A Vast Range of Related Industries

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2 Automotive Industry AutomobileRelated Industries and Employment A Vast Range of Related Industries Automobiles are the focus of an extremely wide range of industrial and related activity, from materials supply and vehicle production and distribution to sales, servicing and other autocentered operations. Autorelated employment in Japan at present totals 5.32 million people. EMPLOYMENT IN THE AUTOMOBILE MANUFACTURING AND RELATED INDUSTRIES Number of employees Automobile Production , employment in auto manufacturing & related industries: 5.32 million (8.5%) Automobile manufacturing (including motorcycles)... 66, Auto parts and accessories manufacturing... 65, Auto body and trailer manufacturing... 6, Road Transport... 2,8, Road freight transport...,793, Road passenger transport , Road transportrelated services... 35, Vehicle rental services... 44, Automotive Fuel/Insurance/Recycling... 49, employment (workforce) in Japan: million (%) Automotive fuel retailing , Auto damage insurance..., Automobile recycling... 4, Materials & Equipment Supply , Electrical machinery & equipment... 7, Nonferrous metals... 9, Iron & steel... 54, Metal products... 23, Chemicals (including paints), textiles, and petroleum... 2, Plastics, rubber, and glass... 59, Electronic parts & equipment... 34, Manufacturing machinery... 23, Sales & Services...,85, Automobile retailing (including motorcycles, used vehicles, and auto parts and accessories) , Automobile wholesaling (including motorcycles, used vehicles, and finished/used parts and accessories)... 76, Automobile servicing , Note: Figures are rounded off to the nearest thousand. Sources: Economic Census, Labor Force Survey, InputOutput Tables for Japan, Census of Manufactures, Ministry of Internal Affairs and Communications Statistics Bureau; Ministry of Economy, Trade and Industry

3 Automotive Industry Investment in Materials and Equipment Automobile Manufacturing is an Integrated Industry An automobile typically is composed of 2, to 3, parts, all of which even the largest manufacturers cannot produce themselves. Automakers therefore either outsource production or purchase finished products (such as tires and batteries), including products manufactured abroad. The volume of imported components increases yearly. Automobile manufacturing is thus an integrated industry because it relies on many supporting industries to produce the great diversity of materials and components it uses. Trends in the automobile industry, which makes huge investments in equipment and researchanddevelopment activities, are considered a barometer of the economy. PRINCIPAL MATERIALS AND COMPONENTS USED IN AUTOMOBILE MANUFACTURING Cast iron Common steel Special steel Copper Lead, tin, zinc Aluminum Noble metals Other nonferrous metals Synthetic resin Glass Rubber Ceramics Textiles Leather Paper Wood Paints Chemicals Animal and vegetable oils Fats and oils Engine parts, e.g. cylinder blocks Chassis, frames, wheel parts Gears, axle shafts, crankshafts, fuel injection equipment Electricals, radiators, cables Engine metals, solder, body varnish, batteries Engine parts (e.g. pistons, cylinder heads), wheels, chassis Emissions aftertreatment parts Magnets, plating Steering wheels, bumpers, radiator grilles, body components Window glass, mirrors, headlamps Tires, sealing parts, vibration control parts Plugs, electronic parts, sensors, emissions aftertreatment parts Seats, linings, seatbelts Seats, packing Filters Loadcarrying platforms, interior equipment Ornamental and rustproof paints Antifreeze, engine oil, transmission oil, brake oil For casting For lubrication, heat treatment, etc. Springs, dampers Turbochargers Bearings Machined parts, e.g. pumps Tires and tubes Batteries Window glass Onboard tools, e.g. jacks Supplies, e.g. extinguishers, tire chains Electronic parts Lights, cables, optical fibers Air conditioners, air cleaners Sensors, ECUs, actuators Starters, alternators, generators, inverters, meters Radios, CD/DVD players, phones, navigation systems Safety equipment, e.g. antilock brakes, airbags, traction control Coke Petroleum, electricity, natural gas For casting Fuel, heat treatment, paint drying, power generation INVESTMENTS IN EQUIPMENT OF MAJOR MANUFACTURING SECTORS (PROJECTED, FY 2) NonFerrous Metals 822 (2.4%) Pulp & Paper,5 (3.3%) General Machinery 2,783 (8.2%) Chemicals 5,83 (5.%) Other 5,7 (4.8%) Petroleum,84 (3.2%) Automotive 5,257 (5.6%) All Manufacturing Sectors 33,782 (%) Electrical Machinery & Equipment 2,57 (7.6%) Iron & Steel 6,36 (8.8%) x million yen Electronic Equipment 3,7 (.%) INVESTMENTS IN R&D OF MAJOR MANUFACTURING SECTORS (FY 29) Foods 2,42 (2.3%) Iron & Steel,493 (.4%) Other,339 (9.9%) Electrical Machinery & Equipment 9,6 (9.2%) All General Machinery & Equipment 6,739 (6.%) Manufacturing Sectors 4,386 (%) Chemicals 7,552 (7.2%) IT & Telecommunications Equipment 7,724 (7.%) Pharmaceuticals,937 (.5%) x million yen Electronic Circuits, Parts & Equipment 6,783 (6.5%) Automotive 9,288 (8.5%) Transport Equipment 9,789 (9.%) Source: Survey on Corporate Finance, Ministry of Economy, Trade and Industry Source: Survey on Research Activities in Science and Technology, Ministry of Internal Affairs and Communications 2

4 Automotive Industry Automotive Shipments in Value Terms Automobile Manufacturing is a Core Industry The automotive industry is one of the Japanese economy s core industrial sectors. In 29 automotive shipments accounted for 5.3% of the total value of Japan s manufacturing shipments, and 34.9% of the value of the machinery industries combined shipments. Automotive shipments (both domestic and export shipments, including motorcycles, auto parts, etc.) in value terms totalled 4.5 trillion yen in 29, down 28.5% from the previous year. SHIPMENTS OF MAJOR MANUFACTURING SECTORS IN VALUE TERMS (29) x million yen COMPARISON OF VALUE OF AUTOMOTIVE SHIPMENTS TO TOTAL VALUE OF ALL MANUFACTURING SHIPMENTS Other 894,53 (33.7%) Metal Products 24,267 (4.7%) Iron & Steel 59,884 (6.%) NonFerrous Metals 69,4 (2.6%) General Machinery 289,32 (.9%) 2,652,59 (%) Chemicals 242,757 (9.2%) Electrical Machinery & Equipment 4,593 (5.%) Automotive 44,95 (5.3%) Transport Equipment 47,866 (7.8%) Breakdown of Automotive Shipments: Automobiles (including motorcycles)... 66,38 Auto bodies and trailers... 3,87 Automotive parts and accessories , value of all manufacturing shipments value of automotive shipments x trillion yen SHIPMENTS OF MAJOR MANUFACTURING SECTORS IN VALUE TERMS Chemicals 55,42 4,38 79,787 25, ,3 233, , , , ,27 24,493 25,27 26, ,939 28, ,757 Iron & Steel 65,648 3,63 78,956 77,543 82,687 4,727 9,63 2,8 9,627 9,3 4,43 68,964 84,727 2,97 243,322 59,884 NonFerrous Metals 3,547 39,87 8,86 63,836 78,27 64,964 62,89 58,492 56,685 56,32 6,93 67,6 9,62 7,75 4,85 69,4 Metal Products 37,277 65,73 6,465 3,944 85,736 76,465 55,868 45,45 37,365 32,43 34,543 4,59 44,5 5,889 5,492 24,267 General Machinery 68,28 6,2 75,998 24,94 332, ,844 34,32 282, ,773 26,683 29,742 32,8 333,33 362,734 42, ,32 Electrical Machinery & Equipment 73,35 8,23 222,346 48, , ,39 595,87 524,657 46,4 48,37 498, ,83 5, ,265 58,797 4,593 Machinery Industries Transport Equipment 72,758 47, ,536 36, , ,45 444,474 45, , ,869 56, , , , 637,666 47,866 Automotive Subtotal Other x million yen Automotive Shipments As % of Value of Machinery Shipments As % of Value of Manufacturing Shipments Notes:. Shipments from all manufacturing operations with four or more employees are included in this data. 2. Compilation of data on production in value terms was discontinued in 996 and replaced by data on shipments in value terms. 3. Figures in value terms include domestic consumption tax revenue from shipments. 4. Electrical Machinery & Equipment includes ITrelated electronic parts and equipment as of 22. Source for all statistical data on this page: Census of Manufactures, Ministry of Economy, Trade and Industry 54,673 5,24 22, , ,6 395,63 4,429 44,25 43,63 45,5 458,22 489,548 54,9 57, ,53 44,95 223,8 379,55 682,457,55,932,397,439,33,364,385,62,299,43,23,66,275,564,335,93,385,37,484,34,597,84,558,94,6, , ,87 952,724,63,24,25,939,55,277,5,72,6,56 967,3 956,63 968, ,77,23,649,58,7,5,93 894,53 69,348,274,329 2,46,998 2,653,26 3,233,726 3,6,356 3,35,824 2,867,544 2,693,68 2,737,344 2,844,83 2,962,47 3,48,346 3,367,566 3,355,788 2,652,

5 Automotive Industry Automotive Trade Motor Vehicle Imports and Exports Both Show an Increase In 2 Japan s gross exports and imports increased from the previous year, by 24.4% and 8.% respectively. In value terms, automotive exports expanded 34.5% to 2.6 trillion yen, with motor vehicle and parts exports rising but motorcycle exports declining. Automotive imports also increased, by 3.4% yearonyear to. trillion yen, with both motor vehicle and parts imports showing growth. EXPORTS BY PRINCIPAL COMMODITY (FOB) IN 2 Scientific & Optical Equipment 2 (3.%) Ships 224 (3.3%) Electrical Machinery & Equipment,265 (8.8%) Other 838 (2.5%) 6,74 (%) General Machinery,332 (9.8%) Transport Equipment,526 (22.6%) Motor Vehicles (including motorcycles and parts),26 (8.7%) Textile Yarn & Textiles 6 (.9%) Chemicals 693 (.3%) Iron & Steel Products 368 (5.4%) x billion yen NonFerrous Metals & Metal Products 232 (3.4%) IMPORTS BY PRINCIPAL COMMODITY (CIF) IN 2 Transport Equipment 68 (2.8%) Motor Vehicles (excluding motorcycles and parts) 8 (.8%) Electrical Machinery & Equipment 8 (3.3%) Other,4 (8.2%) General Machinery 483 (7.9%) NonFerrous Metals & Metal Products 237 (3.9%) 6,77 (%) Chemicals 538 (8.9%) Foodstuffs 52 (8.6%) Petroleum & Petroleum Products, (8.%) x billion yen Raw Materials 477 (7.8%) Mineral Fuels,74 (28.6%) AUTOMOTIVE EXPORTS IN VALUE TERMS (FOB) Motor Vehicles 97,82 5,675 8,363 24,773 35,32 6,795 85,267 75,26 93,679 25,956 Chg. (%) Passenger Cars, Trucks, Buses 72,8 87,746 88,95 92,42 99,288 22,995 43,7 37,36 66,933 9,74 Auto Parts Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ). AUTOMOTIVE IMPORTS IN VALUE TERMS (CIF) 8,84 2,72 22,998 25,67 28,6 3,227 33,555 3,655 23,89 3,833 Motorcycles & Motorcycle Parts 6,89 6,757 6,45 7,4 7,839 8,573 8,543 7, 3,657 3,382 Exports 489,792 52,9 545,484 6,7 656, , ,34 8,8 54,76 673,996 x million yen Chg. (%) x million yen Motor Vehicles,39,234,799 2,842 3,353 4,42 5,586 4,6 8,245,836 Chg. (%) Passenger Cars, Trucks, Buses 7,84 8,38 8,279 9,55 9,49 9,63 9,294 7,499 4,549 5,957 Auto Parts Notes:. Motor vehicles include passenger cars, trucks, buses, and chassis. 2. FOB = free on board; CIF = cost, insurance, and freight. 3. Chg. (%) means change from the previous year (with the previous year s result indexed at ). 2,576 3,96 3,52 3,787 4,24 5,249 6,29 6,662 3,696 4,879 Imports 424,55 422, ,62 492,66 569, ,443 73, ,548 54,994 67,65 Chg. (%) Source for all statistical data on this page: The Summary Report on Trade of Japan, Ministry of Finance 4

