ISSN 0385-9274

ENGINEERINGINDUSTRIES OF JAPANNo.50 March 2016

The Economic Research Institute (ERI)
Japan Society for the Promotion of
Machine Industry (JSPMI)

Engineering Industries of Japan, 2015 Edition
No. 50 March 2016

The Engineering Industries in Japan Showing Good Results in
Industry-related Machines but Having Some Problems about
International Competitiveness in Consumer Electronic Appliances

Engineering Industries of Japan
Engineering Industries of Japan No.50 issued in March 2016 is publishedby The Economic Research Institute, JSPMI
c 2016 by The Economic Research Institute,
Copyright ○Japan Society for the Promotion of Machine Industry
3-5-8, Shibakoen, Minato-ku, Tokyo 105-0011 JAPAN
Tel:81-3-3434-8251
http://www.jspmi.or.jp

Preface
This report is a digest in English of the Japanese version of the annual report “Engineering Industries
of Japan, 2015 Edition.”
We hope this report will help the reader, especially companies doing business overseas, publicorganizations and researchers, understand the situation of the engineering industries in Japan.

March 2016

Research Department, Economic Research Institute,Japan Society for the Promotion of Machine Industry

Contents
1.

Trend of the Engineering Industries of Japan .................................................................. 1
1.1. Trend of the main engineering industries ......................................................................... 1
1.2. International competitiveness of the main engineering industries.................................... 5

2.

Trends by business category ........................................................................................... 11
2.1. Automobiles .................................................................................................................... 11
2.2 Forming machines .......................................................................................................... 21
2.3 Consumer electric machines and appliances ................................................................. 26
2.4 Computers and office machines ..................................................................................... 34

1.

Trend of the Engineering Industries of Japan

1. Trend of the Engineering Industries of Japan
1.1. Trend of the main engineering industries
The engineering industries in Japan in 2014 recorded a larger amount of production in themachine tool industry, plastics machine industry, industrial robot industry, construction machineindustry, consumer electric machine industry, general electronic parts industry, electronic device andelectronic parts industry, medical equipment industry, battery industry, automobile industry, aircraft
industry, bearing industry and dies industry. But the output of the forging and forming industry, farmmachine industry, consumer electronic appliance industry, computer and office machine industry andautomotive parts industry was lower than that in the previous year.
As for the impact of the switch to the weak yen policy by Abenomics seen from the Trade
Statistics of Japan (Ministry of Finance), the machine tool industry, plastics machine industry,
forging and forming machine industry, industrial robot industry, construction machine industry, farmmachine industry, consumer electric appliance industry, general electronic parts industry, electronic
device and electronic parts industry, medical equipment industry, battery industry, aircraft industry
and bearing industry registered a larger amount of export, clearly showing positive effects of thepolicy. By contrast, the consumer electronic appliance industry, computer and office machineindustry and dies industry suffered a decrease in export despite the weak yen tendency, and it wasfeared that the international competitiveness of these industries declined.
(1) Machine tool industry

In 2014, the machine tool industry recorded a domestic and overseas demand of ¥1,509.3
billion or a considerable increase of 35.1% over the preceding year. Behind this was the fact that
there were hopeful indications about the Japanese economy by the correction of the excessive
appreciation of the yen and recovery from the deflation after the Abe government introduced
Abenomics, which triggered Japanese businesses’ moves for replacement investment in machine
tools, and that the government reduced taxes for capital investment for enhancing productivity andassisted businesses by providing them with subsidies for manufacturing activities. The industry’s
production grew greatly, too: ¥1,188.6 billion, an increase of 33.8% year on year. Its export
amounted to ¥961.8 billion (up 25.5% year on year) and its import, ¥78.0 billion (up 23.9%).
(2) Plastics machine industry

The production of plastics machines in 2014 was ¥193.8 billion or a rise of 10.1% over thepreceding year. The output of injection machines (excluding manual ones), which accounted for over
70% of the total plastic machine output, amounted to ¥143.2 billion (up 10.6%), taking a leading rolein the recovery of plastics machines as a whole. The export totaled to ¥161.2 billion (up 4.5%),
taking an upward turn, while the import increased substantially as in 2013, with ¥19.4 billion (up32.7%).

11

1.

Trend of the Engineering Industries of Japan(3) Forging and forming machine industry

In 2014, forging and forming machines registered an output of ¥148.4 billion or a decrease of
8.3% from the preceding year. This negative growth was caused especially by the great decline in the
production of mechanical presses (approx. ¥97.0 billion, down 14.1%), which amounted to over 60%of the total output. On the other hand, the export totaled to ¥172.6 billion, showing a substantial
year-on-year growth of 24.0% thanks to the effect of the correction of the yen appreciation. The
import was also on the increase, with ¥15.4 billion (up 5.3%).
(4) Industrial robot industry

The domestic production of industrial robots in 2014 amounted to ¥447.0 billion or up 23.8%,
an increase first in three years. The ¥440-billion level figure was recorded first after 2011. The
export registered a great rise, with ¥153.8 billion (up 26.3%). In particular, the export to theNetherlands showed a very high growth of 66.7%, with ¥18.3 billion. The import also increased to¥3.59 billion, up 44.4%.
(5) Construction machine industry

The output of construction machines in 2014 grew to about ¥1,665.0 billion, up 10.6%,
supported especially by the good results of hydraulic shovels. The export of construction machines(including supply parts) in terms of shipment in 2013 turned to an increase, too, with ¥1,425.0
billion (up 9.8%).
(6) Farm machine industry

The output of farm machines and instruments in 2014 was ¥462.9 billion, a slight decrease of
0.8% from the preceding year. The export grew as in 2013, totaling to ¥240.7 billion (up 16.0%).
The import amounted to ¥78.7 billion (up 14.0%), demonstrating an upward tendency although thegrowth was not so large as the one in 2013.
(7) Consumer electric appliance industry

The output of consumer electric appliances in 2014 increased by 4.5% year on year to ¥1,762.2
billion. In particular, the figures for such products as electric rice cookers and natural refrigerant heatpump-type water heaters soared up, registering a year-on-year increase of 16.1% and 21.7%,
respectively. The export of these appliances was steady with ¥304.3 billion (up 3.4%). The importalso grew to ¥979.9 billion, up 5.5%, which was probably the impact of the increasing import toJapan by Japanese manufacturers of the products made overseas by themselves.
(8) Consumer electronic appliance industry

The production of consumer electronic appliances in 2014 fell to ¥693.1 billion, down 15.7%
from the preceding year, which was a considerable decline as in 2013. For example, the output offlat-screen TVs was ¥72.5 billion (down 6.1%), and that of all other digital appliances dropped, too.
The export was ¥556.8 billion (down 14.2%), a fall for the second straight year. In particular, the

22

1.

Trend of the Engineering Industries of Japanfigure for video appliances, which accounted for 90% of the total export, was ¥522.0 billion, down
15.6%. By contrast, the import increased by 4.6% to ¥700.7 billion, continuing to display an upward
tendency.
(9) General electronic parts industry

The output of general electronic parts in 2014 amounted to ¥2,430.1 billion or a growth of 5.0%
over the preceding year. By large product group, while passive parts and other electronic parts
showed a higher production, coupling parts had a leveling-off tendency and electronic circuit boards
suffered a decline of 1.4% from 2013. The export increased by 6.9%, approaching the ¥1,700.0
billion level. In particular, passive parts, coupling parts and electronic circuit boardsdemonstrated an
upward tendency. The import continued to show an increasing trend as in 2013 and grew by 16.5%
to the level of ¥619.0 billion for electronic parts as a whole.
(10) Electronic device and electronic parts industry

The production of electronic devices and electronic parts in 2014 grew by 7.4% year on year to¥5,498.6 billion. By product, while the output of electron tubes suffered a considerable year-on-year
decrease of 37.4% to ¥48.2 billion, that of semiconductor devices increased to ¥1,002.1 billion (up8.4%) and that of photoelectric conversion elements, integrated circuits, semiconductor integrated
circuits, etc. rose, too. The export totaled to ¥3,273.2 billion (up 3.4%) and the import, ¥2,796.8
billion (up 17.7%).
(11) Computer and office machine industry

The output of computers and allied devices in 2014 amounted to ¥1,200.0 billion, which was anegative growth of 0.3%. For example, the figure for computers, which accounted for about 60% of
the production of computers and allied devices, was ¥726.1 billion, taking a downward turn although
only slightly (down 1.2%). The export rose a little to ¥400.1 billion (up 0.6%) but that of computers
fell to ¥112.0 billion (down 10.8%). By contrast, the import displayed a steady increase to ¥2,227.4
billion (up 9.0%) and that of computers grew greatly to ¥1,384.0 billion (up 14.4%).
(12) Medical equipment industry

The production of medical equipment in 2014 was ¥1,989.5 billion or an increase of 4.4% overthe preceding year, showing a steady growth. The export amounted to ¥572.3 billion (up 7.9%),
clearly exhibiting a tendency toward a growth in overseas demand for Japanese-made medical
equipment although at a slow pace. The import continued to be large, with ¥1,368.5 billion (up5.2%), which showed that the medical equipment industry continued to have a trade deficit.
(13) Battery industry

The output of batteries in 2014 amounted to ¥742.0 billion or a growth of 8.6%, showing afavorable growth. Lithium-ion batteries, which made up nearly a half of the total production,
recorded an especially larger output of ¥345.1 billion, up 51% year on year. Lead batteries, which
accounted for about 20% of the total, and nickel hydrogen batteries also showed good results in
33

1.

Trend of the Engineering Industries of Japan

output, with ¥161.1 billion (up 24%) and ¥157.3 billion (up 23%), respectively. The export recorded
a remarkable growth, amounting to ¥426.7 billion (up 6.3%), while the import decreased a little,
with ¥132.3 billion (down 1.7%).
(14) Automobile industry

The automobile industry registered a favorable growth in 2014, with ¥19,854.0 billion or an
increase of 10.7%. The export of automobiles totaled to 4,466,000 (down 4.5%), a decline as in thepreceding year. The import decreased, too, as with the export, which was a fall first in five years
after 2009. The decrease in the import of passenger cars made abroad by Japanese automakers was
especially sharp, with 31,000 cars (down 41.2%).
(15) Automotive parts industry

The output of automotive parts (excluding two-wheeled vehicle parts) in 2014 was ¥8,515.8
billion or a fall of 1.0%, which was a small decrease. The export totaled to ¥6,231.4 billion (down
1.1%), while the import amounted to ¥2,245.3 billion (up 16.5%), showing a continued growth in theimport of automotive parts.
(16) Aircraft industry

The production of aircraft in 2014 amounted to ¥1,320.7 billion or a growth of 19.1%,
recording a substantial year-on-year increase. That of airframe parts and accessory devices greatly
increased with ¥790.3 billion (up 26.5%). The export showed a considerable rise, registering ¥822.6
billion (up 21.7%), and so did the import, with ¥1,194.5 billion (up 13.8%). A global demand foraircraft went up and expectations for MRJ, a Japanese-made passenger airplane, were growing,leading to the continued increase both in production and in export and import.
(17) Bearing industry

The output of bearings in 2014 considerably grew by 10.0% to ¥720.4 billion. The export ofbearings (finished products and parts) had a substantial growth supported by the effects of the weakyen, registering ¥482.7 billion (up 11.3%). The import increased greatly, too, as in the preceding year,with ¥73.1 billion (up 12.2%).
(18) Dies industry

Dies had a steady increase in production in 2014, recording ¥353.8 billion (up 6.3%). The
export of dies dropped by 4.4% to ¥307.4 billion, where the good effects of Abenomics were
scarcely shown. By contrast, the import grew substantially to ¥121.5 billion (up 13%), clearly
indicating the tendency toward increasing dies imports. This has aroused concern about the loweringof the international competitiveness of the dies industry in Japan characterized by a high ratio ofsmall-scale manufacturers.

