Toyota Motor Corp. and several other major Japanese automakers expanded their overseas factories' car production to record levels in 2003 to meet the strong demand in the US, Europe, and Asia.
Toyota Motor Corp. said that the company’s auto production at overseas plants has grown for the 12th consecutive year, reaching a record 2.65 million units in 2003. In terms of sales volume in 2003, Toyota Motor has replaced Ford Motor Co., becoming the second largest automaker in the world.
Honda Motor's overseas production in 2003 set a record for 2002, which has enabled the company's global car production to reach a record level. Nissan Motor Co. Ltd. (7201.TO) also increased its production outside Japan's factories by 14.2% to the highest level of 1.49 million vehicles.
Since the 1990s, Japanese automakers have maintained a sustained and strong growth in overseas production.
The above data reflects that as Japanese automakers shift their production bases overseas to cut costs and enhance their ability to deal with fluctuations in the exchange rate of the Japanese yen, their competitiveness in the global automotive market is constantly increasing. These manufacturers try to compensate for the lack of future growth in the domestic market by expanding their overseas sales.
Toyota Motor also said that the company’s global production last year increased by 7.8% to 6.08 million vehicles. This figure does not include the production of its subsidiaries Hino Motors and Daihatsu Motors.
Honda Motors said that last year's global production reached a record 2.97 million vehicles, an increase of 2.4%. Nissan Motors followed closely. The company’s global auto production in 2003 increased by 9.8% to 2.96 million vehicles, indicating that the company is resurrected under the leadership of its president, Carlos Ghosn.
Toyota and Honda Motor both stated last month that as the company's market share in the United States, Europe and Asia continues to increase, the vehicle production in 2004 will further expand. Toyota Motor Corp. said that the company’s global car production in 2004 will increase to 6.51 million vehicles, while Honda Motors hopes to increase its global production to 3.17 million vehicles.
Among other major Japanese automakers, Mazda's global vehicle production in 2003 also increased by 10.4% to 1.04 million vehicles, of which overseas vehicle production surged by 42% to 240,821 units.
Mitsubishi Motors, however, said that the company’s global auto production fell 5.7 percent last year to 1.58 million vehicles, due to weak exports and the decline in North American production, the company’s domestic and overseas auto production fell. Mitsubishi Motors expects that the entire group will lose money in the fiscal year ending in March 2004 due to the downturn in business in the United States.