Chairman‘s Message
The spring of 2022, when former President Arima assumed the presidency of JAPIA,
coincided with the timing when society and the economy, which had been stagnant due to
COVID-19, began to move rapidly and geopolitical risks surfaced at the same time. In the
two years since then, the environment surrounding the automobile and automotive partsindustry has changed dramatically. For these two years, JAPIA had been promoting its
activities under the four major themes of improvement of subcontracting transactions, GX(CN), DX, and resilience. I believe that this theme setting was an appropriate selection
based on both the pressing issues at the time and the recognition of risks and challenges forthe future.
With regard to the optimization of transactions, we have been able to proceed with "activities
to straighten up our collars (act seriously to shape up)" from the standpoint of the client withthe cooperation of member companies, and as a result, steady progress in shifting prices forcosts of raw materials, energy, and others has been achieved.
On the other hand, it continues to be a major challenge to spread the shifting of labor costs
to prices throughout the industry. In addition, since the end of last year, several companies in
the automobile and auto parts industry have received recommendations from Japan Fair
Trade Commission for violations of the Subcontract Act, and I believe it is necessary for theindustry to further promote "activities to straighten up our collars" in a sincere manner. We
will continue to make efforts to realize the improvement of subcontracting transactions inorder to maintain and strengthen the competitiveness of the entire supply chain.
For CN, seven activity support tools were provided, including the "CN Activity List for
Practical Use," and for DX, a seminar on the use of digital technology was held. As forresilience, an evacuation manual, a withdrawal flow, and a collection of sensitive technicalknowledge were provided, and the results of activities under each of the four major themes
are steadily taking shape. We will continue to enhance our ability to disseminate the resultsof these activities throughout the entire supply chain, and we will strive to enhance thecontent of our activities in line with the needs of the member companies.
In 2023, four more priority themes have been added. These are Logistics, Circular Economy(CE), Open Innovation (OI), and the Foreign Technical Internship System. The speed ofchange in the environment surrounding JAPIA is becoming faster and faster. In April of thisyear, a revision of laws related to logistics went into effect, and a new bill on the foreigntechnical internship system was approved by the Cabinet. There is no time to spare forthese activities. CE and OI are also important themes that the automotive and auto partsindustry cannot avoid.
In FY2024, we will continue to work on these eight priority themes in broad collaboration andcooperation with the Japan Automobile Manufacturers Association, the Ministry of Economy,
Trade and Industry, material industry related associations, Confederation of Japan
Automobile Workers’ Unions, and Japanese Association of Metal, Machinery, andManufacturing workers.
In addition to an overview of JAPIA's major activities during the past fiscal year, thispublication presents the contribution of the auto parts industry to the Japanese economy
from the past to the present with statistical data. Under the drastically changing social andeconomic circumstances in Japan, the Japanese automobile and auto parts industry isapproaching a turning point. We will continue to work strongly and flexibly on our key
themes so that a bright future can be seen beyond the corner and the entire supply chain
can become stronger.
Over the next two years, I am determined to work diligently and honestly to make JAPIA aplace for everyone, so that JAPIA member companies will be happy to be members of
JAPIA, and so that everyone outside of JAPIA will be happy that JAPIA exists.
May 2024
Japan Auto Parts Industries Association
Chairman, Takashi Kayamoto

Status of the automobile component industry

According to "2022 Economic Structure Survey" conducted by Ministry of Economy, Trade andIndustry, the value of automobile-related shipments was JPY 56.3 trillion (17.1% of total manufacturingindustry), of which automobiles accounted for JPY 20.8 trillion (6.3%) and automobile components for
JPY 34.7 trillion (10.5%).
In addition to the above, automobile components include springs, glass, tires, screws and bolts,
which are recorded in other statistical categories, therefore, the value of shipments of automobile
components in the broad sense is larger than the figures shown here.