6 Motor Vehicles Production Motor Vehicle Production Rises for First Time in 3 s In 2 motor vehicle production in Japan increased for the first time in three years, totalling 9.63 million units, up 2.4% over the previous year. Passenger car production grew 2.% to 8.3million units. Within that category, standard car production surged 4.% to a total of 4.85 million units, small car production grew.6% to 2.6 million units, and minicar production rose 3.8% to.3 million units. Truck and bus production also showed an increase over 29, growing 22.8% to.2 million units and 26.% to 9, units, respectively. MOTOR VEHICLE PRODUCTION BY TYPE IN 2 Standard 52,672 (5.4%) Small 238,776 (2.5%) Mini 449,776 (4.7%) Buses 9,334 (.%) TRENDS IN MOTOR VEHICLE PRODUCTION x million units 4 2 Mini,34,832 (3.6%) Trucks,29,224 (2.6%) 9,628,92 (%) Standard 4,846,4 (5.3%) Passenger Cars 8 6 Small 2,59,9 (22.4%) Passenger Cars 8,3,362 (86.3%) Trucks & Buses MOTOR VEHICLE PRODUCTION Standard 5,69 29,32 43, ,792,75,783 2,553,73 3,376,447 3,46,6 3,67,23 3,753,446 4,44,563 4,9,36 4,95,428 5,864,354 5,786,333 3,459,589 4,846,4 Small 2,377,639 4,98,55 6,438,847 6,99,432 7,36,224 4,4,629 3,699,893 3,378,95 3,637,5 3,434,662 3,39,47 3,46,622 3,32,265 2,638,842 2,74,43 2,45,279 2,59,9 Passenger Cars Mini 749,45 6,272 95,923 6, ,965 96,2,283,94,278,642,39,83,29,22,366,675,48,753,537,2,44,44,427,397,257,293,34,832 3,78,78 4,567,854 7,38,8 7,646,86 9,947,972 7,6,533 8,359,434 8,7,563 8,68,354 8,478,328 8,72,385 9,6,735 9,754,93 9,944,637 9,928,43 6,862,6 8,3,362 Chg. (%) Gasoline 52,47 84,34 457,28 842, , ,54 53,28 5,44 57,225 57,42 27,529 6,53 96,83 25,262 2,443 83,442 76,36 Standard Diesel 26,53 23, ,99 435,42 64,27 59, ,9 444, ,739 65,37 642,424 67,33 63, ,639 63,48 288, ,536 Subtotal 258, 288,7 885,98,278,22,249, ,4 649,8 595,43 679, , , , ,4 78,9 734,923 37,686 52,672 Gasoline,56,729,44,759,663,834,28,423 57,972 34,495 24,253 99,37 98,2 25,9 26,92 233,694 23,687 77,425 63,237 27,4 33,43 Trucks Small Diesel 97,32 68,76 449, ,47 744,97 64, ,29 246,233 82,3 99,443 84,634 23,69 25,77 88,7 66,52 88,35 5,733 Notes:. Passenger cars are classified under Japan s Road Vehicles Act in three categories, based primarily on engine capacity: standard (over 2,cc), small (66cc2,cc), and been treated as components since Chg. (%) means change from the previous year (with the previous year s result indexed at ). 5

7 TRENDS IN MOTOR VEHICLE PRODUCTION IN VALUE TERMS x trillion yen 25 Passenger Cars Trucks & Buses MOTOR VEHICLE PRODUCTION IN VALUE TERMS Passenger Cars Trucks Standard Small Mini Standard Small Mini Tractors Large Small 895,4 3,77,356 5,47,637 6,64,75 7,483,4 8,573,769 8,454,25 8,836,999 9,352,545,89,826 3,22,924 3,6,9 7,26,654,239,33 7,49,323 8,676,75 4,869,427 4,298,37 4,36,594 4,468,9 4,243,75 4,67,398 4,78,64 4,88,449 3,67,9 3,27,9 2,548,37 2,69,86 85,925 8,3, ,88 2,966,259 79,33,87,367,237,65 2,76,5,225,3 2,844,665,66,97 4,28,57,54,329 3,752,249,46,5 4,5,52,69,87 4,7,57,333,394 6,33,669,39,576 7,6,4,293,624 7,56,852,55,68,965,76,27,423 4,56,587,793,,953,924,69,428,,558,79,88,29,75,539,22,85,35,96,692 2,29,3 2,46,53 2,,682,27,974,684,489,59,934,8,28 849,5 543,48 522,666 44,59 54,48 56, , ,272 52, ,435 32, ,8 679,498 59,44 5, , , , , ,66 357,65 352,5 39,4 32,374 28, ,8 46,745 64,93 24,764 45,453 4,56 36,334 67,945 89,959 4,567 22,267 2,346 36,277 34,778 75,944 4,39,77 3,79,9 3,4,282 2,58,84,988,447 2,2,46 2,485,882 2,79,32 2,967,98 3,77,69 3,99,46 3,22,768,757,37 2,442,34 3,53 34,5 7,647 8,897 96,949 97,5 6,56 5,985 27,65 3,726 29,29 36,5 9,723 8,3 Buses,7 66,988 89,44 9,7,499 3,83 3,268 29,577 63,69 23,23 264,477 33,594 66,5 2,359 x million yen Grand 24,6 2,273,526 2,3 6,957,27 97,88 4,8,737 89,94 4,424,38 28,448 5,4,56 228,863 6,449, ,828 6,484, ,562 7,76,376 29,674 7,958, ,957 9,726, ,686 2,93, ,79 2,979, ,838 2,998,68 329,659 6,828,56 Source: Ministry of Economy, Trade and Industry Subtotal,253,86,6,475 2,3,3,877,893,262,943 99,32 483, ,27 38,33 449, , ,763 49,44 365, ,758 25,39 238,776 Mini 55, ,987 94,679,388, ,7 84, ,356 56,863 52, ,427 54,22 546,85 52, , ,78 398, ,776 2,63,883 2,337,632 3,93,88 4,544,688 3,498,639 2,537,737,726,88,6,536,572,64,746,66,73,69,76,6,64,693,538,2,58, ,,29,224 Large Buses Small Chg. (%) ( 3 passengers) ( 29 passengers) Chg. (%) ,265 3,624 6,47 5,547 5,787 2,84 8,35,25,4,46 2,286,763,63,56,66 8,783,274 3,3 22,48 75,8 64,44 24,398 34,452 46,59 46,887 55,8 49,668 48,56 64,55 77,574 2,54 27,442 78,2 99,6 46,566 36,5 9,588 79,59 4,85 47,266 54,544 58,92 66,32 6,74 6,442 76,33 88,637 3,67 39,2 86,795 9, ,289,57 6,94,59,42,884 2,27,95 3,486,796,95,536,4,796 9,777,9,257,35,286,8,5,58,799,659,484,233,596,327,575,644 7,934,57 9,628,92 mini (66cc and under); see page 66 for details. 2. KD sets have been excluded since 979; they represent less than 6% of the cost of compositional components per vehicle and have Source: Japan Automobile Manufacturers Association Chg. (%)

8 Motor Vehicles New Registrations Motor Vehicle Sales Increase for First Time in 5 s Passenger car and commercial vehicle demand in Japan in 2 totalled 4.96 million units, an increase of 7.5% over the previous year. passenger car sales grew 7.4% to 4.2 million units, with the standard car segment surging 22.4% to.42 million units, small cars rising.9% to.5 million units, and minicars climbing.% to.29 million units. Also, sales of trucks and buses increased 8.6% and.6% from 29, to 73, and 3, units respectively. NEW MOTOR VEHICLE REGISTRATIONS BY TYPE IN 2 Standard,697 (2.%) Mini,284,665 (25.9%) Trucks 73,94 (4.7%) Buses 2,775 (.3%) Small Mini 87,642 44,755 (3.8%) (8.9%) Standard 4,956,36 (%) Passenger Cars 4,22,267 (85.%),49,99 (28.7%) Small,57,693 (3.4%) TRENDS IN NEW MOTOR VEHICLE REGISTRATIONS x million units Passenger Cars Trucks & Buses NEW MOTOR VEHICLE REGISTRATIONS Passenger Cars Trucks Standard Small Mini Subtotal Chg. (%) Standard Small Mini Subtotal Chg. (%) 9,68 49,25 7,93 73, ,49 889,26 77,22 74, ,94,229,97,358,28,27,349,225,867,299,68,25,987,6,75,49,99,652,899 2,53,396 2,68,25 2,869,527 3,839,22 2,654,29 2,28,387 2,274,996 2,46,3 2,94,94 2,37,767 2,89,992,98,267,654,25,549,677,48,37,57,693 77,7 57,2 74,3 6,7 795,948 9,355,28,265,273,98,37,57,29,89,372,83,387,68,57,598,447,6,426,979,283,429,284,665 2,379,37 2,737,64 2,854,76 3,4,83 5,2,659 4,443,96 4,259,872 4,289,683 4,44,354 4,75,92 4,768,3 4,748,49 4,64,732 4,4,299 4,227,643 3,923,74 4,22, ,86 2,8 54,472 8,9 93,775 77,264 84,626 83,38 76,35 28,752 86,588 97,548 29,283 7,998 46,69 87,692, , ,55,44,67 945,484,449,678,4,296,5,33 943,59 739,52 373,259 36,449 35,78 354,87 293,2 249,655 8,59 87, ,743 43,8 839,38,367,685,6,456 85, ,66 574,227 58,843 59,44 59,67 536,648 56,2 472,73 442,94 44,742 44,755,693,52,55,454 2,37,947 2,43,78 2,649,99 2,43,825,686,599,6,856,334,38,9,55,67,4,85,94,8,74 937, , ,943 73,94 Notes:. Chassisbased through 22, data compilation became vehicle registration numberbased as of Truck figures include specialpurpose vehicles (except large ones). 3. Data includes

9 NEW MINIVEHICLE SALES BY TYPE Passenger Cars (Minicars),273,57,37,296,29,889,372,83,387,68,57,598,447,6,426,979,283,429,284,665 Commercial Vehicles ( Bonnet minivans) 2,,789 89,532 77,297 77,547 68,74 57,59 5,622 42,932 4,63 Commercial Vehicles (Caboverengine minivans) 75,594 63,42 72,644 83,995 97,4 24,838 96,4 85,86 67,358 8,55 Commercial Vehicles (Minitrucks) 284, ,23 25,69 257,775 26,96 242,469 29,64 25,486 94,452 29,62 Notes:. Figures here through 23 include other types of minivehicles not counted in the data in the bottom chart. 2. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Mini Vehicles Association,853,52,83,7,84,755,89,5,923,76 2,23,69,99,89,869,893,688,7,726,42 Chg. (%) RECREATIONAL VEHICLE (RV) SALES Station Wagons Vans OffRoad 4WD Vehicles Minivans Chg. (%) ,47 85,29 77, ,5 62,667 59,936 46,95 454,64 339, ,565 2,26,87 6,927 7,347 9,363 9,46 8,752 9,396 7,433 8, ,93 98,29 83,435 7,447 79,776 2,35 226,59 23,29 57,284 95,783 Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ).,77,27,23,797,2,27,23,788,69,6,26,26 98,8 938,694 89, ,473 2,2,743 2,82,494 2,63,6 2,78,83,97,82,856,693,676,42,65,463,394,89,56, Source: Japan Automobile Dealers Association Buses Large Small Subtotal Chg. (%),256 8,88 9,44 8,798 9,62 6,475 4,333 4,42 4,729 5,862 5,98 5,856 6,64 5,53 5,357 4,234 4,777 7,572,8 3,973 2,775 5,763,828 2,238,52,63 5,34 3,49,898,536,464 9,976 8,338 7,998 27,828 9,836 23,387 2,573 24,925 7,33 6,57 5,932 6,359 2,23 8,47 7,754 7,6 5,67 5,333 2,572 2, ,,467 4,38,93 5,5,5 5,556,834 7,777,493 6,865,34 5,963,42 5,96,47 5,792,93 5,828,78 5,853,382 5,852,67 5,739,56 5,353,648 5,82,235 4,69,256 4,956,36 Chg. (%) imported cars. 4. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Vehicle Registrations 2,844,554 3,72,63 4,2,72 4,28,32 5,975,89 5,49,44 4,95,7 4,59,46 3,966,93 4,27,35 3,962,232 3,928,35 3,75,887 3,433,829 3,22,342 2,92,85 3,229,76 Chg. (%) Mini Vehicles Chg. (%),255, ,3 82.,3, ,528,72 4.8,82,44 6.3,75,62 6.2,867, ,847, ,826, 98.8,8, ,89,5 5.,923,76.7 2,23,69 5.2,99, ,869, ,688,7 9.3,726, Sources: Japan Automobile Dealers Association; Japan Mini Vehicles Association 8

