JARA NEWSfrom
Japan Automotive Recyclers Alliancewww.jara.co.jp
2016 Auto Market Overview in Japan

Recycling Businesses

Declining generation of end –of –life -vehicles(ELVs) due to shrinking new car demand, changes
in distribution routes of ELVs, falling steel scrap
prices, and the rising cost of parts transportation––In 2016, the automobile recycling businesses
confronted accumulating problems. Despite 10years having passed since the Automobile
Recycling Law was introduced, the businessenvironment of recyclers has not improved,
resulting in serious damage to their businesses.
One after another, recyclers across the country
entered bankruptcy or were forced to leave thebusiness. On the other hand, 2016 was a starting
point for the industry to begin get back on the pathof growth. And 2017, it seems, will see to see amove toward sustainable growth of the industry
for the future.
The Japan Automobile Recycling Promotion
Center (JARC) had forecasted the number ofrecovered ELVs for fiscal 2016 ending March2017 to “around 3.3 million units, if theconsumption tax hike is put into force, andsuppressed by around 110,000 units if the tax hikeis prolonged.” However, recovered ELVs for April
through November 2016 numbered 2,006,079
units. JARC also says, “The number would likely
end up being just above 3.06 million (for theyear),” suggesting a further downward forecast.
The two major reasons for declining recovered
ELVs are a decrease in ELV generation due toshrinking new car demand and an increase in usedvehicle exports. The impact is especially large
from used vehicle exports, which is far above 1
million units a year. Not to mention the numberitself, “The average vehicle age of exportedvehicles is nine to 10 years, compared to 14.9years for recovered ELVs. In other words, theELV generation is expected to decline
in the future

vehicles that should be recovered in Japan aregoing abroad. Many ELVs are pre-consumed byexports.” This encourages the decrease ofrecovered ELVs. JARC said that the declining
trend would remain in 2017 and after.
In 2017, the auto recycling industry is expectedto feel a sense of uncertainty about the future.
Nevertheless, operators are working hard to sellmore recycled parts, by strengthening humanresources development, promoting precise
dismantling, and making operations efficient byusing IT.
Notably, a cross-group move arose in theindustry. The Japan ELV Recycler’s Association(JAERA) hosted on November 18 a “RelatedGroups Gathering,” inviting 14 groups andgovernment officials. JAERA Chairman Yasuo
Sakai recognizes the importance of suchgatherings, saying: “It is appreciated if we could
collect opinions and exchange information with thewhole industry. It is vital for us to conduct such
events in an industry-wide manner.” Sakai plans tohold the event periodically in 2017 and after.
Meanwhile, the “Eco Premium Car System(tentative name)” will enter under the examination
stage in 2017. The system is designed to allow
buyers of cars that use recycled plastics to pay a
reduced recycling fee. A working group wasformed by the Ministry of Environment and theMinistry of Economy and includes experts,automakers, user representatives, recycle-plasticmanufacturers, the Japan Automobile Recycling
Promotion Center and others. The working group
met in both in November and December 2016.
Toward full implementation of the system in 2018or later, the working group will examine details of
the volume and the usage rate of recycled plastics,
quality assurance, vehicle type, etc. The
introduction of an incentive system for precise
dismantling operators is also being considered.
Government moves related to auto recycling areexpected to be active in 2017. (Daily AutomotiveNews, Dec. 22, 2016 issue)

January 2017, No. 107

Published by JARA Corporation
Tokyo Head Office: Shinawa Bldg. 1-2-2-7F,
Nihonbashi, Chuo-ku, Tokyo JAPAN 103-0027
Phone: +81 3 3548 3010 / Fax: +81 3 3231 4690

Government to speed up
public data disclosure
The government is to accelerate the disclosureof public data stored by administrative organs.
Based on the “Basic Act for Promotion of Use of
the Government and People’s Data,” enacted on
December 7, 2016, it will urge intensified efforts
by 2020. Traffic data related to the advancementof autonomous driving is likely to be subject to thenew act.
The act was designed to facilitate the diffusionof online procedures and to create new businessby utilizing public data held by administrativeorgans. A strategy meeting for utilization andpromotion of government and people’s data,
which is headed by Prime Minister Shinzo Abe,will be formed to establish basic plans. At theFuture Investment Meeting held on December
19, Abe said, “By disclosing data related to roads
and infrastructure, and by bringing together theabilities of the government and the people, we will
create promising markets.”
In the autonomous driving field, road data
for a national autonomous driving map will be a
candidate for disclosure. In addition to information
on road elements, such as signs, lane markers, andvarious installations, the disclosure of informationon construction, accidents, congestion, and traffic
signal status would improve the convenienceof digital maps’ and lower the cost of data
updates. The government, toward the Tokyo
Olympic Games 2020, will integrate information
on railways, buses and other public transportsystems into data on weather, train stations, andcommercial facilities to smoothly guide foreignand domestic visitors to game sites.
The government’s vision for use of traffic datais also included in the “Government and People’s
ITS Road Map”. These moves are likely to further
accelerate when promotional activities are readyunder the new law. (D.A.N., Dec. 21, 2016 issue)