44

1.

Trend of the Engineering Industries of Japan

1.2. International competitiveness of the main engineering industries
Figures 1.1 to 1.5 show the distribution of the coefficients of specialization and total amount oftrade of the four engineering industries. The longitudinal axis of these figures shows the coefficientsof specialization (competitiveness indexes), and the horizontal axis, the total amount of trade(exports + imports). These figures indicate that the more the industry is shown at the upper right of
the figure, the stronger international competitiveness the industry has, whereas the more the industry
is placed at the lower left, the weaker the industry’s international competitiveness is. The size of theball of the industry shown is proportionate to the size of the industry’s total trade amount. The
tendency of the trade of the engineering industries in 2014 may be summarized as follows:<Trend of the entire engineering industries> (Fig. 1.1)
(1) The automobile industry has an overwhelmingly greater total trade amount and has a very strong
international competitive power.
(2) The semiconductor and electronic parts industry has a considerably great total trade amount, but its
international competitiveness is not very strong.
(3) While the automotive parts industry, the scientific and optical equipment industry and the motor
industry have similar total trade amounts, the first has a high international competitive position andthe third has a considerably strong international competitiveness but the second has no strong
international competitive power.
(4) The communication machine industry has a considerably great amount of trade but its international
competitive position is very weak.
(5) The shipbuilding industry has no large total trade amount, but its competitive position ininternational markets is very high.
(6) The industry of electric circuits, etc. has no very large total trade amount, but its international
competitiveness is strong; this industry is the area where it is expected to grow in the years aheadmainly as an export industry together with the electric measuring equipment industry.
(7) The aircraft industry tended to increase the total amount of trade gradually but it cannot be said yetthat its international competitive position is strong enough.

<Trend by industrial sector> (Figs. 1.2 to 1.5)
(1) As for the general machine industries, motors have an overwhelmingly big presence and pumps andcentrifugal machines have a certain level of presence, too. Semiconductor production equipment,
metal working machines and construction and mining machines are among the products having astrong international competitive position.
(2) As for electric and electronic devices, the amount of trade of semiconductors and electronic parts isoverwhelmingly large, but it is difficult to say that these products have a strong international
competitive position. Such products as electric circuits and electric measuring equipment have arather large amount of trade and a certain level of international competitiveness. Acoustic and video
equipment parts have a small amount of trade but a very great international competitiveness.
(3) Precision machines have only two types, i.e., scientific and optical equipment and timepieces andparts. Scientific and optical equipment has an especially large amount of trade and is a field where it
will be required to strengthen the international competitiveness in the years ahead as the medicalcare and healthcare equipment market is expanded.
(4) As for transportation machines (excluding automobiles), automotive parts have a large amount oftrade and vessels and related products have a strong international competitive position. A future tasks(7) is to reinforce the international competitiveness of aircraft and related products.

55

6

Source:

-1.0

-0.8

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

0

Electric measuring
equipment

MotorsAutomotive parts

4,000,000

6,000,000

Communication machines

Prepared by the Economic Research Institute.

Computers

Household electric appliances

Electric insulated
wires and cables

Time pieces and parts

Aircraft and related products

2,000,000

Heavy electric equipment
Heating and cooling equipment
Scientific andoptical equipment

Pumps andcentrifuges

Vessels

Electric circuits andrelated equipment

8,000,000

10,000,000

Semiconductor and electronic parts

12,000,000

14,000,000

16,000,000

Total amount of trade(amount of export + amount of import)
Millions of yen

Automobiles

Coefficients of specialization and the total amount of trade (amount of export + amount of import) of thefour business categories of engineering industries (2014)

Coefficient of specialization
1.2

Fig. 1.1

7

Source:

-1.0

-0.8

-0.6

-0.4

-0.2

0.0

0.2

b

a

Transmissions

Cargo handlingmachines

Farm machines

Pumps and centrifuges

Metal working machines

Same as that for Fig. 1.1

Computers

Vending machines

1000000

2000000

3000000

Semiconductor manufacturing equipment

Office equipment
Injectors
Heating and cooling equipment

Molds for metal casting

0 Rolling mills

e

0.4 c

0.6

d

Textilemachines

Rubber and plastic
processing machines

Printing
machines

0.8

1.0

Construction and mining machines

5000000

6000000

Total amount of trade(amount of export + amount of import)
Millions of yen

Note:
a: Pulp- and paper-manufacturing machines
b. Machine partsc. Food processing machinesd. Sewing machinese. Weight measuring equipment

4000000

MotorsCoefficients of specialization and the total amount of trade (amount of export + amount of import) of thegeneral machine industry (2014)

1.2
Coefficientof specialization

Fig. 1.2

8

Source:

-1

-0.8

-0.6

-0.4

-0.2

0

0.2

0.4

0.6

0.8

1

0

2000000

Same as that for Fig. 1.1

Household electric appliances

Electric insulated wires and cables

1000000

3000000

Electric measuring equipment

Heavy electric equipment

Acoustic and video equipment parts

Communication machines

4000000

Electric circuits and related equipment

7000000

Total amount of trade(amount of export + amount of import)
Millions of yen

6000000

Note: Insulators, video equipment, acoustic equipment,
batteries, electric bulbs, capacitors, electric
equipment for automobiles, etc. and electriccarbon and graphite products are not shown here
because these products have no corresponding
items in the import statistics.

5000000

Semiconductor andelectronic parts

Coefficients of specialization and the total amount of trade(amount of export + amount of import) of theelectric and electronic device industry (2014)

1.2
Coefficientof specialization

Fig. 1.3

9

Source:

-1.0

-0.8

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

0

Same as that for Fig. 1.1

Time pieces and parts

1000000

2000000

3000000

4000000

Scientific and optical equipment

6000000

Total amount of trade(amount of export + amount of import)
Millions of yen

5000000

Coefficients of specialization and the total amount of trade (amount of export + amount of import) of the
precision machine industry (2014)

1.2
Coefficientof specialization

Fig. 1.4

10

Source:

-1.0

-0.8

-0.6

-0.4

-0.2

0.0

0.2

0.4

0.6

0.8

1.0

0

2000000

Aircraft and related products

1000000

Same as that for Fig. 1.1

Bicycles and partsTwo-wheeled vehicles and related products

Vessels and related products

3000000

5000000

Note 2. Railway vehicles are not shown here because they
have no corresponding items in the import statistics.

Note 1. Automobiles are not shown here because they havea much higher coefficient of specialization (0.81) andthe total trade amount (¥ 12.1 trillion) than the otherproducts.

4000000

6000000

Total amount of trade(amount of export + amount of import)
Millions of yen

Automotive parts

Coefficients of specialization and the total amount of trade (amount of export + amount of import) of thetransportation machine industry (2014)

1.2
Coefficientof specialization

Fig. 1.5

2.

Trends by business category

2. Trends by business category
2.1. Automobiles
2.1.1

Automobile industry in the world

According to the Organisation Internationale des Constructeurs des Automobiles (OICA;
International Organization of Motor Vehicle Manufacturers), the global automobile market in termsof the number of automobiles sold in 2014 was 88.24 million cars or a 3.0% increase over theprevious year. The world automobile market was greatly declined affected by the Lehman Shock(65.60 million in 2009), but has been growing again in 2010 and after. In particular, China’s
presence in the global market has become larger as its market expanded by 6.9% to 23.49 million in2014, accounting for about a quarter (26.6%) of the global market (Fig. 2.1.1).

Fig. 2.1.1

100.00Trends of automobile sales in the world

Million cars

90.00

8,217

80.00
70.00

6,593

6,836

7,158

7,500
6,834

8,564

8,824

AFRICA
Africa

7,820

JAPAN
Japan

6,559

China
CHINA

60.00

Asia/Oceania/Middle
ASIA/OCEANIA/MIDDLE
East (excluding Japan,
EAST（JAPAN、CHINAを
China)
除く）
USA
USA

50.00
40.00
30.00
20.00

Central & &SouthAmerica
CENTRAL
SOUTH
AMERICA

10.00

NAFTA
NAFTA(USAを除く）(excluding the U.S.)

0.00

Source:

2005

06

07

08

09

10

11

Based on the OICA data (http://www.oica.net).

11
11

12

13

14

Year

2.

Trends by business category

Fig. 2.1.2 Number of finished automobiles of the top ten automakers
Rank

Group

Country

No. of passenger Small commercial Large commercial
Large buses
cars manufactured
vehiclesvehicles1

Toyota MotorJapan

8,788,018

1,405,072

2

Volkswagen

Germany

9,766,293

128,598

3

GM

U.S.

6,643,030

4

Hyundai Motor

South Korea

5

Ford

6

Total

277,159

5,089

2,951,895

10,8753,526

9,609,326

7,628,779

280,684

84,387

15,137

8,008,987

U.S.

3,230,842

2,643,854

94,845

Nissan MotorJapan

4,279,030

796,992

21,750

7

Fiat

Italy

1,904,618

2,812,345

102,9978

Honda MotorJapan

4,478,123

35,646

4,513,769

9Suzuki MotorJapan

2,543,077

473,633

3,016,710

10

PSAFrance2,521,833

395,21372,068,994

14,656,805

Total of all automakers
Source:10,475,338
9,894,891

5,969,541
5,097,772
45,7984,865,758

2,917,046
3,707,905

283,542

90,717,246

Same as that for Figure 2.1.1.

The number of automobiles manufactured in 2014 totaled to 89.73 million cars, up 2.8% over2013. China led the world in automobile production, too, with 23.72 million cars (up 7.3% year onyear), followed by the U.S. with 11.66 million cars (up 5.4%), Japan with 9.77 million cars (up1.5%) and Germany with 5.91 million cars (up 3.3%)1. In the number of cars produced by finished
car manufacturers, Toyota Motor was at the top, ranking first with 10.48 million cars, accompanied
by VW (Germany) with 9.89 million cars and GM (U.S.) with 9.61 million cars (Fig. 2.1.2).