10 Motor Vehicles Imported Vehicle Sales Sales of Imported Vehicles Show First Increase in 3 s Imported vehicle sales in Japan in 2 totalled 225, units, up 26.% from the previous year. Passenger car sales surged 27.% to 23, units, and commercial vehicles (trucks and buses) rose.9% to 2, units. On the other hand, sales of used imported vehicles dropped 2.3% to 482, units, with passenger cars decreasing 2.% to 46, units, but trucks increasing 6.6% to over 3, units. TRENDS IN IMPORTED MOTOR VEHICLE SALES Vehicles produced by nonjapanese manufacturers Passenger Cars Commercial Vehicles Vehicles produced by Japanese manufacturers abroad Passenger Cars Commercial Vehicles Vehicles produced by nonjapanese manufacturers Vehicles produced by Japanese manufacturers abroad Passenger Cars Commercial Vehicles Grand s Chg. (%) 4, 3, 2,, Passenger Cars Commercial Vehicles Passenger Cars Commercial Vehicles 254,558 6,79 26,277 4,2 4,2 268,56 6,79 275, ,528 4,7 26,599 6,466 6, ,994 4,7 277, ,996 3,6 247,66 3,98 3,98 275,94 3,6 278,84.6 Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ). 24,29 3, ,89 28,989 28, ,98 3, , ,6 3, ,993 9,9 9,9 264,729 3, , ,892 2,72 246,64 5,67 5,67 259,562 2,72 262, ,78,55 23,593 32, , ,996 2,9 265,86. 92,37,585 93,92 3,96,368 25,329 26,278 2,953 29, ,43,76 6,94 8,746 8,877 7,623 67,889,638 78, ,255,827 82,82 33,28 9,973 43, 23,283,8 225, Source: Japan Automobile Importers Association IMPORTED MOTOR VEHICLES (ON CUSTOMS CLEARANCE BASIS) Passenger Cars 46,285 52,225 25,69 4, , ,6 288,657 28, , , ,726 29, ,255 45,687 23,79 USED IMPORTED VEHICLE SALES Passenger Cars 525,57 537,75 555, ,89 588, , ,2 54,7 47,986 46,5 Chg. (%) Chg. (%) Commercial Motor Other Vehicles Vehicles Chg. (%) ,85 47, , , , , , , , ,52.4.5, , , , , , , , , , , , , , , , , , Trucks 4,682 5,69 6,48 7,96 9,468,2 2,58 2,44 2,547 3,38 Chg. (%) SpecialPurpose Vehicles 47,29 42,669 38,25 3,856 27,269 22,64 7,574 3,292,83 7,878 Chg. (%) Other ,8 585,93 6,376 66,97 625,362 62, ,57 53, ,78 482,49 Motorcycles 7,5 7,87 28,696 43,936 74,96, ,93 562,45 485, , , ,722 43,87 367, ,26 Notes:. Other denotes specialpurpose vehicles and enginemounted chassis. 2. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Trade Statistics of Japan, Ministry of Finance Chg. (%) Notes:. Passenger cars are classified under Japan s Road Vehicles Act in three categories, based primarily on engine capacity: standard (over 2,cc), small (66cc2,cc), and mini (66cc and under); see page 66 for details. 2. Other includes buses, large specialpurpose vehicles and smallsized threewheeled trucks. 3. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Automobile Importers Association

11 Motor Vehicles Used Vehicle Sales Used Vehicle Sales Decline for Fifth Straight In 2 sales of used motor vehicles decreased 2.4% from the previous year to total 6.54 million units, with used passenger car sales declining.% to 5.28 million units. In this category, standard passenger cars dropped.7% to.59 million units and small cars fell 2.% to.82 million units, but minicars increased.5% to.87 million units. Meanwhile, used truck sales declined 7.4% from 29 to.6 million units and used bus sales dipped 7.4% to 4, units. USED VEHICLE SALES BY TYPE IN 2 Buses 4,63 (.2%) Other 87,238 (.3%) TRENDS IN NEW AND USED MOTOR VEHICLE SALES Used vehicles New vehicles x million units 9 Small 245,642 (3.8%) Standard 77,327 (2.7%) Mini 732,854 (.2%) Trucks,55,823 (7.7%) 6,539,496 (%) Standard,592, (24.3%) Mini,873,466 (28.7%) Passenger Cars 5,282,272 (8.8%) Small,86,696 (27.8%) USED MOTOR VEHICLE SALES Passenger Cars Trucks Buses Other Standard ,5 34,93 994,3,742,786,83,588,86,694,9,7,984,562 2,2,563,959,739,8,596,728,9,69,37,592, Small 3,295,92 3,945,86 3,845,76 3,5,87 2,93,775 2,744,64 2,64,456 2,524,764 2,46,4 2,34,226 2,5,22,944,766,855,7,86,696 Mini 356,726 34, ,259,448,546,552,297,74,827,89,84,777,866,89,54 2,33,569 2,22,866,995,333,864,874,873,466 Subtotal 3,8,968 4,554,6 5,566,646 6,24,49 6,296,66 6,32,25 6,36,33 6,287,92 6,353,27 6,297,534 5,938,584 5,668,89 5,339,35 5,282,272 Chg. (%) Standard Small Mini Subtotal 39,459 85,85 22,523 2,74 22,98 26,88 22,47 225,75 24,6 244,77 22, ,848 94,8 77, ,32 555,634 52,244 42,5 398,84 374, 379,46 363, , ,8 32,43 278, , ,642,25,545,746,495,538,78,69,626,,833,89,79,62,66 972, 98,74,3,67 935, , , ,854,854,325 2,487,98 2,28,485,783,85,72,68,669,278,662,59,56,238,589,552,63,557,458,777,389,357,248,532,55,823 Chg. (%) ,655 3,377 3,327 5,73 6,466 7,64 7,392 7,24 8,87 2,643 6,48 6,93 5,293 4,63 Chg. (%) ,62 54,8 84,49 73,475 7,79 59,825 54,97 36,242 44,9 35,3 6,37 4,56 95,452 87,238 Chg. (%) ,722,568 7,9,536 7,945,867 8,23,98 8,95,923 8,67,292 8,95,267 8,,92 8,6,46 8,66,864 7,53,96 7,78,255 6,698,592 6,539,496 Notes:. Passenger cars are classified under Japan s Road Vehicles Act in three categories, based primarily on engine capacity: standard (over 2,cc), small (66cc2,cc), and mini (66cc and under); see page 66 for details. 2. Includes imported vehicles. 3. Other refers to emergency vehicles, special vehicles equipped with beds, refrigerated trucks, tank trucks, tractors, bulldozers, steamrollers, snowplows, snowmobiles, etc., that are assigned special registration numbers. 4. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Sources: Japan Automobile Dealers Association; Japan Mini Vehicles Association Chg. (%)

12 Motor Vehicles Motor Vehicles in Use and Motor Vehicle Density Slight Increase in Number of Passenger Cars in Use At the end of December 2, motor vehicles in use in Japan (excluding motorcycles) totalled 75.4 million units, a level virtually unchanged from the previous year. Passenger cars in use increased.6% to 58.3 million units, with standard and minicars growing.2% and 3.3% to 6.9 million and 8. million units respectively, but small cars dropping.9% to 23.5 million units. Meanwhile, trucks in use slipped.8% from 29 to 5.3 million units and buses in use decreased.5% to 227, units. At the end of March 2, the average service life of motor vehicles in Japan was 2.7 years for passenger cars, 2.72 years for trucks, and 6.59 years for buses. MOTOR VEHICLES IN USE BY TYPE AT END OF 2 Buses 227,27 (.3%) SpecialPurpose Vehicles,52,593 (2.%) TRENDS IN MOTOR VEHICLES IN USE x million units 8 7 Standard 2,28,7 (3.%) Small Trucks 3,825,632 5,284,625 (5.%) (2.3%) Mini 7,986,982 (23.9%) Mini 9,77,282 (2.2%) 75,36,876 (%) Passenger Cars 58,347,387 (77.4%) Standard 6,89,42 (22.4%) Small 23,47,3 (3.%) Passenger Cars Trucks, Buses & SpecialPurpose Vehicles (Minicars) (Minitrucks) MOTOR VEHICLES IN USE (at end of every calendar year) ,374 27,5 472,34 7,94,784,594 7,874,89 3,942,626 4,86,684 5,375,465 5,836,593 6,295,52 6,634,529 6,74,523 6,77,52 6,748,373 6,688,645 6,89,42 6,457,8 4,47,68 2,,96 25,6,79 3,554,652 3,3,462 28,593,49 27,943,396 27,493,644 26,885,69 26,4,67 26,254,546 25,698,33 24,92,226 24,356,3 23,99,9 23,47,3 Passenger Cars Standard Small Mini Subtotal Standard 2,244,47 2,6,3 2,76, 2,6,487 2,584,926 5,775,386 9,9,258,79,436,67,73 2,49,928 3,297,363 4,2,74 5,8,27 5,93,25 6,76,486 7,42,89 7,986,982 8,778,972 7,236,32 23,659,52 27,844,58 34,924,72 44,68,37 52,437,375 53,54,56 54,539,839 55,22,59 55,994,5 57,9,789 57,52,43 57,623,753 57,864,972 58,9,853 58,347,387 Trucks Chg. (%) Small Mini Subtotal Chg. (%) ,256,58,465,494,464,668,852 2,76,488 2,574,433 2,596,42 2,572,244 2,53,293 2,476,588 2,464,873 2,474,378 2,465,823 2,455,268 2,386,255 2,39,62 2,28,7 4,478,486 6,,26 7,55,22 6,679,665 6,69,536 6,23,45 5,474,66 5,37,676 5,,24 4,87,933 4,694,922 4,594,363 4,43,3 4,323,579 4,2,553 3,952,534 3,825,632 3,5,7 2,785,82 4,527,794 8,79,289 2,535,45,642,3,54,427 9,986,298 9,838,7 9,732,853 9,62,53 9,665,3 9,62,484 9,495,42 9,47,694 9,288,679 9,77,282 8,28,759,43,853 3,77,479 7,39,86 2,32,439 2,43,49 8,225,58 7,866,28 7,48,424 7,8,374 6,78,848 6,733,87 6,499,4 6,274,267 5,896,52 5,56,825 5,284, Notes:. Specialpurpose vehicles refers to emergency vehicles, special vehicles equipped with beds, refrigerated trucks, tank trucks, tractors, bulldozers, steamrollers, snowplows, ). 3. Threewheeled vehicles includes threewheeled passenger cars, trucks, and specialpurpose vehicles.