Combining various data could givebirth to a new industry

JARA NEWS No. 107 January 2017 Page 2

Strategic HQ for autonomous
driving launched bytransport ministry
The Ministry of Land, Infrastructure,
Transport and Tourism (MLIT) hosted on
December 9 the first meeting of the Autonomous
Driving Strategic Headquarters. Minister Keiichi
Ishii, who serves as chief of the headquarters,
expressed readiness to development andpromote widespread use of autonomous driving
technologies, by saying: “In order to leadthe world in autonomous driving, we need toaccelerate our ministry-wide efforts toward
international rule making, promotion of thespread of technologies, social testing, andinstallment on actual vehicles, while grasping theinternational trend of technological development,
as well as social needs.
The headquarters members consists of bureau
chiefs from: the Automobile Bureau, which is incharge of the development of advanced safetyvehicles and creation of technical standards, theBureau of Public Roads, which is responsible forroad infrastructure maintenance and prevention ofdriving in the wrong direction, the City Bureau,
which is in charge of urban development, aswell as the director of the Public Transportation
Policy Department, the deputy vice-minister
for logistics, and the commissioner of the Japan
Tourism Agency. As sub-committees, threeworking groups were formed: “Environment
Maintenance”, “Technical Development andDiffusion Promotion”, and “Verification Testing
and Installment in Actual Social Stage”. Items
to be studied include actively involvement inestablishment of international standards, rules
governing accident indemnification, autonomous

CO2 Reduction Effect(based on Super-Line System)

The use of Reuse Parts saved

3,185 tons of CO2 emissions
in November 2016
The reference figure represents the difference ofcarbon dioxide (CO2) emissions at the vehicle repair
using genuine (new) parts and recycled parts.**: Based on "Green Point System", which was jointly
developed by the Japan Automotive Parts Recyclers
Association and Waseda University Environmental
Research Institute using a life cycle assessment (LCA)
technique.

driving verification tests, truck convoy travellingand michinoeki roadside stations.
U n t i l n o w, g o v e r n m e n t p r o j e c t s f o r
developing intelligent transport systems (ITS)
had been centered on MLIT’s Road TransportBureau and Bureau of Public Roads. But
autonomous driving, which is rapidly developing,is expected to not only help reduce accidents andcongestion, but also have a wider social effects,
such as in helping assuage driver shortages,
facilitating transportation in less-populated areas,and preventing driving in the wrong direction.
Moreover, it will relate to efficient land use
and urban planning, such as in a compact city
projects. As such, the ministry decided to form
much closer relations inside the ministry to
maximize the effect of policy and the efficientmanagement of projects.
The Ministry of the Environment recently
announced that Japanese greenhouse gasemissions (converted value to carbon dioxideemissions) for fiscal 2015 ended March 2016
declined 3.0 percent from the previous year to132.1 million tons (preliminary figure), making
a yearly decrease for two consecutive years.
The decrease was affected by an expansion ofrenewable energy use and reduced emissions
from the generation of electricity dues toresumed use of nuclear power. FY2015 emissions
were down 5.2 percent compared to FY2005
and down 6.0 percent compared to FY2013. The
government posted emissions reduction targetsof more than 3.8 percent in FY2020 compared toFY2005, and 26 percent in FY2030 compared toFY2013.
Environment Minister Koichi Yamamoto
said at a press meeting after the Dec. 8 Cabinet
meeting, “Without letting up, we need tocontinue moving this policy forward.” (DailyAutomotive New, Dec. 9, 2016 issue)

Environment ministry tointroduce carbon pricesystem, eyeing carbon tax
The Ministry of the Environment (MOE) ismoving to introduce a “carbon price” system,
aimed at helping reduction of greenhouseemissions by converting such emissions intoprices. The ministry will have a meeting inJanuary 2017 to discuss overseas examples andthe effect of such a system on controlling globalwarming. Although MOE is considering a carbon
tax, which is already used in emissions trade inEurope, the Ministry of Economy, Trade andIndustry (METI) and various industries are likely
to reject such.
The idea od introducing a carbon pricesystem was revealed by Environment Minister
Koichi Yamamoto at a press meeting onNovember 30, 2016, when he showed a positivestance toward introducing such by saying,”Carbon price system is a global trend.”
MOE had earlier announced its vision for an“environment tax”, but it abandoned it inresponse to opposition from METI andindustries. Instead, MOE partially embodied it’svision as an extenuation of the oil and coal tax as
a “tax for counter measures to address globalwarming”. METI views a carbon price system
negatively because (according to METI’s
Industrial Technology and Environment Bureau),“CO2 emissions depend on the configuration ofelectricity generation types, population andhouseholds, and economy, meaning the impact ofa carbon price would be limited.”
As for what is now being called a “tax rate forthe time being” (formerly “temporary tariffs”) to
be imposed on gasoline, etc., such might be set
under the name of a carbon tax, which would
ignite opposition from the automotive and oilindustries. (Daily Automotive News, Nov. 30, 2016 issue)

Tesla Motors gets closer tofull self-driving
U.S. electric vehicle manufacturer Tesla
Motors, Inc.’s “Model X” –equipped with eightcameras and other hardware for full self-driving
is likely to be delivered in Japan by the end of2016. The company will equip every Model X,
which is the company’s first SUV, with cameras
and ultrasonic wave sensors, among others,
thereby providing the option of self-driving. The
car’s technologies can be put to use in line withsoftware evolution and moves in legislation.
The Model X features double-hinged “FalconWing”, which open upwards and out from thesecond row. It was developed as a premium EV
priced at above 10 million yen. The price ranges
from 8.95 million yen to 16.492 million yen,depending on battery capacity.
Nicolas Villeger, who heads Tesla’s Japan unit,
hosted on December 1 the first test ride for thepress in Nagoya. On the same day, the company
installed a quick battery charger exclusive for its
EVs in Gifu Hashima, as the 12st such EV charger
across Japan. (Daily Automotive News Dec. 22016 issue)

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JARA NEWS No. 107 January 2017 Page 3

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