2003 the MOTOR INDUSTRY of JAPAN Contents

Introduction

This booklet offers our readers a brief overview of the Japanese automobile industry today. It contains a wide range of pertinent statistics on the industry's status and looks at relevant trends and developments. The Japan Automobile Manufacturers Association, Inc. (JAMA) aims to facilitate understanding of the Japanese motor vehicle industry by providing helpful insights into the industry. We hope that you will find this publication informative, and we welcome your questions and comments.

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2002 In Summary ...... 3

MOTOR VEHICLES Production ...... 4 Domestic Sales...... 5 Imported Vehicle Sales ...... 6 Car Market Sectors ...... 7 Exports ...... 8 In Use and Cars Per Capita ...... 9

MOTORCYCLES Production and Domestic Sales...... 10 Exports ...... 11

GLOBAL ACTIVITIES North American Manufacturing Operations ...... 12 European Manufacturing Operations ...... 14 Asian Manufacturing Operations ...... 16 International Automotive Industry Ties ...... 17

STANDARDS AND REGULATIONS Motor Vehicle Classification ...... 20 Domestic Taxes on Automobiles ...... 21 Automobile Certification and Standards ...... 22 SOCIAL CONCERNS Attention to the Environment ...... 24 Traffic Safety ...... 28 Intelligent Transport Systems ...... 29

AUTOMOBILES AND THE ECONOMY Automotive Shipments in Value Terms ...... 30 Automotive Trade ...... 31

MISCELLANEOUS Significant Events of 2002 ...... 32 JAMA Organization and Information Services...... 34 Member Manufacturers ...... 35 Related Automotive Associations ...... 36

Motor Vehicle Classifications Throughout this booklet, passenger cars are referred to as standard, small or “mini” cars. These categories are based primarily on engine displacement: standard is over 2000cc, small is 661-2000cc, and mini is 660cc and under. Most passenger cars in Japan are in the small category, but the minicar sector has been expanding in recent years. For more details, see Motor Vehicle Classification on page 20 and Car Market Sectors on page 7.

This booklet is printed on recycled paper and is recyclable. Edited and published by JAMA 2002 In Summary

SUMMARY: 2002 DOMESTIC PERFORMANCE SUMMARY: 2002 DOMESTIC MOTORCYCLE AND EXPORTS PERFORMANCE AND EXPORTS Cars Trucks Buses Total 50cc & under Over 50cc Total Production 8,618,357 1,572,640 66,321 10,257,318 Production 588,956 1,526,532 2,115,488 +6.2% -1.8% +14.2% +4.9% -3.6% -11.1% -9.1% New 4,441,354 1,334,380 16,359 5,792,093 Demand 535,327 235,755 771,082 Registrations +3.5% -16.6% +2.7% -1.9% in Japan -1.8% +14.6% +2.7% Exports 4,012,371 637,593 48,762 4,698,726 Exports 74,811 1,343,871 1,418,682 +12.4% +15.3% +9.6% +12.8% +25.9% -11.5% -10.1% Notes: 1. New registrations include imported vehicles. 2. Percentage figures represent the change from the preceding year. Note: Percentage figures represent the change from the preceding year. Sources: Japan Automobile Manufacturers Association, Japan Automobile Dealers Association, Japan Mini-Vehicles Association.

JAPAN'S CAR/TRUCK/BUS PRODUCTION, SALES, JAPAN'S TOP SELLERS AND EXPORTS BY MAKE (2002) Production Chg.(%) Sales Chg..(%) Exports Chg.(%) 2002 Chg.(%) Cars 444,010 -8.0 358,093 -6.5 61,505 +14.3 1 Honda Fit 250,790 +140.5 Trucks 155,531 -0.4 146,503 -7.9 14,604 +34.9 2 Toyota Corolla 226,222 -4.3 Daihatsu 599,541 -6.2 504,596 -6.9 76,109 +17.8 Cars 355,394 -4.6 170,305 -15.8 189,102 +8.1 3 Nissan March 139,332 +130.6 Trucks 80,961 -10.3 85,070 -0.03 4 Toyota Ist 103,579 Fuji Hvy. Ind. 436,355 -5.7 255,375 -11.1 189,102 +8.1 5 Toyota Vitz 100,801 -29.3 Cars 241 -51.0 522 +342.4 GM Japan 241 -51.0 522 +342.4 6 Toyota Noah 97,080 +792.8 Trucks 48,991 +0.8 31,198 -3.5 19,361 +24.2 7 Toyota Estima 95,765 -19.5 Buses 5,179 +7.2 2,012 -0.6 3,564 +15.7 8 Toyota Voxy 77,958 +760.1 Hino 54,170 +1.4 33,210 -3.3 22,925 +22.8 9 Nissan Cube 75,215 +0.3 Cars 1,328,640 +8.9 834,431 +5.7 475,797 +14.5 10 Honda Mobilio 72,242 Trucks 57,739 -11.0 58,437 -9.6 Honda 1,386,379 +7.9 892,868 +4.5 475,797 +14.5 Cars 8,475 -33.9 71 -87.2 19,339 -16.3 11 Honda Step Wagon 71,128 -35.3 Trucks 220,254 +10.2 53,410 -9.2 156,630 +19.0 12 Toyota Crown 68,798 -7.0 Buses 2,324 -28.0 1,246 +5.2 1,199 -44.4 13 Honda Stream 64,289 -46.4 Isuzu 231,053 +7.0 54,727 -9.7 177,168 +12.9 14 Mazda Demio 63,050 +2.4 Cars 716,117 +9.0 217,095 -3.9 513,515 +10.8 15 Nissan Serena Wagon 60,492 +11.6 Trucks 57,301 -20.5 45,986 -17.2 7,757 -50.2 Mazda 773,418 +6.1 263,081 -6.5 521,272 +8.8 16 Toyota Mark II 59,448 -13.7 Cars 685,213 +8.4 256,734 -11.2 400,985 +25.2 17 Toyota Premio 58,800 Trucks 178,694 -8.7 155,750 -20.0 47,006 +0.4 18 Toyota Fun Cargo 57,525 -17.9 Buses 7,397 +7.5 3,903 +1.4 3,487 +20.0 Mitsubishi 871,304 +4.4 416,387 -14.6 451,478 +22.0 19 Toyota Alphard 53,428 Cars 1,192,770 +9.6 544,174 +10.2 551,073 +19.0 20 Nissan Wingroad 53,407 +36.6 Trucks 184,383 +7.7 226,281 -3.9 112,082 +29.3 Buses 15,286 +39.6 3,286 +36.9 9,516 +29.7 Nissan 1,392,439 +9.6 773,741 +5.8 672,671 +20.8 Note: Mini-vehicles are not included. Trucks 25,005 +10.1 14,971 -4.4 11,934 +32.4 Source: Japan Automobile Dealers Association. Buses 1,763 +21.7 723 +7.6 1,042 +19.8 Nissan Diesel 26,768 +10.8 15,694 -3.9 12,976 +31.3 Cars 817,038 +14.7 458,091 +6.1 266,207 +11.7 Trucks 182,842 -6.2 167,999 -11.6 16,242 +4.5 Suzuki 999,880 +10.2 626,090 +0.6 282,449 +11.2 Cars 3,070,459 +4.5 1,325,320 +10.0 1,534,848 +8.4 Trucks 380,340 -1.2 344,706 -31.4 251,977 +14.0 Buses 34,372 +11.8 5,187 -10.4 29,954 +6.5 Toyota 3,485,171 +3.9 1,675,213 -2.2 1,816,779 +9.1 Cars 276,518 +2.8 Trucks 600 +37.3 4,069 -39.4 Buses 2 -77.8 Other599 +37.1 280,589 +1.7 (Imports) Total Cars 8,618,357 +6.2 4,441,354 +3.5 4,012,371 +12.4 Total Trucks 1,572,640 -1.8 1,334,380 -16.6 637,593 +15.3 Total Buses 66,321 +14.2 16,359 +2.7 48,762 +9.6 Total 10,257,318 +4.9 5,792,093 -1.9 4,698,726 +12.8

Sources: Japan Automobile Manufacturers Association, Japan Automobile Dealers Association, Japan Mini-Vehicles Association. 3 Motor Vehicle Production

In 2002 motor vehicle production in Japan shifted into trucks remained on a downtrend, dropping by 1.8% to the plus column for the first time in two years, rising to 1,572,641 units to mark the eighth consecutive year of 10,257,318 units for a year-on-year increase of 4.9% and decline, the longest on record. This decline reflects a recovering the 10-million level also for the first time number of factors, including the slowdown in the since 2000. This rise was due to the vigorous Japanese economy and the increasing efficiency of performance of Japanese vehicle exports, which motor transport, which is allowing transport vehicles to registered a 12.8% jump over 2001. remain in use on the road for longer periods of time, thus Production of passenger cars increased by 6.2% to leading to decreases in their numbers. On the other 8,618,348 units, registering its first growth in two years. hand, production of buses climbed by 14.2% to 66,321 The excellent performance of passenger car exports, units to mark the third consecutive year of gain. primarily to North America, and an increase in domestic sales of small cars explain this growth. Production of

MOTOR VEHICLE PRODUCTION

millions of units 14 12 Total 10 8 Passenger Cars 6 4 2 Trucks & Buses

1970 1975 1980 1985 1990 1995 1996 1997 1998 1999 2000 2001 2002

Year Cars Chg.(%) Trucks Chg.(%) Buses Chg.(%) Total Chg.(%) 2002 8,618,357 +6.2 1,572,640 -1.8 66,321 +14.2 10,257,318 +4.9 2001 8,117,563 -2.9 1,601,536 -7.3 58,092 +6.5 9,777,191 -3.6 2000 8,359,434 +3.2 1,726,818 -1.2 54,544 +12.7 10,140,796 +2.5 1999 8,097,082 +0.6 1,746,912 -9.8 48,395 -15.0 9,892,389 -1.5 1998 8,047,929 -5.2 1,937,076 -20.0 56,953 -8.5 10,041,958 -8.5 1997 8,491,480 +8.0 2,421,373 -0.3 62,234 +17.1 10,975,087 +6.1 1996 7,864,676 +3.3 2,428,897 -4.3 53,126 +12.4 10,346,699 +1.5 1995 7,610,533 -2.5 2,537,737 -6.1 47,266 -3.8 10,195,536 -3.4 1990 9,947,972 +9.9 3,498,639 -11.0 40,185 -4.5 13,486,796 +3.5 1985 7,646,816 +8.1 4,544,688 +5.2 79,591 +10.2 12,271,095 +7.0 1980 7,038,108 +14.0 3,913,188 +15.2 91,588 +46.4 11,042,884 +14.6 1975 4,567,854 +16.2 2,337,632 -9.2 36,105 -21.2 6,941,591 +5.9 1970 3,178,708 +21.7 2,063,883 +2.1 46,566 +11.3 5,289,157 +13.1 1965 696,176 +20.1 1,160,090 +4.6 19,348 +41.5 1,875,614 +10.2 1960 165,094 +110.0 308,020 +73.5 8,437 +25.3 481,551 +83.2 1955 20,268 +40.0 43,857 -11.5 4,807 -16.4 68,932 -1.6 1950 1,594 — 26,501 — 3,503 — 31,597 — Note: Percentage figures represent the change from the preceding year.

2002 DOMESTIC PRODUCTION BY MANUFACTURER Manufacturer Cars Chg.(%) Trucks Chg.(%) BusesChg.(%) Total Chg.(%) Daihatsu 444,010 -8.0 155,531 -0.4 — — 599,541 -6.2 Fuji Hvy. Ind. 355,394 -4.6 80,961 -10.3 — — 436,355 -5.7 GM Japan 241 -51.0 — — — — 241 -51.0 Hino — — 48,991 +0.8 5,179 +7.2 54,170 +1.4 Honda 1,328,640 +8.9 57,739 -11.0 — — 1,386,379 +7.9 Isuzu 8,475 -33.9 220,254 +10.2 2,324 -28.0 231,053 +7.0 Mazda 716,117 +9.0 57,301 -20.5 — — 773,418 +6.1 Mitsubishi 685,213 +8.4 178,694 -8.7 7,397 +7.5 871,304 +4.4 Nissan 1,192,770 +9.6 184,383 +7.7 15,286 +39.6 1,392,439 +9.6 Nissan Diesel — — 25,005 +10.1 1,763 +21.7 26,768 +10.8 Suzuki 817,038 +14.7 182,842 -6.2 — — 999,880 +10.2 Toyota 3,070,459 +4.5 380,340 -1.2 34,372 +11.8 3,485,171 +3.9 Other — — 599 +37.1 — — 599 +37.1 Total 8,618,357 +6.2 1,572,640 -1.8 66,321 +14.2 10,257,318 +4.9 Note: Percentage figures represent the change from the preceding year.

4 Domestic Sales of New Motor Vehicles

Registrations of new motor vehicles in 2002 declined 16.6% to 1,334,380 units, while sales of buses were up for the second straight year, resulting in a year-on-year 2.7%, the first rise in two years. decrease of 1.9% to total 5,792,093 units. The drop in Demand in 2003 is anticipated to total 5,850,000 vehicle sales was attributed to the weak market for units, up 1.0% from the previous year, reflecting trucks in the wake of Japan's prolonged economic forecasts for growth in the Japanese economy and slowdown. expectations that launches of new models will stimulate Passenger car sales grew for the fourth consecutive the market. year, rising by 3.5% to 4,441,354 units. Sales of trucks declined for the seventh consecutive year, dropping by

NEW MOTOR VEHICLE SALES millions of units 8 7 6 Total 5 4 Passenger Cars 3 2 1 Trucks & Buses

1970 1975 1980 1985 1990 1995 1996 1997 1998 1999 20002001 2002 Year Cars Chg.(%) TrucksChg.(%) Buses Chg.(%) Total Chg.(%) 2002 4,441,354 +3.5 1,334,380 -16.6 16,359 +2.7 5,792,093 -1.9 2001 4,289,683 +0.7 1,600,856 -5.1 15,932 -3.9 5,906,471 -0.9 2000 4,259,872 +2.5 1,686,599 -0.4 16,571 +14.5 5,963,042 +1.7 1999 4,154,084 +1.5 1,692,654 -4.5 14,478 +2.4 5,861,216 -0.3 1998 4,093,148 -8.9 1,772,136 -20.1 14,141 -10.3 5,879,425 -12.6 1997 4,492,006 -3.8 2,217,257 -7.3 15,763 -8.5 6,725,026 -5.0 1996 4,668,728 +5.1 2,391,790 -0.5 17,227 -0.4 7,077,745 +3.1 1995 4,443,906 +5.6 2,403,825 +4.6 17,303 -3.0 6,865,034 +5.2 1990 5,102,659 +15.9 2,649,909 -6.3 24,925 -5.9 7,777,493 +7.2 1985 3,104,083 +3.3 2,431,178 +4.7 21,573 +6.4 5,556,834 +2.2 1980 2,854,176 -6.0 2,137,947 +2.2 23,387 -2.5 5,015,510 -2.7 1975 2,737,641 +19.7 1,551,454 +0.7 19,836 -12.6 4,308,931 +11.9 1970 2,379,137 +16.8 1,693,502 -4.4 27,828 +4.2 4,100,467 +6.9 1965 586,287 +18.8 1,073,832 +9.0 14,843 -2.4 1,674,962 +12.1 1960 145,227 +98.8 255,693 +61.2 7,260 +12.2 408,180 +71.4 1955 20,055 — 40,498 — 3,977 — 64,530 — Notes: 1. Figures include imported vehicles. Sources: Japan Automobile Dealers Association, Japan Mini-Vehicles Association. 2. Percentage figures represent the change from the preceding year.