2.1.2

Trends of domestic supply and demand(1) Outline

In 2014, while there were the recovery of the U.S. economy and an improvement in Europe asin 2013, the domestic market in Japan had the last-minute demand before a rise in the consumption
tax rate in April and reactions to that demand. But partly because the market was in a recovery
process, the domestic supply and demand increased over the previous year.
The number of vehicles manufactured in Japan in 2014 was 9,774,000 cars, a 1.5% growth year
on year. The four-wheeled vehicles produced in Japan accounted for 10.1% (down 0.9% year onyear) of the world total.

1

The data for Germany are those for passenger cars and small-sized commercial vehicles only. Those for the othercountries include the data for large-sized buses, etc.

12
12

2.

Trends by business category(2) Production and demandFig. 2.1.3

Trend of domestic automobile production by the type of vehicle
No. of cars
Passenger cars

TrucksYear

Standard-sized

Small-sizedLight motor

Standard-sized

Small-sizedLight motor

2010

4,846,411

2,159,119

1,304,832

Subtotal
8,310,362

520,672

238,776

449,776

Subtotal

2011

4,180,361

1,861,279

1,116,885

7,158,525

512,335

234,586

389,150

1,136,071

2012

4,686,112

2,252,672

1,615,435

8,554,219

583,156

275,992

407,206

1,266,354

1,209,224

2013

4,618,014

1,888,759

1,682,550

8,189,323

580,012300,635

427,530

1,308,177

2014

4,657,765

1,750,895

1,868,410

8,277,070

604,768

327,928425,065

1,357,761

Year

Large-sized

Small-sized2010

10,274

99,060109,334

2011

9,427

94,682

104,1098,398,705

2012

10,598111,622

122,220

9,942,793

Buses
Subtotal

Total
9,628,920

2013

9,755

122,926

132,6819,630,181

2014

9,402

130,432

139,834

9,774,665

Note:

Source:Of passenger cars, “standard-sized cars” mean the cars with a cylinder volume over 2,000ml, “small-sized cars,” thecars with a cylinder volume over 660ml but less than 2,000ml and “light motor cars,” the cars with a cylinder volume
less than 660ml.
Based on the statistical data in the website of the Japan Automobile Manufacturers Association (JAMA), a generalincorporated organization (http://www.jama.or.jp).

The number of four-wheeled vehicles manufactured in Japan in 2014 exceeded the 9.50 million
level as in 2012, recording 9.775 million cars (Fig. 2.1.3).
By the type of products, the production of passenger cars totaled to 8,277,000, up 1.1% over theprevious year, followed by trucks with 1,358,000, up 3.8% and buses with 140,000, up 5.4%,
showing a growing trend in general. For passenger cars registering a large figure, a decline in the
output of small-sized cars was considerable as in 2013, with 1,750,000 or a 7.3% fall from theprevious year. As seen in Fig. 2.1.5 shown later, the decrease in small-sized passenger cars
manufactured seems to have reflected declined domestic sales. In addition, considering that theoutput of light motor cars continued to record a historic high, as in 2013, of about 1,868,000, up
11.0% year on year, it may be supposed that demand shifted from small-sized cars to light motor
cars.
While the number of cars produced by some automakers increased, that by other manufacturers
suffered a decline: the figures for Honda Motor greatly climbed to 958,000 or up 14.0% year on year,
but those for Nissan Motor decreased to 881,000, down 8.7%, and those for Mazda Motor to934,000, down 3.3% (Fig. 2.1.4). The growth of Honda and the decline of Mazda seem to have beena reaction to the substantial decrease or increase in the production in 2013, but Nissan’s production
has been on the decline since 2012. It is supposed that this was partly because the manufacturer’s car
export fell as a result of the transfer of its production lines to the overseas bases. By contrast, theoutput of Fuji Heavy Industries has been on the increase since 2012. Behind this is probably the factthat Fuji’s products have been popular especially in the U.S. and that because the number of the

13
13

2.

Trends by business categorycompany’s overseas manufacturing bases is much smaller than that of Nissan, the company added
the products for export manufactured in Japan to the figures for domestic production.

Fig. 2.1.4

Trends of the number of cars manufactured in Japan
by Japanese automakers
No. of cars

Year

ToyotaNissan

Mazda

2010

3,282,855

1,133,667

912,836

Mitsubishi
660,105

SuzukiDaihatsu

1,078,242

665,177

Honda

Fuji

992,502491,932

2011

2,760,028

1,112,995

813,302603,594

949,799609,657

710,621418,5452012

3,492,913

1,148,265

845,550

517,088

1,061,863

774,406

1,029,313

568,537

2013

3,356,893

964,546

966,628

591,893975,320774,949

840,650

639,756

2014

3,266,805

880,887

934,300

640,890

1,059,329

782,195

958,179

695,790

Note:

Up to the 2014 edition, we stated the figures for the truck manufacturers, etc. But as the JAMA discontinued to publish
the production figures of these manufacturers, we showed the figures for the passenger car manufacturers instead
beginning in this edition.
Based on the news releases of the automakers.

Source:Now let’s look at the differences in the production trends by the automakers from the situationof the number of cars sold in Japan (Fig. 2.1.5).
The number of four-wheeled vehicles sold in 2014 totaled to 5,563,000 or a year-on-year
growth of 3.5%. The sales of these products were on the increase as a whole: those of passenger cars
were 4,670,000 (up 3.0% year on year), those of trucks 851,000 (up 6.2%) and those of buses 12,000(up 6.5%). While domestic demand for passenger cars went up in 2012 and 2013 stimulated by afeeling that the domestic economy recovered, it was expected to fall in 2014 as a result of a rise in
the consumption tax rate but actually grew, which is worthy of special mention. It is possible that thefact that the benefits of the economic revival was greater than the negative factor of an increase in
the consumption tax led to an increase in the number of cars sold.
Here attention should be paid to the fact that only the sales of small-sized passenger vehicles
suffered a decline in sales (1,423,000 or a decrease of 3.4% from the previous year). Behind thesituation where the sales of small-sized passenger vehicles only were reduced while those ofstandard-sized passenger cars and light motor cars rose may be an increase in the light vehicle tax inApril 2015. After the consumption tax system was introduced in April 2014, the automobile tax
system was changed, too and the automobile acquisition tax was reduced from 5% to 3% for
standard-sized cars and from 3% to 2% for light vehicles. Thus, it is also probable that the users ofsmall-sized cars switched to light vehicles. Another possibility is that the purchase of light vehicles
increased in 2014 because of the fact that a better tax treatment had been given to light vehicles thanto standard-sized cars but the tax on the light vehicles acquired in April 2015 and after was raised
from ¥7,200 to ¥10,800.
Of the 9,775,000 cars produced in 2014, 5,563,000 were sold in Japan, and thus it can bepointed out that 56.9% of the domestic car production was for export purposes (up 1.1% over 2012).

14
14

2.

Fig. 2.1.5

Trends by business category

Trend of domestic automobile sales by the type of vehicle
No. of cars
Passenger cars

TrucksYear

Standard-sized

Small-sizedLight motor

Standard-sized

Small-sizedLight motor

2010

1,419,909

1,507,693

1,284,665

Subtotal
4,212,267

101,697

187,642441,755

Subtotal

2011

1,139,910

1,246,126

1,138,752

3,524,788

107,290

185,097382,393674,780

2012

1,411,700

1,602,951

1,557,681

4,572,332

136,359

227,326

421,765

785,450

731,0942013

1,399,407

1,472,704

1,690,171

4,562,282

143,272

235,883

422,820

801,975

2014

1,437,589

1,422,883

1,839,119

4,699,591

164,815

252,828

433,671

851,314Year

Large-sized

Small-sized

2010

4,777

7,998

12,775

2011

3,136

7,515

10,651

4,210,219

2012

4,266

7,672

11,9385,369,720

Buses
Subtotal

Total
4,956,136

2013

4,181

7,075

11,256

5,375,513

2014

4,498

7,485

11,9835,562,888

Source:Same as that for Figure 2.1.3

By the brand of new passenger cars, the output of “Tanto” (made by Daihatsu Motor) stood firstwith 234,000 (up 62.1% year on year), followed by “Aqua” (Toyota) with 233,000 (down 11.1%),“Fit” (Honda) with 203,000 (up 11.8%), “Prius” (Toyota) with 184,000 (down 27.6%) and “N-BOX”(Honda) with 180,000 (down 23.4%). While hybrid cars with a high fuel efficiency controlled themarket, with “Aqua” and “Prius,” hybrid cars, ranking first and second and “Fit,” a hybrid andmodel car, standing third in 2013, the noteworthy situation in 2014 was characterized by fact that
“Tanto,” a light vehicle, was at the top. In addition, all of the ten new light vehicle models were
included in the list of top 20 sellers, which clearly indicates the situation where light vehicles have alarge portion of the domestic automobile market (The figures for the sales of new vehicles were
calculated using the data of the Japan Automobile Dealers Association, a general incorporatedorganization, and the Japan Light Motor Vehicle and Motorcycle Association).
(3) Export and import

Fig. 2.1.6

Trend of automobile export by the type of vehicle
No. of cars

Passenger cars

TrucksYear

Standard-sized

Small-sizedLight motor

Standard-sized

Small-sizedLight motor

2010

3,453,951

818,660

2,755

4,275,366

397,404

52,9080

2011

3,176,195

743,509

10,2003,929,904

369,973

53,786

8423,7672012

3,550,010*

641,749

6,735

4,198,494

410,251

66,652

16

476,9192013

3,564,593

499,5411,419

4,065,553

397,694

74,46520

472,179

2014

3,593,941

239,198

2,456

3,835,595

408,859

79,614

0488,473

Year

Large-sized

Small-sized2010

13,969101,813

115,782

2011

14,49596,247110,7424,464,413

2012

19,026109,152

128,178

4,803,591

2013

19,712

117,223

136,935

4,674,667

2014

15,886125,670

141,556

4,465,624

Buses

Source:Subtotal

Subtotal

Total
4,841,460

Same as that for Fig. 2.1.3.

15
15

Subtotal
450,312

2.