Status of the automobile component industry（Unit: trillion yen）
2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

Automobile

20.1

20.9

22.6

23.5

24.5

25.6

25.4

24.3

21.9

20.8

Automobile
parts and accessories

30.1

31.1

30.7

33.6

33.1

35

36.1

35

30.6

34.7

0.5

0.5

0.6

0.6

0.7

0.7

0.7

0.7

0.7

0.8

50.8

52.5

53.9

57.7

58.3

61.3

62.2

60

53.2

56.3

Market share

17.6%

18.0%

17.7%

18.4%

19.3%

19.3%

18.8%

18.6%

17.6%

17.1%

All manufacturing industries

288.7

292.1

305.1

313.9

302.1

317.2

331.8

322.5

302

330.2

Automobile bodies

TotalOverseas expansion of Automobile Parts Manufacturers■Production volume by Japanese automobile manufacturers

Overseas production increased for the second consecutive year (+3.3% to 17 million units).
Domestic production volume remained almost flat.

Data: JAMA
■Changes in the number of overseas subsidiaries with production function of JAPIA members (Worldwide

except Japan)
Decreased for the fourth consecutive year after peaking in 2018, down 68 from the previous year.
Due to a review of the membership system, there are changes in the companies surveyed. For companies
responded for the second consecutive year; -4.
China; -6 (new registrations +9 to cope with EVs, business integration/dissolution and withdrawals -15 related tomainly ICE vehicle parts.
Europe; -5 (UK -3, Russia -4, Albania +1 (first entry)
Others; new entries in Guatemala and Tunisia

Data: JAPIA Research on Overseas Operations by Member Companies FY2022 (Mexico is included in North America)

■Overseas subsidiaries with production function, Top countries in change from previous year

-2 of Russia’s -4 : withdrawal

2008 financial crisis
COVID-19
Great East Japan
Earthquake

Data: JAPIA Research on Overseas Operations by Member Companies FY2022■Changes in the number of employees of all subsidiaries with production function

The number of employees decreased by 160,000 compared to the previous year.
For the result of companies responded for the second consecutive year slightly decreased by 99% compared theprevious year. (102% in North America, 98% in Europe).

Data: JAPIA Research on Overseas Operations by Member Companies FY2022 (Mexico is included in North America)

■Overseas subsidiaries with production function of JAPIA members, Changes in sales

Total sales was JPY22.1 trillion. Increase of JPY2.3 trillion (+11.6%) from the previous year.
The result of companies responded for two consecutive years increased by 14% compared to the previous year, of
this,12% is due to foreign exchange effects, so the real growth is 2%.
(Trillion yen)

Data: JAPIA Research on Overseas Operations by Member Companies FY2022 (Mexico is included in North America)■Overseas subsidiaries with production function of JAPIA members, Ratio of sales by destinations

The export share fell from 14.8% in 2021 to 12.5% in 2022, continuing the trend of supplying a higher proportion of
local customers.
Dependence on Japanese automobile manufacturers has remained mostly unchanged. (by respondents for two
consecutive years)

Data: JAPIA Research on Overseas Operations by Member Companies FY2022 (Mexico is included in North America)

■Export and import of automobile components
The following table shows import/export trends for items with "for motor vehicles" or "for vehicles" in the product namein Ministry of Finance trade statistics.
【Exports of automobile components from Japanto the rest of the world, by region】【Imports of automobile components from abroad

to Japan, by region】（単位：兆円）
9.0（単位：兆円）3.5

3.2
その他 0.2

6.2

6.7
6.2

6.0

6.4

6.3
5.8

6.5

5.9

その他 0.9

2.4

ｲﾝﾄﾞ 0.05

EU(27か国）0.8

4.5

北米（含メキシコ） 2.5

北米 （含ﾒ ｷｼｺ) 0.3

2.2

2.2

南米 0.3

4.7

2.4

2.4

EU(27か国）0.3

2.7

2.6

1.9
1.7

1.75

中国 1.0ｲﾝﾄﾞ 0.1
中国 0.6
ｱｾｱﾝ 1.3

ｱｾｱﾝ 1.2

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

Source: Ministry of Finance (Mexico included in North America; EU 28 countries until 2019, 27 countries after 2020)

Situation of JAPIA member companies in China and the U.S.
In view of trade friction between the U.S. and China, the situation in China and the US over the five years from 2018
to 2022 is summarized: from 2021 to 2022, China sees a large decrease in local production, with a corresponding
decrease in the value of parts exports. As for the U.S., local production volume is slightly increasing and the value ofparts exports is growing, partly due to the impact of the exchange rate.
＜China＞

Sources: JAMA, MarkLines, Ministry of Finance.

