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Friday, May 30, 2008

Toyota and Nissan acquire top position in April Japan car production

With the rising price of fuel, Japanese cars have become ‘hot cakes’ in North America. In April, Toyota Motor Corporation (TYO: 7203) and Nissan Motor Company Limited (TYO: 7201) took the top position in car production in Japan. According to the latest figure published by Japan Automobile Manufacturers Association, the combined auto production of twelve major Japanese automakers have increased 5.4% to 917,951 and exports increased 21% to 584,059.

Currently, Toyota’s hybrid model is very popular in the USA. On May 27th, Toyota announced to build a third battery plant in Japan for its hybrid vehicles. News came out that Toyota is talking with GM to produce Prius hybrid at the Toyota GM joint venture plant in California. However, Toyota spokesperson said that nothing had been decided on production of Prius at the joint venture New United Motor Manufacturing Inc. Bloomberg reports:

The price of gasoline has jumped 30 percent in the U.S. so far this year, prompting demand for small cars. Toyota and Nissan increased sales in the world's largest car market last month, winning customers from General Motors Corp. and Ford Motor Co. Japan's vehicle exports to the U.S. jumped 21 percent.

``Rising gasoline prices are certainly helping the Japanese carmakers the most,'' said Jesse Toprak, director of market forecasting for Edmunds.com in Santa Monica, California. ``The Japanese brands are perceived to have more gas-efficient vehicles.''

Sales of the domestic cars in the USA is at the lowest since 1995. Japanese companies are making profits from their small vehicles. Toyota increased its domestic output 1.1% to 331,100 vehicles. Exports rose 8% and shipment to China rose 77%. Production of Nissan Motor Company increased 42% to 98,873 vehicles and export to the USA increased 64%.

Related articles:

CNN.com

Bloomberg

Asianbiz


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