2002 DOMESTIC SALES BY MANUFACTURER

Manufacturer Cars Chg.(%) Trucks Chg.(%) BusesChg.(%) Total Chg.(%) Daihatsu 358,093 -6.5 146,503 -7.9 — — 504,596 -6.9 Fuji Hvy. Ind. 170,305 -15.8 85,070 -0.03 — — 255,375 -11.1 GM Japan 522 +342.4 — — — — 522 +342.4 Hino — — 31,198 -3.5 2,012 -0.6 33,210 -3.3 Honda 834,431 +5.7 58,437 -9.6 — — 892,868 +4.5 Isuzu 71 -87.2 53,410 -9.2 1,246 +5.2 54,727 -9.7 Mazda 217,095 -3.9 45,986 -17.2 — — 263,081 -6.5 Mitsubishi 256,734 -11.2 155,750 -20.0 3,903 +1.4 416,387 -14.6 Nissan 544,174 +10.2 226,281 -3.9 3,286 +36.9 773,741 +5.8 Nissan Diesel — — 14,971 -4.4 723 +7.6 15,694 -3.9 Suzuki 458,091 +6.1 167,999 -11.6 — — 626,090 +0.6 Toyota 1,325,320 +10.0 344,706 -31.4 5,187 -10.4 1,675,213 -2.2 Imports 276,518 +2.8 4,069 -39.4 2 -77.8 280,589 +1.7 Total 4,441,354 +3.5 1,334,380 -16.6 16,359 +2.7 5,792,093 -1.9 Note: Percentage figures represent the change from the preceding year. Sources: Japan Automobile Dealers Association, Japan Automobile Importers Association.

5 Sales of Imported Vehicles in Japan

In 2002 sales of imported vehicles (including 17.6% to 16,466 units, marking the first increase in three commercial vehicles) rose 1.7% to 280,590 units to post years. a second straight year-on-year increase. Sales of It should be noted that Honda began importing Thai- imported passenger cars were up 2.8% to 276,519 units, made passenger cars to Japan for the first time ever, with also the second straight increase. sales totalling 1,231 units in 2002. The share of the Japanese passenger car market held European-made cars retained their domination of the by imports in 2002 was 6.2%, virtually the same level as import market, raising their share by 1.2% to 238,800 in 2001. units to account for 86.4% of total car imports. These figures include the sales of imported passenger The top three import brands in Japan in 2002 were cars produced at the overseas facilities of Japanese Volkswagen, Mercedes-Benz, and BMW. automakers. In 2002 sales of these cars climbed by

BEST-SELLING FOREIGN BRANDS

Manufacturer 2002 Chg.(%) Manufacturer 2002 Chg.(%) 1Volkswagen 59,882 -2.2 6 Audi 11,747 +44.5 2 Mercedes-Benz 47,983 -10.2 7 BMW MINI 10,024 +7.7 3 BMW 35,728 -0.9 8 Honda 9,841 +8.1 4Volvo 15,531 -6.6 9 Opel 7,846 -37.9 5 Peugeot 15,162 +23.3 10 Alfa Romeo 7,426 +49.2

Note: BMW includes units manufactured in the U.S., Volvo includes units manufactured in the Netherlands, and Mercedes-Benz includes units manufactured in the U.S. and Spain.

NEW SALES OF IMPORTED CARS

thousands of units 4.0 3.5 U.S.A. Total 3.0 Other 2.5 2.0 1.5 European countries 1.0 0.5

1980 1985 1990 1995 1997 1998 1999 2000 2001 2002

Country of Origin 1980 1985 1990 1995 1997 1998 19992000 2001 2002

European countries 33,813 48,204 190,750 236,307 256,485 210,888 213,534 219,943 229,382 238,800 (German cars) (26,038) (40,157) (137,442) (156,216) (177,075) (148,607) (157,645) (167,808) (176,833) (182,275) U.S.A. 11,058 1,816 28,602 122,872 83,344 53,462 53,636 42,196 31,986 26,438 (U.S.-made Japanese cars) (0) (0) (12,598) (84,722) (36,206) (17,664) (21,737) (15,534) (10,395) (10,551) Other 0 152 2,345 3,086 1,666 1,498 4,266 5,628 7,720 11,281 Total 44,871 50,172 221,706 362,265 341,495 265,848 271,436 267,767 269,088 276,519 Chg.(%) — — +22.9 +31.2 -13.2 -22.2 +2.1 -1.4 +0.5 +2.8 Note: Percentage figures represent the change from the preceding year.

6 Car Market Sectors

The small (661cc-2000cc) and minicar (660cc and Established in 1949, the minicar category is a under) sectors have a dominant presence in the Japanese distinctive sector in Japan. The category is currently market. In 2002 these two sectors combined accounted limited to vehicles with an engine displacement of 660cc for 84.8% of the market. Breaking that figure down, or lower. Minicars offer excellent fuel economy and the small cars accounted for 55.4% and the very popular ability to maneuver in Japan's cramped driving minicars took a 29.4% share. conditions, as well as attractive tax and insurance By way of comparison, standard cars (2000cc+) benefits. They also provide a convenient, economical peaked in 1995 with a 20% share of the market and have mode of transportation for commuting to work and been on a steady downtrend since then. conducting daily activities, and these combined features Standard cars have a strong presence only in the have been behind their immense popularity in recent import market. From 1996 through 2002 standard cars years. held import market shares of 70.6%, 65.5%, 70.2%, 82.0%, 86.0%, 83.6% and 80.0%, respectively, clearly demonstrating their dominance of the import market.

2002 CAR MARKET SHARE BY CATEGORY 2002 IMPORTED CAR MARKET SHARE BY CATEGORY Minicars (660cc & under) 1.3%

Small cars (661cc-2000cc) Minicars 18.7% (660cc & under) 29.4% Small cars (661cc-2000cc) 55.4% Standard cars Standard cars (2000cc+) (2000cc+) 80.0% 15.2%

PASSENGER CAR SALES IN JAPAN BY MARKET SECTOR

1975 1980 1985 1990 1995 1998 1999 2000 2001 2002 SMALL CARS 2,531,396 2,608,215 2,869,527 3,839,221 2,654,291 2,389,671 2,193,920 2,208,387 2,274,996 2,460,103 Growth rate +27.1% -6.2% +1.8% +2.8% -2.2% -11.5% -8.2% +0.7% +3.0% +8.1% Market share 92.5% 91.4% 92.4% 75.2% 59.7% 58.4% 52.8% 51.8% 53.0% 55.4% STANDARD CARS 49,125 71,931 73,539 467,490 889,260 756,117 723,999 770,220 741,489 674,094 Growth rate +34.7% -15.1% +10.4% +69.1% +29.4% -13.4% -4.3% +6.4% -3.7% -9.1% Market share 1.8% 2.5% 2.4% 9.2% 20.0% 18.5% 17.4% 18.1% 17.3% 15.2% MINICARS 157,120 174,030 161,017 795,948 900,355 947,360 1,236,165 1,281,265 1,273,198 1,307,157 Growth rate -39.3% +2.2% -16.8% +102.8% +11.2% +3.3% +30.5% +3.6% -0.6% +2.7% Market share 5.7% 6.1% 5.2% 15.6% 20.3% 23.1% 29.8% 30.1% 29.7% 29.4% TOTAL MARKET 2,737,641 2,854,176 3,104,083 5,102,659 4,443,906 4,093,148 4,154,084 4,259,872 4,289,683 4,441,354 Growth rate +19.7% -6.0% +3.3% +15.9% +5.6% -8.9% +1.5% +2.5% +0.7% +3.5%

Note: Figures include imports.

7 Motor Vehicle Exports

Exports of motor vehicles posted a year-on-year remains Japan's biggest export destination, with a share increase in 2002 for the first time in two years, of 39.2% and 1,841,635 units exported in 2002. registering a 12.8% surge over the previous year to total In 2002 the share of exports within Japan's total 4,698,726 units. domestic production rose to 45.8%, up from 42.6% in Broken down by destination, all regions except Latin 2001. At the same time, Japanese automakers' global America registered export gains compared to 2001. operations continued to move ahead. Overseas Vehicle exports to Asia showed the largest increase of production in 2002 totalled 7,652,419 units. 21.5%, marking their first growth since 2000. By country, exports to the United States recorded a gain of 14.6%, also up for the first time in two years. The U.S.

EXPORTS BY DESTINATION

1970 1975 1980 1985 1990 1995 1999 2000 2001 2002 Asia 149,787 290,134 581,116 710,587 569,143 616,027 290,436 410,590 351,227 426,692 Middle East 26,635 241,511 542,955 401,598 283,866 206,446 308,114 295,176 381,965 419,274 Europe 126,275 528,486 1,226,954 1,363,694 1,750,497 918,831 1,329,216 1,136,083 895,415 949,699 (EU) (51,514) (383,589) (955,974) (995,489) (1,484,588) (792,058) (1,154,992) (973,076) (780,750) (837,639) North America 495,608 1,003,954 2,592,577 3,384,562 2,521,823 1,301,218 1,723,598 1,836,941 1,795,816 2,076,296 (U.S.A.) (422,464) (919,949) (2,407,645) (3,131,997) (2,236,988) (1,228,096) (1,556,419) (1,669,047) (1,606,998) (1,841,635) Latin America 79,678 143,509 382,231 290,417 216,375 329,064 277,825 298,801 293,636 287,165 Africa 111,244 217,294 322,329 137,729 129,278 137,718 131,489 110,218 98,524 144,979 Oceania 97,316 251,426 316,865 426,075 344,236 274,828 337,288 357,739 341,808 385,455 Other 233 1,298 1,934 15,810 15,994 6,677 10,987 9,337 7,778 9,166 Total 1,086,776 2,677,612 5,966,961 6,730,472 5,831,212 3,790,809 4,408,953 4,454,885 4,166,169 4,698,726

MOTOR VEHICLE EXPORTS millions of units

7 6 Total 5 4 3 Passenger Cars 2 1 Trucks & Buses 1970 1975 1980 1985 1990 1995 1996 1997 1998 1999 2000 2001 2002

Year Cars Chg.(%) TrucksChg.(%) Buses Chg.(%) Total Chg.(%) 2002 4,012,371 +12.4 637,593 +15.3 48,762 +9.6 4,698,726 +12.8 2001 3,568,797 -6.0 552,891 -10.5 44,481 +8.1 4,166,169 -6.5 2000 3,795.852 +1.0 617,870 +0.8 41,163 +7.3 4,454,885 +1.0 1999 3,757,460 +2.0 613,113 -22.9 38,380 -21.5 4,408,953 -2.6 1998 3,684,430 +2.9 795,528 -13.5 48,917 -10.4 4,528,875 -0.5 1997 3,579,131 +25.1 919,469 +13.8 54,602 +24.5 4,553,202 +22.7 1996 2,860,080 -1.2 807,772 -5.0 43,866 -2.0 3,711,718 -2.1 1995 2,896,216 -13.8 849,859 -17.2 44,734 -39.2 3,790,809 -15.0 1990 4,482,130 +1.8 1,309,121 -9.4 39,961 +13.7 5,831,212 -0.9 1985 4,426,762 +11.2 2,238,104 +8.0 65,606 +16.7 6,730,472 +10.2 1980 3,947,160 +27.2 1,953,685 +37.2 66,116 +79.4 5,966,961 +30.8 1975 1,827,286 +5.8 833,672 -4.7 16,654 +4.3 2,677,612 +2.3 1970 725,586 +29.5 351,611 +20.9 9,579 +41.6 1,086,776 +26.7 1965 100,716 +50.4 90,923 +11.3 2,529 +45.8 194,168 +29.1 1960 7,013 +43.6 31,028 +122.3 768 +73.8 38,809 +24.6 1955 2 +100.0 907 +33.6 322 +4.5 1,231 +24.6 1950 7 — 5,409 — 93 — 5,509 — Note: Percentage figures represent the change from the preceding year.

8 Motor Vehicles In Use and Cars Per Capita

As of year-end 2002, the number of motor vehicles Japan has been steadily increasing. As of the end of (excluding two-wheelers) in use on roads in Japan rose March 2002, it had increased by 0.19 of a year to 6.23 0.8% to 73,992,953 units. years, its highest age ever. Similarly, the average service The United States, with 223.4 million units at year- life for cars lengthened by 0.15 of a year to 10.55 years. end 2001, accounts for about one out of three motor According to statistics for 2001, Japan has 426 cars vehicles in use in the world. The U.S. is thus by far the per thousand persons, or one car for every 2.3 persons. world's leader in this category, while Japan stands in second place, accounting for about one-tenth of the estimated 775 million motor vehicles in use worldwide. The average age of passenger cars on the road in

PASSENGER CARS' LIFE IN YEARS (as of March of each year) PASSENGER CARS PER 1,000 PEOPLE (persons per car ) Year Average Age Average Service Life 0 100 200 300 400 500 600 U.S.A. 491 (2.0) 1975 3.30 6.72 1980 4.25 8.29 Italy 578 (1.7) 1985 4.57 9.17 Canada 559 (1.8) 1990 4.64 9.26 Germany 541 (1.8) 1995 4.88 9.43 Australia 515 (1.9) 1997 5.14 9.28 1998 5.33 9.44 U.K. 487 (2.1) 1999 5.60 9.63 France 489 (2.0) 2000 5.84 9.96 Belgium 460 (2.2) 2001 6.04 10.40 (2.3) 2002 6.23 10.55 Japan 426 Notes: Average age means the average years elapsed since first registration. Average service life means average vehicle lifespan. Note: Based on 2001 statistics from each country. Source: Japan Automobile Inspection and Registration Association.

MOTOR VEHICLES IN USE (as of the end of each year)

millions of units Total 70 60 50 Passenger Cars 40 30 20 Trucks & Buses & Other 10

1970 1975 1980 1985 1990 1991 1992 1993 1994 19951996 1997 1998 19992000 2001 2002

Year Cars Trucks Buses Other Total Chg.(%) 2002 54,540,512 17,482,897 233,405 1,736,139 73,992,953 +0.8 2001 53,541,212 17,868,753 234,816 1,766,696 73,411,477 +1.0 2000 52,438,083 18,228,108 235,483 1,751,252 72,652,926 +1.3 1999 51,164,901 18,633,046 235,676 1,693,012 71,726,635 +1.3 1998 49,896,326 19,083,546 237,701 1,600,791 70,818,364 +1.2 1997 48,611,230 19,654,917 240,354 1,500,548 70,007,049 +1.7 1996 46,868,712 20,092,120 242,243 1,601,444 68,805,073 +2.9 1995 44,680,254 20,432,988 243,095 1,500,784 66,857,121 +2.8 1994 42,678,566 20,670,360 245,387 1,420,734 65,015,047 +2.8 1993 40,772,407 20,884,257 247,794 1,361,722 63,266,180 +2.6 1992 38,963,861 21,134,660 248,624 1,314,761 61,661,906 +2.9 1991 37,076,065 21,326,629 248,258 1,267,569 59,918,521 +3.8 1990 34,924,213 21,324,848 245,668 1,206,996 57,701,725 +4.7 1985 27,844,601 17,145,178 231,228 942,377 46,163,384 +3.7 1980 23,659,528 13,193,439 230,020 790,911 37,873,898 +10.4 1975 17,236,326 10,089,051 226,284 586,895 28,138,556 +4.6 1970 8,778,975 8,517,507 187,980 341,315 17,825,777 +15.4 1965 2,181,287 4,539,728 102,695 159,259 6,882,969 +19.3 1960 457,451 1,589,965 56,192 72,077 2,175,685 +24.2 1955 153,924 679,880 34,421 32,572 900,797 +8.5 1950 45,006 261,579 18,306 12,494 337,385 — Note: Percentage figures represent the change from the preceding year. Source: Ministry of Land, Infrastructure and Transport.