＜the U.S.＞

Sources: JAMA, MarkLines, Ministry of Finance.

Local sales and number of employees of JAPIA members in 2022 both declined in China, while only sales increasedin the U.S., but this is due to the impact of exchange rate fluctuations.

＜China＞

Sources：JAPIA Research on overseas operations by member companies＜the U.S.＞

Sources：JAPIA Research on overseas operations by member companies

The number of local production function decreased in both countries. The decline was slower in the U.S. than in China.
＜China＞

Sources：JAPIA Research on overseas operations by member companies＜the U.S.＞

Sources：JAPIA Research on overseas operations by member companies

Initiatives to improve subcontracting transactions
Activities to straighten collars (Task Force for improvement of subcontracting transactions)(i) Price shifting (shifting tools, examples of shifting, etc.)
In addition to revising the Voluntary Action Plan to promote appropriate transactions,“Plan for thoroughness” was developed with the aim of increasing the effectiveness of
the Voluntary Action Plan. JAPIA’s member companies (as order placers) took the
initiatives in further transforming the entire supply chain of the automobile industry.
Furthermore, in order to promote smooth price negotiations and appropriate
transactions, tools for easily checking price trends and price increases/decreases using
published price data on raw materials, energy, labor costs, etc., as well as goodpractices of price shifting between member companies and suppliers were shared. As aresult, the appropriate price pass-on of cost increases and appropriate distribution
throughout the supply chain were promoted.
(ii) Penetration activities in the supply chain (briefing sessions in areas with automotive
industry clusters)
In order to deepen understanding of fair transactions and to promote appropriate andprompt price shifting, briefing sessions were held in Hamamatsu, Hiroshima, andFujisawa in the clusters of the automobile industry to introduce the addresses for
improving subcontracting transactions by METI, automobile manufacturers, and autoparts manufacturers.
(iii) Cooperation with the Ministry of Economy, Trade and Industry and relevant associations(JAMA, industrial materials associations)
Ministry of Economy, Trade and Industry (METI) , JAMA and JAPIA held a joint seminarin September 2023 with the aim of spreading the thoroughness plan to member
companies of both associations. Member companies were requested to implement
initiatives as order placers to promote appropriate transactions and to spread the planfor thoroughness in the supply chain. In order to evolve partnerships throughout the
supply chain in the automotive industry and contribute to strengthening thecompetitiveness of Japan's manufacturing capabilities, we exchanged views andstrengthened cooperation with material industry related associations.
JAPIA HP
Improvement of transactions
https://www.japia.or.jp/work/torihikitekiseika
Tools to promote price shifting of raw materials, energy, etc.
https://www.japia.or.jp/topics_detail/id=3938
Examples of price shifting of raw material, energy and logistics costs
https://www.japia.or.jp/topics_detail/id=3975

Initiatives on Environmental Issues -Efforts towards carbon neutrality (CN)
1. JAPIA’s policy
As an organization comprising the automotive industry, we will do our utmost to achieve the
Policygovernment's "2030 Emission Reduction Target", "2035 Green Growth Strategy" and "2050
Carbon Neutral".

QR
コード①

QR
コード②

Voluntary action plan forenvironmental issues

JAPIA’s Report at the Industrial
Structure Council.
(Website of Ministry of Economy,
Trade and Industry)

2. Activities for CN in 2023
(1) Survey, Goal and action plan (AP)

QR
コード③

Survey results andGoals and Action Plan
(Members-only website)

Survey results

Entry form for goal and action plan

(2) Various seminars
Ten seminars were held to study CN support tools and provide various useful information.

QR
コード④

CN-related information (seminars,
support tools, etc.)(3) Various CN support tools (how to proceed with activities and case studies)●CN activity list in practice

QR
コード⑤

●CN activity list in plactice [for suppliers].
●Simplified calculation table visualized●Energy-saving activity method table

CN activity list inpractice(Members-only website)

by facilities●Examples of new business creation andbusiness transformation●Basic knowledge for CN promotion

CN activity list in practice

QR
コード⑥

●Case Studies of Energy Conservation
Measures

Energy-saving activity
method table by facilities(Members-only website)Environmental Initiatives～Initiatives for a Circular Economy（CE）～
In June 2023, the Committee established a CE launch preparation team to accelerate CE activities ofmember companies, and in FY2023, based on the following policy and direction of activities, in addition tounderstanding the European ELV Regulations and considering public comments, the team promoted various
activities, roadmap study, lobbying the government, and cooperation with JAMA. In addition to understanding
the European ELV Regulations and examining public comments, we promoted various activities.

