Research on Overseas Operations by
Member Companies of JAPIA (FY2022)

1/19

Purpose of the survey:① To generate statistical data showing the contribution to the global economy
of member companies（Japanese automotive parts manufacturers ）② To identify common issues and reflect them in JAPIA projects
regarding overseas business development of member companies③ To reduce direct questions to individual companies
by addressing in published materials with overseas business trends inthe auto parts industry
Japan Auto Parts Industries Association (JAPIA)International Committee
December, 2023

Table of Contents
1. Overview of the survey

2/19

2. Key points of the survey results
3. Changes in production volume by Japanese automobile manufacturers
4. Changes in the number of overseas subsidiaries of JAPIA members
5. Overseas production function subsidiaries of JAPIA members(1) Changes in the number of overseas subsidiaries with production function(2) Changes in the number of employees(3) Changes in sales(4) Ratio of sales by destinations(5) Ratio of profitable subsidiaries in a single fiscal year, profitability outlook(6) Local procurement rate

6. Topics survey(1) Addressing to economic security(2) Ensuring employee safety(3) Management of sensitive technology and prevention of military diversion(4) Withdrawal(5) Connecting production (multiple lines of production, local production for local consumption)

1. Overview of the survey

3/19

Due to a change of the membership system, only regular members are eligible torespond to this survey. Since the companies responding to the survey has changed fromthe previous survey, some analyses of this year’s survey are used data from companies
that have responded for two consecutive years.
OEM

Tier１

Automakers
JAPIA regularmembercompanies
413 companies（as of July 2023）

Tier2

Component parts
Forging & Casting

Period conducted the survey

August to
December2023

Number of companies
surveyed(regular member companies
with overseas subsidiaries)

266

Period covered in the survey

April 2022 toMarch 2023

Response rate

77.0％

Injection molding

Tier3

Raw materialetc.

2. Key points of the survey result
4/19

 Overseas production volume of Japanese automobile manufacturers

 The overseas production volume of Japanese automobile manufacturers in 2022 was 17 million units,
up 3.3% from the previous year.

 Overseas expansion of JAPIA members (changes in the number ofoverseas subsidiaries) The number of overseas subsidiaries is 2,517, a decrease for three consecutive years (-129 from theprevious year).

 Changes in overseas subsidiaries with production functions

 Net Sales increased from the previous year by JPY2.3 trillion (+11.6%) due to the impact of foreignexchange rates. The largest increases were in North America, China, and ASEAN, in that order.
 The number of employees decreased by 160,000 from the previous year due to a decrease in thenumber of companies surveyed. The result of companies which responded for the two consecutive
years slightly decreased by 99% compared the previous year.
 The trend of decreasing exports to third countries and Japan and increasing the ratio of local supply
continues.
 The ratio of profitable companies increased in Europe and North America, but the profitability outlook
worsened except in South America.
 Local procurement rate remains high at 70-80%. Challenges include competitiveness of local suppliers
and local cost increasing due to rising energy costs.

 Topics survey

This year's survey focused on economic security and resilience. While some companies have initiatedmeasures such as evacuation from the country, confidentiality management, withdrawal, and multiplexingof production lines, a significant number have not yet responded.

3. Changes in production volume by Japanese automobile
manufacturers
Overseas production
海外生産台数
volume32 million
units

国内販売台数
Domestic sales volume

2,577

1,889
16 million
units
Domestic
production
volume

2,031

2,141

2,246

2,346 2,323

2,281 2,178
1,805

5/19

輸出台数
Export volume

2,639

2,725

2,737 2,818

2,943 2,970

2,853
2,344

2,431

2,500
3.81 million
units
4.20 millionunits
17 million
units

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

Data: JAMA

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

4. Changes in the number of overseas subsidiaries of JAPIA members
6/19

Number of overseas subsidiaries
North America

Europe

China

ASEAN

India

Others

Total

Number of
Number ofoverseaschangessubsidiaries

Number of
Number ofoverseaschangessubsidiaries

Number of
Number ofoverseaschangessubsidiaries

Number of
Number ofoverseaschangessubsidiaries

Number of
Number ofoverseaschangessubsidiaries

Number of
Number ofoverseaschangessubsidiaries

Number of
Number ofoverseaschangessubsidiaries

2022

502

-19

300

-41

618

-24

681

-29

131

-7

285

-9 2,517

-129

2021

521

-17

341

-14

642

+2

710

-12

138

±0

294

-9 2,646-50

Changes and breakdown in the number of functions(Note: Multiple answers allowed)
Functions (multiple
answers allowed)）2022