Trends by business category

The export of cars in 2014 continued to decrease to 4,466,000 in total, which was a
year-on-year fall of 4.5% (Fig. 2.1.6). By product category, the car export dropped for passenger cars
with 3,836,000 (down 5.7% year on year) but grew for trucks with 488,000 (up 3.5%) and for buseswith 142,000 (up 3.4%), showing that the decrease in the export of passenger cars caused a fall inthe total vehicle export. According to the Japan Automobile Manufacturers Association, the exportby the knockdown system2 was 170,000 for passenger cars (down 12.8%), 221,000 for trucks (down
2.1%) and 30,000 for buses (down 23.5%), totaling to 421,000 (down 8.5%).
It has been said that as a result of the weak yen trend in 2013 and after, automobile industries
returned their overseas production bases to Japan, leading to an increase in the export of cars. But as
pointed out in the 2014 edition, the fact that Japanese finished car manufacturers have pursued thestrategy of local production for local consumption is evident from the situation of car export in 2014.
It is supposed that these manufacturers will continue to build up their overseas manufacturing bases,
which would not be affected by foreign exchange fluctuations.
By the destination of export, North America continued to have the largest figure with 1,662,000
cars. This market accounted for 37.2% of the car export but this figure was a year-on-year decreaseof 11.9% (Fig. 2.1.7). The U.S. made up 34.4% of this with 1,538,000, a fall of 10.6% from theprevious year which was an important cause for the smaller export.
In the year-on-year data, export to the Middle East continued to lead as in 2013 with a 7.1%
growth (626,000), accompanied by export to Europe, which was on a slow recovery trend after adecline in 2013, registering a 4.9% increase with 744,000. This can be seen as a reaction to a large
decrease of 16.4% in 2013 greatly affected by the anxieties about the European economy.
The import of cars decreased, too, as with the export. A fall in car import was first in five years
after 2009. Passenger cars showed the downward trend most of the cars manufactured abroad by
Japanese automakers, with a drop of 31,000, down 41.2% from the previous year. It can be supposedthat behind this was the decline in five years after 2009 the sales in Japan of cars manufactured inoverseas bases. On the other hand, the import of passenger cars made by foreign automakers has
continued to be on the increase since 2012 with 289,000 or a 3.6% year-on-year growth.

2

The system in which the main parts of cars are exported from Japan to overseas bases, where these parts areassembled into completed cars. Decreases in the export by this knockdown system prove that the manufacture
and assembly of automobile parts have been increasing in overseas bases, too.

16
16

2.

Fig. 2.1.7

Trends by business category

Trend of Japan’s automobile export by destination

10,000 cars
600.0

480.4

484.1

500.0

42.5
400.0

361.6

300.0

34.7
14.5
11.7
12.7

18.9
21.5
18.2

446.4
38.0
14.9
19.3
16.5

44.9
16.8
19.1

467.5
446.6
40.7
17.9
20.8
15.4

その他
Others37.6

大洋州
Oceania

18.4
16.2
14.4

アフリカ
Africa南米
South America

172.7

158.5

188.6

188.7

中米
Middle America

166.2

北米
North America
200.0

137.9

Europe
ヨーロッパ
93.6

99.5

84.9

70.9

74.4

42.0

52.6

58.4

62.6

57.6

57.2

57.3

54.0

56.0

Source:20092010
Same as that for Fig. 2.1.3.

2011

2012

2013

2014

Source:Same as that for Fig. 2.1.3.

100.0

Asia
アジア

68.5
58.4
42.8

0.0

Middle East
中近東

37.9

Year

According to the data of the Japan Automobile Importers Association, Volkswagen (VW) was at
the top in the number of newly registered imported cars by car name for the 15th straight year, withsales of 67,000, up 0.2% over the previous year. By brand, “Golf” ranked first, “Polo” fifth, “up!”ninth and “The Beetle” 12th, respectively. Mercedes-Benz stood second with 61,000, up 13.2%, andBMW ranked third with 46,000, down 0.9%. Thus Mercedes-Benz achieved a rapid advance.
For Japanese finished car manufacturers, Nissan took fifth place, Toyota seventh place and
Mitsubishi Motor 12th place. Nissan suffered a marked decrease with a year-on-year fall of 34.6%(23,000 cars) and Mitsubishi Motor also had a drop of 55.0% (56,000 cars) (Toyota registered anincrease of 1.8% with 16,000 cars). As stated above and in the 2014 edition, it is considered that the
decline in car import of Nissan and Mitsubishi Motor was partly caused by the decrease in the salesin Japan of the models manufactured abroad and reimported into Japan.

17
17

2.

2.1.3

Trends by business category

Results of operations, overseas activities and the trend of the automobile industry(1) Results of operations

This section discusses the results of operations of major Japanese automobile industries in fiscal
2014 (April 1, 2014 to March 1, 2015) using the financial report of these manufacturers (Figs. 2.1.8
and 2.1.9).

Fig. 2.1.8 Consolidated sales of automobiles of the top three automakers
Toyota Motor
2012

2013

Honda Motor
2014

2012

2013

Nissan Motor
2014

2012

2013

2014

Japan

2,279

2,365

2,154

692

818

761

655

647

719

North America

2,469

2,529

2,715

1,731

1,757

1,746

1,404

1,466

1,648

Europe

799

844

859

171

169

167

713

660

676

Asia

1,684

1,608

1,489

1,122

1,286

1,425

1,591

1,624

1,629

1,640

1,769

1,755

298

293

265

482

517

516

8,871

9,116

8,972

4,014

4,323

4,364

4,845

4,914

5,188

OthersTotal
Note: 1.

2.

Source:Nissan Motor changed the consolidation method for Dongfeng, Ltd., its Chinese joint venture, in fiscal 2013 as a resultof a change in its accounting standards. Up to fiscal 2012, the company had applied pro rata consolidation for
Dongfeng, but beginning in fiscal 2013, it applies the equity method for the joint venture and thus does not include
Dongfeng’s figures in its consolidated sales.
The calculation period for Nissan Motor’s figures is from January to December 2013 for China and Taiwan, which areincluded in Asia, and from April 2013 to March 2014 for other countries and areas and Asia excluding China andTaiwan.
Based on the materials for the meeting for explaining the settlement of accounts and financial reports of theautomakers concerned.

Fig. 2.1.9 Consolidated results of operations of the eight passenger car
manufacturers (fiscal 2013 and 2014)
Thousand cars; ¥100 million
Domestic
production(thousand cars)

Overseas
production(thousand cars)

Export(thousand cars)

Domestic sales(thousand cars)

FY2013

FY2014FY2013

FY2014FY2013

FY2014FY2013

FY2014FY2013

FY2014

3,378

3,185

5,568

5,763

1,855

1,784

1,648

1,466 256,919 272,345

22,921

27,505

Nissan

1,000

871

4,078

4,160

547

502

719

623 114,348 113,752

6,057

5,896

Honda

937

868

3,466

3,581

97

30

848

788 118,424 126,467

7,503

6,068

Suzuki

998

1,055

1,859

1,988

153

150

728

756

29,38330,155

1,877

1,794

Mitsubishi
Motor

637

649

632

626

346

384

143

115

20,93421,807

1,234

1,359

Mazda

973

919

297

456

791

738

243

225

26,92230,339

1,821

2,029

Daihatsu

808

777

302

302

8

8

701

689

19,133

18,171

1,467

1,106

Fiji Heavy
Industries

650

708

164

207

499

546

187

169

24,081

28,779

1,758

4,230

Total of theeight
automakers

9,380

9,032

16,36517,082

4,295

4,141

5,219

4,831

-

-

-

-

Source:FY2013Operating profit(consolidated
figures)

ToyotaNote:

FY2014

Sales(consolidated
figures)

The figures include those of trucks and buses. Toyota’s figures of production, export and sales include those of Lexus.
Daihatsu’s figures exclude those of Perusahaan Otomobil Kedua, its Malaysian consolidated subsidiary. The figures ofsales and operating profit include those of two-wheeled vehicles, etc. in addition to those of four-wheeled vehicles.
Based on the “Nihon Keizai Shimbun” for April 23, 2015 for domestic production, export and domestic sales and on thefinancial report of the automakers in question for sales and operating profit.

18
18

2.

Trends by business category

The consolidated sales of automobile business for fiscal 2014 of Toyota, which topped the listof automakers’ domestic car production and sales, have continued to increase since 2012, with
¥27,234.5 billion, up 6.0% over the previous consolidated fiscal year, which has been a growth since
fiscal 2012. The company’s operating profit also rose to ¥2,750.5 billion, up 20.0%. As in fiscal
2013, the especially important factors behind these figures were the impact of foreign exchange
fluctuations (¥280.0 billion) and the efforts made to reduce the cost (¥280.0 billion). As for the sales
by region in the fiscal year, while Toyota suffered a decrease of cars sold in Japan and Asia, it
attained a growth in operating profit in all over the world.
Honda increased its consolidated sales in its four-wheeled vehicle business in fiscal 2013,
recording sales of ¥9,693.2 billion or up 5.6% over the previous consolidated fiscal year and enjoyedan increase in the number of cars sold with 4,364,000 or up 0.9%. Nissan continued to renew ahistoric high in global car sales in and after fiscal 2011, with 5,188,000, up 5.6% year on year. But
the company experienced a lower domestic production of 871,000, down 13% from fiscal 2012,“falling below the one-million level first after 1967.”3
A noteworthy fact in fiscal 2014 was the problem of the recall of the air bag inflators made by
Takata Corp., an automobile parts manufacturer. In particular, Honda, which had ordered a large
amount of automobile parts to Takata, announced that its operating profit decreased by 42.7% fromthe previous year to ¥231.4 billion due mainly to “an increase in selling costs and generaladministrative expenses and research and development costs, including quality-related costs.” Whileother finished car manufacturers mounted Takata parts on their products, too, Honda had to revise
the amount of its operating profit in its financial report for the period ending in March 2015 because
it had an especially large amount of transactions with Takata.

2.1.4

Future prospects

In fiscal 2014, foreign exchange situations became stable and as a result Japanese finished car
manufacturers greatly increased their profit. But as seen in the case of Takata mentioned above, there
were some external factors not resolved yet as of October 2015, including the recall problem, and in
2015, there will be the need to check the impact of that problem on business management. In the
recent situation where Japanese finished car manufacturers continue to expand their activities in theoverseas market, it has become important how to make automobile parts, to mount these parts on
cars and to earn profits more efficiently. This has led to such moves as a change in the designconcept of finished cars and the common use of automobile parts. If the same parts are mounted on
different car models, the economies of scale work and the output of that parts will go up substantially.
If any defect is found in the parts, the frequency of the recall will increase greatly. In particular, theautomakers having a large amount of production and sales will have always to bear this risk.
On the other hand, there was a change in the market: a fall in the price of crude oil and a revivalof large-sized cars, mainly in North America, in mid-2015. In Japan, it is supposed that eco-friendly
3

Refer to the “Nihon Keizai Shimbun” for April 23, 2015.

19
19

2.

Trends by business categorycars have continued to be popular as shown in the fact that Toyota introduced the fourth version of“Prius” into the market at the end of 2015.4 But there will also be the need to examine what kind of
performance is required for cars on a global scale.

4

According to the Japan Automobile Manufacturers Association, the production of diesel passenger cars in Japanwas 441,000 in fiscal 2014 or up 17% over the previous year, accounting for about 10% of the passenger cars
manufactured. As of 2015, more than 20 types of diesel cars were available in Japan, and these cars may increase
their shares, too (Refer to the “Nihon Keizai Shimbun” for May 12, 2015).

