force a significant decrease in greenhouse gas emissions and encourage the auto industry to put in vigorous efforts towards developing new and more improved designs.

According to a Japanese ministry official, if approved, the new proposals for fuel economy standards could come into force from around next Spring.  The EU and China had introduced efficiency standards some time back.  Last month, they were joined by the US.  The recent move makes Japan the latest country to decide on adopting strict fuel efficiency standards. Read the rest of this entry »