Number of overseas
subsidiaries

2021

1,934

2,002

sales

776

771

only one function

administrative
control

178

156

2-function

design development

202

177

marketing

76

57

other

70

70

3,236

3,233

production

total

•
•

3-function
4-function
5-function
6-function

total

Number ofoverseas subsidiaries

×

Number offunctionsCompared toprevious year

2022

2021

2022

2021

2,006
369
91
37
14
0

2,200
337
79
26
4
0

2,006
738
273
148
70
0

2,200
674
237
104
20
0

91%
109%
115%
142%
350%
ー

2,517

2,646

3,235

3,235

100%

The number of overseas subsidiaries decreased for the third consecutive year, but the total
number of functions remained unchanged.
The consolidation of functions into a single
overseas subsidiary is progressing.
Functions of administrative control, design, development and marketing increased, while theproduction function decreased.

5. Overseas subsidiaries with production function of JAPIA members(1) Changes in the number

7/19(Number of subsidiaries)

Increase/decrease composition
compared to 2021, ratio in 2022

2,200
1,858

1,425
1,237

1,475

1,539

1,626

1,562

1,598

1,645

1,949

1,989

1,986 2,014

2,044

2,050 2,045

2,035 2,002

1,934

Others（-3, 5%）South America（-3, 4%）

1,752

Europe（-21, 10%）

North America（-8, 20%）

1,323

1,100

India

（-2, 6%）

China（-17, 26%）

ASEAN（-14, 29%）

0
2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

【Changes in the number】
120
60
0
-60
-120

•
•

'02

'05

'10

'15

'20

Decreased for the fourth consecutive year after peaking in 2018, down 68 from the previous year.
China; -6 (new registrations +9 to cope with EVs, business integration/dissolution and withdrawals-15 related to mainly ICE vehicle parts, etc.
Europe; -5 (UK -3, Russia -4, Albania +1 (first entry), etc.
Others; new entries in Guatemala and Tunisia

5. Overseas subsidiaries with production function of JAPIA members(1) Changes in the number
8/19

Top countries in change from previous year
1998

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

Philippines Mexico China
China China China China China Mexico Mexico Mexico Indonesia China
China（+16） （+10） （+28） （+38） （+31） （+16） （+15） （+6） （+8） （+13） Indonesia （+5） （+5） （+3） ▲17
MexicoThailandPhilippines
Indonesia
ThailandThailandThailand
U.S.
India
India
China
U.S.
（+5） Brazil
Vietnam2（+2）（+14） （+9） （+10） （+15） （+20） （+14） （+11) India （+6）（+3）▲７
BrazilIndonesia（+3） Brazil(+2)
Philippines
India Thailand Indonesia Indonesia Mexico Indonesia China
3
Thailand
▲６
（+9）
（+14）
（+13）
（+7）
（+9）
（+15）
（+8）
（+4）
UK
Thailand India
Germany
U.S. Vietnam（+2）
Mexico4 Indonesia Indonesia
Philippines（+4） （+8） （+8） （+5）
▲６
Cambodia
Thailand
Korea Mexico Vietnam
Indonesia
China
France Canada
Russia（+4） （+3） Germany Brazil Vietnam Russia U.S.
5（+3）
Morocco （+7） （+6） （+6） （+4）
Morocco Spain▲４
Malaysia
Mexico （+3） Germany（+3）
Thailand U.S.
Mexico Thailand Thailand Brazil Vietnam
UK
Italy
Korea
6
（+4） （+2）
Italy（+6） （+4） （+5） （+2） Laos
Portugal
BrazilParaguay
Poland（+2）
UK
France Germany Russia Brazil Russia France
India Turkey
7Czech（+2） （+4） （+4） （+5） （+2） Moldova（+2） （+1）
Republic（+1）
Poland8
2008 financial crisis▲３
Philippines
India
Malaysia Malaysia
Colombia
El Salvador
Vietnam U.S. Germany
Czech
Paraguay
9
Poland Turkey Republic
Serbia（+3） （+3） （+4）
COVID-19
Great East Japan（+1）
10
Earthquake1• Changes of US(-7), the Philippines(-6) and Germany(-6) are due to a change of companies
surveyed.
• -2 of Russia’s -4 due to withdrawal