20
20

2.

2.2

Forming machines

2.2.1

Supply and demand trend

Trends by business category(1) Trend of the global market

The production of forming machines in the 28 countries in the world was on the increase from2010 to 2014. The output in these 28 countries in 2014 was about ¥2,831.7 billion, which was anincrease of above ¥23.0 billion over 2013 and an all-time high. The production of forming machines
in Japan almost doubled in the 2010-2024 period, too, and its share in the world has been growing
gradually (Fig. 2.2.1).

Fig. 2.2.1

Trend of the production of forming machines in the 28 countries
in the world (2010 - 2014)(¥100 million)
30,00030.0%

28,31728,081

25.2%

25,00021,603

23.4%

25.0%

22,43320.0%

20,00017,500Total production of
世界28か国計
the 28 countries

日本生産額
Production in Japan
15.0%

15,000Growth rates in the
世界生産伸び率
world

10,000

5,000

9.8%

Source:

11.5%

11.3%

10.0%

9.6%

6.2%
1,723

0

11.0%

2,377

3.8%
2,703

2,533

3,254
0.8%

2010

2011

2012

2013

2014

日本シェア
Japan’s share

5.0%

0.0%

“Metal Form,” the bulletin of the Japan Forming Machinery Association, No.55, July 2015.

(2) Production

The trend of the production of main forming and forging machines by product type is as shownin Fig. 2.2.2. The output of bending machines in 2014 was about ¥7.8 billion, decreasing by about¥873 million from the previous year (down 10.0% year on year). That of hydraulic presses was about¥27.3 billion, a growth of above ¥7.9 billion over 2013 (up 40.8%). That of mechanical presses was
about ¥97.0 billion, a decrease of above ¥15.9 billion from 2013 (down 14.1%). The output of
sharing machines was approximately ¥2.4 billion, an increase of above ¥150 million (down 6.8%).
That of forging machines was about ¥ 8.9 billion, a decline of above ¥3.6 billion from 2013 (down

21
21

2.

Trends by business category

28.7%). That of wire forming machines was about ¥5.0 billion, a decrease of above ¥1.1 billion from2013 (down 18.0%).

Fig. 2.2.2 Production of forming and forging machines(¥ million)
120,000
100,000
80,00060,00040,00020,0000

Source:Bending machines

2010
8,006

2011
9,174

2012
9,673

2013
8,716

2014
7,843

Hydraulic presses

22,42820,350Mechanical presses

59,25790,983

20,824

19,38827,302

84,857112,918

Shearing machines

2,192

96,980

1,972

3,031

2,232

Forging machines

2,384

13,328

7,867

6,971

12,538

Wire forming machines

8,941

6,099

11,498

4,516

6,079

4,987

Based on the data of the website of the Japan Forming Machinery Association.

(3) Export and import

The trend of the export of forming and forging machines by main product type is as shown in
Fig. 2.3.3. The export of forging machines, etc. in 2014 amounted to about ¥39.7 billion, a growth ofabove ¥3.5 billion year on year (up 9.8% year on year). The export of bending machines, etc. wasabout ¥16.3 billion or a year-on-year increase of over ¥3.4 billion (up 25.7%). That of sharing
machines was about ¥3.9 billion, a fall of over ¥6.0 million (down 0.2%). That of punchingmachines and notching machines was approximately ¥32.6 billion, a drop of ¥1.1 billion or so (down
3.3%). That of hydraulic presses was about ¥19.1 billion, a increase of above ¥2.0 billion (up 11.7%).
The export of other presses amounted to about ¥36.8 billion, a drop of above ¥6.7 billion (down
15.4%). That of drawing machines was about ¥1.4 billion, a decline of ¥1.1 billion or so from theprevious year (down 43.9%). That of thread rolling machines was about ¥2.5 billion, a growth ofabove ¥200 million (up 7.3%). That of wire processing machines was about ¥5.5 billion, a growth of¥1.5 billion or so (up 37.9%). The export of other processing machines was about ¥14.9 billion, an
increase of ¥2.4 billion or so (up 19.2%).

22
22

2.

Trends by business category

Fig. 2.2.3 Export of forming and forging machines(¥ million)
60,00050,00040,00030,00020,00010,0000

Source:Forging machines, etc.

2010
11,0302011
20,827

2012
25,1692013
36,158

2014
39,696

Bending machines, etc.

7,276

11,665

13,85012,94816,281

Shearing machines

3,908

5,307

4,378

3,864

3,858

Punching machines, etc.

17,94827,712

25,04133,68332,576

Hydraulic presses

12,52015,01020,456

17,071

19,076

Other presses

31,811

51,31046,18643,53736,826

Drawing machines

1,300

2,417

2,761

2,503

1,405

Thread rolling machines

1,514

1,875

2,491

2,344

2,516

Wire processing machines

5,229

7,111

3,689

4,016

5,536

Other processing machines

7,466

9,791

17,027

12,47014,868

Based on the data of the website of the Japan Forming Machinery Association.

The trend of the import of forming and forging machines is shown in Fig. 2.2.4. The import offorming machines, etc. in 2014 amounted to about ¥4.3 billion, an increase of over ¥2.4 billion overthe previous year (up 129.2% year on year). That of bending machines, etc. was about ¥3.6 billion, adecline of over ¥1.0 billion from 2013 (down 20.6%). That of shearing machines was about ¥700
million, a growth of over ¥500 million (up 203.9%). That of punching and notching machines was
about ¥1.2 billion, a rise of ¥300 million or so (up 29.7%). That of hydraulic presses was about ¥1.5
billion, a fall of over ¥400 million (down 24.9%). That of other presses was about ¥1.4 billion, agrowth of ¥10 million or so (up 0.9%). The import of drawing machines was about ¥200 million, adrop of over ¥10 million (down 6.0%). That of thread rolling machines was about ¥150.0 million, adecrease of over ¥200 million (down 57.3%). That of wire processing machines was about ¥700
million, a decrease of ¥200 million or so (down 23.9%). That of other processing machines
amounted to about ¥1.6 billion, a fall of over ¥600 million (down 26.0%).

23
23

2.

Trends by business category

Fig. 2.2.4 Import of forming and forging machines(¥ million)
5,000
4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0
Forging machines, etc.

2010
1,378

2011
1,602

2012
1,476

2013
1,893

2014
4,338

Bending machines, etc.

1,966

1,056

3,083

4,573

3,629

Shearing machines

308

103

493

232

705

Punching machines, etc.

602

833

775

903

1,171

Hydraulic presses

499

1,029

890

1,932

1,450

Other presses

597

1,251

1,301

1,398

1,410

Drawing machines

793

830

265

215

202

Thread rolling machines

124

91

502

342

146

Wire processing machines

528

728

600

898

683

Other processing machines

881

1,122

1,253

2,209

1,634

Source:Based on the data of the website of the Japan Forming Machinery Association.

2.2.2

Results of operations

The situation of the management of main forming and forging industries in 2014 was asfollows: the consolidated business results of Amada Co. in the year ending in March 2015 were salesof about ¥286.5 billion or a growth of ¥30.1 billion or so over the previous year (up 11.7%). The
company’s operating profit amounted to about ¥27.7 billion, an increase of over ¥11.5 billion (up70.7%). As shown in these figures, Amada achieved steady business results and plan mainly to
expand its overseas production and to strengthen its laser business in the years ahead. In the
consolidated business performance in the year ending in March 2015, Kobe Steel recorder sales ofabout ¥1,886.8 billion, a year-on-year growth of over ¥62.2 billion (up 3.4%). The company’s
operating profit was about ¥119.4 billion, a rise of over ¥4.9 billion (up 4.3%). In the future, Kobe
Steel will work to reinforce the profit-earning capacity of its steel business and to secure its sales in
the growing business fields and areas.

2.2.3

Future prospects and problems

In Japan, the investment-stimulating tax system and the subsidy program for energy-saving
equipment have been generating replacement demand for forming machines in recent years.
However, while Japanese forming machine manufacturers are strong in technical expertise, they

24
24

2.

Trends by business category

have a weak point of poor ability in price competition and overseas activities. On the other hand,
European manufacturers have great international competitive abilities backed by high-leveltechnology. In addition, the manufacturers in newly industrializing countries having competitivenessin price have improved their technical level. In particular, Chinese manufacturers have been showing
remarkable growth. If Japanese manufacturers are to compete with these overseas competitors insuch a situation, they will have not only to emphasize the originality of their products but also tostrengthen their price competitiveness.

25
25

2.

2.3

Consumer electric machines and appliances

2.3.1

Supply and demand trend

Trends by business category(1) Trend of the global market

According to the “Survey on the Global Demand for the Five Home Appliances, 2007 - 2013”
published in March 2015 by the Japan Electrical Manufacturers’ Association, a general incorporatedorganization (hereinafter referred to as the “JEMA”), demand for home appliances has been on theincrease for all of the products, although slowly (Fig. 3.1.1). Japan’s market shares by product typein 2007 and 2013 indicate that they declined for all of the five products in the period, while theirranking became higher for some of the products. Thus it can be said that Japan’s relative position in
the global market for home appliances lowered (Fig. 2.3.1).

Fig. 2.3.1

Trend of the global demand for the five home appliances (thousand units)
100,000
90,00080,00070,00060,00050,00040,00030,00020,00010,0000Room air-conditioners

Source:2007
60,4592008
62,574

2009
59,792

2010
71,468

2011
82,547

2012
75,813

2013
80,606

Electric refrigerators

81,55480,94380,50084,54486,73388,80690,601

Electric washing machines

86,87886,721

85,261

89,16893,084

93,902

94,190Electric vacuum cleaners

76,51478,90877,36586,07988,762

88,387

91,188Microwave ovens

57,33555,64951,55856,15459,01359,80260,456

JEMA, “Survey on the Global Demand for the Five Home Appliances, 2007 - 2013,” March 2015.

26
26

2.

Trends by business category

Fig. 2.3.2 Ranking of the demand for the five home appliances by country(thousand units)
Product

RankingstRoom airconditioners

Electric
refrigerators

Electric
washing
machines

Electric
vacuumcleaners

Microwave
ovens

Source:

1
nd
2
rd
3
th
4
th
5
st
1
nd
2
rd
3
th
4
th
5
st
1
nd
2
rd
3
th
4
th
5
st
1
nd
2
rd
3
th
4
th
5
st
1
nd
2
rd
3
th
4
th
5

Country
China
U.S.
Japan
India
Italy
China
U.S.
Brazil
India
Japan
China
U.S.
India
Japan
RussiaU.S.
GermanyJapan
U.K.
RussiaU.S.
China
RussiaBrazilJapan

2007
Demand(number of units)
22,349
8,238
7,390
1,732
1,503
12,79010,402
4,980
4,890
4,188
27,849
8,825
4,653
4,652
3,743
24,968
6,232
5,651
5,492
3,716
11,851
6,243
4,300
3,807
3,551

Share (%)

Country

37.0
13.6
12.2
2.9
2.5
15.7
12.8
6.1
6.0
5.1
32.1
10.2
5.4
5.4
4.3
32.6
8.1
7.4
7.2
5.0
20.7
10.9
7.5
6.6
6.2

China
Japan
U.S.
Brazil
India
China
U.S.
India
Brazil
Japan
China
U.S.
India
Japan
RussiaU.S.
Germany
U.K.
Japan
China
China
U.S.
BrazilRussiaU.K.