13 PRIVATE PASSENGER CARS IN USE PER HOUSEHOLDS BY PREFECTURE (at March 3, 2). Fukui 2. Toyama 3. Gunma 4. Gifu 5. Yamagata 6. Tochigi 7. Ibaraki 8. Nagano 9. Niigata. Yamanashi. Fukushima 2. Ishikawa 3. Mie 4. Saga 5. Shizuoka 6. Shiga 7. Tottori 8. Shimane 9. Okayama 2. Akita 2. Iwate 22. Aichi 23. Tokushima 24. Kagawa 25. Kumamoto 26. Miyagi 27. Oita 28. Miyazaki 29. Okinawa 3. Yamaguchi 3. Aomori 32. Wakayama 33. Nara 34. Kagoshima 35. Hiroshima 36. Ehime 37. Fukuoka 38. Kochi 39. Nagasaki 4. Saitama 4. Chiba 42. Hokkaido 43. Hyogo 44. Kyoto 45. Kanagawa 46. Osaka 47. Tokyo National Average Source: Automobile Inspection & Registration Information Association PASSENGER CARS IN USE BY YEAR OF FIRST REGISTRATION of First Registration April 29March 2 April 28March 29 April 27March 28 April 26March 27 April 25March 26 April 24March 25 April 23March 24 April 22March 23 April 2March 22 April 2March 2 April 999March 2 April 998March 999 April 997March 998 April 996March 997 March 996 Vehicles in Use Vehicles in Use 2,874,45 2,474,222 2,867,299 2,865,6 3,26,944 3,5,63 2,98,279 2,949,572 2,744,9 2,587,92 2,33,6 2,6,337,944,682,64,76 4,3,58 4,48,92 AVERAGE AGE BY TYPE AVERAGE SERVICE LIFE BY TYPE At March 3, 2 % of Vehicles in Use In years Passenger Cars Trucks Buses In years Passenger Cars Trucks Buses Notes:. Average age means the average number of years elapsed since first registration. 2. Average service life means average vehicle lifespan. The method of calculating average service life changed in 2 for passenger cars and trucks and in 22 for buses. 3. Average age and average service life figures are as at the end of every fiscal year. 4. The above three tables exclude minivehicles. Source: Automobile Inspection & Registration Information Association Large 4,895 2,86 6,633 8,967 4,89 4,478,46,272,58 9,99 9,73 9,97 9,763 9,62 9,88 8,76 8,36 Small Buses 83,85 24,98 23,387 22,26 3,849 28,67 25,437 24,544 23,347 2,99 2,23 2,86 2,98 2,37 2,873 9,637 9,35 Subtotal 87,98 226,284 23,2 23, , ,95 235, ,86 233,45 23,88 23,934 23,733 23,68 23,928 23,68 228, ,27 Chg. (%) SpecialPurpose Vehicles 333,32 584, 789,55 94,647,26,39,5,29,75,733,766,22,735,682,689,629,649,686,63,62,66,934,585,873,536,6,55,4,52,593 Chg. (%) ,58,843 28,9,558 37,856,74 46,57,26 57,697,669 66,853,5 72,649,99 73,47,762 73,989,35 74,24,4 74,655,58 75,686,455 75,859,68 75,74,82 75,528,35 75,324,486 75,36,876 Chg. (%) Trailers 23,79 39,88 56,84 65,485 87,359 2,7 33,676 35,363 36,72 37,5 42,32 47,626 5,44 54,798 57,95 52,38 52,834 Three Wheeled Vehicles 243,934 47,998 7,724 6,23 4,56 3,62 3,827 3,75 3,63 3,478 3,47 3,28 3,238 3,2 3,9 3,27 2,62 snowmobiles, etc., that are identified as specialpurpose vehicles by special registration numbers. 2. Chg. (%) means change from the previous year (with the previous year s result indexed at Source: Ministry of Land, Infrastructure, Transport and Tourism

14 Motor Vehicles Exports Motor Vehicle Exports Up for First Time in 2 s Exports of motor vehicles in 2 increased 33.8% over the previous year to 4.84 million units. Passenger car exports grew 33.% to 4.27 million units, truck exports surged 42.7% to 45, units, and bus exports climbed 25.8% to 6, units. The total value of automotive exports expanded 45.2% to US$ 4.8 billion, with the value of automobile exports increasing 47.4% to US$ 2.4 billion and the value of auto parts exports rising 39.6% to US$ 38.4 billion. MOTOR VEHICLE EXPORTS BY TYPE IN 2 Small 52,98 (.%) Mini (.%) Buses 5,782 (2.4%) TRENDS IN MOTOR VEHICLE EXPORTS x million units 7 6 Standard 397,44 (8.2%) 5 Mini 2,755 (.%) Small 88,66 (6.9%) Trucks 45,32 (9.3%) 4,838,35 (%) Passenger Cars 4,272,256 (88.3%) Standard 3,45,84 (7.3%) Passenger Cars Trucks & Buses MOTOR VEHICLE EXPORTS ,58,623 3,932,44 3,38,47,732,5,462,69,83,96,228,525,222,433,27,3,98,273,449,68,359,44,534,975 84,98 88,66 Passenger Cars Standard Small Mini Subtotal 345,43 493,47,343,967,56,22 2,333,263 2,384,696 2,783,45 2,856,32 2,995,259 3,64,63 3,845,8 4,45,934 4,379,569 2,43,359 3,45,84 75,45,82,835,36 5,45 2,24,3 6 8, ,753, , , ,586,827,286 3,947,6 4,426,762 4,482,3 2,896,26 3,795,852 3,568,76 4,2,373 4,8,498 4,24,27 4,363,68 5,295,497 5,8,959 5,95,429 3,28,639 4,272,256 Chg. (%) Standard 65,7 68,37 332,257,96, ,737 62,654 53, , ,33 553,46 59,233 52, , , 567, ,6 397,44 Small 272, ,232,548,25,29, , ,929 86,329 66,377 7,28 76,787 96,453 89,946 89,2 89,28 9,58 48,447 52,98 Trucks Mini 3,892 22,7 73,77, Notes:. Passenger cars are classified under Japan s Road Vehicles Act in three categories, based primarily on engine capacity: standard (over 2,cc), small (66cc2,cc), and mini (66cc and manufactured in Japan. 3. KD sets have been excluded since 979; they represent less than 6% of the cost of compositional components per vehicle and have been treated as components since

15 MOTOR VEHICLE EXPORT TRENDS (BY REGION OF DESTINATION) Asia Middle East Europe North America Latin America Africa Oceania Other (EU) (U.S.A.) ,, 2 6,, 5,, 4,, 3,, 2,,,, Asia Middle East Europe (EU) North America (U.S.A.) Latin America Africa Oceania Other Chg. (%) 35,227 38, ,45 8,87,795,86,66, ,556 98,524 34,88 7,778 4,66, ,692 49, , ,794 2,76,298,84, ,65 44, ,455 9,66 4,698, ,93 439,587,59,76,9,58,786,387,594,57 272,297 46,269 48,22 9,82 4,756, , ,46,275,229,36,27,726,465,559,67 344,844 82,45 448,67,658 4,957, ,67 59,594,78,97 895,728,854,438,662,939 43,259 29, ,922,36 5,53,6.9 38,56 59,34,35,86 92,837 2,488,373 2,26, , ,956 44,92 9,344 5,966, ,92 8,887,497,8 99,42 2,455,99 2,25, ,945 33, ,268 9,277 6,549, ,8 952,749,589,54 82,63 2,38,254 2,68,62 57,9 35,762 46,56,73 6,727, ,84 428,42 685,26 542,25,379,5,22, ,96 45,3 347,394 8,389 3,66, ,33 583, , ,58,727,35,53,26 396,499 88, ,26 7,86 4,838, Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ). Subtotal 35,6 833,673,953,685 2,238,4,39,2 849,859 67,87 552, ,593 63, ,795 6, ,974 66,45 658,28 35,57 45,32 Buses Chg. (%) Large Small Subtotal Chg. (%) Chg. (%) 2.9 4,52 5,59 9, ,86, ,46,247 6, ,677, ,66 58,5 66, ,966, ,249 59,357 65, ,73, ,66 33,895 39, ,83, ,28 36,76 44, ,79, ,3 34,32 4, ,454, ,593 34,888 44, ,66, ,346 39,46 48, ,698, ,3 37,29 45, ,756, ,692 44,49 55, ,957, ,957 67,98 77, ,53, ,567 8,634 93, ,966, ,887 7,644 2, ,549, ,574 35,87 53, ,727, ,6 8,96 92, ,66, ,969,83 5, ,838, under); see page 66 for details. Vehicle type classification in this table differs somewhat from that used in Ministry of Finance export data. 2. Figures represent exfactory export shipments of motor vehicles 4. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Automobile Manufacturers Association

16 Motor Vehicles Exports by Destination A Rise in Motor Vehicle Exports Worldwide In 2 motor vehicle exports to every destination increased. Compared to the previous year, they grew 62.4% to Latin America, 5.3% to Asia, 36.7% to Europe, 36.4% to the Middle East, 3.% to Africa, 25.2% to North America, and 22.4% to Oceania. MOTOR VEHICLE EXPORTS BY DESTINATION IN 2 Europe 936,496 (9.4%) Middle East 583,684 (2.%) of which EU 568,58 (.8%) 4,838,35 (%) North America,727,35 (35.7%) of which U.S.A.,53,26 (3.6%) Asia 573,33 (.8%) Latin America 396,499 (8.2%) Africa 88,644 (3.9%) Oceania 425,26 (8.8%) million units, units Note: The figure includes 7,86 units (.%) shipped to other destinations., units MOTOR VEHICLE EXPORT TRENDS (BY REGION OF DESTINATION) In % Asia Middle East Europe (EU) (8.7) (7.8) (2.8) (2.9) 23.3 (7.7) 2.9 (5.4) 22.9 (4.) 23.6 (2.) 9. (5.) 9.4 (.8) North America (U.S.A.) (38.6) (39.2) (33.5) (3.5) 36.7 (32.9) 4.7 (37.9) 37.5 (33.8) 34.5 (3.7) 38. (33.3) 35.7 (3.6) Latin America Africa Oceania Other

17 MOTOR VEHICLE EXPORTS BY DESTINATION IN 2 Standard Small Mini Subtotal Passenger Cars Standard Small Mini Subtotal Trucks Large Small Subtotal Buses Note: Passenger cars are classified under Japan s Road Vehicles Act in three categories, based primarily on engine capacity: standard (over 2,cc), small (66cc2,cc), and mini (66cc and under); see page 66 for details. Asia Middle East Europe North America Latin America Africa Oceania Other Grand s South Korea China Taiwan Hong Kong Thailand Singapore Malaysia Philippines Indonesia Pakistan Other Subtotal Iran Saudi Arabia Kuwait Oman Israel United Arab Emirates Qatar Other Subtotal Sweden Denmark UK Netherlands Belgium France Germany Spain Italy Finland Poland Austria Greece Other Subtotal Norway Switzerland Russia Turkey Ukraine Other Subtotal Canada U.S.A. Subtotal Mexico Puerto Rico Colombia Ecuador Peru Chile Other Subtotal Algeria Libya Egypt Nigeria South Africa Other Subtotal Australia New Zealand Other Subtotal Destination E U Source: Japan Automobile Manufacturers Association 22, ,6 3,984,394 3,997 4,995 9,49 5,737, ,3 362,824 9,9 64,288 2,745 5,566 54,24 62,958 5,74 26,953 35,556 9,559 5,475 78,67 4,642 2,932 47,928 92,8 4,849 38,29 8,63 4,277 7,68 3, 24, ,667 9,547 23, ,58 8,62 5,32 2, ,28 64,48,325,968,49,386 53,72 28,88,692 2,97 8,492 42,68 59, ,732 2,289 2,872 2,84 3,6 2,48 4,623 46, ,382 7,694 3, ,873 3,257 3,45, ,928,56 3,795,76 2,3,777,25,329 3,656 49, ,2 8,65 6,446 28,29 2,885 2,974 28,779 45,484,558,649 2,693 6,693 4,889 9,74 24,925 3,75 7,37, ,77 3,93 5,75 7,63 2,327 9,46 9,93 24,633 2, ,666 3,778 9,75 22,953 9,78,464 4,684 4,5 2,2 7,727 2,986 8,65 3,87 9,55 3, ,792 4,95 5,73 9,566,863,439 3, , , , ,755 23,289 23,538 33,5 5,455 3,997 6,85 3,55 7,54 22,82,476 6,686 42,866 9,375 3,499 3,36 57,2 82,57 83,853 8,75 55,732 46,53 2,92 7,75,539 47,367 7,83 58,57 7,26 44,583 55,622 9,5 5,283 22,974 6,33 29, ,9 22,223 33, ,495 32,695 7,369 3,46 95,236 95,22,56,6,7,38 62,899 38,652 6,376 25,2 2,63 6,347 8,93 35,92 5,376 2,377 5,872 3,57 4,94 9,573 98, ,6 29,565 5, ,86 3,33 4,272, ,333 6,49 5,365 26,959,96 6,7 2,93 29,476 3,49 5,5,489 8,252 29,38,77 3,58,59 9,2,788 9,5 83, ,299 2, ,38 5,79 3,4,93,426 5, ,273,59 4,8 5,77 4,599 5,4 2,797 5,45 3,43 8,683 69,938 6, , ,83 3,883 48,38 34,983 3,38 3,792 4,93,8 397, ,9, ,8 8,23 2,53,97 2,2 7, ,52 4, ,26 2 4, ,9,47 3,285 8,69, ,343 3,75 3, ,473 52, ,333 6,959 5,85 27,3 2,97 8,439 3,447 29,476 3,73 8,962 8,72 8,252 3,9 2,84 5,529,59 6,356 2,455,3 97, ,543 2, ,38 5,368 3,4,93 2,338 8, ,62,59 4,866 5,925 5,36 5,35 3,29 7,325 4,82 2,968 78,7 6, , ,659 6,226 62,3 38,53 3,37 3,926 45,386,8 45,32, , , , ,292 2,466, , , , , ,436 7, ,944 36, , ,983 4,638,455 2,635 2, , , ,43, ,77 5,394,72 3,995 25,4 2,99 6 2,729 5,88 2,48,83 2 2,454 2, , ,56 7,826, ,53 4, ,354,49 6,66 5,432,755 3,233 24, , , ,335 2,59,894 3,637 6,2,72 4,65 27,869 3,33 6 2,765 5,959 2,72 5,782 23, ,325 42,64 2,885 5,56 9,534 54, 28,787 53,57 5,484 28,6 573,33 37,655 5,944 34,583 79,22 83,666 5,64 22,925 69,68 583,684 2,53 7,369,42 47,837 8,58 59,352 8,32 45,4 58,65,789 5,34 23,388 7,22 33, ,58 25,634 34, ,445 4,994 7,452 3,7 936,496 96,279,53,26,727,35 8,753 38,652 32,635 28,76 3,45 75,392 9,26 396,499 3,34 3,52 43,45,328 68,3 4,44 88,644 38,246 33,33, ,26 7,86 4,838,35 6