9 Motorcycle Production and Domestic Sales

In 2002 domestic demand for motorcycles rose for the dropped for the second consecutive year, decreasing first time in six years, posting a growth of 2.7% to 9.1% to 2,115,488 units owing to a sluggish performance 771,082 units. Driving this growth was the excellent by exports. performance of, on one hand, motorcycles in the 51- The number of motorcycles in use in Japan has been 125cc category (up 20.7%), reflecting the emergence of declining for over a decade, reflecting a long-term replacement demand for commercial motorcycles slowdown in the domestic market. As of the end of (mainly for postal service use), and, on the other hand, March 2003, motorcycles in use totalled 13,540,373 brisk sales of motorcycles in the 126-250cc category (up units, accounting for an estimated ten percent of the total 19.3%), responding to the manufacturers' energetic number in use worldwide and ranking Japan third in the launches of new models to stimulate demand in the age world following India and China. 20-29 youth segment. Total domestic production of motorcycles in 2002

MOTORCYCLE PRODUCTION millions of units 7 6 5 4 3 2

1970 1975 1980 1985 1990 1995 1997 1998 1999 2000 2001 2002 Over 50cc Year 50cc & under Total Chg.(%) 51~125cc 126~250cc Over 250cc Subtotal 2002 588,956 543,294 241,356 741,882 1,526,532 2,115,488 -9.1 2001 610,993 598,551 260,269 858,227 1,717,047 2,328,040 -3.6 2000 636,546 630,221 297,433 851,191 1,778,845 2,415,391 +7.3 1999 679,690 532,909 237,706 801,406 1,572,021 2,251,711 -14.6 1998 839,123 783,646 271,378 742,149 1,797,173 2,636,296 -1.5 1997 933,921 817,284 275,847 648,631 1,741,762 2,675,683 +3.5 1995 951,803 1,038,938 217,738 544,760 1,801,436 2,753,239 +1.0 1990 1,343,220 686,734 270,304 506,637 1,463,675 2,806,895 +0.4 1985 2,014,850 1,373,423 469,728 678,346 2,521,497 4,536,347 +12.7 1980 2,493,910 2,181,206 660,831 1,098,577 3,940,614 6,434,524 +43.8 1975 1,030,822 1,887,701 331,733 552,291 2,771,725 3,802,547 -15.7 1970 895,599 1,407,205 259,145 385,723 2,052,073 2,947,672 +14.4

MOTORCYCLE DOMESTIC DEMAND

millions of units 3 2 1

1970 1975 1980 1985 1990 1995 1997 1998 1999 2000 2001 2002

Over 50cc Year 50cc & under Total Chg.(%) 51~125cc 126~250cc Over 250cc Subtotal 2002 535,327 94,468 94,414 46,873 235,755 771,082 +2.7 2001 544,988 78,263 79,156 48,279 205,698 750,686 -3.7 2000 558,459 102,116 72,886 46,416 221,418 779,877 -6.8 1999 621,276 105,550 51,461 58,672 215,683 836,959 -21.3 1998 744,900 177,092 65,659 75,329 318,080 1,062,980 -10.5 1997 864,395 156,183 84,799 82,861 323,843 1,188,238 -2.6 1995 884,718 138,115 98,833 91,186 328,134 1,212,852 +1.6 1990 1,213,512 169,618 158,882 76,921 405,421 1,618,933 -3.0 1985 1,646,115 130,574 173,887 145,674 450,135 2,096,250 +3.7 1980 1,978,426 200,238 88,188 103,184 391,610 2,370,036 +23.7 1975 778,117 307,276 15,882 28,018 351,176 1,129,293 -3.6 1970 598,165 461,570 61,608 69,586 592,764 1,190,929 -4.9 Note: Percentage figures represent the change from the preceding year.

10 Motorcycle Exports

Exports of motorcycles in 2002 fell by 10.1% to total Asia, and Europe dropped by 52.8%, 37.4%, 15.3%, and 1,418,682 units for a second consecutive year of decline, 12.0%, respectively. For the second straight year exports which reflects the growing trend towards local overseas to the U.S. surpassed those to Europe, which had production of motorcycles. previously (since 1996) been the biggest export By destination, shipments to Africa and North destination. In 2002 the U.S. market accounted for America rose by 6.7% and 3.3%, respectively. In 39.9% of total exports. contrast, shipments to Latin America, the Middle East,

EXPORTS BY DESTINATION

1985 1990 1995 1997 1998 1999 2000 2001 2002 Asia 936,990 250,846 464,979 326,985 274,578 156,346 195,352 231,680 196,261 Middle East 178,395 41,766 16,131 46,417 37,125 18,582 26,775 45,028 28,171 Europe 415,830 527,040 340,585 546,882 690,629 663,667 652,375 494,416 434,926 (EU) (351,831) (448,923) (322,957) (514,161) (652,210) (631,439) (623,294) (473,622) (413,339) North America 800,386 182,933 267,831 244,622 291,611 377,423 541,478 594,381 614,145 (U.S.A.) (735,683) (167,202) (251,880) (227,461) (266,903) (337,203) (494,508) (548,915) (565,931) Latin America 60,578 92,001 178,175 218,131 220,855 101,309 139,854 128,857 60,769 Africa 63,996 52,721 26,329 34,929 41,855 38,306 27,277 30,890 32,954 Oceania 85,307 36,437 31,680 41,742 47,100 57,505 58,066 52,161 51,456 Total 2,541,482 1,183,744 1,325,710 1,459,708 1,603,753 1,413,138 1,641,177 1,577,413 1,418,682

4.0 3.5 3.0 2.5 2.0 Total 1.5 1.0 Over 50cc 50cc 0.5 & under 1970 1975 1980 1985 1990 1995 1996 1997 1998 1999 20002001 2002

Over 50cc Year 50cc & under Total Chg.(%) 51~125cc 126~250cc Over 250cc Subtotal 2002 74,811 462,137 149,900 731,834 1,343,871 1,418,682 -10.1 2001 59,406 530,728 194,058 793,221 1,518,007 1,577,413 -3.9 2000 82,038 549,040 204,591 805,508 1,559,139 1,641,177 +16.1 1999 89,547 422,876 177,399 723,316 1,323,591 1,413,138 -11.9 1998 114,853 616,213 206,751 665,936 1,488,900 1,603,753 +9.9 1997 75,513 649,825 187,981 546,389 1,384,195 1,459,708 +7.5 1996 55,016 666,593 154,103 481,623 1,302,319 1,357,335 +2.4 1995 61,627 691,433 129,961 442,689 1,264,083 1,325,710 -5.8 1990 147,301 507,840 117,222 411,381 1,036,443 1,183,744 +7.3 1985 369,167 1,350,412 296,865 525,038 2,172,315 2,541,482 +19.7 1980 501,027 1,907,481 548,306 972,226 3,428,013 3,929,040 +44.0 1975 288,974 1,546,170 328,313 527,344 2,401,827 2,690,801 -17.0 1970 326,815 914,325 187,185 309,277 1,410,787 1,737,602 +33.8 Note: Percentage figures represent the change from the preceding year.

11 North American Manufacturing Operations

At present seven Japanese auto manufacturers have collaboration with local suppliers. The ten R&D production operations in the United States and three subsidiaries of Japanese automakers in the U.S. now have operations in Canada. This mirrors Japanese provide jobs to about 2,750 Americans. automakers' emphasis on a global strategy of Besides such undertakings by individual automakers, manufacturing where demand is present. The seven JAMA plays a constructive role in various joint Japanese-affiliated automakers in the U.S. have made initiatives with the objective of furthering mutual that country Japan's biggest base for overseas production cooperation and understanding. One key initiative is by investing nearly $20 billion in aggregate in JAMA's collaboration with the U.S. Motor & Equipment infrastructure and facilities in the United States. Manufacturers Association (MEMA), as a result of In 2002 total production by Japanese-affiliated which regular JAMA-MEMA Liaison Committee and automakers in the United States increased 6.6% to One-on-One business meetings are held. 2,600,503 units, reflecting an expansion in production JAMA is also working closely with North America's facilities. Alliance of Automobile Manufacturers and the European Japanese automakers' local production activities Automobile Manufacturers Association (ACEA) in provide substantial employment opportunities in their promoting the international harmonization of automobile host communities and contribute to U.S. automobile technical regulations. Moreover, CEOs from the world's exports. In 2001 the U.S. affiliates of Japanese top manufacturers of passenger cars and trucks met, manufacturers exported 162,598 American-built cars and together with representatives from the Alliance, ACEA, trucks to countries around the world, a decline of 6.2% and JAMA, for the first Global Automobile Industry from the previous year. These exports, which accounted Meeting in September, 2002 in Paris. Discussions for 12.4% of total U.S. vehicle exports, consisted focused on environment- and safety-related topics. predominantly of passenger cars and brought in an Further sessions of the Global Meeting will take place estimated $2.5 billion in foreign exchange. periodically. Local R&D is centered on so-called design-in development, a process in which suppliers take part in vehicle development from the early stages on. This process facilitates the development of vehicles well suited to the U.S. market and encourages close PRODUCTION AT U.S. MANUFACTURING OPERATIONS

thousands of units Total 2,500 2,000 Passenger Cars 1,500 1,000 500 Trucks 0 1987 1988 1989 1990 1991 1992 1993 1994 19951996 1997 1998 1999 20002001 2002

1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002

Honda 324,064 366,355 362,351 435,437 451,197 458,251 403,775 498,710 552,995 634,374 648,268 694,703 686,043 677,090 692,377 641,109 Nissan 117,334 109,897 115,584 95,844 133,504 171,402 293,182 312,654 333,234 277,869 279,510 222,733 167,742 150,129 157,876 235,473 *NUMMI 143,652 129,978 192,235 205,287 206,634 180,960 207,025 229,327 228,920 224,422 209,879 203,464 210,726 197,737 188,967 205,306 Toyota 43,726 18,527 151,150 218,195 187,708 240,382 234,060 275,678 381,445 385,657 404,973 380,730 356,840 371,877 353,381 386,860 Cars *AutoAlliance 4,200 167,205 216,200 184,428 165,314 168,859 219,096 247,004 149,562 129,441 100,394 167,268 165,143 107,431 71,723 65,924 *Mitsubishi — 2,409 90,741 148,379 153,936 139,783 136,022 169,829 218,161 192,961 189,086 157,139 159,702 222,036 193,435 202,611 SIA — — 2,600 32,461 57,945 57,623 47,117 54,002 80,660 98,747 102,180 104,229 93,070 107,955 103,010 93,125 Subtotal 632,976 794,456 1,132,701 1,320,031 1,357,903 1,417,260 1,540,277 1,787,204 1,944,977 1,943,471 1,934,290 1,930,266 1,839,266 1,834,255 1,760,769 1,830,408 Nissan 102,718 95,919 123,056 139,404 131,519 128,924 93,791 131,954 132,552 136,162 118,798 86,104 156,903 227,146 168,349 174,361

NUMMI — — — — 2,535 75,271 114,403 133,713 123,755 141,047 147,930 158,395 156,395 146,339 162,736 164,550 Trucks SIA — — — 34,499 58,352 66,397 79,441 99,881 99,514 96,124 84,711 111,969 99,130 100,721 83,307 38,708

Toyota — — — — — — — — — — 26,838 95,473 176,862 253,277 262,260 280,848 Honda — — — — — — — — — — — — — — 2,283 111,628 Subtotal 102,718 95,919 123,056 173,903 192,406 270,592 287,635 365,548 355,821 373,333 378,277 451,941 589,290 727,483 678,935 770,095 Total 735,694 890,290 1,253,236 1,493,934 1,548,667 1,687,852 1,827,912 2,152,752 2,300,798 2,316,804 2,312,567 2,382,207 2,428,556 2,561,738 2,439,704 2,600,503 Note: *Figures include cars produced for the Big Three automakers (NUMMI/GM, AutoAlliance/Ford, Mitsubishi/Chrysler). Source: Ward's Automotive Yearbook. 12 JAPANESE AUTOMAKERS' NORTH AMERICAN MANUFACTURING OPERATIONS (as of March 2003) United States Total Nname of Company Lsocatio Pproduct Sstart-U Employee Investment ($million)

Honda of America Accord, Civic, Acura CL, Acura TL Nov. 1982 13,400 $4,860 Manufacturing, Inc. Marysville, East Liberty, Anna, Ohio Engines Honda Manufacturing of Alabama, LLC Lincoln, Alabama Odyssey, Engines Nov. 2001 2,300 $580 Nissan North America, Inc. Altima, Xterra, Frontier Jun. 1983 *6,200 N.A. (Smyrna) Smyrna, Tennessee

(Dechard) Dechard, Tennessee Engines May 1997

Titan, Pathfinder, Armada, Altima, Quest (Canton) Canton, Mississippi 2003 $930 AutoAlliance International, Inc. Flat Rock, Michigan Mazda 6 Sep. 1987 1,800$1,23 3 (Mazda) (Joint Venture: Ford) Mitsubishi Motors North America, Mitsubishi: Eclipse, Galan.,t Endeavor Sep. 1988 3,203 N.A. Inc. (Manufacturing) Normal, Illinois Chrysler: Stratus, Sebring New United Motor Mfg., Inc. Fremont, California Toyota: Corolla, Tacoma, Voltz Dec. 1984 5,777 $1,065 (Toyota) (Joint Venture: General Motors) GM: Pontiac Vibe

Toyota Motor Mfg. Kentucky, Inc. Georgetown, Kentucky Camry, Avalon, Sienna, Engines May 1988 7,378 $5,128

Toyota Manufacturing Tundra, Sequoia Feb. 1999 4,064 $2,156 Indiana, Inc. Princeton, Indiana Toyota Motor Manufacturing EnginesNov. 1998 879 $749 West Virginia, Inc. Buffalo, West Virginia Toyota Motor Manufacturing Engines May 2003 108 $220 Alabama, Inc. Huntsville, Alabama

Fuji (Subaru): Legacy, Engines Subaru of Indiana Automotive, Inc. Sep. 1989 2,900 $760 Lafayette, Indiana Isuzu: Rodeo, Rodeo-Sport, Axiom DMAX, Ltd. Moraine, Ohio Diesel engines Jul. 2000 $300 (Isuzu) (Joint Venture: GM) 800

Canada Civic, Acura EL, Odyssey, Acura MDX, Honda Canada Inc. Alliston, Ontario Nov. 1986 4,200C$1,30 0 Pilot

Toyota Motor Mfg., Canada Inc. Cambridge, Ontario Corolla, Camry, Solara, Matrix, EnginesNov. 198 8 3,442 C$2,488

CAMI Automotive Inc. Ingersoll, Ontario A0pr. 1989 25,40 C$61 (Suzuki) (Joint Venture: GM Canada) Escudo Notes: * Including the Dechard and Canton plants. This listing covers passenger car, commercial vehicle and engine production operations only.