2013
Demand(number of units)
33,472
9,013
7,754
3,809
3,446
17,000
9,550
6,500
5,750
4,398
30,080
8,450
6,100
4,768
3,550
25,351
7,629
6,695
5,384
5,098
11,760
9,395
4,236
3,980
3,361

Share (%)
41.5
11.2
9.6
4.7
4.3
18.8
10.5
7.2
6.3
4.9
31.9
9.0
6.5
5.1
3.8
27.8
8.4
7.3
5.9
5.6
19.5
15.5
7.0
6.6
5.6

Same as that for Fig. 2.3.1.

(2) Production

The domestic production of consumer electric machines and appliances in 2014 (Fig. 2.3.3)
totaled to ¥1,762.2 billion or a growth of 4.5% over the previous year. By product category, electric
rice cookers and natural refrigerant heat-pump type water heaters registered a large growth, with ayear-on-year growth rate of 16.1% and 21.7%, respectively. By contrast, electric refrigerators,
cooking heaters, freezers, dehumidifiers, electric vacuum cleaners and toilet seats with warm water
suffered a negative growth, with a decrease rate of 2.2%, 2.0%, 2.1%, 10.3%, 13.2% and 0.5%,
respectively.

27
27

2.

Fig. 2.3.3

Trends by business category

Trend of the production of consumer electric machines and appliances(in terms of yen value)
Unit: ¥million

Total, home electric appliances

2011

2012

2013

2014

Growth rate
in 2013-2014

1,714,580

1,638,271

1,685,625

1,762,179

4.5

Microwave ovens

9,510

10,156

8,262

×

×

Electric rice cookers

67,42360,62765,43775,973

16.1

Electric pots

5,088

3,213

3,582

×

×

Dish washing and drying machines

23,52624,00526,48926,634

0.5

Electric refrigerators

242,829

267,031

276,955

270,936-2.2

Cooking heaters

58,52951,011

52,95651,909-2.0

Freezers

10,404

14,104

15,88015,551-2.1

Ventilation fans

104,984

101,683

106,345

107,2280.8

Electric water heaters

22,922

19,94819,25919,786

2.7

Natural refrigerant heat-pump type water heaters

62,09456,57054,62966,50021.7

Household electric well pumps

11,409×××

×

Dehumidifiers

9,231

10,436

9,970

8,944

-10.3

Air-conditioners

837,010828,148

835,448910,997

9.0

Of which room air-conditioners

523,936

513,857

509,967

534,737

4.9

Separate-type

837,010828,148

835,448910,9979.0

Outdoor units

564,344556,600

563,819622,377

10.4

Electric washing machines

106,777

59,66353,87356,470

4.8

Electric vacuum cleaners

36,38437,482

41,53936,068-13.2

Toilet seats with warm water

72,071

72,70175,53275,181-0.5

Electric razors

13,72912,152

19,56921,184

8.3

Electric massage machines

18,075

9,341

9,051

9,636

6.5

Air cleaners and household garbage disposers

2,585

×

×

×

×

Data:
Source:Ministry of Economy, Trade and Industry, “Dynamic Production Statistics.”
Based on the data of the JEMA website.

According to the “Situation of Electric Machines in the First Half of 2015” published by the
JEMA on November 26, 2015, the domestic production of home appliances has continued to be on
the gradual decrease in the medium-to-long term as the Japanese manufacturers are promoting
production at the optimum location in their global strategies. But in the weak yen situation in recent
years, they are increasing the domestic output of some products. By product type, the results ofproduction and shipment (See Fig. 2.3.4) grew for such main products as room air-conditioners,
electric refrigerators and electric washing machines in June and after as compared with theperformance in the same months of the previous year. In particular, the output of electric ricecookers was favorable, continuing a positive growth in April and after for six months in a row.

28
28

2.

Trends by business category

Fig. 2.3.4 Domestic production and shipment of home appliancesin the first half of FY2015

Room air-conditioners
Electric refrigerators
Electric washing machines
Ventilation fans
Electric rice cookers
Dish washing and drying machines
Others(excluding the above six products)
Total, home appliances
Note:
Data:
Source:Production
Shipment
Estimate for the first half Results in the first half Estimate for the first half Results in the first half
AmountYear-onAmountYear-onAmountYear-onAmountYear-on(¥100
year ratio(¥100year ratio(¥100year ratio(¥100year ratio
million)(%)
million)(%)
million)(%)
million)
(%)
3,015
103.3
3,085
105.7
4,138
100.9
4,202
102.5
1,568
108.8
1,603
110.9
2,563
111.1
2,395
103.8
255
96.0
306
115.6
1,423
103.0
1,418
102.7
481
95.9
511
101.9
526
97.5
541
100.2
318
90.1
434
122.9
486
104.7
598
128.9
113
86.3
121
92.5
158
87.6
170
94.6
3,525

117.1

3,545

102.1

2,412

99.8

2,535

107.4

9,274

102.1

9,606

105.6

11,706103.3

11,859104.7

The estimates shown above are those calculated and published by the JEMA in March 2015.
JEMA statistics and the statistics of the Japan Refrigeration and Air Conditioning Industry Association (only those of room
air-conditioners).
The JEMA, “Situation of Electric Machines in the First Half of 2015,” November 2015.

(3) Export and import

The export of consumer electric machines and appliances in 2014 (Fig. 2.3.5) was ¥304.3
billion, recording an increase of 3.4% over the previous year. In particular, the export of electric
refrigerators (¥13.7 billion; up 9.5%) continued to be favorable and show a growth as in 2013,
mainly in high value added products. Electric rice cookers and room air-conditioners did well, too,and registered a two-digit growth. By contrast, the export of electric refrigerators, juicer-blenders
and electric heaters suffered a negative growth.
Fig. 2.3.5

Trend of the export of consumer electric machines and appliances

Unit: ¥million

Product
Total, home electric appliances
Electric refrigerators (excluding used ones)
Freezers (excluding used ones)
Refrigerators (compression type) (excluding used ones)
Total, electric freezers
Horizontal freezers
Vertical freezers
Dish washing machines
Total, electric washing machines (excluding used ones)
Fully-automatic washing machines (excluding used ones)
Clothing driers
Vacuum cleaners (with an electric motor, output: 1,500W or less)Total, fans
Juicer-mixers
Other food mixers, grinders, etc.
Total, electric razors
Electric hair clippers
Electric water heaters
Electric heating appliances, etc.
Electric irons
Microwave ovens
Electric rice cookers
Electrothermal resistive elements
Total, room air-conditioners
Air-conditioners for windows and walls (excluding used ones)
Total, other air-conditioners
Data:
Source:Ministry of Finance, “Trade Statistics of Japan.”
Based on the data of the JEMA website.

29
29

2012

2013

2014

274,997
9,538
4,751
4,787
2,542
499
2,043
39
196
195
370
594
584
222
773
1,968
2,930
351
2,199
1,593
2,182
4,846
18,471
7,770
561
7,210

294,166
12,496
6,277
6,219
3,326
626
2,700
40
228
227
331
510
702
318
512
2,878
4,130
370
3,286
1,670
2,185
6,573
21,843
6,514
344
6,171

304,253
13,682
7,185
6,497
3,216
550
2,666
72
486
343
473
525
943
216
654
3,460
5,029
534
3,233
1,711
2,311
7,889
25,612
8,015
293
7,722

Growth rate in2013-2014
3.4
9.5
14.5
4.5
-3.3
-12.2
-1.2
81.5
113.3
50.9
43.1
2.9
34.2
-32.2
27.7
20.2
21.8
44.5
-1.6
2.5
5.7
20.0
17.3
23.0
-14.7
25.1

2.

Trends by business category

The import of consumer electric machines and appliances in 2014 (Fig. 2.3.6) amounted to¥979.9 billion or a growth of 5.5% over the previous year. Electric washing machines (¥99.4 billion;
up 13.2%), microwave ovens (¥43.7 billion; up 9.5%) and other home appliances, for which
Japanese manufacturers increased overseas production and import to Japan (“out-in”), continued asteady growth in import. It had been supposed that the import of room air-conditioners would beaccelerated, but the import of this product in 2014 took a downward turn to ¥158.6 billion or adecrease of 5.1%. This was affected by the substantial fall in the import of other air-conditioners(¥7.2 billion; down 59.2%), but the figure for air-conditioners for windows and walls remained
stable with ¥151.4 billion or up 1.2%.

Fig. 2.3.6

Trend of the import of consumer electric machines and appliances(in terms of yen value)
Unit: ¥million
Product

Growth rate
in 2013-2014

2012

2013

2014

Total, home electric appliances

782,343

928,409979,910

Total, refrigerators

67,22977,93882,2205.5

Electric refrigerator/freezers

64,67275,411

79,566

5.5

Total, electric freezers

6,598

8,003

8,433

5.4

5.5

Dish washing machines

2,602

3,210

3,294

2.6

Total, electric washing machines

77,14187,79099,380

13.2

Fully-automatic washing machines

75,092

85,84597,350

13.4

Vacuum cleaners (with an electric motor, output: 1,500W or less)

53,82278,701109,041

38.6

Total, fans

36,51735,69327,496

-23.0

Fans

29,84329,781

8,692

-70.8

Ventilation fans

2,049

2,796

2,409

-13.9

Food mixers, juicers, etc.

10,862

14,713

17,545

19.2

Electric hair clippers

2,245

3,031

3,596

18.6

Electric depilatory devices

1,614

1,491

657

-56.0

Electric water heaters

3,099

2,873

2,973

3.5

Electric blankets

3,372

3,417

3,405

-0.3

Electric heaters, etc.

25,565

26,41524,579-7.0

Electric hairdressing devices, etc.

17,612

20,321

21,997

8.2
36.7

Electric irons

3,898

4,226

5,777

Microwave ovens

35,94039,88043,651

9.5

Coffee/tea makers

8,721

11,824

13,95818.0

Toasters

6,621

6,914

7,699

11.4
5.6

Electric rice cookers

7,328

7,505

7,925

Other electrothermal appliances

24,46826,82329,423

9.7

Electrothermal resistive elements

12,88915,49817,060

10.1

Air filters or purifiers (excluding battery-operated ones)

39,422

48,68946,371-4.8

Total, room air-conditioners

133,506

167,144

158,565-5.1

Air-conditioners for windows and walls (excluding used ones)

115,485

149,505

151,364

1.2

Total, other air-conditioners

18,021

17,639

7,201

-59.2

Data:
Source:Ministry of Finance, “Trade Statistics of Japan.”
Based on the data of the JEMA website.

