New Year’s impression
Japan land and engine manufacturers association
Masatoshi Kimata, Chairman
The New Year Remarks [Jan. 12th Wed. 2022]
I am pleased to extend our best wishes to all for a happy and fulfilling 2022.
First of all, last year's summary, COVID-19 has greatly affected economic
activities and the life of citizens around the world. In Japan, taking the example ofTokyo, the state of emergency was declared for 221 days during the nine months
from January 8th to September 30th, and I believe many of you were forced tochange your lifestyle and working style. In October, the momentum of domestic
infections has finally slowed down, and we see some signs that life and working
styles will return to normal. But it seems that the situation is still unpredictable
due to high infection ratio abroad and the emergence of new variant.
Since the former Prime Minister Suga declared “Carbon Neutrality in 2050” inOctober, 2020, discussions on the decarbonization have been rapidly increasing inJapan. The decarbonized society cannot be realized simply by replacing theinternal combustion engine with a battery-powered motor. There are three main
scenarios required. The first scenario is the decarbonization of fuel, and it isnecessary to convert the energy source required by society to energy that does
not contain fossil fuels, such as hydrogen and renewable energy. The second is
the reform of energy utilization technology, which needs to maximize energy
conversion efficiency and minimize energy consumption (CO2 emissions) including
manufacturing, disposal or recycling processes. Thirdly, it is necessary to develop
and spread the technology to capture, store and reuse the carbon that isinevitably emitted even if the first 2 scenarios have been executed. Neither
technology is straightforward, but in order to transform the petroleum-basedenergy system that Rockefeller pioneered 150 years ago into a completely
different energy technology, including internal combustion engines, will beneeded.
Next, I would like to introduce the production results of land-use engines
handled by our association last year. The association publishes monthly
production status on its website. Two years ago, in 2020, the total production
volume, including domestic and overseas, from January to December 2020 was
11,625,907 units. Last year, the total production from January to September
2021 was 10,562,631 units (121% compared to the same months of the previousyear). The breakdown was 8,874,843 gasoline engines (120% year-on-year),
1,623,911 diesel engines (132% year-on-year), and 63,877 gas engines (104%1

New Year’s impression
Japan land and engine manufacturers association
Masatoshi Kimata, Chairman
year-on-year). If production continues as it is, the total production volume fromJanuary to December 2021 is expected to be 14,083,500 units (121% year-onyear). Reasons for these demand recovery include high construction machinery
demand due to infrastructure investment policies in China and the United States,
emergency generator demand due to domestic government subsidies, and forconsumer use, stay-at-home demand in gardening equipment in Europe, theUnited States and Japan.
And now, as for the scenarios to achieve carbon neutral, which I introduced at
the beginning, it is aimed to install batteries in most of the automobiles. But webelieve that the use of biofuels, e-fuels, and carbon-free fuels such as hydrogenand ammonia is indispensable in heavy vehicles which require a large amount ofenergy, and in construction machinery and agricultural equipment which iscommonly used where energy supply environment is not ideal. LEMA will shareand publish information with its members, related organizations, universities, andresearch institutes toward the carbon neutralization of internal combustion
engines, and we ask for your continued support.
Last but not least, I would like to express my sincerity from the bottom of myheart that this year will be a good year for all of you, and wish you all the best foryour continued growth and happiness.

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