JAPANESE AUTOMAKERS' NORTH AMERICAN R&D CENTERS (as of March 2003)

Current Current Functions Name of Company Headquarters, Division Offices Employees (Planned) Torrance, CA, Raymond & East Liberty, OH, Denver, CO, About 1,2,3,4,5,6,7 Honda R&D Americas, Inc. Mojave Desert, CA 1,160 Key to Functions Isuzu Motors America, Inc. Los Angeles, CA, Detroit, MI 130 1,2,3,4,5,6,7 1) Technical support for Mazda North American procurement of parts for Operations, Inc. Irvine, CA, Flat Rock, MI, Ann Arbor, MI 103 1,2,3,4,(5),(6),7 local production Mitsubishi Motors 2) Evaluation of parts North America, Inc. (R&D) Normal, IL 72 1,2,3,4,5,6,7 3) Evaluation of vehicles 4) Styling & general design Nissan Design America, Inc. San Diego, CA 50 4 5) Parts design Nissan Technical Center Farmington Hills, MI, Cambridge, MA, Los Angeles, CA, 6) Vehicle design 550 1,2,3,5,6,7 North America, Inc. Smyrna, TN, Sheffield Village, OH, Washington, D.C. 7) Prototype production Arizona Test Center Inc. (Nissan) Stanfield, AZ 18 3 Subaru R&D, Inc. Ann Arbor, MI, Lafayette, IN, Cypress, CA 40 1,3,4,6 Toyota Technical Center U.S.A., Inc. Ann Arbor, MI (with offices in California and Arizona) 575 1,2,3 Calty Design Research, Inc. Newport Beach, CA 51 4 (Toyota)

13 European Manufacturing Operations

Japanese automakers now operate local plants at Construction d'Equipements et de Pieces d'Automobiles twelve sites in Europe (in France, Hungary, the (CLEPA) have been holding regular joint conferences Netherlands, Poland, Portugal, Spain and the United centered on company-to-company business meetings. Kingdom). The seventh JAMA-CLEPA Business Conference is From 1988 to 2002 European production by Japanese scheduled to take place in Sweden in April 2004. automakers increased approximately eightfold, Another cooperative effort was the Industry Forum's producing 1,098,287 units in 2002 while providing Master Engineers Program established by the U.K.'s employment to 28,379 Europeans. Japanese vehicles Department of Trade and Industry and Society of Motor built in Europe contribute to the industrial strength of Manufacturers and Traders (SMMT) to strengthen the their host regions and to the trade balance of their host competitiveness of the British automotive parts industry. nations through exports. Under this program, which was launched in 1996 and In addition, Japanese automakers have R&D and terminated in late 2002, Toyota, Nissan, and Honda (the technical centers at thirteen sites in Europe, providing three Japanese automakers with manufacturing jobs for 2,272 engineers and other personnel. Besides operations in the U.K.) dispatched 13 outstanding fulfilling their main objective of steadily raising local engineers to provide on-site kaizen training to develop content, these facilities also provide support for market master engineering skills at U.K. suppliers. During its research, product planning and technical assistance. implementation, the program organized kaizen training at Japanese automakers have achieved over 80 percent 400 companies in the U.K. and graduated a total of 43 European local content for Japanese-brand cars master engineers. manufactured in western Europe, generating a valuable market for suppliers willing to develop good, long-term business relations with Japanese automakers. Japanese automakers are also involved in vigorous industry-to-industry cooperation to strengthen local parts manufacturing and procurement in Europe. Since 1995, for example, JAMA and the Comite de Liaison de la

EUROPEAN PRODUCTION BY JAPANESE AUTOMAKERS

thousands of units 1,000 800 600 400 Passenger Cars 200 0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 19992000 2001 2002

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 France Toyota — — — — — — — — — — — — — 61,904 135,406 Hungary Suzuki — — — — 996 13,151 19,412 36,473 51,778 63,540 66,305 72,000 80,688 83,664 86,808 Netherlands Mitsubishi — — — — — — — 20,879 44,491 81,698 91,936 110,446 58,881 67,111 75,600 Toyota13,684 12,545 10,528 12,03313,801 10,888 8,808 6,251 5,475 6,364 6,440 6,020 4,518 4,086 3,587 Portugal Mitsubishi5,807 5,496 5,022 7,1119,074 8,577 6,920 7,176 5,562 7,265 9,503 10,736 11,796 8,058 8,662 Subtotal 19,491 18,041 15,550 19,14422,875 19,465 15,728 13,427 11,037 13,629 15,943 16,756 16,314 12,144 12,249 Nissan26,888 85,879 79,662 70,99276,676 82,036 101,172 117,324 107,332 101,780 97,032 96,338 136,807 137,382 84,919 Spain Suzuki22,362 18,383 21,203 25,50532,511 30,476 14,668 25,843 29,726 32,133 32,862 34,355 31,584 22,512 19,872 Subtotal 49,250 104,262 100,865 96,497109,187 112,512 115,840 143,167 137,058 133,913 129,894 130,693 168,391 159,894 104,791 Honda5,044 3,630 26,454 35,95233,445 50,545 51,531 93,283 105,810 108,097 112,089 114,479 74,751 114,163 176,698 Nissan56,541 77,282 76,190 124,666179,009 246,281 204,944 215,346 231,627 271,666 288,818 271,157 327,701 297,028 297,719 UK Toyota — — — — — 37,314 85,467 88,440 116,973 104,615 172,342 178,660 171,339 153,415 209,016 Subtotal 61,585 80,912 102,644 160,618212,454 334,140 341,942 397,069 454,410 484,378 573,249 564,296 573,791 564,606 683,433 Total 130,326 203,215 223,164 282,278 352,292 484,122 495,931 614,524 702,768 777,682 877,327 894,191 898,065 949,323 1,098,287

Source: Respective automakers.

14 JAPANESE AUTOMAKERS' EUROPEAN MANUFACTURING OPERATIONS (as of March 2003)

Total Name of Company Lsocation Product Sstart-Up Employee Investment (million) France Toyota Motor Manufacturing France S.A.S. Valenciennes Yaris, EnginesJan. 2001 2,631 735 Hungary

Magyar Suzuki Esztergom Subaru Justy, Wagon R Plus, Ignis Corporation (Joint Venture) Oct. 1992 1,700 HUF 82,000 The Netherlands Netherlands Car B.V. Mitsubishi: Carisma, Space Star Born, Linburg NGL 4,862 (Mitsubishi) Volvo: S40, V40 May 1995 4,002 Poland Isuzu Motors Polska Sp.zo.o Tychy Diesel engines Jul. 1999 1,020 ¥26,000 Portugal Salvador Caetano I.M.V.T., Ovar D8yna, Hiace, Optimo Aug. 196 S.A. (Toyota) (Joint Venture: Salvador Caetano) 390 N.A. Mitsubishi Trucks Europe-Sociedade Tramagal C6anter Mar. 199 330 11,785 Europeia de Automoveis, S.A. Spain Santana-Motor, S.A. Linares N.A. (Suzuki) (Technical Support) J5imny, Escudo Mar. 198 630

Nissan Motor Iberica,' S.A. Barcelona Terrano, Almera, Tino, Engines Jan. 1983 3,595 N.A.

Nissan Vehiculos Industriales, S.A. Avila Atleon, Cabster E Jan. 1995 755 N.A. United Kingdom Nissan Motor Manufacturing Primera, Primera Estate, Almera, Micra, Sunderland Jul. 1986 4,900 N.A. (UK), Ltd. Engines

Honda of the UK Mfg., Ltd. Swindon Civic, CR-V, Engines Jul. 1989 4,000 £1,150 Burnaston, Derbyshire Toyota Motor Mfg. (UK), Ltd. Corolla, Avensis, Engines Dec. 1992 4,426 £1,700 Deeside, Flintshire Note: This listing covers passenger car, commercial vehicle and engine production operations only.

JAPANESE AUTOMAKERS' EUROPEAN R&D CENTERS (as of March 2003) Current Current Name of Company Headquarters, Division Offices Employees Functions Key to Functions Honda R&D Europe G.m.b.H. Offenbach, Germany 130 1,2,3,4,6,7 1) Technical support for Honda R&D Europe (UK), Ltd. Swindon, UK 80 1,2,3,5,7 procurement of parts for Mazda Motor Europe G.m.b.H. Leverkusen, Germany 120 3,4,7 local production 2) Evaluation of parts Mitsubishi Motor R&D of Europe Trebur, Germany, Helmond, The Netherlands, 74 1,3,4,6 3) Evaluation of vehicles G.m.b.H. Born, The Netherlands 4) Styling & general design Mitsubishi Motors Europe B.V. Amsterdam, The Netherlands 319 8 5) Parts design 6) Vehicle design Nissan Design Europe, Ltd. London, UK 40 4 7) Prototype production 8) Market research Nissan Technical Centre 390 Europe, Ltd. Cranfield, UK 1,2,3,4,5,6,7 Nissan Technical Centre Europe (Brussels), S.A. Brussels, Belgium 24 3 Nissan Technical Centre 250 1,2,3,4,5,6,7 Europe (Spain), S.A. Barcelona, Spain N.V.Toyota Motor Europe Zaventem, Brabant, Belgium, Marketing & Engineering, S.A. 155 1,2,3 (Technical Div.) Kerpen, Germany, Derbyshire, UK Toyota Europe Design Development S.A.R.L Coteˆ d'Azur, France 32 4,6 Toyota Motorsport G.m.b.H Cologne, Germany 550 3,4,6,7 Isuzu Motors Germany G.m.b.H Ginsheim-Gustavsburg, Germany 108 1,2,5

15 Asian Manufacturing Operations

Currently Japanese automakers have production personnel. operations in ten Asian countries. In 2002 these As part of the assistance package, JAMA has since operations produced a total of 2,289,001 units, 2000 been working with the Japan Auto Parts Industries representing an increase of 24.8% over the previous Association (JAPIA) in carrying out the ASEAN Experts year. In Thailand, where the automakers have their Dispatch Program with the objective of supporting the greatest presence, production totalled 509,577 units, up development of the ASEAN automotive industry. This 41.8% on the year. The sharpest growth in production program has seen the dispatch of experts in automotive occurred in China, where a total of 315,581 units were management and production technology to Thailand, produced, up 69.3% on the year. Indonesia, the Philippines, and Malaysia, where they Japanese automakers are not only accelerating their have provided on-site guidance to local suppliers in localization in Asia but also undertaking far-ranging order to improve their production efficiency. measures to assist the development of Asian economies. In addition, JAMA, JAPIA, and the ASEAN They take pride in providing major assistance to Automotive Federation (AAF) are cosponsors of the supporting industries in the region, including the metals Conference on ASEAN Auto-Supporting Industries, and electronics industries, through the transfer of whose principal sponsor is JETRO. technological expertise (via joint ventures), participation in technical agreements, and the training of local

2002 ASIAN PRODUCTION BY JAPANESE AUTOMAKERS

(vehicle units)

Daihatsu Fuji Honda Isuzu Mazda Mitsubishi Nissan SuzukiToyota Grand Total

Cars 0 1,700 57,420 3,750 24,720 14,520 38,814 102,960 17,780 261,664 +71.3% China CVs 1,000 33,996 0 0 9,744 5,952 3,225 53,917 +60.3% Total 1,000 1,700 57,420 37,746 24,720 14,520 48,558 108,912 21,005 315,581 +69.3% Cars 0013,560 0 0 6,120 0 *296,160 26,656 342,496 +9.1% India CVs 00007,660 0 0 *52,944 0 60,604 -11.2% Total 0 0 13,560 0 7,660 6,120 0 *349,104 26,656 403,100 +5.5% Cars 7,300 0 7,140 0 0 8,310 1,040 1,872 68,460 94,122 +8.0% Indonesia CVs 9,850 0 0 17,139 0 65,292 0 49,104 8,120 149,505 +7.8% Total 17,150 0 7,140 17,139 0 73,602 1,040 50,976 76,580 243,627 +7.9% Cars 1 17,750 0 4,920 0 0 217,710 0 0 23,120 363,500 +7.7% Malaysia CVs 3,000 0 0 0 5,760 5,820 0 0 0 14,580 +13.6% Total 120,750 0 4,920 0 5,760 223,530 0 0 23,120 378,080 +7.9% Cars 005,340 0 0 0 0 13,056 0 18,396 +65.7% Pakistan CVs 00000005,472 0 5,472 +58.3% Total 005,340 0 0 0 0 18,528 0 23,868 +64.0% Cars 0011,760 0 480 9,000 1,104 0 17,980 40,324 +37.4% Philippines CVs 0008,495 80 3,840 0 0 500 12,915 +0.7% Total 0011,760 8,495 560 12,840 1,104 0 18,480 53,239 +26.2% Cars 003,060 0 43,040 111,540 54,548 9,192 77,750 299,130 +37.5% Taiwan CVs 0001,697 2,980 33,900 1,600 4,032 12,340 56,549 +9.5% Total 003,060 1,697 46,020 145,440 56,148 13,224 90,,090 355,679 +32.2% Cars 0072,390 0 0 10,710 3,588 0 58,410 145,098 +60.8% Thailand CVs 00080,354 80,800 95,029 31,396 0 76,900 364,479 +35.4% Total 0072,390 80,354 80,800 105,739 34,984 0 135,310 509,577 +41.8% Cars 000000005,370 5,370 +53.0% Vietnam CVs 0000880 0 0 0 0 880 +15.8% Total 0000880 0 0 0 5,370 6,250 +46.4% Cars 125,050 +10.3% 1,700 -22.7% 175,590 +29.0% 3,750 -22.4% 68,240 +76.8% 377,910 +24.4% 99,094 +37.2% 423,240 +26.2% 295,526 +25.0%1,570,100 +26.3% Grand Total CVs 13,850 +26.6% 0 — 0 — 141,681 +17.2% 98,160 +26.3% 203,881 +17.6% 42,740 +52.4% 117,504 +4.6% 101,085 +48.7% 718,901 +21.6% Grand Total 138,900 +11.7% 1,700 -22.7% 175,590 +29.0% 145,431 +15.7% 166,400 +43.0% 581,791 +21.9% 141,834 +41.5% 540,744 +20.8% 396,611 +30.3% 2,289,001 +24.8%

Note: Percentage figures represent the change from the preceding year. * Including the Maruti brand. Source: Respective automakers.

16 International Automotive Industry Ties

To a greater or lesser extent, almost all of Japan's while development times are shrinking. Seeking to cut manufacturers of passenger cars, trucks, and buses at development costs and secure the lead in launching present have investment alliances overseas or ties with models into waiting markets, Japanese automakers have foreign capital. forged numerous strategic alliances worldwide, As the market matures and environmental protection including capital and technological tie-ups, joint and requirements increase, wide-ranging changes are taking subcontracted development, joint and subcontracted place accompanied by a diversification in vehicle production, supplemental sales networks, and the supply demand. By the same token, the cost of developing new of finished vehicles. vehicles is rising in step with the changes in demand

Daihatsua

Europe Supply of components to Italy-based P&D, S.p.A. Asia Supply of components and technology to Liushou Wuling Mini Auto Factory in China. Joint production venture with Perodua Manufacturing Sdn. Bhd. (Malaysia). Technology license agreement with China-based FAW Huali (Tianjin) Motor Co., Ltd.

Fuji Heavy Industriesa

North America GM holds a 20% equity stake in Fuji Heavy Industries. Europe Supply of transmissions to Fiat of Italy. Magyar Suzuki (Hungary) supplies CBUs to Fuji Heavy Industries. Asia A 25% equity stake in three manufacturers in a joint venture with Auto Works of China Guizhou Aviation Industry Corporation, all of which mutually supply parts for minicar assembly. Supply of vehicles to GM India. GM Thailand supplies vehicles to Fuji Heavy Industries.

GM Japana

North America GM wholly owns GM Japan.

Hinoa

Europe Technology tie-up with Scania AB (Sweden). Asia A 24% equity stake in Shenyang Shenfei Hino Automobile Manufacturing Co., Ltd. (China). A 5% equity stake in Kouzui Motors Ltd. (Taiwan). Supply of technology to Korea-based Kia Motors.

17 International Automotive Industry Ties (cont'd.)

Isuzua

North America Supply of diesel engines and CVs to GM. Production of commercial vehicles and diesel engines on consignment to GM. Production of vehicles on consignment to Subaru of Indiana Automotive. GM holds a 12% equity stake in Isuzu. Europe Supply of diesel engines and RVs to GM Europe and Honda U.K. Supply of diesel engines from Poland to GM Europe. Supply of diesel engines from Japan to GM Europe and Renault. Asia An equity stake of 7.4% in China-based Qingling Automobile (Group) Co., Ltd., which assembles small and medium CVs. An equity stake of 49% in Guangzhou Isuzu Bus Co., Ltd., which produces medium-sized and large buses. An equity stake of 20% in Malaysia-based Malaysia Truck & Bus Sdn. Bhd.

Mazdaa

North America A 50%-50% equity stake in AutoAlliance International, Inc. with Ford Motor. Supply of components to Ford U.S. Supply of finished vehicles and components to Ford in the Asia-Pacific region. Ford holds an equity stake of 33.4% in Mazda. Europe Ford Europe supplies finished vehicles to Mazda in Europe. Asia Supply of technology to China-based Ford (Lio Ho) Motor Co., Ltd. An equity stake of 17.5% in China-based Hainan Mazda Motor Co., Ltd. Supply of components to China-based Faw Hainan Motor Co., Ltd. Supply of components to Taiwan-based Ford Lio Ho Motor Co., Ltd. An equity stake of 45% in AutoAlliance (Thailand) Co., Ltd., a joint venture with Ford. A 15.6% equity stake in India-based Swaroji Mazda.