30
30

2.

2.3.2

Trends by business category

Results of operations and the trend of the consumer electric machine andappliance industry(1) Trend of management

The results of Panasonic’s home appliance business in fiscal 2014 (year ending in March 2014)
were sales of ¥1,769.7 billion and an operating profit of ¥40.5 billion (operating profit to sales ratio:2.3%). In the air-conditioner business, the company’s main home appliance business, Panasonicachieved a large growth in earnings partly due to increased sales mainly in Asia and a recovery ofsales in China while domestic demand for air-conditioners for home use went down because of anincrease in the tax and the impact of the unseasonable weather on summer competition. In the future,
the company will strengthen its fully local management and marketing activities in Asia and China
where further growth is expected and work to promote sales by introducing premium commodities
targeted at the wealthy classes and developing commodities suitable for the local market.
In its home appliance business, Hitachi recorded sales of ¥754.2 billion and an operating profitof ¥34.5 billion (operating profit to sales ratio: 4.6%). While the company suffered lower earnings athome partly due to a rise in the consumption tax rate, it enjoyed a growth in earnings abroad.
According to the article in the Nihon Keizai Shimbun for September 18, 2014, the company
announced that it would make all of room air-conditioners for home use for the domestic market in
Japan in 2015 because the cost of import increased as a result of weak yen.
(2) Business environment: ranking in the global and domestic market by product typeFig. 2.3.7 is an extract from the “Market Share Survey on Main Products and Services”
conducted in 2014 by Nihon Keizai Shimbun, Inc.
The ranking of the manufacturers in the domestic market share for the four main products isshown in Fig. 2.3.7. In room air-conditioners, Panasonic continued to rank first, while third-ranking
Mitsubishi and fourth-ranking Hitachi increased their share, respectively. First-ranking Panasonic,
second-ranking Daikin and fifth-ranking Fujitsu General gained a higher ranking but had a smallermarket share. In washing machines, Hitachi continued to have the top market share, and the rankingof other four companies did not change. In refrigerators, Panasonic led other four manufacturers,
followed by Sharp and Hitachi. In vacuum cleaners, Toshiba ranked first, and the ranking of othermanufacturers remained the same.

31
31

2.

Trends by business category

Fig. 2.3.7 Ranking in the market share by product category(2014; in terms of the number of units shipped; in the Japanese market)
Room air-conditioners
Company

Washing machines

Increase/
Share decreasein %Company

Refrigerators

Increase/
Share decreasein %Company

Vacuum cleaners

Increase/
Share decreasein %CompanyFirst

Panasonic

24.0

-1.3

HitachiAppliances

27.8-1.5 Panasonic

23.4

0.8

SecondDaikinIndustries

17.5-0.4 Panasonic

24.2

1.2 Sharp

21.3

Third

Mitsubishi
Electric

13.8

1.5

23.2

0.7

HitachiAppliances

18.1

-0.4

FourthHitachiAppliances

13.6

0.6 Sharp

16.1

0.5

Mitsubishi
Electric

14.7

2.1 Sharp

Fifth

Fujitsu
General10.1-0.4 ---

Toshiba
Lifestyle

10.1

-1.4

Toshiba
Lifestyle

Source:Based on the “Nikkei Sangyo Shimbun” for July 27, 2015.

2.3.3

Future prospects and problems

Toshiba
Lifestyle

Increase/
Share decrease
in %
29.2

-0.4

-0.5 Panasonic

24.7

0.1

HitachiAppliances

22.2

-0.2

13.1

0.1

9.6

0.5

Mitsubishi
Electric

The “Survey on the Global Demand for the Five Home Appliances, 2007 - 2013” published in
March 2015 by the JEMA says that demand for home appliances is increasing globally, mainly in
BRIC and ASEAN countries (Fig. 2.3.8), and there is the need to stir up this demand in thesecountries.

Fig. 2.3.8 Average growth rates of the world demand for the five home appliancesin the 2007-2013 period (%): comparison of the “total of Japan,
North America and Europe,” “BRIC countries” and “Other areas”
Total, the world(Total of 62
countries andareas)

Total, Japan,
North America
and Europe

Room air-conditioners

4.9

- 0.7

8.3

11.2

3.3

Electric refrigerators

1.8

- 0.2

4.2

3.4

0.9

Electric washing machines

1.4

- 0.6

2.0

10.0

0.8

Electric vacuum cleaners

3.0

1.5

9.3

10.3

4.8

Microwave ovens

0.9

- 2.3

6.0

7.1

0.6

Products

Source:Total, BRIC
countries

Total, seven
ASEAN
countries

JEMA, “Survey on the Global Demand for the Five Home Appliances, 2007 - 2013,” March 2015.

32
32

Other areas

2.

Trends by business category

Japanese home appliance manufacturers used to have an overwhelming advantage in the
Chinese and Asian markets. But in the ranking of market shares in the world for washing machines
and refrigerators (Fig. 2.3.9), Japan was overpowered by South Korea and China. In addition, mostof home appliances can easily be imitated and are liable to get into price competition. Thus,
manufacturers are required to develop novel branding and marketing channels.

Fig. 2.3.9 Ranking of the market share of manufacturers by product type(2014; in terms of the number of products shipped; global market shares)
Washing machines
Manufacturer

Refrigerators

Share

Increase/decrease in %Manufacturer

Share

Increase/decrease in %

First

Heiar

18.5

1.1

Heiar

18.6

SecondWhirlpool

16.6

5.0

Whirlpool

11.7

3.0

Third

LG Electronics

7.5

0.0

Electrolux

7.0

-0.1

FourthMidea Group

7.4

0.3

LG Electronics

6.7

0.2

-0.2

Samsung
Electronics

5.7

0.2

Fifth
Source:Electrolux

7.1

Based on the “Nikkei Sangyo Shimbun” for July 6, 2015.

33
33

0.3

2.

2.4

Computers and office machines

2.4.1

Supply and demand trend

Trends by business category(1) Trend of the global market

As shown in Fig. 2.4.1, the global production of computers and information terminals was on
the increase in the 2010-2014 period. Behind this is the situation where the market of terminals forentry into the Internet, such as smartphones and tablets, greatly grew. The global output in 2014 was¥48,479.9 billion, of which the figure for Japanese manufacturers was ¥7,375.6 billion (market
share: 15.2%). The share of the production of Japanese manufacturers was on the decrease from2010 to 2013 but improved to some extent in 2014.

Fig. 2.4.1

Trend of the global production of computers and information terminals(in terms of yen value)(¥100 million)
600,000

25.0%
21.0%

500,000

462,64017.1%
400,000

300,000

395,915394,060

17.8%

15.2% 15.0%
14.4%
10.0%

4.8%
83,056

Source:2010

Global production
世界生産額
Production in Japan
日本生産額

8.3%

5.0%

Growth rate ofglobal production

世界生産伸び率

Share of Japanese
日本シェア
manufacturers

-0.5%
-0.3%
67,513

0

20.0%

15.9%
392,890

200,000

100,000

484,799

2011

66,76273,75662,413
2012

2013

2014

0.0%

-5.0%

Based on the Japan Electronics and Information Technology Industries Association (hereinafter referred to as the“JEITA”), “Production Forecast for the Global Electronics and Information Technology Industry” for each year.

(2) Domestic production

The domestic production of computers and allied devices in 2014 (Fig. 2.4.2) amounted to¥1,200.0 billion, a decrease of 0.3% from the previous year. By product category, computers, which
account for about 60% of the total output of computers and allied devices, registered sales of ¥726.1
billion, down 1.2%, turning to a decline although only a little. The production of mid-range
computers was ¥82,400 million, down 0.7%, and that of personal computers was ¥602.0 billion, asmall fall of 1.6%.

34
34

2.

Trends by business category

The output of peripheral devices totaled to ¥473.8 billion. By product type, the figure forexternal storage devices was ¥169.0 billion, down 8.8%, and that for printers, ¥79.3 billion, up 6.3%.
For terminal devices, the production of those for financial use was ¥87.9 billion, a substantial growthof 17.6%.

Fig. 2.4.2

Trend of the production of computers and office machines(in terms of yen value)
Unit: ¥million
Production

Computers and information terminals
Computers
General-use computers (mainframes)

Growth rate
in 2013-2014

2012

2013

2014

1,208,618

1,203,003

1,199,963-0.3%

713,883

735,021726,127-1.2%

40,97640,342

41,647

3.2%

Mid-range computers

98,69583,04482,436-0.7%

Personal computers574,212611,635

602,044-1.6%

54,32760,26862,051

3.0%

Desktop computers (including tower-type and all-in-one-type ones)

186,996

216,906

216,833

0.0%

Notebook computers (including tablet-type ones)

332,889

334,461

323,160-3.4%

For servers

Peripherals

××

473,836

×

190,066

185,424

169,028-8.8%

174,012

172,050

161,790-6.0%

84,93074,617

79,292

6.3%

Ink-jet printers

17,773

11,820××

Laser printers

34,06031,62529,710-6.1%

55,15558,62867,05914.4%

107,810

105,869

××

Terminal devices for financial use

73,45174,73487,916

17.6%

Terminal devices for information kiosks

3,240

3,133

2,762

-11.8%

Portable terminal devices for exclusive use

12,824

9,178

9,057

-1.3%

External storage devises (including built-in ones)
Disk array devices
Printers

Monitors (for computers)
Terminal devices

Data:
Source:Ministry of Economy, Trade and Industry, “Dynamic Production Statistics.”
Based on the data of the JEITA website.

(3) Export and import

The export of computers and allied devices in 2014 (Fig. 2.4.3) amounted to ¥400.1 billion, aslight increase of 0.6% over the previous year. By product type, the export of computers was ¥112.0
billion, a negative growth of 10.8%, and that of information terminals was ¥288.1 billion, a growthof 5.8%. The export of smart cards (IC cards are the cards in which ICs are incorporated for the
purpose of recoding data and making calculations) was ¥86.8 billion, up 25.1%, which was anincrease as in 2013.

35
35

2.