5. Overseas subsidiaries with production function of JAPIA members(2) Changes in the number of employees
By region(1,000 people)

1800

Others 10％

ASEAN 17％

Europe12％

9/19

OthersEurope 10％

ASEAN
34％

8％

North
America24％

China 24％

North
America
22％

India 13％

India
9％

Overseas production share of Japanese
日系自動車メーカー海外生産シェア（2022）
automobile manufacturers (2022)

China 17％

1,422

Total number of overseas employees of
部工会会員
1,279
JAPIA
members 海外雇用者数（2022）(2022)

848

900
579 560325

382 404

430

904

1,546
1,475

1,493

Increase/decrease in thenumber of employees
compared to 2021
(1,000 people) ,composition ratio
in 2022

1,333

958

662 646483 505 490 523

Others（-46, 3％）
South America（+49, 7％）
Europe（-27, 8％）

North America (-42, 22％）
India（-16, 9％）China（-95, 17%）

ASEAN（-89, 34％）02002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

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

5. Overseas subsidiaries with production function of JAPIA members(3) Changes in sales
10/19

Sales of overseas subsidiaries with production functionof JAPIA members

Export Domestic Domestic shipment value by JAPIA members(Trillion yen)

25
20.9
19.0

17.9

17.6
14.4

16.7

16.0

15.2

17.8

18.9

18.2

19.8

19.1

17.8

20.4

19.7

16.7 16.5

19.7

17.3

18.9

18.7
18.4

22.1
19.5
19.8

17.9
16.9
16.7

13.9

10.2
8.5

4.9

2002

•
•

2003

5.4

2004

5.5

9.3

6.2

2005

8.9

7.9
6.2

6.0

2006

2007

2008

2009

2010

2011

6.1

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

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 theprevious year, 12% oh this increase is due to foreign exchange effects, while 2% is in real terms.

5. Overseas subsidiaries with production function of JAPIA members(3) Changes in sales
By region
Others 4％(Trillion yen)

25.0

Europe12％

Others10％

North
America
24％

ASEAN
17％

South America 2％
Europe
9％

China
24％

ASEAN
23％

North
America
37％

India
13％

Share of overseas production by
Japanese automobile manufacturers(2022)

11/19
Increase/decrease
compared to 2021
(Trillion yen) ,22.1

China 23％
India 3％

Overseas Sales of JAPIA
members (2022)

16.7 16.5 17.3

18.4

19.8

19.3

Others（+0.1, 4%）South America（+0.1, 2%）
Europe16.7

composition
ratio in 2022（+0.3, 9%）North America（+1.6, 37%）

13.9
12.5

8.5
4.9 5.3 5.5

6.2

10.2

9.3

8.9

7.3
6.0

6.2

6.1

India

（-0.7, 3%）

China（+0.2, 23%）ASEAN(+0.8, 23％)

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2,021 2,022••

There are large differences in exchange rate volatility among currencies (e.g. USD +19.7%,
Chinese yuan +14.4%, EURO +6.3%)
The real change in sales by region excluding the effect of currency exchange rates is 99% in North
America, 112% in Europe and 89% in China.
(by respondents for two consecutive years)

5. Overseas subsidiaries with production function of JAPIA members(4) Ratio of sales by destinations
12/19

100%
For export

For countriesof operation50%

10.4 8.0 For third countries
4.5
4.4
For Japan
12.8
12.4
For repairs, etc.