1. Policy and Activity Direction
In a global environment where resource depletion is predicted in the future, ambitious goals andstrengthening of recycling infrastructures are being set, starting with Europe. In the domestic market, thecreation of a market for recycled materials (cooperative area) that can quickly respond to CE in terms ofquantity, quality, and cost will be encouraged.
While ensuring that the domestic auto parts industry as a whole is capable of exporting to Europe and therest of the world, the goal is to create a situation that does not hinder further growth and creates newcompetitiveness (competitive area).
Each company develops technology,

International Competitiveness

A

B

Resource Flow in CE

・・・

products and business・・・Soundnesscompetitioncompetitivearea

specific example

・・・

Promotion of easy disassembly design
Techniques for using low-specification materials

Foundation forbusiness activities（Securing resourcesand developing legal
source）Ministry of Economy,

systems）

through corporate collaborationarea

specific example

Clarification of recycled resin quality

Oriented Resource Autonomous（2022.10.5）

Building and strengthening the foundation

Lobbying to secure the amount of recycled resin

Trade and Industry 1st GrowthEconomy Design Study Group

cooperative

Individual company efforts alone are limited

Preparatory team for CE study in the sectional industrial committee to study common issues in
the cooperative area.

２. CE Task Force is established.
CE Task Force established in December 2012 to resolve issues
surrounding CE. The number of members has been expanded to 36
from 16 companies.
Activities are being promoted in three working groups (roadmap
study, market study, and liaison) with the aim of resolving issues toachieve the desired vision.

３. Activities (Submission of public comments on the ELV Directive in Europe)
The European ELV Directive proposal issued by the European Commission in July 2011 includes the
mandatory use of recycled materials (PCR resin: 25%, of which 1/4 is ELV-derived).
The JAMA felt that the European ELV Directive was a major crisis, and the External Relations WG took
the lead in reading the proposal and submitted it as a public comment to the European Commission on
December 1.
In Japan, only two organizations, JAMA and BIA, are involved in this project. We will continue to conduct
liaison activities to push for a favorable direction for the Japanese auto parts industry.

【Submission of pubic comments to the European Commission】
Public Comment Structure
１．Introduction of Divisional Associations
２．Our Stance on ELV Regulations
３．Opinions on each article

Public Comment
https://www.japia.or.jp/files/user/japia/work/kankyo/DL/2023/20231201Opinion%20of%20th
e%20JAPIA%20on%20the%20ELV%20Regulations.pdf

４. Activities (JAPIA Product Chemical Management 2023)
In order to promote and disseminate CE activities as an industry-wide issue, a lecture on CE issues in
the parts industry association was given at JAPIA Product Chemical Management 2023 on September 21,
2023.
We will continue to promote activities to deepen understanding of CE activities in the parts industry
associations.

Initiatives on Environmental Issues - Regulations of Chemical Substances 1. "JAPIA Chemimane 2023", a pre-event for the 2024 Alliance Conference
JAPIA Chemimane 2023" was held to provide the latest information on chemical substance regulations, thestatus of industry initiatives, and JAPIA's activities to achieve carbon neutrality to a wide range of people in theauto parts industry, and received favorable reviews.

Venue; Tokyo International Exchange Center
Date: 21 September 2023
ThemesSpeakers

Participants

Stockholm Convention, Ministry of Economy, Trade Ministry of Economy, Trade andand Industry

Industry

308

About JAPIA's chemical liaison

Product Environment Subcommittee

Liaison Association of Medical, Measuring, Analytical Nippon Electric Control Equipment
and Control Equipment Related Industry Associations Industries Association(called "Class 8 and 9 Liaison Association")
Latest trends in IMDS

IMDS

External

Relations

Subcommittee
Trends in the Circular Economy and JAPIA's Environmental Response Committee
initiatives.
Guidelines for accounting of GHG in JAPIA.