18 Motorcycles Production Motorcycle Production Shows First Increase in 5 s Overall domestic motorcycle production in 2 increased 3.% over the previous year to 664, units. While Class motordriven cycles (5cc and under) declined 9.3% to 88, units, the combined total for larger motorcycles (all those over 5cc) grew 7.5% to 577, units, with Class 2 motordriven cycles (5cc to 25cc) and smallsized motorcycles (over 25cc) rising 4.4% and 9.4% to 8, and 387, units respectively, but minisized motorcycles (26cc to 25cc) falling 3.% to 9, units. MOTORCYCLE PRODUCTION BY ENGINE CAPACITY IN 2 TRENDS IN MOTORCYCLE PRODUCTION x million units 4 5cc & Under 87,53 (3.2%) 3 Over 25cc 387,82 (58.3%) 664,75 (%) 5cc25cc 8,63 (2.%) 26cc25cc 8,95 (6.4%) Over 5cc 2 5cc & Under MOTORCYCLE PRODUCTION MotorDriven Cycles Class (5cc & Under) 895,599,3,822 2,493,9 2,4,85,343,22 95,83 636,546 6, , ,72 33, ,549 36, ,336 62,928 8,47 87,53 MotorDriven Cycles Class 2 (5cc25cc),47,25,887,7 2,8,26,373, ,734,38,938 63,22 598,55 543, ,8 34,622 26,343 49,868 78,827 28,38 57,424 8,63 MiniSized Motorcycles (26cc25cc) Over 5cc 259,45 33,733 66,83 469,728 27,34 27, ,433 26,269 24, ,499 27,26 279, ,43 269,689 92,863 25,384 8,95 SmallSized Motorcycles (Over 25cc) 385, ,29,98, ,346 56, ,76 85,9 858,227 74,882 76, , ,49,39, , , , ,82 Subtotal 2,52,73 2,77,725 3,94,64 2,52,497,463,675,8,436,778,845,77,47,526,532,372,833,48,35,493,36,465,4,4,76,63,9 536, ,662 2,947,672 3,82,547 6,434,524 4,536,347 2,86,895 2,753,239 2,45,39 2,328,4 2,5,488,83,95,739,584,79,585,77,386,676,97,226, ,9 664,75 Chg. (%) Notes:. KD sets have been excluded since 979; they represent less than 6% of the cost of compositional components per vehicle and have been treated as components since Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Automobile Manufacturers Association

19 Motorcycles Sales Motorcycle Sales Decline for Fifth Straight Domestic motorcycle sales in 2 dipped.% from 29 to 38, units. In the Class motordriven cycle category (5cc and under), sales decreased 9.5% to 23, units. While sales of minisized motorcycles (26cc to 25cc) dropped 26.6% to 27, units, sales of Class 2 motordriven cycles (5cc to 25cc) and smallsized motorcycles (over 25cc) climbed 46.3% and 4.5%, to 96, and 25, units respectively. Overall sales of motorcycles with engine capacity over 5cc thus totalled 49, units, an increase of 9.% over 29. MOTORCYCLE SALES BY ENGINE CAPACITY IN 2 TRENDS IN MOTORCYCLE SALES x million units Over 25cc 25,352 (6.7%) 26cc25cc 27,275 (7.2%) 5cc25cc 96,368 (25.3%) 38,242 (%) 5cc & Under 23,247 (6.8%) 5cc & Under.75.5 Over 5cc.25 MOTORCYCLE SALES (SHIPMENTS TO DOMESTIC DEALERS) MotorDriven Cycles Class (5cc & Under),978,426,646,5,23,52 884,78 558, , , ,6 5,388 47, ,96 458,23 295,98 255,56 23,247 MotorDriven Cycles Class 2 (5cc25cc) 2,238 3,574 69,68 38,5 2,6 78,263 94,468 89,96 62,78 88,747 82,2,72 2,99 65,888 96,368 MiniSized Motorcycles (26cc25cc) Over 5cc 88,88 73,887 58,882 98,833 72,886 79,56 94,44 87,88 97,35 99,658 9,395 86,8 55,674 37,8 27,275 2 SmallSized Motorcycles (Over 25cc) 3,84 45,674 76,92 9,86 46,46 48,279 46,873 42,724 39,78 47,86 48,564 4,2 49,743 22,48 25,352 Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ) Subtotal 39,6 45,35 45,42 328,34 22,48 25, ,755 22,5 99, ,59 222,7 226,92 226,47 25,26 48,995 Chg. (%) 2,37,36 2,96,25,68,933,22, ,877 75,686 77,82 76,2 7,2 76,53 7, , ,35 38,777 38, Source: Japan Automobile Manufacturers Association 8

20 Motorcycles Motorcycles in Use Tenth Straight of Rise in Number of Motorcycles Over 5cc in Use As of March 3, 2, the number of motorcycles in use in Japan dipped to 2.48 million, down.6% from the previous year. By engine capacity, Class motordriven cycles, which account for 59.7% of all motorcycles in use, dropped 3.2% to 7.45 million units and minisized motorcycles in use slipped.2% to.99 million units. On the other hand, Class 2 motordriven cycles and smallsized motorcycles in use rose 2.2% and.3%, to.5 million and.52 million units respectively. Thus, motorcycles over 5cc in use increased.%, to a total of 5.3 million units. MOTORCYCLES IN USE BY ENGINE CAPACITY (at March 3, 2) TRENDS IN MOTORCYCLES IN USE (at March 3 yearly) x million units 2 6 Over 25cc,524,76 (2.2%) 26cc25cc,992,939 (6.%) 5cc25cc,5,44 (2.%) 2,477,47 (%) 5cc & Under 7,448,862 (59.7%) 5cc & Under Over 5cc MOTORCYCLES IN USE (at March 3 yearly) MotorDriven Cycles Class (5cc & Under) 3,727,426 4,85,4 8,794,335 4,69,399 3,539,269,65,39 9,643,487 9,354,554 9,36,832 8,95,37 8,739,686 8,566,63 8,345,225 8,34,692 7,92,5 7,694,9 7,448,862 MotorDriven Cycles Class 2 (5cc25cc) 4,43,745 3,32,88 2,28,6,747,957,57,228,42,3,337,395,344,33,334,792,329,4,34,88,353,732,378,74,397,85,429,738,479,588,5,44 MiniSized Motorcycles (26cc25cc) 583,36 492,37 56,567,47,426,669,77,823,446,74,522,72,597,734,395,772,545,8,594,857,439,98,42,95,52,976,829,996,3,992,939 Over 5cc SmallSized Motorcycles (Over 25cc) 9,77 276,75 383, ,627,45,59,77,229,288,399,38,47,334,354,352,99,37,33,397,392,428,49,452,893,478,724,55,34,524,76 Subtotal 5,24,832 3,9,84 3,7,22 3,57, 4,232,58 4,42,76 4,33,36 4,365,344 4,43,54 4,454,54 4,522,3 4,68,563 4,75,265 4,8,49 4,885,29 4,98,23 5,28,555 Chg. (%) 8,852,258 8,752,98,965,547 8,8,49 7,77,787 5,587,96 3,973,83 3,79,898 3,54,373 3,369,9 3,26,699 3,75,76 3,6,49 2,935,82 2,787,342 2,675,22 2,477, Notes:. Motordriven cycle data is as at April, and since 26 motorcycles with engine capacity of 25cc and under whose owners fail to pay the mandatory motorcycle ownership tax are not included in this data. 2. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Sources: Ministry of Land, Infrastructure, Transport and Tourism; since 26 (only for the 25ccandunder categories), Ministry of Internal Affairs and Communications 9

21 Motorcycles Exports Motorcycle Exports Drop for Fourth Consecutive Motorcycle exports in 2 fell 9.3% from the previous year to 493, units. By engine capacity, exports of Class motordriven cycles shrank 2.5% to 2, units, whereas exports of Class 2 motordriven cycles grew 9.5% to 49, units. Exports in the minisized and smallsized motorcycle categories declined 5.6% and 9.4%, to 86, and 347, units respectively. The total value of motorcycle and motorcycle components exports in 2 stood at US$ 4.4 billion, unchanged from the previous year, with the value of motorcycle exports slipping.9% to US$ 3. billion but the value of components exports rising 2.2% to US$.4 billion. MOTORCYCLE EXPORTS BY ENGINE CAPACITY IN 2 TRENDS IN MOTORCYCLE EXPORTS x million units 2 5cc & Under,522 (2.4%) Over 25cc 347,46 (7.4%) 493,464 (%) 5cc25cc 48,976 (9.9%) 26cc25cc 85,56 (7.3%) Over 5cc cc & Under MOTORCYCLE EXPORTS MotorDriven Cycles Class (5cc & Under) 326,85 288,843 5,27 369,67 47,3 6,627 82,38 59,46 74,8 4,35 84,832 57,86 57,558 34,92 36,234 4,493,522 MotorDriven Cycles Class 2 (5cc25cc) 94,325,546,7,97,48,35,42 57,84 69, ,4 53, ,37 32, ,245 97,378 24,335 34,57 95,4 44,78 48,976 MiniSized Motorcycles (26cc25cc) Over 5cc 87,85 328,33 548,36 296,865 7,222 29,96 24,59 94,58 49,9 44,873 73,37 77,824 83,98 77,673 49,53,298 85,56 SmallSized Motorcycles (Over 25cc) 39, , , ,38 4,38 442,689 85,58 793,22 73,834 78,999 84,3 899,6 968,53 886,36 72,39 383,38 347,46 Subtotal,4,787 2,4,827 3,428,3 2,72,35,36,443,264,83,559,39,58,7,343,87,66,64,242,32,274,363,276,468,98,64 965, ,386 48,942 Chg. (%),737,62 2,69,67 3,929,4 2,54,482,83,744,325,7,64,77,577,43,48,682,28,955,327,44,332,223,334,26,232,796,2,87 543, , Notes:. Figures represent exfactory export shipments of motorcycles manufactured in Japan. 2. Class 2 motordriven cycles include threewheeled motordriven cycles. 3. KD sets have been excluded since 979; they represent less than 6% of the cost of compositional components per vehicle and have been treated as components since Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Automobile Manufacturers Association 2

