The Secret of Japan’s Successful Auto Industry

Khodrocar – Japanese started their auto industry at the beginning of 20th century with American and Europeans but they didn’t make a move till the 1960s and 1970s. Their auto industry improved since they make appearance in the international market. Toyota entered the America’s market and launch its first representative in the biggest market of the world.

The success of Japan’s auto industry is tied with some factors such as below:

-    Japanese never sacrifice quality to other factors and Japanese products are always famous for their quality.

-    Producing cars in economical sector was a notable factor because people wanted these cars especially during fuel and stagnation period.  

-    Preventing to use high tech and not optional gadgets which other companies used at that time made Japanese to have more share from the market. They even didn’t establish their luxury brands like Lexus and Infiniti till the end of 1980s.

-    Choosing joint ventures wisely with European and American auto makers like Nissan and Aston, Mitsubishi and Fiat and Dodge, Mitsubishi and Renault and Nissan.

"First, Japanese tried to always learn from other companies experiences then they have the quality as their winning point and never stop this procedure.” Ali Shokouhi, an expert of auto industry told khodrocar reporter.

"On the other hand, producing high quality cars with reasonable prices make Japanese to obtain more share of competitive market. Meanwhile, Chinese and Korean cars were full of different options weren’t practical at all. So a practical vision of Japanese in each industry make them notable.” He added.

Japanese success in Iran had another reason separate from the reasonable price and quality of these products. They didn’t have any competitors when started to export their cars to Iran. Low quality local cars were made people thirsty for a high quality car such as Japanese and Koreans so they conquer the Iran’s market in a shortest time.

"Toyota became famous in Iran during 1383 and 1384 when vehicle importation was not ban anymore so Hyundai and Toyota export a big fleet of their products to Iran. Suddenly customers of this segment find out 2 major companies. People could buy a high quality Japanese car or an optional Korean vehicle also Toyota launch its distributing and after sales network in Iran to speed up its sales.” He continued.

"While Japanese are among the best auto makers in the world but they are not stopping to learn from other major auto makers. They produce very well and Japan’s government is strength international relations, they also focusing of expanding the export market.” Ali Shokouhi said.

"Also, we shouldn’t forget the wisely joint venture contracts. For example, Nissan and Mitsubishi were in bad condition, they signed joint venture contracts with Renault which relived them.” He added.

Japan’s auto industry is another example of successful auto industries. They started their activity alongside Iran but chose better partners and had plan for their future and now they are among 3 biggest automakers in the world and it is one of their key industries. We hope to see their improvement way and take lessons from them and become successful in our own industry.

Khodrocar Reporter: Mostafa Anisi

Khodrocar Translator: Amin Zamani