LCA subcommittee

CN initiatives in JAPIACN Subcommittee＊233 people watched the recording after the event.

2. [Advance notice] "JAPIA Chemimane 2024" is scheduled to be held
Scheduled to be held at the Tokyo International Exchange Center on 11-12 September 2024. On 11 September,an international event inviting AIAG and CLEPA will be held to discuss trends in chemical regulations andinformation communication systems in various countries. On 12 September, the activities of domesticorganizations in response to movements abroad will be introduced.
Themes of 11 September (planned).

Speakers (tentative).

Latest trends of chemical regulations in North America

AIAG

Latest trends of chemical regulations in Europe

CLEPA

Trends in IMDS

JAPIA

Trends in IMDS (carbon footprint)

AIAG

Themes of 12 September (planned).

Speakers (tentative).

Japan's response to international treaties

Ministry of Economy, Trade and Industry

JAPIA's external relations activities

JAPIA Product Environment Subcommittee

External relations activities of DAIKIN INDUSTRIES, Ltd.

DAIKIN INDUSTRIES, Ltd.

External relations activities of Silicones Industry Association Silicones Industry Association of Japanof Japan.
JAPIA’s activities on LCAJAPIAJAPIA's activities on the circular economy

JAPIA

CE Review TF

3. Outcome of activities on chemicals regulations (Submission of public comments toregulatory authorities)
We have investigated the degree of impact and submitted public comments to the regulatory authorities(European Chemicals Agency and Japan’s Ministry of Economy, Trade and Industry) on issues (e.g. difficulty in
substitution, insufficient switching period). By negotiating directly with them with concrete evidence, ourcomments were accepted.
substance

regulations

purpose of use

commodities

Outcomes of thenegotiation

UV328

Chemical Substances

UV absorberControl Low
Dechlorane Plus

Paint

Exemption of Imported

Polarizing films

moldedproducts

Chemical Substances

Chlorinated flame

Wiring harnesses

Control Low

retardant

Tapes

automotive

PDAP resin
MCCP (mediumchain chlorinatedparaffins)

Stockholm
Convention on
Persistent Organic
Pollutants

Metal working oils

Cutting oil

Exemption for 10

Press oilyears for products for

Flame retardant

Rubber/resin

processing oilplasticizers

Paint

Negotiation activities are currently underway for the proposed regulation of PFAS (organic fluorinecompounds), which has a significant impact on member companies.

[Submission of public comments on the PFAS Regulation
to the European Commission]
Public Comments
1. concerns about the proposed restrictions on PFASs
2. automobile components containing PFASs(list of 2371 parts covered, photo).
3. assessment for environmental releases of PFASs

https://echa.europa.eu/da/registry-of-restriction-intentions/-/dislist/details/0b0236e18663449b

Initiatives on Digital
1．Activities of Data Distribution Realization Task ForceIn Europe, "Catena-X", a platform for sharing data on supply chains
across the automobile industry, was launched in March 2021, and efforts
are underway to establish an open and secure data collaboration
infrastructure. In April 2023, Cofinity-X, which operates a data distribution
infrastructure, was established and is expected to be surrounded by aset of rules (ISO), operations (tools) and certification (audits). In addition,"European Battery Regulation", which will come into force in 2025, is thefirst use case for digital certificates to ensure traceability along thelifecycle of a product, which will spread across Europe, and it is being
discussed that this rule would apply not only to automotive-relatedindustries, but also to other industrial sectors such as metals, materials,
and chemicals.
In response to these movements in Europe, Ministry of Economy,
Trade and Industry (METI) has been working on the design ofarchitectures, research and development, demonstration and social
implementation and dissemination of mechanisms for the coordination ofmultiple information processing systems that are operated and managed
by different partiestogether with the relevant ministries and agencies,
Digital Architecture Design Centre (DADC) of Information-technology
Promotion Agency, Japan (IPA), and New Energy and Industrial
Technology Development Organisation (NEDO),. The initiative on data
linkage has been named the "Ouranos Ecosystem".
In March 2023, JAPIA established "Data Distribution Realisation Task Force" and set up two teams: "Shortterm response team" to respond to the European Battery Regulation as soon as possible, and "Medium- to longterm response team" to anticipate and prepare for future use cases. In August 2023, Medium- to long-term
response team prepared "Medium- to long-term roadmap ver 1.0" summarising the urgent use cases set out in
the Framework Policy, and reached consensus
on the direction with Ministry of Economy, Tradeand Industry and JAMA.
In addition, "Seminars on Digital" was held formember companies in November 2023, with 133
people participating online. In the questionnaire,
85% of respondents said that they understoodwell.