Mitsubishi Fusoa

Europe DaimlerChrysler holds an equity stake of 43% in Mitsubishi Fuso.

Mitsubishi Motorsa

North America Supply of finished vehicles from U.S. plants to DaimlerChrysler. Europe DaimlerChrysler holds an equity stake of 37.3% in Mitsubishi. Production on consignment to Pininfarina of Italy. Supply of engine technology to France-based PSA Peugeot Citroen. Asia A 20% equity stake in China-based Hunan Changfeng Automobile Manufacturing Plant. A 14.6% equity stake in Taiwan-based China Motor Co., Ltd. A 1.27% equity stake in Korea-based Hyundai Motor Corporation. An equity stake of 8.0% in Malaysia-based PROTON. PROTON has an equity stake of 25% in Vietnam-based Vina Star Motors Corporation.

18 Nissan Diesela

Europe Renault holds a 22.5% equity stake in Nissan Diesel. Asia A 25% equity stake in Dongfeng Nissan Diesel Motor Co., Ltd., a joint venture with China- based Dongfeng Motor Group for the production of large trucks and buses.

Nissan Motora

Europe Renault holds a 44.4% equity stake in Nissan. Asia A 15% equity stake in Renault. A 30% equity stake in China-based Zhengzhou Nissan Automobile. A 25% equity stake in Taiwan-based Yulon Loone Motor Co., Ltd. Supply of technology to Korea-based Samsung Motors Inc. A 25% equity stake in Thailand-based Siam-Nissan Automobile. A 25% equity stake in Thailand-based Siam Motors and Nissan. A 5.36% equity stake in Philippines-based Nissan Motor Philippines Inc.

Suzukia

North America Joint development of subcompact cars with GM, which holds a 20% equity stake in Suzuki. A 50%-50% equity stake with General Motors in CAMI Automotive Inc. Europe Magyar Suzuki (Hungary) has a mutual-supply-of-components agreement with GM Europe. France-based PSA Peugeot Citroen supplies diesel engines to Suzuki. Supply of CBUs from Magyar Suzuki to Fuji Heavy Industries in Europe. Asia A 35% equity stake in China-based Chongqing Suzuki Automobile Co., Ltd. A 39% stake in China-based Jiangxi Changhe Suzuki Automobile Co., Ltd. Technology tie-up with Taiwan-based Prince Motors Co., Ltd. Technology tie-up with Taiwan-based Ford Lio Ho Motor Co., Ltd. A 14.9% equity stake in Korea-based GM Daewoo Auto & Technology Company. A 54.2% equity stake in India-based Maruti Udyog.

Toyotaa

North America A 50%-50% equity stake with General Motors in New United Motor Manufacturing, Inc. (NUMMI). Europe A 50%-50% equity stake with PSA Peugeot Citroen in Toyota Peugeot Citroen Automobile Czeck. Asia A 45% equity stake in China-based Sichuan Toyota Motor Co., Ltd. A 50% equity stake in China-based Tianjin Toyota Motor Co., Ltd. A 51.7% equity stake in Taiwan-based Kouzui Motors Ltd.

19 Motor Vehicle Classification

Japan classifies motor vehicles in various categories above. according to the provisions of two basic laws: the Road The Road Traffic Act, which divides vehicles and Vehicles Act and the Road Traffic Act. motorcycles into two categories each, determines the The Road Vehicles Act divides passenger cars into classification of driver's licenses. three categories and motorcycles into four categories on Recreational vehicles (RVs) that are built on the basis of vehicle dimensions and engine displacement. passenger car chassis are classified as passenger cars, The classifications of the Road Vehicles Act are used for while RVs that are built on truck chassis are classified as registration statistics as well as inspections and related commercial vehicles. (These vehicles are also referred maintenance and repair purposes. When a vehicle to as sport-utility vehicles, or SUVs.) exceeds any of the specifications listed in a given category under the Road Vehicles Act, the vehicle is automatically placed in the model category immediately

CLASSIFICATION BY THE ROAD VEHICLES ACT CLASSIFICATION BY THE ROAD TRAFFIC ACT

Standard Large Motor Vehicles

Over 2m

Over 4.7m Over 1.7m Gross vehicle weight 8 tons or more (Over 2000cc in engine displacement) Maximum payload 5 tons or more or Occupants 11 persons or more Small Ordinary Motor Vehicles 2m and under

Over 1.48m to 1.7m Over 3.4m to 4.7m (661cc to 2000cc in engine displacement) Gross vehicle weight less than 8 tons Mini Maximum payload less than 5 tons or Occupants less than 11 persons

2m and under

1.48m and under 3.4m and under

(660cc and under in engine displacement)

CLASSIFICATION OF MOTORCYCLES

Road Vehicles Act Road Traffic Act

Engine Engine Type Wtidth Hheigh Leengt Typ Displacement Displacement

Small-sized Omver 250cc Omver 1.3 Omver 2.0 Over 2.5 Large Motorcycles Over 400cc Mini-sized 126cc to 250cc 1r.3m and under 2r.0m and unde 2.5m and unde Motor- cycles Stan- 51cc to 400cc Class 2 51cc to 125cc 1r.3m and unde r 2r.0m and unde 2.5m and unde dard Motor-driven cycles Class 1 50cc and under 1r.3m and unde r 2r.0m and unde 2.5m and unde Motorized 50cc and under bicycles Note: A motorcycle that exceeds any one of the requisites for a category is classified in the higher category.

20 Domestic Taxes on Automobiles

Japan's system of automobile-related taxes covers a owners bear an extremely heavy tax burden compared wide range of tax categories and is therefore complex. to their European and North American counterparts, Aimed at securing financial resources for road with auto-related taxes in Japan ranging from two to maintenance and construction programs, it consists, for eight times those levied in North America and Europe passenger cars for example, of nine different taxes (see Figure 1). assessed at the stages of vehicle acquisition, ownership, Every year JAMA calls on the Japanese government and operation (see Figure 2). to revise and improve the automobile tax system. In The total tax yield produced by these taxes is 2002 JAMA put more emphasis than ever on its request substantial, amounting to about 9 trillion yen per year, for a streamlining of the tax system and a reduction of or approximately one-tenth of the government's total the tax burden, in keeping with its long-held view that annual tax revenue. In other words, Japanese car the tax system should be simpler, fairer, and more in line with foreign tax systems. Furthermore, JAMA Figure 1: COMPARISON OF TAX BURDENS promoted the abolition of the temporarily high tax rate IN VARIOUS COUNTRIES imposed on tax revenue earmarked exclusively for road ¥10,000 70 ¥696,000 construction; expressed opposition to the diversion of Consumption Tax this revenue into the government's general accounts ¥90,000 60 Automobile 572,000 budget; and called for an extension and expansion of Acquisition ¥ Tax ¥81,000 measures to reduce the Acquisition Tax and Automobile 50 Tax on fuel-efficient and clean-energy vehicles, Tonnage ¥456,000 Tax Added- including electric and hybrid vehicles as well as ¥170,000 ¥407,000 40 Value Tax ¥315,000 vehicles powered by natural gas and methanol. Added- Value Tax Working in coordination with the Japan Automobile 30 ¥288,000 Federation (JAF) and other industry players, JAMA has Added- Automobile Value Tax Tax launched an ongoing public information campaign 20 Registration ¥371,000 ¥355,000 ¥172,000 Tax under the slogan "An Optimized Automobile Tax ¥3,000 Registration Retail Tax Tax 10 ¥25,000 ¥148,000 System for the 21st Century" aimed at an across-the- Automobile Automobile Tax Tax board revision of Japan's auto tax system so that only 116,000 257,000 Automobile ¥ ¥ Tax Automobile Tax 24,000 0 ¥60,000 ¥ one tax is assessed at the three main stages of vehicle Japan Germany Great France U.S.A. Britain acquisition, ownership, and operation (for a total of Assumptions: 1. Displacement: 1800cc 2. GVW: 1,100 kg three taxes imposed overall). 3. Vehicle price: ¥1,800,000 4. Service life: 9 years 5. Currency exchange rates (averaged April 2002-February 2003) ＊ 1 Euro = ¥119, 1 Pound = ¥184, 1 US$ = ¥121

Figure 2: AUTOMOBILE-RELATED TAXES (Passenger Cars, as of April 2003 )

=

21 Automobile Certification and Standards

Automobile Certification and arrangements. These include the global The main process for gaining certification in Japan is harmonization of automotive technical regulations known as the Type Approval System (also referred to as (focusing on vehicle safety and environmental the Type Designation System, or TDS), which is applied standards), so that a growing number of countries can equally to imported and domestic automobiles and adopt them as common regulations, and the promotion of covers most mass-produced models. The Preferential mutual recognition systems under which certification is Handling Procedure for Imported Motor Vehicles (PHP) mutually recognized between importing and exporting is an alternative process that was instituted to expedite countries or regions. Such initiatives are making steady the certification of foreign-made vehicles that are progress at international forums such as the UN/ECE imported in limited quantities (see below for details). World Forum for the Harmonization of Vehicle The third process, the Type Notification System, is Regulations (also known as WP29). mainly applied to large trucks. In 1998 the Japanese government officially acceded to the UN/ECE 1958 Agreement, under which each THE TYPE APPROVAL SYSTEM signatory government reciprocally recognizes The automaker or importer presents one sample certifications of vehicle structure and equipment issued vehicle and application forms to the Ministry of Land, by all the other member countries. The Japanese Infrastructure and Transport (MLIT). MLIT inspects the government's Vehicle Equipment Type Approval application documentation, the sample vehicle, and the System, which specifically addresses the growing trend quality control system of the applicant, and the type in the common use of equipment in vehicle approval process is completed within two months. manufacturing, not only allows equipment and parts that The automaker carries out inspections of individual have been certified by 1958 Agreement co-signatory finished vehicles that have received type approval, countries to be exempted from undergoing certification eliminating the need to present the actual automobile for procedures in Japan, but furthermore does not require new vehicle inspection. Additional measures are taken them to be inspected again if they are used on other to expedite the handling of imported vehicles: MLIT not models (see Figure 1). only dispatches officials overseas at the expense of the Such measures are intended to reduce the time and Japanese government to conduct certification inspections costs involved in manufacturers' technological on sample vehicles, but also accepts the test results of development activities and the time and costs involved designated foreign testing institutions. The number of in certification, which in turn should facilitate designated institutions and cases of foreign data being international vehicle distribution. By March 2002, Japan accepted are, moreover, continually increasing. had enlarged the scope of its mutual recognition system In parallel with its joining the UN/ECE Agreement on to include 22 items as covered by ECE regulations. Reciprocal Recognition of Type Approval of Motor The 1998 Agreement on Global Technical Vehicles in 1998, Japan introduced a vehicle equipment Regulations (GTRs) was designed as a supplemental, type approval system which exempts equipment that has parallel measure to the 1958 Agreement and its purpose already received type approval from having to be is to establish common worldwide standards inspected again during the inspection for vehicle type independently of the mutual recognition of certification approval. provisions, so as to allow the participation of countries such as the United States that lack a central government- THE PREFERENTIAL HANDLING PROCEDURE administered certification system. Japan joined the 1998 FOR IMPORTED VEHICLES Agreement in August, 1999 and is actively promoting In order to facilitate vehicle imports, this special the creation and implementation of GTRs. procedure is applied to individual models that are Established in 1987, the Japan Automobile Standards imported into Japan in quantities of 2,000 units or less Internationalization Center (JASIC) is a joint per year. public/private-sector initiative to promote regulatory Only the application forms that the automaker or harmonization and improve standards recognition importer has submitted to MLIT are inspected, and a systems in developing countries through the form indicating completion of the procedure is issued dissemination of relevant test and research data. JASIC within one month. Processing is simpler and faster than also publishes an annual handbook on Japan's motor in the Type Approval System. vehicle Type Approval System with the objective of clarifying for other countries Japan's standards and Harmonization of Motor Vehicle Technical certification procedures and related regulations. Standards The increasing globalization of vehicle production The Motor Vehicle Inspection System and sales and the internationalization of product Covering passenger cars, trucks and buses as well as distribution have led to various international initiatives motorcycles over 250cc, Japan's motor vehicle 22 inspection system, known as the shaken system, years, may be carried out at any Land Transport Office mandates periodic checks under the Road Vehicles Act or designated service garage qualified to conduct the to ensure that vehicles comply with safety- and shaken inspection. As long as a certificate for safety environment-related technical standards. standards compliance issued by a designated service The New Car Inspection (initial shaken inspection) for garage is submitted, the presentation of the actual passenger cars is carried out at any MLIT Land vehicle is waived. Transport Office or automobile registration office and is valid for three years (see Figure 2). If the model has received type approval, all the owner needs to do is present the certificate issued by the automaker attesting that the vehicle has passed the finished vehicle inspection, which eliminates the inspection of the actual vehicle. If Type Notification or the Preferential Handling Procedure for Imported Motor Vehicles applies to the vehicle, the actual vehicle must be presented to verify that it has been approved. The Continuing Inspection (shaken inspections after the initial New Car Inspection), which is valid for two Figure 1: RATIONALIZATION OF VEHICLE AND EQUIPMENT TYPE APPROVAL SYSTEMS

Motor Vehicle Type Approval System VEHICLE EQUIPMENT TYPE APPROVAL SYSTEM Certification in Japan Application for vehicle type approval

Omission of multiple Equipment Type Approval inspections on different vehicle types Vehicle Type A Vehicle Type B Omission of equipment Vehicle Type C type approval

Mutual recognition according to UN/ECE 1958 Agreement Vehicle Type Approval

Certification Overseas Omission of equipment type approval Omission of multiple inspections on different Country X vehicle types Country Y Equipment Type Approval by other Country Z national government

Figure 2: TERM OF VALIDITY OF AUTOMOBILE CERTIFICATE OF INSPECTION Term of Validity Vehicle Category Initial inspection Thereafter Private passenger car/mini passenger car 3 years 2 years Mini truck/motorcycle over 250cc/ 2 years 2 years large special-purpose vehicle 8 tons or more 1 year 1 year Truck Less than 8 tons 2 years 1 year Bus/taxi 1 year 1 year Rental vehicle 2 years 1 year

23 Attention to the Environment

Reductions in CO2 way for the transport sector overall and the automobile Automobile-related emissions from the transport industry is responding by voluntarily making a number sector account for about 20% of Japan's total CO2 of bold moves. In addition to increasing fuel efficiency emissions. Under the Kyoto Protocol adopted in 1997 in the vehicles it produces, it is encouraging a greater by the United Nations Framework Convention on awareness among vehicle users of the need to conserve Climate Change (COP3), Japan established a greenhouse energy; promoting the more widespread use of low- gas emissions reduction target of an average 6% from emission vehicles; ensuring greater efficiency in vehicle the 1990 index level for the period 2008-2012. In 1998 distribution; and taking various measures to improve Japan formulated the Master Plan for Measures to Prevent traffic flow. In the latter effort, the industry is working Global Warming which outlined the measures to be taken with the government on ITS-related initiatives such as to reach stipulated reduction goals. So as to ensure the promoting greater use of navigation systems and wider attainment of the goals, a new master plan was implementation of electronic toll collection (ETC); formulated in 2002 setting specific reduction targets for building the necessary road infrastructure; and a broad range of countermeasures, including transport introducing innovations in transportation demand sector-related countermeasures such as the achievement management, including promoting a shift to appropriate of greater fuel economy, the wider diffusion of low- transportation modes (see page 29). emission vehicles, and the improvement of traffic flow through advances in ITS (Intelligent Transport Systems), Emissions among other efforts (see Figure 1). Japan established its first emission regulations for Increased fuel economy is a key factor in reducing gasoline vehicles in 1966. In the late 1970s the country CO2. Japan's Energy Conservation Act was revised in mandated highly rigorous reductions of more than 90% 1998 in line with the Kyoto Protocol and a number of in carbon monoxide (CO), nitrogen oxide (NOx) and fuel economy targets were established. Under these hydrocarbon (HC) emissions for gasoline vehicles. The targets, gasoline-powered passenger cars will achieve an year 2000 saw further mandatory reductions of 70% in average fuel economy increase of 22.8% over 1995 CO, NOx, and HC emissions. Regulations for diesel levels by 2010; gasoline-powered commercial vehicles vehicles began with controls on black smoke (in 1973), with GVW of 2.5 tons or less, an average increase of on CO, HC, and NOx (in 1974), and on particulate 13.2% over 1995 levels by 2010; diesel-engine matter, or PM (in 1993), and have been made passenger cars, an average increase of 14.9% over 1995 progressively stricter since their introduction. In 2003, levels by 2005; and diesel-engine commercial vehicles for example, permissible NOx and PM levels will be with GVW of 2.5 tons or less, an average increase of 80% lower than levels prevailing prior to regulatory 6.5% over 1995 levels by 2005. Meanwhile, Japanese control (see Figures 3 and 4), allowing the industry to automakers are making strenuous efforts to develop supply diesel vehicles compliant with the world's technologies enabling such substantial gains in fuel strictest standards. Under standards (the most stringent economy (see Figure 2). worldwide) recommended by the Central Council for the However, greater cuts in CO2 emissions are on the Environment for new vehicles from 2005 on, NOx