22 Motorcycles Exports by Destination A Rise in Motorcycle Exports to Latin America, Oceania, Europe, and Africa Whereas motorcycle exports in 2 increased 55.% to Latin America, 2.% to Oceania, 8.% to Europe, and 5.% to Africa, they declined 4.8% to North America, 2.8% to Asia, and.8% to the Middle East. North America and Europe have long been Japan s major motorcycle export destinations with a combined share of that market of 7 to 8%, which decreased to 67.8% in 2. MOTORCYCLE EXPORTS BY DESTINATION IN 2 Europe 228,72 (46.2%) Middle East 3,886 (.8%) of which EU 29,8 (44.4%) 493,464 (%) North America 6,25 (2.5%) of which U.S.A. 88,74 (7.8%) Asia 4,79 (8.3%) Latin America 38,863 (7.9%) Africa 25,662 (5.2%) Oceania 49,939 (.%), units, units, units MOTORCYCLE EXPORT TRENDS (BY REGION OF DESTINATION) Asia Middle East In % Europe (EU) (3.) (29.) (32.5) (35.) 35. (33.8) 34.9 (33.7) 37.7 (36.5) 36.9 (35.6) 38.8 (37.) 46.2 (44.4) North America (U.S.A.) (34.8) (39.9) (43.4) (39.6) 47. (42.6) 48. (44.7) 4.4 (36.9) 4.9 (37.2) 33.6 (29.5) 2.5 (7.8) Latin America Africa Oceania

23 MOTORCYCLE EXPORTS BY DESTINATION IN 2 Asia Middle East Europe North America Latin America Africa Oceania Grand s South Korea Taiwan Hong Kong Singapore Malaysia Philippines Other Subtotal Israel United Arab Emirates Other Subtotal Sweden Denmark UK Netherlands Belgium France Germany Portugal Spain Italy Finland Poland Hungary Greece Slovenia Czech Republic Other Subtotal Norway Switzerland Russia Other Subtotal Canada U.S.A. Subtotal Mexico Nicaragua Panama Colombia Venezuela Peru Chile Brazil Argentina Other Subtotal Guinea Ghana Togo Niger Dem Rep Congo Ethiopia Kenya Uganda Tanzania Namibia South Africa Other Subtotal Australia New Zealand Other Subtotal , , ,65 4, , ,3,522 2, , , , ,25 2,57 8,556, , ,795, ,375 3,997 3,686 8,35 2,29 8,44 48, ,7 29, ,57 2,45 6,64,94 49,28 2, , ,957 2,49 2,76 4, ,788, ,376 8, ,26 2, ,583,536 8,323 9,626,896 3,553 85, ,749,88 3, ,773,3 567, 2,869, ,58 36,72,346 4,27 29, ,7 44, , , ,79, ,92 2,68 63,277 75, ,236, ,43, , , ,52 22,45, , 347,46 996,88 2,965 2, 3,95 28, ,524,343,2,376 3,839, ,836 39,586,462 48,8 3, ,27 47,7,6, , , ,8, ,93 7,66 84,9,625,4 755,9 4,3,522,52,58 2,952 2,3 2,478 38, ,875 2,26 3, ,794 6,58 25,529 4,76 5, ,88 48,942,44,96 3,53 2, 3,95 28, ,79,343,53,39 3,886 2, ,925 39,586,462 49,55 32, ,392 47,37,89, 55 2, ,8,24 6,267, ,72 8,77 88,74 6,25, ,9 4,8,522,52,632 2,952 2,3 2,499 38, ,875 2,26 3, ,9 6,75 25,662 43,882 5, , ,464 MotorDriven Cycles Class 2 (5cc25cc) MiniSized Motorcycles (26cc25cc) SmallSized Motorcycles (Over 25cc) Subtotal Over 5cc Destination MotorDriven Cycles Class (5cc & Under) E U Source: Japan Automobile Manufacturers Association 22

24 Automobiles and Society Attention to the Environment Climate Change Climate Change and CO2 Emissions Reduction: The Response of the Transport Sector Under the Kyoto Protocol, adopted in 997 by most industrialized countries to reduce CO2 and other greenhouse gas emissions and enforced in February 25, Japan pledged to reduce its annual GHG emissions volume to 6% below the 99 level by 22. In April 25, the Japanese government formulated a target achievement plan (revised in March 28) and then promoted diverse CO2 reduction measures in all major sectors including the industrial, consumer, and transport sectors. In line with the national initiative, the automobile industry has been making vigorous efforts with respect to increasing vehicle fuel efficiency, developing and promoting alternativeenergy and nextgeneration vehicles, raising public awareness of ecofriendly driving practices, and supporting the government s efforts to improve traffic flow. After peaking in 2, CO2 emissions in Japan s transport sector have been on a steady decline, owing largely to increased fuel efficiency in passenger cars and greater efficiency in goods distribution. JAPAN S GHG EMISSION VOLUMES: ACTUAL & TARGETED under the Kyoto Protocol Japan s GHG emissions in 99 totalled,26 million tons (in equivalent tons of CO2). In order for Japan to meet its target under the Kyoto Protocol, it was determined that its total annual GHG emissions would have to be reduced to,86 million tons by 2. Due in part to a decline in energy demand in Japan s industrial sector as a result of the financial crisis in 28, total GHG emissions in 29 decreased 5.7% from the previous year to,29 million tons4.% below the 99 level and narrowing the gap to the target volume to.9%. In order to achieve the 6% below 99 target, however, further reduction efforts are required. x million tons,4,3,2,,26,355,337,369, %,29 (4.%),86 (6.%) Forest sink (3.8%) Kyoto mechanisms (.6%), 99 (Baseline) Fiscal (Preliminary figure) Targeted under the Kyoto Protocol (2822) Source: Ministry of the Environment ACTUAL & TARGETED CO2 EMISSION VOLUMES IN JAPAN S TRANSPORT SECTOR Of Japan s total CO2 emissions, the transportation sector accounts for roughly 2%, of which 9% are autoemittedmaking CO2 reduction in road transport a priority concern. With steadily declining CO2 emissions since 2, the transport sector s original target of an annual total of 25 million tons of CO2 emissions by 2 was revised in 28, to a more challenging million tons. In fact, by means of increased vehicle fuel efficiency, road congestion mitigation, the wider practice of ecodriving and other measures, the transport sector s CO2 emissions totalled 229 million tons in 29. x million tons 32 3 Compliance with vehicle fuel efficiency targets, etc If no CO2 countermeasures taken Fiscal (Preliminary figure) Targeted Through increased vehicle fuel efficiency: Down million tons Through improved traffic flow: Down 32.3 million tons Through other measures: Down million tons reduction: Down million tons Sources: Kyoto Protocol Target Achievement Plan, etc. 23

25 Automobiles and Society Attention to the Environment Climate Change CO2 Emissions Reduction: Improving Vehicle Fuel Efficiency In 998 Japan s Energy Conservation Law recommended vehicle fuel efficiency targets for fiscal year 2, applying top runner criteria whereby the leading fuel efficiency performance to date (998) for a given vehicle weight category was established as the target value. Auto manufacturers worked hard to comply, and in 29 the average fuel efficiency of domestic new gasolinepowered passenger cars reached 8. km/liter, largely surpassing the 2 target of 5. km/liter. In 26 fuel efficiency targets were established for heavyduty vehicles, i.e. trucks and buses weighing more than 3.5 tons, for enforcement in 25. Furthermore, new and stricter fuel efficiency targets, also for 25, were introduced in 27 for passenger cars and trucks/small buses weighing 3.5 tons or less. Japan s automakers will therefore continue to advance fuel efficiency technologies in order to meet these new targets. 2 AVERAGE FUEL EFFICIENCY TARGETS FOR PASSENGER CARS & TRUCKS TRENDS IN DOMESTIC NEW PASSENGER CAR COMPLIANCE WITH THE 2 FUEL EFFICIENCY TARGET 8 Passenger cars Trucks (GVW 2.5tons) (Percentage gain) All 2 target value 5.3 km/ 995 actual value 2.6 km/ (2.4%) 2 target value 5. km/ 995 actual value 2.3 km/ 2 target value 6.3 km/ 995 actual value 4.4 km/ (22.8%) (3.2%) km/ Note: Fuel efficiency here is 5 test cyclemeasured (see page 67), and targets were established assuming the same respective shipment volume ratios by vehicle weight category for 2 as those recorded in 995. Sources: Ministry of Economy, Trade and Industry; Ministry of Land, Infrastructure, Transport and Tourism Compliance rate (%) AVERAGE FUEL EFFICIENCY OF DOMESTIC GASOLINEPOWERED PASSENGER CARS In km/ Fiscal Note: Figures are for domesticbrand new passenger cars only. Source: Japan Automobile Manufacturers Association VEHICLE TECHNOLOGIES FOR INCREASED FUEL EFFICIENCY Fiscal Note: Compliance rates are calculated on the basis of unit sales of new gasolinepowered passenger cars. Source: Japan Automobile Manufacturers Association 25 AVERAGE FUEL EFFICIENCY TARGETS FOR PASSENGER CARS & TRUCKS/SMALL BUSES Passenger cars Trucks (GVW 3.5tons) 25 target value 6.8 km/ 24 actual value 3.6 km/ 25 target value 5.2 km/ 24 actual value 3.5 km/ (Percentage gain) (23.5%) (2.6%) 25 target value 8.9 km/ Small buses (7.2%) 24 actual value 8.3 km/ km/ Note: Fuel efficiency here is JC8 test cyclemeasured (see page 67), and targets were established assuming the same respective shipment volume ratios by vehicle weight category for 25 as those recorded in 24. Sources: Ministry of Economy, Trade and Industry; Ministry of Land, Infrastructure, Transport and Tourism 25 AVERAGE FUEL EFFICIENCY TARGETS FOR HEAVYDUTY VEHICLES (GVW 3.5t) (Percentage gain) Trucks 25 target value 7.9 km/ 22 actual value 6.32 km/ (2.2%) 25 target value 6.3 km/ Buses (2.%) 22 actual value 5.62 km/ km/ Note: Fuel efficiency here is JE5 test cyclemeasured (see page 67), and targets were established assuming the same respective shipment volume ratios by vehicle weight category for 25 as those recorded in 22. Sources: Ministry of Economy, Trade and Industry; Ministry of Land, Infrastructure, Transport and Tourism Improved engine efficiency Improvements in thermal efficiency: Direct injection Variable mechanisms (variable cylinder activation, VVT&L, etc.) Reduction of friction loss: Reduction of piston & piston ring friction loss Lowviscosity lubricating oil Improved powertrain performance Expansion of lockup area Expanded number of transmission gears Continuously variable transmission Reduced aerodynamic drag Improved body configuration Reduced vehicle weight Expanded use of lightweight materials Improved body structure Reduced rolling resistance Low rollingresistance tires Other Electric power steering Idling prevention (stopstart) Hybridization 24

26 Automobiles and Society Attention to the Environment Climate Change InUse Status of AlternativeEnergy and FuelEfficient/LowEmission Vehicles Hybrid and electric vehicles and other vehicles that run on alternative fuels are gaining increasing attention because of their significantly reduced CO2 and other emissions. In 29 more than one million alternativeenergy vehicles (mostly hybrids) were in circulation in Japan and that number is expected to grow. The more widespread use of alternativeenergy vehicles will largely depend on the automakers resolution of a number of technological issues (for fuel cell and hydrogen vehicles, for example) and on the expansion of the fuel/energy supply infrastructure. Meanwhile, the use of more fuelefficient and lowemission conventional vehicles continues to be actively promoted. Indeed, in 29 shipments of domestic alternativeenergy and fuelefficient/lowemission vehicles registered a combined total of 4.3 million units. DOMESTIC SHIPMENTS OF ALTERNATIVEENERGY & FUELEFFICIENT/LOWEMISSION VEHICLES (Fiscal 29) Fuel cell vehicles Electric vehicles Hybrid vehicles Natural gas vehicles Methanol vehicles Subtotal Vehicles certified as fuelefficient and lowemission vehicles (see Note) Subtotal Dieselalternative LPG vehicles Hydrogen vehicles () (2) Passenger Cars Standard and smallsized vehicles 3 464,9 464,94 2,,552 96,475 2,28,27 5 2,672,936,76,76,57,43,499,58,929,6,635 Standard and smallsized vehicles, ,78 4,66 38,3 79, ,599 Trucks Minivehicles Minivehicles ,438 95,262,7,234 Buses Chg. (%) ,76 466,63,97 469,537 3,226,86 33,546 3,557, ,27,624 () = Emissions down by 75% from 25 emission standards. (2) = Emissions down by 5% from 25 emission standards. Notes:. Vehicles that meet or surpass 2 fuel efficiency standards (as per Japan s Energy Conservation Law) and are compliant with lowemission environmental performance certification criteria (see starred ratings above). 2. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Automobile Manufacturers Association TRENDS IN ALTERNATIVEENERGY & FUELEFFICIENT/LOWEMISSION VEHICLE SHIPMENTS (DOMESTIC) Fiscal x, units AlternativeEnergy Vehicles This designation includes hybrid, electric, natural gas, methanol (virtually no longer in use), fuel cell, dieselalternative LPG and hydrogen vehicles. Emissions down by 75% from 25 standards Emissions down by 5% from 25 standards Emissions down by 75% from 2 standards Emissions down by 5% from 2 standards Emissions down by 25% from 2 standards TRENDS IN ALTERNATIVEENERGY VEHICLE USE IN JAPAN Electric vehicles of which motorcycles Hybrid vehicles Natural gas vehicles Methanol vehicles of which motorcycles* Dieselalternative LPG vehicles excluding motorcycles *Figures prior to 28 are not available. Fiscal ,8 3,35 5,42 7,8 57 2,62 74,772 7,737 4,7 3,99 74,563 2,2 35 4,962 6,372 2,382 5,59 2,895 9,2 6,56 4 7,54 3,53 27, ,677 4,658 32,56 2, ,483 8,372 75, ,468 5,357 96,77 24, ,67 25,24 244, ,928 6, ,644 27, ,868 36,7 39,72 9,42 6, ,626 3, ,7 47,536 4,688 9,358 6,9 429,274 34, ,97 495, ,86 Sources: Next Generation Vehicle Promotion Center; Japan Gas Association; Automobile Inspection & Registration Information Association ,85 6,25 536,473 37,7 7 22,68 65,65 598,85 8,473 4, ,83 38, ,82,52,99,48,335 25