Data Distribution Realization TF

Data Distribution Realization TF

Medium- and long-term roadmap

Seminars on Digital(Members only page)(Members only page)2. Cyber security measures
JAMA and JAPIA developed the "Guideline for Supply Chain Cyber Security of
JAMA/JAPIA" in March 2020 to promote efficient check and upgrading of cybersecurity measures in the entire automobile industry and published the revised
version (V2.1), the commentary and check sheets in September 2023.
In addition, self-assessments using check sheets are regularly conducted
throughout the automobile industry to raise the level of security. Approximately
6,600 people attended self-assessment briefings and consultations. Activities areunderway with the goal of all companies achieving all Level 1 and 2 items by theend of FY2024.
Cyber Security Subcommittee organised five webinars aimed
at sharing security information and promoting countermeasures,
including for SMEs. This year, with the cooperation of JAMA, asession introducing actual serious incidents was added, which
was well received.
In addition, in cooperation with the IPA andother organizations, support activities that areclose to small and medium-sized enterprises
will be promoted.

Latest Cyber Security
Guidelines

Initiatives on Resilience
With the expansion and globalization of the market, the auto parts industry has globally promoted optimized
production, procurement and logistics through localization of production, and desperately supported stable production
during the semiconductor shortage and lockdown triggered by the COVID-19. However, as nationalism spreads,
conflicts between authoritarian countries and liberal/capitalist countries become more serious, and the impact of
economic coercion policies to achieve diplomatic objectives on supply chains is becoming a real and new threat,
JAPIA has been conducting activities to support member companies in strengthening their resilience since FY2022.
In FY2023, the organized issues ((i) ensuring employee safety, (ii) managing sensitive technology and preventing
military diversion, (iii) business withdrawal, and (iv) linking production (multiplexing and alternative production)) werediscussed on preconditions and how to proceed, and a versatile manual and flow were prepared and made available
to members. In addition, seminars were organized with lecturers from the Ministry of Economy, Trade and Industry.
Discussions were held with the Cabinet Secretariat and other relevant organizations.
■Ensuring the safety of employees
Discussions were held on why to withdraw, how to protect thesafety of employees, etc., and a "generic version of the manualfor evacuation outside the country (template)" was completed.
"Manual for Evacuation outside
the country (template)"(Members only page)＜知識集■Sensitive technology management and prevention of military

目次＞

diversion
A "Knowledge Book on Sensitive Technology Management" hasbeen completed, focusing on three areas: advanced and criticaltechnology, technology convertible to military use, and acompany's core technology.
"Knowledge Book on Sensitive Technology
Management"(Members only page)■Business withdrawal
The flow is completed by summarizing what needs to bedone and key points in chronological order from theperspective of people, goods, money and information, as wellas incorporating case studies from member companies.
Business withdrawal flow
(Members only page)■Connecting production (multiplexing and alternative production)
Assumed risk scenarios and listed issues (pains) with assumed risks, and proceeded to examine and organize theissues for discussion as the automobile and parts industry.

Initiatives on Standards Certification
Standards certification of emerging countries and ASEAN MRAThe Standards and Certification Subcommittee works with national and overseas organizations toaddress issues related to standards and certification in ASEAN countries, India, China and otheremerging economies, and to promote approaches to national authorities in order to solve problems
in the automobile component industry. In November 2023, JAPIA participated in the Asia PublicPrivate Forum (in Vietnam) organized by JASIC, where we presented the benefits of standards
harmonization and mutual recognition from the perspective of JAPIA to representatives of ASEAN
countries and we mainly introduced the benefits of activities after joining to the 1958 Agreement.
Through the activities under the 1958 Agreement, we were able to convey the benefits to theindustry in terms of reduced testing and certification costs based on a common certification
system, as well as the benefits of harmonization and mutual recognition from the public and private
sectors, to share an image for the future Asian MRA, and to deepen understanding among theparticipating countries and regions.