Figure 1: TRANSPORT SECTOR TARGETS (breakdown) Figure 2: IMPROVEMENTS IN THE AVERAGE FUEL ECONOMY OF GASOLINE-POWERED PASSENGER CARS km/l 12,700,000 ton-C 15 Increased distribution Diffusion of low-emission vehicles efficiency 14.3 Compliance with fuel Transport 13.8 economy standards Aircraft measures Telecommunications Lifestyles 14 1998 13.5 320 60 50 310 110 250 170 Master Plan 13.1 3,800,000 ton-C 13 12.5 12.5 12.5 12.6 12.4 12.4 12.4 New 2002 50 390 250 Master Plan 420 90 (190) (1,410) (910) 5,100,000 ton-C 40 Transport measures/ 12 ( ) (18,700,000 ton-CO2) 150 telecommunications Commercial vehicle measures (new) ・Installation of equipment to prevent idling when stopped 11 ・Speed-limiters 12,400,000 ton-C (45,300,000 ton-CO2) 10 19911992 1993 1994 1995 1996 1997 1998 1999 2000 2001 FY

24 emissions from diesel vehicles will be reduced by 40- reduces particulate matter by about 80%; and the 50% from the current and new levels that are to be adoption of new diesel engines featuring high-pressure introduced in October 2003, and PM emissions will be common rail-type electronic fuel injection systems, cut by 75-80%. Furthermore, regulations on gasoline which are completely different from conventional fuel- vehicles, to apply starting 2005, will cut NOx and HC injection systems. Moreover, in view of the fact that fuel emissions to about one-half the levels prescribed in the quality has a major effect on emissions, JAMA, ACEA, year 2000 regulations. the Alliance and EMA (the United States' Engine To meet such strict emission reduction requirements, Manufacturers Association) jointly issued in December automakers are moving ahead energetically with R&D 2002 a third edition of the WWFC (World-Wide Fuel programs to set the stage for massive cuts in NOx and Charter) (www.jama.or.jp/ ew/wwfcl) that recommended PM. Their achievements so far include exhaust gas a complete, global phase-out of leaded gasoline by 2005 recirculation (EGR) systems; catalytic converters with O2 as well as lower levels of sulfur content in diesel fuel. sensors; a ceramic filtering system that eliminates up to Diesel fuel with sulfur content as low as 50 ppm has 100% of the black smoke from diesel engines and been available in Japan since April 2003.

Figure 3: EXHAUST EMISSIONS REGULATIONS IN JAPAN (as of May 2003) Particulate Type of Vehicle CO HC NOx Matter Passenger Cars 0.67 g/km 0.08 g/km 0.08 g/km Gasoline- GVW ≤– 1.7t 0.67 g/km 0.08 g/km 0.08 g/km powered Commercial N.A. 1.7 < GVW ≤ 3.5t 2.10 g/km 0.08 g/km vehicles Vehicles – 0.13 g/km 3.5t < GVW 16.0 g/kWh 0.58 g/kWh 1.40 g/kWh GVW ≤– 1.265t : 0.28 g/km GVW ≤– 1.265t : 0.052 g/km Passenger Cars 0.63 g/km 0.12 g/km GVW > 1.265t : 0.30 g/km GVW > 1.265t : 0.056 g/km Diesel- GVW ≤– 1.7t 0.63 g/km 0.12 g/km 0.28 g/km 0.052 g/km powered Commercial 1.7 < GVW ≤– 2.5t 2.10 (0.63) g/km 0.40 (0.12) g/km 0.70 (0.49) g/km 0.09 (0.06) g/km Vehicles vehicles 2.5t < GVW ≤– 12t 7.40 (2.22) g/kWh 2.90 (0.87) g/kWh 4.50 (3.38) g/kWh 0.25 (0.18) g/kWh 12t < GVW 7.40 g/kWh 2.90 g/kWh 4.50 g/kWh 0.25 g/kWh Notes: GVW = Gross vehicle weight. A G13 test mode is used for gasoline CVs with GVW of over 3.5 tons and a D13 mode for diesel CVs with GVW of over 2.5 tons; otherwise, a 10-15 test mode is used. Figures are applicable to new domestic models. Existing domestic models and imports are granted certain grace periods on part of the above standards. Figures in parentheses are applicable from October 2003. Sources: Ministry of Land, Infrastructure and Transport, Ministry of the Environment.

Figure 4: REGULATORY REQUIREMENTS FOR NOx AND PM EMISSIONS FROM DIESEL VEHICLES, 1973-2005 % 100 100 90 80 80 NOx 70 68 56 60 49 50 42 40 35 26 30 20 20 12 10 0 1973 1975 1977 19791983 1985 1988 1994 1997 2000 2003 2005 Year % 100 100 90 80 78 PM 70 60 50 40 30 28 20 20 10 3 0 1973 1975 1980 19851994 1997 2000 2003 2005 Gross vehicle weight : Over 2.5t/Over 3.5t (2005~) Year

25 Attention to the Environment (cont'd.)

support consumer purchases. Low-Emission Vehicles Efforts to popularize hybrid vehicles, electric Recycling vehicles, natural gas (CNG) vehicles, diesel-alternative Every year roughly 5 million vehicles become end-of- LPG vehicles, fuel efficient vehicles, and certified low- life vehicles (ELVs) in Japan. Most of these ELVs are emission vehicles will play a crucial role in facilitating recycled, at a rate of 75-80% by vehicle weight (see reductions in emissions and CO2. In 2001 the Figure 6). After METI formulated an ELV Recycling government announced an action plan to further develop Initiative in May 1997, JAMA responded in 1998 with a and popularize low-emission vehicles (LEVs). The Voluntary Action Plan under which the recycling rate plan's goals envision putting more than 10 million LEVs was raised to 85% or more beginning in 2002 and to and 50,000 fuel cell-powered vehicles on the road in 95% or more beginning in 2015. Meeting these targets Japan by fiscal year 2010. As of the end of 2001, will very substantially reduce the volume of ELV-related 106,000 LEVs were already in use in Japan (see Figure waste disposed of as landfill. 5). While automakers continue to make every effort to Japan's new Automobile Recycling Law was passed develop the necessary technology and popularize in July 2002 and will be enforced as of January 2005. Its appropriate model lines, they are also calling on the objective is to establish a codified framework for ELV government to put the required fuel supply infrastructure recycling and waste disposal by determining an in place and provide tax incentives and other measures to appropriate division of roles and responsibilities among

Figure 5: TRENDS IN THE USE OF CLEAN-ENERGY VEHICLES

1995 1996 1997 1998 1999 2000 2001 (units) Hybrid Vehicles 176 228 3,728 22,520 36,870 51,200 73,700 CNG Vehicles 759 1,211 2,093 3,640 5,250 7,811 12,012 Electric Vehicles 2,500 2,600 2,500 2,400 2,600 3,830 5,000 Diesel-Alternative LPG Vehicles 7,272 7,883 8,888 9,950 10,955 12,602 14,962 Methanol Vehicles 336 327 313 289 220 157 135 Total 11,043 12,249 17,522 38,799 55,895 75,600 105,809

Figure 6: JAPAN’S CURRENT ELV TREATMENT FLOW AND RELATED RECYCLING RATES

Dealers Reusable parts: 20-30% Recycled as (approx. 18,000) 25% (engines, body parts, parts: electrical components) 20-30% Used vehicle outlets Vehicle Dealers, Sales Recyclable parts: Recycling manufacturing of (approx. 50,000) Dismantlers approx. 15% rate: etc. 5% 70% (approx. Recycled as industry new (engines, catalysts, materials: 75-80% vehicles: 5,000 Service garages nonferrous metals, tires) Shredder 50-55% approx. (approx. 80,000) firms) 5,630,000 ELVs: ELV bodies operators End- (approx. units users approx. (exteriors stripped of Abandoned vehicles engines and tires): 140 firms) Shredder 5 million residue: units Local governments 55-65% 20-25% CFC12 and HFC134a (CFCs) Airbags Sales Vehicle Dealers, importers of etc. imports: Used vehicle Voluntary approach: Voluntary approach: approx. exporters CFC Recovery System Airbag Disposal Mostly disposed of 280,000 (approx. (implementation of the CFC System as landfill units 1 million units) Recovery and Disposal Law starting October 2002)

Notes: 1. In certain cases, one entity may operate dealerships, used vehicle outlets, and service garages. 2. There are currently 74 million vehicles on the road in Japan.

26 the players involved, centering primarily on the conditioner refrigerant replacing the ozone-layer automakers. The new provisions are intended to prevent damaging CFC12, and by 1994 the switchover process illegal dumping and inappropriate disposal by, one, was completed for all new models. mandating the imposition of a recycling fee on new In 1998 the automobile industry developed and vehicle purchasers at the time of sale and on in-use implemented a system for the recovery and appropriate vehicle owners at the first periodic inspection following disposal of CFC12 refrigerants from ELVs. Three years the law's enforcement, in order to cover recycling costs; later, in 2001, a system to recover and dispose of and, two, identifying the specific respective tasks of HFC134a was launched nationwide as part of a broad set automakers and other players concerned in the treatment of measures to prevent global warming. and disposal of items designated for special handling Also in 2001, the Japanese government passed the (CFCs, airbags, and shredder residue). In response to CFC Recovery and Disposal Law which requires these provisions, JAMA is currently involved in the automakers to transfer the CFCs recovered from ELVs to creation of a comprehensive online system whose government-approved treatment facilities for appropriate purpose will be to process the vast amounts of data disposal. The law took effect in October 2002 and the generated by these various operations, including the handling and disposal of automobile-related CFCs has collection and management of the consumer recycling since been further upgraded. fees and the submission of "manifests," or ELV checklists, by designated players. With respect to Substances Of Concern (SOCs), reductions in motor vehicle lead content are being made under a voluntary industry action plan launched in 1998. Since then, however, even stricter targets have been set. For example, lead content (excluding batteries) in new models sold starting in 2006 will be reduced to less than one-tenth of 1996 levels (1,850 g/unit), and cutback targets have also been fixed for mercury, hexavalent chromium, and cadmium (see Figure 7).

The Recovery and Disposal of CFCs in Vehicle Air Conditioners In 1991 Japanese automakers were the first in the world to switch to HFC134a, a new vehicle air

Figure 7: JAMA'S REDUCTION TARGETS FOR SOCS IN NEW VEHICLES

Targets for Passenger Cars, Trucks, and Buses Substances to Be Reduced (vehicles covered by the Automobile Recycling Law) From January 2006: one-tenth or less (from 1996 levels); however, one- Lead quarter or less in the case of large commercial vehicles (including buses) From the start of Automobile Recycling Law enforcement: prohibited with the exception of the following (excluding the use of minute amounts in parts Mercury needed for traffic safety) ・LCDs used in car navigation devices, etc. ・Combination meters ・Discharge headlamps ・In-cabin fluorescent lamps Hexavalent chromium Prohibited from January 2008 Cadmium Prohibited from January 2007

27 Traffic Safety

There were a total of 8,326 traffic fatalities in Japan in prevent accidents by making proposals to the 2002, which is one-half the peak number of 16,765 administrative authorities to improve road conditions fatalities suffered in 1970. In addition, the number of and traffic infrastructure. It also contributes personnel traffic accidents and related injuries declined in 2002 for and financial support to the analysis of traffic accidents the first time in twelve years. in order to identify causal factors and measures that will The government plans to launch a program focusing reduce injury and damage. on traffic safety for the elderly and hopes that this will help cut the number of traffic fatalities by one-half again Realistic Initiatives over the next ten years. The number of traffic fatalities among the elderly is rising along with an increase in the number of elderly drivers. JAMA has therefore taken the initiative of Current Initiatives to Protect People, Improve sponsoring hands-on driving seminars and other Road Conditions, and Analyze Accidents measures aimed specifically at elderly drivers. It also As the representative organization of the industry that continually conducts campaigns to promote safety supplies motor vehicles to the public, JAMA considers measures such as the use of seatbelts and of motorcycle vehicle safety its primary social responsibility. JAMA headlamps during daytime driving. therefore conducts a wide range of research and development activities to improve vehicle safety. It also Informational Activities Aimed at All Road works actively to broaden applications of safety- Users enhancing structures and devices in vehicles and to Traffic safety-related informational activities should augment the benefits of advanced electronic and other reach everyone who uses roads drivers of automobiles technologies. and motorcycles as well as bicycle riders and JAMA's activities are not limited to automobiles: they pedestrians. It is therefore necessary to undertake a apply to people and road conditions as well. broad spectrum of safety initiatives, including the proper Representing the standpoint of the auto industry, JAMA training of driving instructors and related professionals. undertakes liaison activities with relevant government Aiming its traffic safety campaigns and activities at all agencies and traffic safety organizations in connection age groups ranging from small children to the elderly, with measures concerning people and road conditions. JAMA seeks to better integrate the role of automobiles Seeking to enhance people's safety, JAMA holds in society. nationwide spring and autumn traffic safety campaigns, sponsors classes in safe driving techniques, and conducts various other activities to raise public awareness and teach practical safety. In addition, JAMA actively helps

TRAFFIC ACCIDENT CASUALTIES (including motorcycle accident casualties)

Traffic *Vehicles in Use Per 10,000 vehicles: Injuries Index Year Accidents Index Fatalities Index (million) Index Fatalities Injuries 1970 718,080 100 16,765 100 981,096 100 28.3 100 6.3 369 1975 472,938 66 10,792 64 622,467 63 36.9 130 2.9 169 1980 476,677 66 8,760 52 598,719 61 49.8 176 1.8 120 1985 552,788 77 9,261 55 681,346 69 64.3 227 1.4 106 1990 643,097 90 11,227 67 790,295 81 75.5 266 1.5 105 1995 761,789 106 10,679 64 922,677 94 82.5 292 1.3 112 1997 780,399 108.7 9,640 57.5 958,925 97.7 84.9 300 1.1 111 1998 803,184 111.9 9,211 54.9 989,297 100.8 85.4 301 1.0 112 1999 850,363 118.4 9,006 53.7 1,050,398 107.1 86.0 304 1.0 122 2000 931,934 129.8 9,066 54.1 1,155,697 117.8 86.7 306 1.0 133 2001 947,169 131.9 8,747 52.2 1,180,955 120.3 87.2 308 1.0 136 2002 936,721 130.4 8,326 49.6 1,167,855 119.0 87.6 310 1.0 133

Note: *Figures include motor vehicles and motorcycles in use (as of end of December each year) and motor-driven cycles in use (as of end of March). Sources: National Police Agency, Ministry of Land, Infrastructure and Transport.