27 Automobiles and Society Attention to the Environment Climate Change CO2 Emissions Reduction: Improving Traffic Flow Improved road traffic flow enables increased vehicle speed and increased fuel efficiency, which in turn contributes to CO2 reduction. Improving traffic flow by upgrading road networks and overall infrastructure is therefore urgently required. JAMA advocates such upgrades, including measures to mitigate congestion at intersections, as well as the early completion of the Tokyo metropolitan area s three major beltways (or ring roads) and the greater use of expressways. To help ensure steady progress in this regard, the government and other relevant publicsector players must jointly establish a data compilation/analysis and response formulation/implementation scheme to evaluate the impact of traffic flowrelated measures on CO2 reduction and to follow up accordingly. JAMA in fact conducted a quantitative assessment of the impact on CO2 reduction of the operation of the Oji section (opened for service in December 22) of the Tokyo Metropolitan Expressway s inner beltway. This study determined that operation of the new section enabled increased average vehicle speed on that beltway and on surrounding local roads, resulting in an estimated reduction in CO2 emissions of 2, to 3, tons annually. IMPACT OF VEHICLE SPEED ON CO2 EMISSIONS CO2 emission 6 levels 5 (%) km/h 2km/h 3km/h Average vehicle speed Source: Japan Automobile Research Institute IMPACT OF THE OJI SECTION S OPERATION ON CO2 REDUCTION Average vehicle speed in km/h CO2 emissions volume x, tons/year Tokyo Metropolitan Expressway Local roads Tokyo Metropolitan Expressway Local roads Before Operation Note: Vehicle speed and CO2 emissions were calculated on the basis of three established models, including that of the Japan Automobile Research Institute. The estimated annual CO2 reduction volume varies between 2, and 3, tons depending on the model used. Source: Japan Automobile Manufacturers Association PROPOSED DATA INPUT/ANALYSIS & RESPONSE FORMULATION SCHEME FOR IMPROVED TRAFFIC FLOW After Operation Increase/ Decrease General Statistical Data: Road transport statistics Relevant national energy statistics Ministry of Land, Infrastructure, Transport and Tourism Data: Odometer data (collected at vehicle inspections) Road transport surveys Traffic volume data (via monitoring) Road congestion monitoring Data Compilation and Processing Data Analysis/Evaluation Response Formulation and Implementation National Police Agency Data: Road traffic data from sensors Uplink data from ITS optical beacons Status Reports on the Impact of: Use of advanced signalcontrol systems Onstreet parking bans Measures for smoother flow at intersections Construction of bypass routes Source: Japan Automobile Manufacturers Association CO2 Reductions at Production Plants Japan s automobile manufacturers have implemented multiple measures to reduce energy consumption and otherwise cut CO2 emissions at their production facilities. Since 28, they have worked with Japan s autobody manufacturers towards a combined reduction target for Originally set at 6.59 million tons of CO2 annually, this shared target was revised in 29 to a stricter 6.32 million tons, down 25% from the 99 level. CO2 emissions at the plants have already decreased to well below the 2822 target, largely as a result of the recent economic downturn. REDUCTIONS IN PRODUCTION PLANTGENERATED CO2 EMISSIONS CO2 emissions (x million tons) Target Fiscal (2822 average) CO2 emissions/ production value (x, tons CO2 per trillion yen) Source: Japan Automobile Manufacturers Association 26

28 Automobiles and Society Environmental Performance Vehicle Certification Promoting Vehicles with Greater Fuel Efficiency and Lower Emissions Vehicles with greater fuel efficiency help counter global warming through their reduced emission of CO2, while vehicles with reduced tailpipe emissions help improve air quality. The Japanese government has established one certification system for gasoline and diesel vehicles as well as heavyduty trucks and buses with advanced fuel efficiency; another certification system for gasoline and diesel (including heavyduty) vehicles whose emissions performance is superior to current regulatory levels for carbon monoxide (CO), nitrogen oxides (NOx), and particulate matter (PM); and a third certification system for trucks and buses that comply with 29 or 25 emission (including NOx and PM) standards or with the longterm or new shortterm regulatory standards (see page 3). To boost widespread public awareness of vehicles with advanced fuel efficiency and/or low emissions, such vehicles are identified with appropriately coded stickers (see below; sticker affixation is optional only when emissions performance is under the fourstar rating). ADVANCED FUEL EFFICIENCY CERTIFICATION For Gasoline and LPG Vehicles ENVIRONMENTAL PERFORMANCE CERTIFICATION FOR VEHICLES WITH LOW EMISSIONS Rating/Performance Level Vehicle Sticker Rating/Performance Level Vehicle Sticker Compliant +25% compared to standards Performing 25% better or more compared to 2 target fuel efficiency standards Emissions down by 75% from 25 standards Compliant +2% compared to standards Performing 2% better or more compared to 2 target fuel efficiency standards Heavyduty diesel vehicles compliant with, and with NOx and PM emissions down by % from, 25 standards Compliant +5% compared to standards Performing 5% better or more compared to 2 target fuel efficiency standards Heavyduty diesel vehicles compliant with, and with NOx emissions down by % from, 25 standards For Diesel Vehicles Rating/Performance Level Vehicle Sticker Heavyduty diesel vehicles compliant with, and with PM emissions down by % from, 25 standards Compliant +25% compared to standards Performing 25% better or more compared to 25 fuel efficiency standards LOW NOx & PM EMISSIONS CERTIFICATION FOR TRUCKS AND BUSES Compliant +2% compared to standards Performing 2% better or more compared to 25 fuel efficiency standards Rating/Performance Level Compliant with 29 emission standards Vehicle Sticker Compliant +5% compared to standards Performing 5% better or more compared to 25 fuel efficiency standards Compliant with 25 emission standards For Trucks and Buses with GVW 2.5 tons Rating/Performance Level Compliant with standards Meeting 25 target fuel efficiency standards or better Vehicle Sticker Compliant with other regulatory standards (see above) 27

29 Automobiles and Society Attention to the Environment Emissions Vehicle Exhaust Emissions: New Regulations Enforced in 29 Japan s vehicle exhaust emissions regulations have always been among the most stringent in the world, and its automakers have worked very hard to develop the advanced technologies required to comply with them. As a result, NOx and other atmospheric pollutant levels have been on a steady decline even in large urban areas. In April 25, the Ministry of the Environmentaffiliated Central Environment Council s report entitled Future Policy for Motor Vehicle Exhaust Emissions Reduction recommended that stricter and uniform limit values be applied to gasoline and diesel vehicle emissions alike, beginning with new regulations enforced as of 29. COMPARISON OF HEAVYDUTY DIESEL TRUCK EMISSIONS REGULATIONS Japan (GVW=Over 3.5 tons) Longterm regulations (997, 998, 999) New shortterm regulations (23, 24) New longterm regulations (25) Postnew longterm regulations (29, 2) Future regulations (26, 27, 28) U.S.A. (GVW=Over 3.85 tons) 998 standard 24 standard 27 standard 2 standard Europe (GVW=Over 3.5 tons) EURO (995) EURO (2) EURO (25) EURO (28) EURO (23) EEV Transient mode Steady state mode Transient mode Steady state mode Transient mode Steady state mode Transient mode Steady state mode Transient mode Steady state mode NOx Nitrogen oxides HC Hydrocarbons NMHC Nonmethane hydrocarbons Automobile manufacturers must comply with one of the following: ) NOx + NMHC ) NOx + NMHC 3.35 with mandatory NMHC value of (.6) (5.) 3.5 (3.5) 2. (2.).46 (.4) 2. (2.) All regulatory values below apply to the heaviest truck categories. In g/kwh CO Carbon monoxide (2.) 4. (.5) 4. (.5) 4. (.5) 3. (.5) PM Particulate matter Notes:. GVW (gross vehicle weight) (Japan) = Vehicle weight + Maximum load + Maximum occupants x 55 kg. Weight per occupant and other details slightly differ from those of U.S. and European regulations. 2. Japan s regulations apply to the over 2.5t GVW vehicle category; regulations as of 25 apply to the over 3.5t GVW vehicle category. 3. EURO (Europe): All vehicle categories are regulated in the steady state (ESC) mode only, except DPF and NOx reduction catalystequipped vehicles, which are regulated in both modes. Beginning with EURO, all vehicle categories, whether DPF and NOx reduction catalystequipped or not, are regulated in both the steady state (ESC) and transient (ETC) modes. 4. EEV (Europe): Enhanced Environmentally Friendly Vehicles. EEV regulations constitute a special category and are applied by EU member countries only in specific instances when urban air quality is particularly poor (for example, when temporary restrictions on vehicle circulation in cities are enforced). Emission values indicated are provisional. 5. The U.S. s 27 standard permits an NOx compliance level of around.6g until 2 depending on engine family type (.66) (.46) (.46).6 (.3) (.25) (.).3 (.2).3 (.2). (.).2 (.2) COMPARISON OF HEAVYDUTY DIESEL TRUCK EMISSIONS REGULATIONS (PM and NOx) More stringent PM (Particulate matter).3.3. U.S.A. (2) Japan (26) Europe (23) Japan (29) U.S.A. (27) Europe (28) NOx (Nitrogen oxides) More stringent In g/kwh Note: Countries apply different test cycles based on different running patterns. 28

