Photo/Illutration Nissan Motor Co. automobile dealership in Soka, Saitama Prefecture (Asahi Shimbun file photo)

Shortages of auto parts and semiconductors amid the novel coronavirus pandemic are blamed for the decline in domestic car production in fiscal 2021 for the third consecutive year. 

The eight major automakers in Japan announced on April 27 a 6.8 percent drop from the previous fiscal year to 7.094 million units.

Domestic production has declined among all the companies, except Mitsubishi Motors Corp.

Nissan Motor Co. saw the biggest decline at 13.8 percent among them, followed by a 13.3 percent drop for Subaru Corp.

Toyota Motor Corp. experienced a 5.4 percent decrease in domestic production to 2.761 million units.

Toyota believes that a 3-million-unit level in domestic production is necessary to preserve its employment base and workers’ skills.

However, it marked a production figure below that level for the second year in a row. The 2.761 million units were the lowest since the 2.58 million recorded in fiscal 1976.

Domestic production of the eight companies in March dropped by 18.2 percent year on year to 676,000 units.

Global production in fiscal 2021 declined by 0.6 percent from the previous fiscal year to 23.217 million units, or a 13 percent drop from fiscal 2019 when the influences from the pandemic were limited. 

Toyota saw a 4.7 percent increase in global production to 8.57 million units. But the figure did not reach the 8.74 million units logged in fiscal 2019.

The decline in production affected sales among domestic makers. Global sales fell by 0.5 percent to 24.309 million units while domestic sales dropped by 9.8 percent to 3.816 million units.

The blame is being pinned on the string of auto parts makers who halted their operations due to the spread of the new coronavirus infections.

Auto manufacturers were also affected by prolonged shortages of semiconductors.

In April, the supply of auto parts has been delayed due to a strict lockdown in Shanghai in China over a spike in COVID-19 cases, affecting car production.

Honda Motor Co. expects that production in its Suzuka factory in Mie Prefecture in early May will be halved from the initial plan. Subaru and Mitsubishi also plan to suspend operations at their factories.

The production slowdown is also affecting customers.  

It is taking much longer for many domestic car dealers to deliver their cars to buyers due to a shortage of new automobiles. For some models, it is taking more than half a year for delivery.

(This article was written by Junichi Kamiyama and Kohei Kondo.)

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