28 Intelligent Transport Systems

Intelligent Transport Systems (ITS) have two from vehicles without requiring them to stop at principal objectives: to resolve the efficiency-reducing tollbooths, went into full-scale operation in Japan in load on traffic flow resulting from accidents and 2001 as part of the country's ITS program. As of congestion by using advanced telecommunications December 2002, ETC was in operation at 759 locations technology to network data between people, roads, and nationwide. vehicles, and, by improving road transportation Development is also moving ahead on AHS (the efficiency, to make road travel more enjoyable. Both the Automatic Highway System), which, for vehicles public and private sectors are involved in ITS initiatives. equipped with advanced cruise-assist systems, will The government's ITS master plan, entitled the provide road-related information, hazard warnings, and Comprehensive Concept for the Promotion of ITS, driving assistance. Seven system features, including envisions nine areas of ITS development including hazardous lane-change and frontal impact warnings, will advances in the Vehicle Information and Communication come into practical application as early as 2003. System (VICS) and other car navigation systems, Completion of the necessary infrastructure for AHS and electronic toll collection (ETC), and safe-driving full-scale system operation, including automatic vehicle assistance and their integration with five main user operation, are targeted for 2010. VICS, which provides categories: drivers, pedestrians, public transportation real-time road traffic information to vehicles equipped users, freight transporters, and managers of traffic and with car navigation, was launched in April 1996 using road infrastructure. Ongoing research-and-development existing fiberoptic networks and its application has targets the implementation of a total of 21 user services steadily increased nationwide since then. in the nine areas by 2015.

Significant Recent Trends Electronic toll collection (ETC), which collects tolls

ITS DEVELOPMENT AREAS AND USER SERVICES 9 ITS Development Areas 21 User Services Advanced navigation systems ● Traffic-related information ● Route guidance information Electronic toll collection ● Automatic collection of vehicle tolls Safe-driving assistance ● Road-related information ● Hazard warnings ● Driver assistance ● Advanced cruise-assist systems Optimized traffic management ● Optimization of traffic flow ● Traffic flow control information in case of accidents Optimized road infrastructure management ● More efficient maintenance and management ● Special vehicle deployment management ● Information on current traffic regulations Public transport assistance ● Information on using public transport ● Assistance in public transport operations and management More efficient commercial vehicle use ● Assistance in commercial vehicle logistical operations ● Advanced cruise-assist systems for commercial vehicles Pedestrian assistance ● Road network information ● Prevention of hazards Assistance to emergency vehicle operations ● Automatic notification of emergencies ● Emergency vehicle deployment support (route guidance and rescue activity support) Other ● Linkage with other advanced information networks

29 Automotive Shipments in Value Terms (2001)

Automotive shipments make up the second largest industrial sector of the 2001 SHIPMENTS OF MAJOR MANUFACTURING INDUSTRIES Japanese economy (following electrical machinery and equipment). (billions of yen) According to the most recent Nonferrous Metals analyses, they account for 14.1% of ¥5,849 Other the value of Japan's total (2.0%) ¥106,016 (37.0%) manufacturing shipments and 31.1% General Machinery of the value of the machinery & Equipment industries' combined shipments. In ¥28,297 Total (9.9%) 2001 the value of domestic ¥286,754 automotive shipments rose by 0.9% to Metal billion Products (100%) Electrical 40,421.5 billion yen, marking the ¥14,545 Machinery (5.1%) & Equipment second consecutive year of growth. ¥52,466 Approximately 5.1 million people (18.3%) in Japan work in automobile-related Chemicals jobs. As there are around 63.5 million ¥23,228 (8.1%) employed persons in Japan at present, Automotive this means that about one in every ¥40,422 Iron & Steel (14.1%) twelve workers is employed directly ¥11,202 or indirectly by the automobile (3.9%) Transport Equipment industry. ¥45,152 (15.7%) Breakdown of Automotive Shipments: •Automobile manufacturers (including motorcycles) ¥20,321 •Automobile body & related manufacturers ¥2,627 •Automobile parts & accessories manufacturers ¥17,474

SHIPMENTS OF MAJOR MANUFACTURING INDUSTRIES IN VALUE TERMS (billions of yen)

Automotive Machinery Industries Machinery Shipments Year Chemicals Iron & Non- Metal Industries Other Total % of % of General Electrical Other Transport Equipment Manufactur- Steel ferrous Products Subtotal Machinery Machinery/ Machinery/ Machinery ing Industries Automotive Industries Metals Equipment Industries Equipment Value Value 2001 23,228 11,202 5,849 14,545 28,297 52,466 45,152 40,422 3,999 129,914 102,016 286,754 31.1 14.1 2000 23,799 11,963 6,219 15,587 30,413 59,582 44,447 40,043 4,119 138,561 107,453 303,582 28.9 13.2 1999 23,055 11,322 5,789 15,238 27,972 54,905 43,877 39,004 4,169 130,924 105,071 291,398 29.8 13.4 1998 23,223 12,942 6,441 16,736 30,781 56,292 45,237 40,248 4,588 136,898 109,600 305,840 29.4 13.2 1997 24,580 14,563 7,188 18,125 32,575 60,381 47,448 42,483 4,503 144,907 113,708 323,072 29.3 13.1 1996 23,490 13,890 6,710 17,933 31,424 57,748 45,145 40,600 4,089 138,405 112,640 313,068 29.3 13.0 1995 23,363 14,073 6,496 17,647 29,884 54,831 44,215 39,561 4,107 133,036 111,421 306,036 29.7 12.9 1994 22,519 13,574 5,931 17,488 27,594 51,928 44,652 39,682 4,209 128,383 111,133 299,027 30.9 13.3 1993 23,260 14,932 6,140 18,732 29,171 52,103 47,065 41,767 4,488 132,827 115,310 311,200 31.4 13.4 1992 24,169 16,558 6,865 19,805 33,192 54,566 49,426 44,295 5,051 142,235 119,888 329,521 31.1 13.4 1991 24,270 18,631 7,697 20,230 35,847 58,624 48,960 44,192 5,511 148,941 121,066 340,835 29.7 13.0 1990 23,503 18,269 7,822 18,573 33,225 54,529 46,858 42,311 5,132 139,744 115,462 323,373 30.3 13.1 1985 20,552 17,754 6,384 13,094 24,190 40,842 36,179 27,693 4,381 105,593 101,943 265,321 26.2 10.4 1980 17,979 17,896 8,119 10,646 17,600 22,235 24,954 21,235 3,458 68,246 91,815 214,700 31.1 9.9 1975 10,438 11,306 3,909 6,573 10,611 10,821 14,794 10,524 1,729 37,955 57,252 127,433 27.7 8.3 19705,540 6,565 3,055 3,728 6,803 7,331 7,276 5,467 892 22,301 27,847 69,035 24.5 7.9

Source: "Industry Statistics," Ministry of Economy, Trade and Industry.

30 Automotive Trade

The value of motor vehicle exports (including The value of motor vehicle imports (including parts) motorcycles and parts) in 2002 rose by 18.3% to also increased for the third straight year, up by 8.1% to 11,567.5 billion yen, marking the third consecutive year 1,123.4 billion yen. of increase.

2002 EXPORTS BY 2002 IMPORTS BY PRINCIPAL COMMODITY (FOB) PRINCIPAL COMMODITY (CIF)

Export Value (billions of yen) Import Value (billions of yen) •Non-Electrical •Mineral Fuels ¥8,170 Machinery ¥10,600 (20.3%) (19.3%) •Iron & Steel Products ¥1,940 •Foodstuffs ¥5,280 (3.7%) (12.5%) •Chemicals ¥4,170 •Raw Materials ¥2,520 (8.0%) (6.0%) •Visual & Audio Apparatus ¥1,850 •Chemicals ¥3,240 (3.6%) Imports (7.7%) Exports •Scientific & ¥ 42,228 billion •Metals ¥1,700 ¥ 52,109 billion Optical Equipment ¥1,900 (100%) (4.0%) (100%) (3.6%) •Textiles ¥920 •Textiles ¥2,750 (1.8%) (6.5%) •Metal Products & Motor Vehicles •Other ¥5,120 Nonferrous Metals ¥1,290 ¥ 804 billion (12.1%) Motor Vehicles (2.5%) (1.9 %) (including motorcycles & parts) •Ships ¥1,120 Machinery & Equipment ¥ 11,568 billion (2.1%) ¥ 13,430 billion (22.2%) •Other ¥16,750 (31.8%) (32.1%)

Note: Figures do not always add up to the total as they have been rounded off. Note: Figures do not always add up to the total as they have been rounded off.

AUTOMOTIVE EXPORTS IN VALUE TERMS (FOB) (billions of yen)

Motor Vehicles Merchandise Year Chg.(%) Cars, Trucks, Buses Parts & Components Motorcycles Subtotal Export Total 2002 8,774.6 2,117.2 675.7 11,567.5+18.3% 52,109.0 2001 7,210.8 1,880.4 689.1 9,780.2+3.4% 48,979.2 2000 6,930.1 1,864.2 660.3 9,454.6+1.2% 51,654.2 1999 7,094.8 1,636.7 613.9 9,345.4-7.5% 47,547.6 1998 7,795.2 1,637.4 670.0 10,102.6+6.3% 50,645.0 1997 7,112.3 1,789.5 604.6 9,506.4 +20.3% 50,938.0 1996 5,513.8 1,840.5 548.9 7,903.2+9.1% 44,731.3 1995 4,979.7 1,781.5 480.7 7,241.9 -10.9% 41,530.9 1994 5,836.6 1,798.2 494.3 8,129.1 -7.3% 40,497.6 1993 6,550.5 1,654.4 564.6 8,769.5 -10.4% 40,202.4 1992 7,657.7 1,584.7 549.6 9,792.0 +4.7% 43,012.3 1991 7,370.5 1,523.9 458.9 9,353.3 +0.3% 42,359.9 1990 7,358.7 1,566.8 396.4 9,321.9 +11.7% 41,955.7 1985 8,195.1 1,242.0 624.1 10,061.2 +14.4% 41,456.9 Source: "The Summary Report on Trade of Japan," Ministry of Finance. AUTOMOTIVE IMPORTS IN VALUE TERMS (CIF) (billions of yen) Motor Vehicles Merchandise Year Chg.(%) Cars, Trucks, Buses Parts & Components Subtotal Import Total 2002 803.8 319.6 1,123.4+8.1% 42,227.5 2001 781.4 257.6 1,039.0+5.2% 42,415.5 2000 767.9 220.0 988.0+8.8% 40,938.4 1999 722.6 185.4 908.0-4.8% 35,268.0 1998 746.5 207.6 954.1-19.8% 36,653.6 1997 974.0 215.6 1,189.6 -10.5% 40,956.2 1996 1,152.1 177.4 1,329.5+21.4% 37,993.4 1995 958.5 136.4 1,094.9 +28.2% 31,548.8 1994 737.8 116.2 854.0 +22.1% 28,104.3 1993 583.0 116.6 699.6 -11.3% 26,826.4 1992 655.0 133.4 788.4 -7.6% 29,527.4 1991 727.8 125.5 853.3 -17.6% 31,900.2 1990 923.3 111.9 1,035.2 +58.9% 33,855.2 1985 129.0 44.6 173.6 — 31,084.9 Source: "The Summary Report on Trade of Japan," Ministry of Finance.

31 Significant Events of 2002

DOMESTICA • Isuzu withdraws from sales of passenger vehicles after 50 years (May). • GM Japan formally joins JAMA (January). • Hino announces development of new hybrid system for • Hino Motors, Ltd. and Isuzu Motors Limited announce commercial vehicles (May). integration of their bus operations in October 2003 (January). • Daihatsu Motor Co., Ltd. announces development of materials recycling technology as part of its strategy to • Kawasaki Heavy Industries, Ltd. and Suzuki Motor reduce waste (June). Corporation announce beginning of reciprocal OEM supply of motorcycles starting February 2003 (January). • JAMA compiles document on its requests to revise the automobile tax system (June). • Governor Ishihara of Tokyo calls on JAMA to cooperate in undertaking measures against diesel exhaust (February). • Mazda Motor Corporation appoints Lewis Booth as president (June). • The Ministry of Economy, Trade and Industry (METI), the Ministry of Land, Infrastructure and Transport (MLIT), and • MLIT announces revision of safety standards of Road the Ministry of the Environment hold the first meeting of Vehicles Act in connection with the introduction of driver the Fuel Cell Project (February). vision standards (June).

• The Ministry of the Environment announces administrative • The revised Road Vehicles Act is passed with a tighter and ministerial ordinances under the NOx and PM laws that recall system (July). were added to regulations covering diesel passenger vehicles (February). • The Automobile Recycling Law is passed (July).

• Iwao Nakamura is appointed president of Nissan Diesel • The Automobile Recycling Promotion Center announces Motor Co., Ltd. (March). outline of procedures for handling and disposal of CFCs (July). • JAMA calls on the National Police Agency to introduce license limited to AT motorcycles (March). • Mazda announces development of its first new small engine in 15 years (July). • Decision on new Outline of Measures to Combat Global Warming in run-up to approval of the Kyoto Protocol • Suzuki announces practical application of its direct-injection (March). gasoline turbo engine, first in minicar category (July).

• The Central Council for the Environment issues long-term • JAMA establishes the Forum to Promote Reform of the report (fifth report) on exhaust gas (April). Automobile Tax System composed of 14 automobile industry-related groups (July). • Number of vehicles subject to recall tops 3-million mark in FY 2001, hitting all-time high (April). • Honda announces target of beginning sales of fuel cell- powered automobiles around end of 2002 (July). • Cabinet decision on draft automobile recycling legislation (April). • Honda announces development of side-curtain airbags and beginning of their installation in cars going on sale from • Number of firms using JNX Centre and JNX reaches 309, autumn (August). topping initial target of 300 (April). • JAMA announces the release of the UNEP Report on the • Honda announces completion of traffic safety training Automotive Industry prepared by JAMA and ACEA facilities named "Traffic Training Center Rainbow (August). Hamanako" and launches operations (April). • JAMA announces implementation of activities to promote • JAMA announces its policy on dealing with the Automobile low-sulfur diesel fuel from late August (August). Recycling Law (April). • JAMA firms up policies on full-scale operation of domestic • Prime Minister Junichiro Koizumi announces policy to take motorcycle recycling system beginning in spring 2004 the lead in introducing several fuel cell-powered vehicles (August). (April). • Toyota and Nissan announce technical cooperation on • Fuji Heavy Industries and NEC Corporation announce hybrid vehicles (September). establishment of new company to develop secondary fuel cells for hybrid vehicles (May). • Daihatsu announces world's first successful practical application of "intelligent catalyst" (September). • Yoshihide Munekuni takes office as chairman of JAMA (May). • JAMA publishes its statement of requests concerning revision of the automobile tax system (September). • JAMA, the Japan Motor Industrial Federation (JMIF), and • Mitsubishi Motors formally announces spin-off of its truck the Japan Automobile Industry Employers' Association and bus operations (September). merge (May).

32 • Toyota and Nissan announce receipt of approval for non- step large route buses equipped with fuel-cell hybrid • Mitsubishi Motors Corporation, DaimlerChrysler, and systems (September). Hyundai announce basic agreement on joint development of small engines (May). • Implementation of CFC Recovery and Disposal Law (October). • Suzuki and GM jointly take equity stake in Daewoo Motors, a bankrupt Korean automaker (June). • Mazda announces construction of Japanese automobile industry's first high-speed/high-capacity broadband network • Hino announces beginning of local assembly of dedicated (October). North American platform based on medium-sized truck (June). • Hino and Isuzu announce establishment of transition company to pave the way for integrated bus production • Toyota announces beginning of sales of fuel-cell vehicles at operations (October). end of 2002 in Japan and the United States (July).