15.8 16.4 For non-Japanese
automobile manufacturers
57.1

58.1

For Japanese automobile
manufacturers

0%2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

• 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)

5. Overseas subsidiaries with production function of JAPIA members(5) Ratio of profitable subsidiaries in a single fiscal year, profitability outlook
Changes in the ratio of profitable subsidiaries

100

13/19

'improving’
compared to the previous year

100.0

83.5
79.6

79.5

78.2
74.2
71.7

68.4
67.1
65.1

67.6

77.8
72.7

71.4

66.7

61.1

60.7

51.1

50
40.7

0

50.0

47.1
42.5

42.3

0.0
Overall
全体North
北米（含ﾒｷｼｺ）
America
Europe欧州(Including Mexico)

2020

China
中国

2021

アセアン
ASEAN

2022

India
インド

South南米
America

全体
Overall

北米（含ﾒｷｼｺ）
North
America(Including Mexico)

欧州
Europe

2020

中国
China

2021

アセアン
ASEAN

インド
India

南米
South America

2022• The ratio of profitable subsidiaries in a single fiscal year has improved in Europe andNorth America.
• The profitability outlook has improved in India, Europe and China.
(By all respondents)

5. Overseas subsidiaries with production function of JAPIA members(6) Local procurement rate
14/19

100.0

74.6

77.378.6 75.1 77.9

73.9

77.9 79.7 76.4

81.2

79.2

84.6 84.7 82.4 85.8

78.0 78.0

81.6

79.3 80.7
72.0 73.1 73.0

67.6

71.4

71.6

74.1 72.4

69.7

73.6

70.5 68.5 71.4

64.9 63.2

50.0

0.0

Overall
全体

North America
北米（含ﾒｷｼｺ）(Including
Mexico)2018

Europe
欧州
2019

China
中国
2020

2021

ASEAN
アセアン

India
インド

South America
南米

2022

< Issues on local procurement (free answers, in no particular order) >Lack of competitiveness of local suppliers

China, U.S., Mexico, Taiwan, Thailand, Malaysia, India, Vietnam, Canada, Czech Republic

Increase in costs due to rising energy costs, etc. U.S., Mexico, Thailand, Indonesia, Philippines, India, Brazil, U.K., Czech Republic, Turkey
No equipment manufacturers or processors

Thailand, Indonesia, China, Korea, Brazil, Turkey

Rising of labor costs, difficulties in recruiting

U.S., Turkey

Logistics delays and rising rate

Indonesia, Mexico

Others (customer requests, etc.)

Thailand, Vietnam••

The local procurement rate increased in countries/regions outside South America.
Further challenges to localization include lack of competitiveness of local suppliers, rising local costs
due to higher energy costs, and lack of equipment manufacturers and processors.

(by all respondents)

6. Topics Survey(1) Addressing to economic security (as of July 2023)
Separation in U.S. and China

Locations in U.S. and China(158 respondents to 131 in the previous year)

100%

Not in either
10% to 11%
On one side only
22% to 21%

15/19

OthersSeparated
1% to 8%.
Decided to separate, or to be
implemented
3% to 2%.

Both the U.S. and China
65% in 2021 to 67% in
2022
50%

Not considering separation
87% to 78%.

Establish an organizational structure
to address economic security
0%
Sharing information among necessary
従来のまま、必要な部署間で情報共有
departments as before＜ Reasons for not considering separation ＞

93％→95％• Originally, the business was established in the respective countriesof the US and China and there is no mutual relationship.
• All possibilities are considered depending on the level of risk at
the time.
• Some products have been moved from China to other countries,
although they cannot be completely separated.

Designatea department in charge
従来のまま、対応する部署を決定
within the existing organization
Establishing a new organization
新たな組織設置、対応中・検討中

1％→3％
0%

•
•

50%

100%

The same questions as in the previous survey were asked in a fixed-point survey.
The number of responses that has already separated increased. While complete separation isdifficult, some products have been transferred, and other changes can be seen.

6. Topics Survey(2) Ensuring the safety of employees (as of July 2023)
16/19

Status of preparation of evacuation manuals at overseas locations＜ Reasons for not being prepared ＞
Prepared in some or all
overseas locations
49%

Not prepared
51%

•
•
•
•
•
•
•
•

Not considered important at this time
Handled on a travel basis
Can be determined on a case-by-case basis due to small dispatcharea and number of people
Entrusted to local subsidiaries
Should follow instructions from the Ministry of Foreign Affairs or
local Japanese embassy, rather than manual response
Prepare at headquarters in Japan and instruct overseas
Considered necessary, but no concrete progress has been madeNo personnel available to prepare＜Contents included in prepared manuals ＞
General BCP manual, evacuation manual for natural disasters, communication network, evacuation routes, action guidelines,
when to start preparing for evacuation, how to determine when to start evacuation, procedures for evacuation of stationed
personnel, emergency production, logistics response
A contingency manual has been prepared and a system for evacuation has been established. Airline tickets for evacuees are
distributed in advance.