Fig. 2.4.3

Trends by business category

Trend of the import of computers and office machines(in terms of yen value)
Unit: ¥million
Production

Growth rate
in 2013-2014

2012

2013

2014

365,484

397,885

400,1170.6%

112,712125,532

111,977-10.8%

Portable automatic data processors

74,33683,00270,802-14.7%

Other automatic data processors

11,484

12,873

14,720

14.3%

5,231

6,207

7,742

24.7%

Computers and information terminals
Computers

Central processing units, input/output devices and devices
stored in the same housing
Processors
Information terminals
Printers
Ink-jet printers
Digital multi-function machines

26,892

29,65826,455-10.8%

252,772

272,352

288,140

5.8%

78,47578,23583,197

6.3%

29,031

32,77035,0577.0%

25,55929,01730,753

6.0%-20.5%

Those equipped with a FAX function

1,040

379

301

Monitors (those classified into Item 8528)

22,08525,904

27,772

7.2%

176

81

64

-21.7%-97.3%

CRT-type monitors

20

28

1

Projectors (for connecting with a PC)

Those packed for retailing (excluding used ones)

19,336

17,374

16,830-3.1%

Other input and output devices

21,154

20,36918,231-10.5%

Storage devices

33,532

38,64841,354

7.0%

Other storage devices (including flexible disk devices)

9,557

16,506

21,49730.2%

Magnetic disk devices

22,107

20,293

17,891-11.8%

Optical disk devices

1,869

1,849

1,967

6.4%

Removable media using semiconductor media

27,48937,54438,715

3.1%

Non-volatile semiconductor storage devices(USB memories, flash memories, etc.)

21,63430,10429,042-3.5%

Smart cards (cards containing ICs)

5,336

6,940

8,680

25.1%

Data:
Source:Ministry of Finance, “Trade Statistics of Japan.”
Based on the data of the JEITA website.

The import of computers and allied devices (Fig. 2.4.4) totaled to ¥2,227.4 billion or a growthof 9.0%. The figures for computers was ¥1,384.0 billion, up 14.4%, and those for information
terminals was ¥843.4 billion, up 1.2%. In computers, portable automatic data processors (those of
10kg or less composed at least of a central processing unit, a keyboard and a display), that is,notebook computers, continued to have a larger import as in 2013 with ¥923.9 billion or a rise of
16.2%. Of other automatic data processors, the import of central processing units, input/output
devices and devices stored in the same housing, i.e., tablet terminals was ¥50.0 billion, an increase of
3.8%, which was a growth as in 2013.

36
36

2.

Fig. 2.4.4

Trends by business category

Trend of the import of computers and office machines(in terms of yen value)
Unit: ¥million
Growth rate
in 2013-2014

2012

2013

2014

1,768,572

2,042,666

2,227,362

9.0%

1,011,099

1,209,494

1,383,995

14.4%

Portable automatic data processors

647,197

794,870923,904

16.2%

Other automatic data processors

130,277

104,748

101,983-2.6%

44,16848,15649,9683.8%

233,624

309,876

358,108

15.6%

757,473

833,172

843,367

1.2%

59,89863,56575,668

19.0%

5,602

4,984

4,720

-5.3%

169,406

174,165

183,270

5.2%
-7.6%

Computers and information terminals
Computers

Central processing units, input/output devices and devices
stored in the same housing
Processors
Information terminals
Printers
Ink-jet printers
Digital multi-function machines
Those equipped with a FAX function

6,380

5,415

5,003

Monitors (those classified into Item 8528)

53,123

71,34871,903

0.8%

121

163

90

-44.5%

Projectors (for connecting with a PC)

8,404

10,345

12,534

21.2%

Other input and output devices

37,061

44,94745,9192.2%

Storage devices

268,415

296,274

288,910-2.5%-33.4%

CRT-type monitors

Main storage devices

30,922

24,200

16,111

Magnetic disk devices

198,227

212,737

214,618

0.9%

Optical disk devices

15,156

16,676

15,675-6.0%

Removable media using semiconductor media

120,463

115,481

106,090-8.1%

Non-volatile semiconductor storage devices(USB memories, flash memories, etc.)

107,289

99,94988,461-11.5%

Smart cards (cards containing ICs)

12,89815,205

17,230

13.3%

740

916

1,861

103.0%

276

327

15,3694595.0%11,56815,92018,22914.5%

Proximity cards/tags
Other smart cards
Magnetic and optical readers and data processing machines
Data:
Source:Ministry of Finance, “Trade Statistics of Japan.”
Based on the data of the JEITA website.

2.4.2

Results of operations and the trend of the computer and office machineindustry(1) Trend of management of main manufacturers

According to the “Nihon Keizai Shimbun” for November 13, 2015, the financial report for theperiod of July to September 2015 published on November 12 by the Lenovo Group said that thecompany suffered a final loss of $714.00 million (approx. ¥88.0 billion). The Group continued tosuffer a bitter fight in personal computer business, its major business area, due to the saturation of
the market and was not profitable in smartphones, on which the company is focusing its energies, too
as a result of intensified competition. Because of these poor business results, the Group decided inAugust 2015 to reduce the workforce by 3,200 employees.

37
37

2.

Trends by business category

The “Nihon Keizai Shimbun” for December 4, 2015 reported that Toshiba, Fujitsu and VAIO,
the company that became independent of Sony’s personal computer segment, began to discuss an
integration of their personal computer business. If this plan materializes, a personal computerbusiness ranking first by overtaking the Lenovo Group with a domestic market share of over 30%
will be created. It is expected that if Toshiba, Fujitsu and VAIO merge, their ability to negotiate inprocurement would become greater than at present, although they could not reach the scale of global
shipment by the big three, the Lenovo Group, Hewlett-Packard and Dell.
(2) Business environment

IDC, a research firm in the U.S., published on December 4, 2015 its prediction that the global
shipment of personal computers throughout 2015 would be a negative growth of 10.3% from theprevious year. The firm also gave strong dollar, lowering prices, excessive inventories, etc. as thereasons for a continued decrease in shipment.
Next let’s look at the domestic market. According to IDC Japan (Fig. 2.4.5), the shipment of
personal computers in 2014 fell by 1.5% to 15,390,000. The shipment to the market of products forhome use was 6,000,000 or an increase of 2.4% over 2013 as the impact of tablet terminals was
reduced. In the market of business-use products, the replacement demand after the support for
Windows XP ended contributed to sales, but due to the subsequent reactions, shipment reduced by
3.9% to 9,390,000.

Fig. 2.4.5 Domestic shipment of personal computers and year-on-year growth rates(2007 - 2013; for home-use and business-use ones)

Shipment to the home-use market

Shipment to the business-use market

Growth rates of the business-use market

Growth rates of the home-use market

Source: IDC Japan, February 2015 (extracts from the figure quoted by ITmedia Enterprise)
http://www.itmedia.co.jp/pcuser/articles/1502/12/news095.html

38
38

2.

Trends by business category

In the market share by vender (Fig. 2.4.6), the top five did not change but the first-ranking NEC
Lenovo Japan Group increased its share to 26.3%. In the share by vender in 2013, second-ranking
Fujitsu had had a share of 18.8%, third-ranking Toshiba, 12.2%, fourth-ranking Dell, 10.9% andfifth-ranking HP, 10.7%. For other venders, ASUS gained a higher ranking of the seventh in 2014
rising from the ninth in 2013 and the Acer Group and Epson, the ninth and the tenth, respectively, aranking higher than the tenth and the eleventh in 2013.

Fig. 2.4.6 Domestic shipment of personal computers by vender (2014)
Unit: Thousand units
Ranking Ranking
in 2014 in 2013

VenderShipment
in 2014

Marketshare

Shipment
in 2013

Marketshare

Year-on-year
growth rate

1

1

NEC Lenovo group

4,042

26.3%

4,027

25.8%

0.4%

2

2

Fujitsu

2,898

18.8%

2,900

18.6%

-0.1%

3

3

Toshiba

1,875

12.2%

1,889

12.1%

-0.7%

4

4

Dell

1,680

10.9%

1,667

10.7%

0.8%

5

5

HP

1,643

10.7%

1,585

10.1%

3.7%

6

6

Apple

796

5.2%

766

4.9%

4.0%

7

9

ASUS

420

2.7%

309

2.0%

35.8%

8

8

Panasonic

306

2.0%

312

2.0%

-1.7%

9

10

Acer Group

282

1.8%

268

1.7%

5.2%

10

11

Epson

259

1.7%

241

1.5%

7.3%

Other venders

1,188

7.7%

1,656

10.6%

-28.3%

15,389100.0%

15,620100.0%-1.5%

Source: IDC Japan, February 2015 (an extract from the figure quoted by PC Watch).
http://pc.watch.impress.co.jp/docs/news/20150212_688031.html

2.4.3

Future prospects

IDC Japan predicted that while the downward trend of the global shipment of personal
computers would continue in the first half of 2016, the shipment would be stabilized by the end of2016 and may turn to an increase if those products which would stimulate the replacement purchaseare introduced. IDC also considers that domestic shipment will decrease because it is expected thatthe replacement cycle of personal computers in the business market, which accounts for about 60%of the domestic market, will grow longer and that distributors’ excess inventories will not be reduced.
On the other hand, it is supposed that the market of tablets and smartphones will have an increase in
use in specified business categories, and as shown in Fig. 2.4.7, in the domestic shipment of mobile
devices, portable information terminals will be the main products in 2016 and after.

39
39

2.

Trends by business category

Fig. 2.4.7 Estimated domestic shipment of mobile devices in 2013 to 2019

Source: IDC Japan, December 2015.
http://www.idcjapan.co.jp/Press/Current/20151216Apr.html

4040

The Economic Research Institute (ERI)

Trend analysis for the Japanese machineJapanese Society for the Promotion of Machineindustry

Industry (JSPMI)

The institute issues annual reports entitledThis institute conducts surveys and research on“Nihon no Kikai Sangyo”(literally, ”Machine

various economic and management aspects ofIndustry of Japan”) to provide summaries ofthe machine industry, and works to spread its

supply and demand trends, business andfindings widely by publishing different kinds ofmanagement environments, future challenges

survey and research reports, by hosting lecturesand other aspects of more than 30 sectors

and study sessions, and through other activities.

within Japan’s machine industry.

In addition, it collects and organizes books,
information materials and electronic information

Creation and communication of information

concerning the machine industry from both

The institute runs the Business Information

inside and outside Japan, runs the BusinessCommons (BIC) Library, developed by adding

Information

business

Commons(BIC)

Libraryandsupportfunctions to its predecessor,

provides support to people involved in Japan’s

the Machine Industry Library. By taking

machine industry.

advantage of its functions, this library contributes
to the further growth of the machine industry

Research activities

through its services for the provision of quality

The institute works on highly original research

information.

projects, on subjects including on growth【Main information provision services】

strategies contributing to the growth of the(1) Undertaking commissioned research projects

Japanese machine and information industries,

for members and venture business by taking

and the improvement of these industries’ inter-advantage of the library’s statistical data;

national competitiveness.

(2) Acting as a point of contact for consultations【Major research projects】

concerning market and management information(1) Regional economies/Industrial district;related to industry-university-government(2) Globalization/Newly industrializing

cooperation ; andeconomies;(3) Fundamental technologies/R&D/Human
resources;(3) Providing a wide range of useful services andcommunication opportunities to associations
for machine-related industries and to various(4) Environment/Resources/Energy;

other bodies (through our industrial Vision(5) Small-to medium-sized business/Venture

Salon, Consultation Corner, etc.).

businesses; etc.