• JAMA and IBM Japan begin provision of JNX-based • The lower house of the California state legislature passes Common Application Infrastructure (October). law putting restrictions on automobile CO2 emissions (July). • JAMA, the Japan Motor Industrial Federation (JMIF), and the Japan Automobile Industry Employers' Association • Saudi Arabian Automobile Technical Training Institute is sponsor the 36th Tokyo Motor Show (commercial vehicles), opened with the assistance of JAMA and Saudi Arabian the first since the merger of the three organizations Japanese Automobile Dealers Association (September). (October). • The governments of Japan and the United States call for • Enforcement of portions of vehicle model-based regulations modification of China's automobile import quota system under the revised Automotive NOx and PM Law begins (September). (October). • The government of Vietnam announces restrictions on • Toyota Chairman Hiroshi Okuda, Nissan President Carlos imports of motorcycle parts (September). Ghosn, and Canon Inc. President Fujio Mitarai are presented with Business Manager Reform Award by Japanese • The first Global Automobile Industry Meeting attended by government (October). Japanese, U.S., and European automaker CEOs held in Paris (September). • Eighteen automobile industry-related organizations jointly sponsor action rally for elimination of the temporarily high • JAMA submits request to METI of Japan for withdrawal of tax rate imposed on revenue sources earmarked for roads restrictions on imports of motorcycle parts imposed by the (November). government of Vietnam (September).

• Nissan announces development of pre-crash seat belt that • JNX and ANX agree on the launch of international automatically senses emergency braking (December). interconnection service (September).

• Mitsubishi Motors announces construction of new paint • JAMA announces submission to prime minister of Vietnam facility at Mizushima plant (December). of statement requesting withdrawal of restrictions on imports of motorcycle parts (October). • Honda and Toyota deliver fuel-cell vehicles to the Japanese government (December). • JAMA dispatches mission to Vietnam to discuss issue of restrictions on imports of motorcycle parts imposed by • Promotion Committee for the Privatization of the Four Vietnam (October). Highway-Related Public Corporations submits final report to Prime Minister Koizumi (December). • Vietnam's Ministry of Trade issues emendations to quotas on imports of motorcycle parts; Japanese-affiliated manufacturers resume production of motorcycles (November). INTERNATIONALA • Yamaha Motor Co., Ltd. announces line-off ceremony at • Honda Motor Co., Ltd. develops hybrid vehicle compatible plant in Taiwan for first 50cc motor scooters for sale in with fuel-cell vehicles, to be launched in North America in Japan (December). FY 2003 (January).

• JAMA dispatches two special missions to China regarding the issue of motorcycle counterfeits (February).

• Honda announces beginning of exports of CR-Vs produced at its UK plant to North America (April).

• Toyota Motor Corporation announces establishment of joint venture with China FAW Group Corporation, a major Chinese automaker (May).

33 JAMA Organization and Information Services

The Japan Automobile Manufacturers Association, among the chief executives of the member companies. Inc. (JAMA) is a nonprofit trade association which was Reporting to the chairman are five vice-chairmen, one of established in 1967. The organization is comprised of whom also serves as president; an executive director; the fifteen manufacturers of passenger cars, trucks, buses and a secretary general. Final authority for decisions on and motorcycles in Japan. JAMA's major activities and overall administration is JAMA's activities are administered under the vested in its board of directors. guidance of various committees composed of member- company representatives. The administrative structure of JAMA is headed by a chairman, who is elected from

Chairman Vice-Chairmen – Committees – – Administration – General Assembly President Board of Directors Executive Director Executive Committee Secretary General General Committees: Technical Administration Committee Administrative Div. Safety & Environmental Technology Committee Environment Committee Coordination Div. Traffic Affairs Committee Traffic Affairs Dept. Distribution Committee Taxation Committee Business Affairs Dept. International Affairs Committee Technical Dept. Purchasing Committee Environment Dept. Electronic Information Exchange Committee Human Resources Committee International Dept. Tokyo Motor Show Dept. Special Vehicle Committees: Public Relations Office Mini-Vehicle Committee Motorcycle Committee Human Resources Office Heavy Vehicle Committee

Tokyo Motor Show Committee

JAMA INFORMATION MATERIALS

Periodicalsa Other Publicationsa A Better Environment for Future Generations Motor Vehicle Statistics of Japan Japan's Automobile Manufacturers: Global A summary of JAMA initiatives related to Historical compilation of Japanese motor vehicle Companies Meeting New Challenges With environmental issues and the measures JAMA production, export, and new registration statistics. Advanced Technologies members are taking in regard to environmental Annual. A detailed look at how Japanese automakers' protection. sales, employment and investment activities have News from JAMA made them a part of the fabric of America. The Future of Motorcycles Brief articles and current production, export, and An overview of Japanese motorcycle new registration statistics. Bimonthly. Also Japanese Automakers in Europe–Investing in manufacturers' responses to the priority issues available in French and German. a Common Future facing their industry today. A detailed look at how Japanese automakers are News from JAMA, Asia-Pacific Edition working within the European Community to build Videosa News and feature articles on JAMA's activities cars in Europe for Europeans. Automobile Recycling in 1998–Towards the related to the ASEAN automotive industry. Technology of Tomorrow Published thrice yearly. Towards the Development of the ASEAN A 20-minute presentation which reviews the Automotive Industry industry's voluntary initiatives to further promote News from JAMA Motorcycle A detailed look at how Japanese automakers are end-of-life vehicle recycling, explaining the latest News, views and developments related to working to promote the automotive industry in and technologies in shredder residue processing and Japan's motorcycle industry. Quarterly. with ASEAN countries. other systems. In Japanese and English.

Japan Auto Trends Internet: http://www.jama.or.jp News, views and developments related to Japan's automobile industry. Published quarterly in the U.S. Note: Publications can be obtained from JAMA by contacting any of the offices listed inside the cover of this booklet. For information on video availability, please contact JAMA's head office.

34 Member Manufacturers

DAIHATSU MOTOR CO., LTD. MAZDA MOTOR CORPORATION Head Office: Head Office: 1, Daihatsu-cho 1-chome 3-1, Shinchi, Fuchu-cho Ikeda City, Osaka Pref. 563-8651 Aki-gun, Hiroshima Pref. 730-8670 Tel : (0727) 51-8811 Fax: (0727) 53-6880 Tel : (082) 282-1111 Fax: (082) 287-5190 Tokyo Branch Office: Tokyo Head Office: 2-10, Nihonbashi Hon-cho 2-chome 1-7, Uchisaiwai-cho 1-chome Chuo-ku, Tokyo 103-8408 Chiyoda-ku, Tokyo 100-0011 Tel : (03) 3279-0813 Fax: (03) 3279-0038 Tel : (03) 3508-5031 Fax: (03) 3508-5094 Products: Cars and Trucks Products: Cars, Trucks and Buses Internet: http://www.daihatsu.co.jp/ Internet: http://www.mazda.co.jp/ FUJI HEAVY INDUSTRIES LTD. MITSUBISHI FUSO TRUCK & BUS Subaru Bldg. 7-2, Nishi-Shinjuku 1-chome CORPORATION Shinjuku-ku, Tokyo 160-8316 16-4, Konan 2-chome Tel : (03) 3347-2111 Fax: (03) 3347-2338 Minato-ku, Tokyo 108-8285 Products: Cars, Trucks and Buses Tel : (03) 6719-4601 Fax: (03) 6719-0111 Internet: http://www.fhi.co.jp/ Products: Trucks, Buses and Industrial Engines Internet: http://www.mitsubishi-fuso.com/ GENERAL MOTORS JAPAN LIMITED 27th Floor, 20-3, Ebisu 4-chome MITSUBISHI MOTORS CORPORATION Shibuya-ku, Tokyo 150-6027 16-4, Konan 2-chome Tel: (03) 5424-2727 Minato-ku, Tokyo 108-8410 Products: Cars Tel : (03) 6719-2111 Fax: (03) 6719-0059 Internet: http://www.gmjapan.co.jp/ Products: Cars Internet: http://www.mitsubishi-motors.co.jp/ HINO MOTORS, LTD. Head Office and Hino plant: NISSAN DIESEL MOTOR CO., LTD. 1-1, Hinodai 3-chome 1, Oaza 1-chome Hino City, Tokyo 191-8660 Ageo City, Saitama Pref. 362-8523 Tel : (042) 586-5111 Fax: (042) 586-5038 Tel : (048) 781-2301 Fax: (048) 781-7505 Tamachi Office: Products: Trucks and Buses 11-3, Shiba 4-chome Internet: http://www.nissandiesel.co.jp/ Minato-ku, Tokyo 108-0014 Tel : (03) 5419-9320 Fax: (03) 3453-0174 Products: Trucks and Buses NISSAN MOTOR CO., LTD. Internet: http://www.hino.co.jp/ 17-1, Ginza 6-chome Chuo-ku, Tokyo 104-8023 Tel : (03) 3543-5523 Fax: (03) 3546-2669 HONDA MOTOR CO., LTD. Products: Cars, Trucks and Buses 1-1, Minami-Aoyama 2-chome Internet: http://www.nissan.co.jp/ Minato-ku, Tokyo 107-8556 Tel : (03) 3423-1111 Fax: (03) 3423-0511 Products: Cars, Trucks and Motorcycles SUZUKI MOTOR CORPORATION Internet: http://www.honda.co.jp/ Head Office: 300, Takatsuka Hamamatsu, Shizuoka Pref. 432-8611 ISUZU MOTORS LIMITED Tel : (053) 440-2061 Fax: (053) 445-0040 26-1, Minami-Oi 6-chome Tokyo Branch Office: Shinagawa-ku, Tokyo 140-8722 Suzuki Bldg. Higashi-Shinbashi Tel : (03) 5471-1111 Fax: (03) 5471-1042 2-8, Higashi-Shinbashi 2-chome Products: Trucks and Buses Minato-ku, Tokyo 105-0021 Internet: http://www.isuzu.co.jp/ Tel : (03) 5473-1601 Fax: (03) 5473-1602 Products: Cars, Trucks and Motorcycles Internet: http://www.suzuki.co.jp/ KAWASAKI HEAVY INDUSTRIES, LTD. Kobe Head Office: Kobe Crystal Tower TOYOTA MOTOR CORPORATION 1-3, Higashi Kawasaki-cho 1-chome Head Office: Chuo-ku, Kobe, Hyogo Pref. 650-8680 1, Toyota-cho Tel : (078) 371-9530 Fax: (078) 371-9568 Toyota City, Aichi Pref. 471-8571 Tokyo Head Office: Tel : (0565) 28-2121 Fax: (0565) 80-1116 World Trade Center Bldg. Tokyo Head Office: 4-1, Hamamatsu-cho 2-chome 4-18, Koraku 1-chome Minato-ku, Tokyo 105-6116 Bunkyo-ku, Tokyo 112-8701 Tel : (03) 3435-2111 Fax: (03) 3436-3037 Tel : (03) 3817-7111 Fax: (03) 3817-9037 Products: Motorcycles Products: Cars, Trucks and Buses Internet: http://www.khi.co.jp/ Internet: http://www.global.toyota.com YAMAHA MOTOR CO., LTD. Head Office: 2500, Shingai Iwata City, Shizuoka Pref. 438-8501 Tel : (0538) 32-1115 Fax: (0538) 37-4250 Tokyo Office: Mita 43 Mori Bldg. 13-16, Mita 3-chome Minato-ku, Tokyo 108-0073 Tel : (03) 5442-0600 Fax: (03) 5442-0700 Products: Motorcycles Internet: http://www.yamaha-motor.co.jp/

35 Related Automotive Associations

Japan Auto Parts Industries Association Japan Automobile Dealers Association (JADA) (JAPIA) 7-17, Minami-Aoyama 5-chome 16-15, Takanawa 1-chome Minato-ku, Tokyo 107-0062 Minato-ku, Tokyo 108-0074 Tel: (03) 3400-8404 Fax: (03) 3400-8413 Tel: (03) 3445-4211 Fax: (03) 3447-5372 Internet: http://www.jada.or.jp/ Internet: http://www.japia.or.jp/ Objectives: To promote the use of automobiles and im- Objectives: To establish and promote policies to streamline prove their distribution, thereby contributing to parts manufacturing, and to research, develop and the development of the national economy. improve production engineering. Japan Mini-Vehicles Association (JAVA) Japan Auto-Body Industries Association, Inc. Shinjuku Sanei Bldg., 22-2, Nishi-Shinjuku 1-chome (JABIA) Shinjuku-ku, Tokyo 160-0023 Kishimoto Bldg., 2-1, Marunouchi 2-chome Tel: (03) 3342-7831 Fax: (03) 3344-6289 Chiyoda-ku, Tokyo 100-0005 Internet: http://www.zenkeijikyo.or.jp/ Tel: (03) 3213-2031 Fax: (03) 3213-2034 Objectives: To promote strong sales and good distribution of mini-vehicles and to address Internet: http://www.jabia.or.jp/ safety and emissions measures. Objectives: To research and promote policies to streamline auto-body manufacturing and assembly. Japan Automobile Importers Association (JAIA) Japan Automotive Machinery and Tool TBR Bldg., 5-7, Kojimachi Manufacturers Association (JAMTA) Chiyoda-ku, Tokyo 102-0083 Kikaishinko Bldg. Tel: (03) 3222-5421 Fax: (03) 3222-1730 Internet: http://www.jaia-jp.org/ 5-8, Shibakoen 3-chome Objectives: To establish orderly import transactions and Minato-ku, Tokyo 105-0011 advance the interests of member companies, Tel: (03) 3431-3773 Fax: (03) 3431-5880 thereby promoting the growth of automobile import Internet: http://www.jamta.com/ businesses. Objectives: To conduct research on the engineering technology of automotive servicing equip- ment and tools, and to disseminate the Japan Automobile Federation (JAF) resulting information among its members. Kikaishinko Kaikan, Room 103 5-8, Shibakoen 3-chome Japan Electric Vehicle Association (JEVA) Minato-ku, Tokyo 105-0014 22-15, Toranomon 1-chome Tel: (03) 3436-2811 Fax: (03) 3436-3008 Minato-ku, Tokyo 105-0001 Internet: http://www.jaf.or.jp/ Tel: (03) 3503-3651 Fax: (03) 3503-8493 Objectives: To promote an understanding of traffic issues and traffic safety, protect the interests of Internet: http://www.jeva.or.jp/ members, encourage international friendship Objectives: To promote the utilization of electric vehicles, as through automobiles, and develop motor sports well as collect information and conduct analysis programs, thereby contributing to the welfare of on electric vehicles at home and abroad. the public.

Japan Automobile Research Institute, Inc. Japan Automobile Service Promotion (JARI) Association (JASPA) 2530 Karima, Tsukuba City 1-16, Moto-Akasaka 1-chome Ibaraki Pref. 305-0822 Minato-ku, Tokyo 107-0051 Tel: (029) 856-1111 Fax: (029) 856-1122 Tel: (03) 3404-6141 Fax: (03) 3404-6478 Tokyo Office: Internet: http://www.jaspa.or.jp/ Kanda Union Bldg., 25, Kanda-Nishiki-cho 3-chome Objectives: To promote the advancement of automobile Chiyoda-ku, Tokyo 101-0054 service technologies and equipment, in order to Tel: (03) 3293-9123 Fax: (03) 3295-2386 help prevent automobile accidents and Internet: http://www.jari.or.jp/ pollution. Objectives: To conduct comprehensive research aimed at the long-range development of automotive Japan Automobile Standards Inter- technologies for vehicle safety and reduced nationalization Center (JASIC) emissions, noise and vibration. TBR Bldg., 5-7, Kojimachi Society of Automotive Engineers of Japan, Inc. Chiyoda-ku, Tokyo 102-0083 Tel: (03) 5216-7241 Fax: (03) 5216-7244 (JSAE) Internet: http://www.jasic.org/ 10-2, Goban-cho Objectives: To promote the harmonization of standards and Chiyoda-ku, Tokyo 102-0076 to help improve standards certification systems Tel: (03) 3262-8211 Fax: (03) 3261-2204 in developing countries through the collection and dissemination of data on inspections, Internet: http://www.jsae.or.jp/ surveys, and related information. Objectives: To research, study and experiment in auto- motive science and technologies.

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