•••

Regarding evacuation manuals, half of the respondents answered “prepared” and the other half answered “notprepared.
Reasons given for not having prepared included: the head office in Japan handles it on a case-by-case basis, thelocal offices are entrusted with it, there is no resident staff because of a business trip basis, and no one isdispatched to the danger zone. On the other hand, many respondents consider it necessary.
Many of the manuals prepared include information on communication networks, evacuation routes, and othercontingency plans.

6. Topics Survey(3) Management of sensitive technology and prevention of military diversion(as of July 2023)
Internal management system
Not necessary
28%

Employee training
Not done50%

Already built48%

To be started
24%

17/19

Trained47%

To be started
20%＜ Reasons for ‘not necessary’ and ‘not done’ ＞•••

Our products do not fall under sensitive technology control and prevention of military diversion.
Does not currently possess technology that can be converted to military use.
The technology of general-purpose and we have determined that it does not lead to the above decision.

＜ What you want to be supported ＞•••

Would like to receive information on what measures and training should be implemented in general.
Specific responses of leading companies, teaching specific management and operational points as acompany.
Provision of specific information on what technologies are currently covered, and the basis for decisions.

• Management for sensitive technologies and employee training are being addressed byaround half of the respondents, while 30% of respondents do not see the need for
management.

6. Topics Survey(4) Withdrawal(as of July 2023)
Reasons for withdrawal

Experience of withdrawal

18/19

Geopolitical risk
15%
Never considered
42%

Actually withdrew
39%

Have considered withdrawing
19%＜ Troubles on withdrawal ＞

Others 85%＜Other reasons for withdrawal＞••••

Withdrawal of suppliers
Relocation order from the local government (redevelopment of areas)
Consolidation of own plants
Poor sales of customers•

Negotiations with unions (e.g. compensation conditions for employees, outplacement, etc.).Negotiations with partners,
poor relations with local government/partners.Restrictions due to local laws, regulations and guidance from authorities(e.g. disallowance of overseas remittances, unjustified delays in tax refund procedures).

••

Nearly 60% of the companies have experienced withdrawals, including considering.
As necessary support, information on troubles that have been accumulated by companies withdrawn
from similar areas, the introduction of specialists, the establishment of a contact point where experts
can be consulted, support for the sale of assets, intermediary services for Japanese companies, etc.
were also raised.

6. Topics Survey(5) Connecting production (multiple lines of production, local production for local
consumption)(as of July 2023)

19/19

Multiple lines of production, production at the places of supply
Never considered30%＜ Difficulties on multiplexing production ＞
Implemented
61%

Considered but
not implemented
9%

•
•
•
•
•
•
•
•
•

How much risk to estimate.
Establishment of complementary system between locations.
Cost recovery of additional tooling and equipment investment throughmultiplexing productions.
Difficulty in obtaining customer approval for changes
Ensure equivalent materials (e.g. water quality)
Customers demand for local production and communication difficulties.
Recruitment and retention of quality local personnel.
Developing local suppliers and language issues.
Deciding on a production sites from a long-term perspective.

＜ What you want to be supported ＞
•
•
•
•
•
•
•

•
•
•

Providing information on the latest incentive schemes and expanding subsidy schemes for investment.
Information on country-specific precautions and other issues when considering the multiplexing of production.
Information and support on locally available components and materials.
Building up a database of suppliers in each country.
Information on geopolitical risks (especially in China) and country-specific employment and wage.
Lectures by experts (e.g. consulting firms) and experience companies.
Simplified process transfer approval procedures for car manufacturers.

70% of companies have experience of multiplexing production and supply location production,
including consideration.
The difficulties include costs, obtaining customer approval and communicating with customers.
Many are seeking supports in introducing the latest preferential schemes in their countries and inbuilding up supplier databases.