30 MOTOR VEHICLE EMISSIONS REGULATIONS IN JAPAN Current Regulations New Regulations Gasoline and LPG Vehicles Diesel Vehicles Motorcycles Vehicle Type Passenger cars Trucks and buses Mini Lightduty (GVW.7t) Mediumduty (.7t<GVW 3.5t) Heavyduty (GVW>3.5t) Passenger cars (3) Trucks and buses Lightduty (GVW.7t) Mediumduty (.7t<GVW 3.5t) Heavyduty (GVW>3.5t) Motordriven cycles Class Motordriven cycles Class 2 Minisized motorcycles Smallsized motorcycles Test cycle 5M + M (g/km) () 5M + M (g/km) () 5M + M (g/km) () 5M + M (g/km) () JE5 (g/kwh) 5M + M (g/km) 5M + M (g/km) 5M + M (g/km) JE5 (g/kwh) Motorcycle test cycle (g/km) enforced CO NMHC NOx CO NMHC NOx CO NMHC NOx CO NMHC NOx CO NMHC NOx Emission CO NMHC Smallsized NOx Midsized Smallsized PM Midsized CO NMHC NOx PM CO NMHC NOx PM CO NMHC NOx PM CO HC NOx CO HC NOx CO HC NOx CO HC NOx Regulatory value (Average) Test cycle JC8 (g/km) () enforced Emission Regulatory value (Average) () All vehicles weighing 3.5t or less are regulated as follows: Beginning in 28, on the basis of (values measured in coldstart state in JC8 test cycle) x.25 + (values measured in 5 test cycle) x.75; and beginning in 2, on the basis of (values measured in coldstart state in JC8 test cycle) x.25 + (values measured in warmstart state in JC8 test cycle) x.75. (2) PM values apply only to directinjection, leanburn vehicles equipped with absorptiontype NOx reduction catalysts. (3) Smallsized diesel passenger cars have an equivalent inertia weight (EIW) of.25t (GVW of.265t) or less, and midsized diesel passenger cars have an E W over.25t. (4) Enforced since 2 for mediumduty diesel vehicles weighing 2.5t or less and heavyduty diesel vehicles weighing 2t or less. (5) Future regulations will mandate a stricter NOx value of.4g/kwh; enforcement: 26 for GVW>7.5t; 27 for tractortrailer cabs; and 28 for 3.5t<GVW<7.5t. Note: CO: carbon monoxide; NMHC: nonmethane hydrocarbons; HC: hydrocarbons; NOx: nitrogen oxides; PM: particulate matter. Sources: Ministry of the Environment; Ministry of Land, Infrastructure, Transport and Tourism JC8 (g/km) JC8 (g/km) () JC8 (g/km) JC8 (g/km) () JC8 (g/km) JC8 (g/km) () JC8 (g/km) JE5 (g/kwh) JC8 (g/km) JC8 (g/km) JC8 (g/km) JE5 (g/kwh) (4) 29 (4) CO NMHC NOx PM (2) CO NMHC NOx PM (2) CO NMHC NOx PM (2) CO NMHC NOx PM (2) CO NMHC NOx PM (2) CO NMHC NOx PM CO NMHC NOx PM CO NMHC NOx PM CO NMHC NOx (5) PM

31 Automobiles and Society Attention to the Environment Emissions Improving Air Quality Japan s central government as well as local governments in the greater Tokyo region have implemented measures to address airquality problems caused by motor vehicles. In accordance with national legislation aimed at curbing nitrogen oxide (NOx) and particulate matter (PM) emissions in major metropolitan areas, the issuance of inspectioncompliance certification is prohibited for vehicles that fail to meet the legal standards at inspection time. Moreover, the Tokyo metropolitan and surrounding prefectural governments have introduced additional regulations for diesel vehicles for the specific purpose of reducing PM emissions. Enforcement of these regulations means that restrictions are imposed on diesel vehicle circulation in the areas concerned. PROVISIONS OF THE NATIONAL MOTOR VEHICLE NOx & PM EMISSIONS ACT/ DIESELVEHICLE PM EMISSION REGULATIONS FOR THE GREATER TOKYO REGION Provisions of the National Motor Vehicle NOx & PM Emissions Act (Major Metropolitan Areas) Provisions of PM Emission Regulations for Diesel Vehicles (Greater Tokyo Region Only) Areas Regulated Vehicle Types Regulated Substances Regulated Regulatory Values in Force Specific Provisions Grace Periods Tokyo, Osaka, and Saitama, Chiba, Kanagawa, Aichi, Mie, and Hyogo prefectures (designated areas) Diesel, gasoline, and LPG trucks and buses Diesel passenger cars NOx and PM Trucks and Buses GVW = Gross vehicle weight GVW=Under.7 tons: NOx Same as 988 regulatory values for new gasoline vehicles PM Half the 22 regulatory values for new diesel vehicles GVW=.7 to 2.5 tons: NOx Same as 994 regulatory values for new gasoline vehicles PM Half the 22 regulatory values for new diesel vehicles GVW=2.5 to 3.5 tons: NOx Same as 995 regulatory values for new gasoline vehicles PM Half the 23 regulatory values for new diesel vehicles GVW=Over 3.5 tons: NOx Same as regulatory values for new diesel vehicles PM Same as regulatory values for new diesel vehicles Passenger Cars NOx Same as 978 regulatory values for new diesel vehicles PM Half the 22 regulatory values for new diesel vehicles New Vehicles In regulated areas, new vehicles not meeting the standards cannot be registered. Vehicles in Use Regulated vehicles whose principal places of use (as declared in their inspection certificates) fall in regulated areas and that do not meet the standards will not be granted inspection certification after grace periods have expired. Note: Vehicles whose principal places of use (as declared in their inspection certificates) do not fall in regulated areas can travel through regulated areas even if they do not meet the standards. From first registration: Small trucks... 8 years etc. Diesel passenger cars... 9 years etc. Standard trucks... 9 years etc. Minibuses... years etc. Large buses... 2 years etc. Tokyo (except for islands) and Saitama, Chiba, and Kanagawa prefectures (all areas) Diesel trucks and buses Note: Not applicable to diesel passenger cars with up to passenger occupancy PM only In Chiba and Kanagawa, same as 997, 998, and 999 regulatory values for new diesel vehicles In Tokyo and Saitama, same as 22, 23, and 24 regulatory values for new trucks and buses New Vehicles No restriction. Vehicles in Use Vehicles not meeting the standards will be prohibited from travelling through regulated areas after grace periods have expired. Vehicles equipped with local governmentspecified PM reduction systems are deemed to be in compliance with the standards. Note: Applicable to diesel trucks and buses registered anywhere in Japan and travelling through regulated areas. Seven years from first registration, regardless of vehicle type (truck or bus) Note: Except in Chiba Prefecture, where vehicles neither registered in nor travelling through areas designated under the national Motor Vehicle NOx and PM Emissions Act will be exempted for a period of 2 years, provided vehicle owners apply for such an exemption. 3

32 Automobiles and Society Attention to the Environment Noise Reducing AutomobileEmitted Noise Automobiles generate various kinds of noise, including the noise emitted by the engine, intake system, powertrain, and cooling and exhaust systems. In addition, tires generate tire/road noise. Automotive noise in Japan is regulated by standardson accelerated running noise, steady running noise, and stationary exhaust proximity noisewhich have become progressively more stringent, requiring automakers to develop the technologies necessary for compliance. All vehicles manufactured as of September 23 comply with the latest noise standards. Furthermore, strengthened regulations in effect from April 2 mandate a) that mufflers be tamperresistant so as to prevent the alteration of their noisesuppression mechanism, and b) that replacement mufflers meet Japan s accelerated running noise standard through type approval compliance and be IDmarked accordingly. THE PROGRESS IN MOTOR VEHICLE NOISE REDUCTION (accelerated running noise) TESTING MOTOR VEHICLE NOISE LEVELS db(a)/% (equivalent conversion) % db(a) regulation 89 db(a) 976 regulation LargeSized Vehicles 84 db(a) Powertrain, Other Tires Cooling system Exhaust system Engine 86 db(a) 979 regulation 83 db(a) 8 db(a) 985 regulation 2 regulation 97 regulation Passenger Cars Tires, Powertrain, Other Intake system Cooling system Exhaust system Engine 82 db(a) 977 regulation 8 db(a) 979 regulation 78 db(a) 76 db(a) 982 regulation 998 regulation 86 db(a) 97 regulation 83 db(a) 976 regulation Motorcycles Tires, Other Powertrain Intake system Exhaust system Engine 78 db(a) 75 db(a) 73 db(a) 979 regulation 987 regulation 2 regulation Accelerated running noise Noiselevel measurement span m m 7.5m Steady running noise Noiselevel measurement span m m 7.5m Exhaust proximity noise.5m 45 After running at a steady speed up to this point, f u l l t h r o t t l e acceleration Microphone (.2m above ground level) Running at a constant speed Microphone (.2m above ground level) Microphone (at height of exhaust port) After maintaining the stationary vehicle for a few seconds at a constant engine revolution speed, quick deceleration Source: Japan Automobile Manufacturers Association OVERVIEW OF JAPAN S MOTOR VEHICLE NOISE REGULATIONS (for accelerated running noise) LargeSized Vehicles MediumSized Vehicles SmallSized Vehicles Passenger Cars Motorcycles MotorDriven Cycles Vehicle Type Vehicles with GVW>3.5 tons and maximum engine output>5 kw Vehicles with GVW>3.5 tons and maximum engine output 5 kw Vehicles with GVW 3.5 tons Vehicles exclusively for the transport of passengers, with up to passenger occupancy Other than minivehicles Minivehicles Smallsized motorcycles (over 25cc) and minisized motorcycles (26cc25cc) Class motordriven cycles (5cc & under) and Class 2 motordriven cycles (5cc25cc) 4WD vehicles, etc. Trucks Buses 4WD vehicles, etc. Trucks Buses Over 6 occupants 6 occupants or fewer GVW>.7 tons GVW.7 tons Bonnet type Caboverengine type Smallsized Minisized Class 2 Class Notes:. In pre987 regulations, 5 kw reads 2 horsepower. 2. 4WD vehicles, etc. includes 4WDs, tractors, and cranes Regulation In db(a) Source: Ministry of the Environment 3

33 Automobiles and Society Attention to the Environment Recycling Vehicle Recycling and Waste Reduction Under Japan s EndofLife Vehicle (ELV) Recycling Law which entered into force in January 25, automobile manufacturers and importers are responsible for recovery, recycling and appropriate disposal with respect to fluorocarbons, airbags, and automobile shredder residue (ASR). Compliance with the law was anticipated to enable ASR to be recycled at a rate of 7% by 25, resulting in an automobile recycling rate, by vehicle weight, of 95% (as compared with the 8% rate prevailing prior to the introduction of the law); those rates were in fact surpassed in 28. Japan s vehicle recycling infrastructure as mandated by its ELV Recycling Law is the first in the world to administer the entire process of auto recyclingfrom ELV recovery to final disposalon the basis of electronic manifests (or compliance checklists). JAMA itself played a central role in the development and implementation of this advanced vehicle recycling system. It also provided financial support for related software development and continues to help finance system maintenance and upgrades. In line with national efforts to reduce, reuse, recycle, Japan s automakers are also striving to design vehicles using lightweight materials that are easy to dismantle and recycle, and to reduce and recycle waste generated in the manufacturing process. In 29 the total volume of auto plantgenerated waste destined for landfill disposal dropped to, tons, a 99.7% decrease from the 99 level, very largely surpassing the 2 target of, tons. INDUSTRY MEASURES IN LINE WITH NATIONAL LEGISLATION Promotion of Effective Utilization of Resources Law (the 3R Law) EndofLife Vehicle Recycling Law Product Design Waste Management ELV Recycling Reduce initiatives Reuse initiatives For designated products: Weight reduction/ Downsizing Longer product life Reduced use of hazardous substances For designated products: Use of recyclable materials Ease of dismantling For designated areas of activity: Reduction/recycling of designated waste products generated in vehicle manufacturing operations: ) Scrap metals 2) Casting sand residue waste volume*: 99 (baseline): 352, tons Distribution, Servicing and Use Recovery and recycling of: ) Fluorocarbons 2) Airbags 3) ASR Note: Motorcycles are not covered by the ELV Recycling Law. Recycle initiatives Ease of sorting Nonhazardous recycling 29:, tons (a 99.7% reduction from 99) JAMA target:, tons by FY 2 Materials identification *For landfill disposal, including scrap metals, casting sand residue, and other waste ELV RECOVERY IN NUMBERS RECYCLING RATES: TARGETED & ACHIEVED Fiscal No. of ELVs recovered Appropriate disposal of 3 designated items Fluorocarbons Airbags () ASR (2) 29 3,98,45 3,59,873,697,379 3,8, ,648,428 3,,962,95,49 3,743,46 () Through recovery/appropriate disposal of inflators or through onboard deactivation. (2) Covers all categories of processors, whether for direct disposal or for transfer to other markets. Source: Japan Automobile Recycling Promotion Center Three Designated Items Fluorocarbons Airbags ASR Target Destruction 85% 25: 3% 2: 5% 25: 7% Achieved 3. million vehicle units (2) 93.2% (29) % (29) Sources: Governmentaffiliated entities 32

34 THE ELV RECYCLING FLOW (as per the provisions of the EndofLife Vehicle Recycling Law) ELV flow Information flow Payment/funds remittance flow Payment of recycling fee Purchasers of New Vehicles Purchasers of Used Vehicles Fluorocarbon Disposal* Facilities Delegated Funds Management Entity (Japan Automobile Recycling Promotion Center) Automobile Manufacturers/Importers/Delegated Organization (Japan Automobile Recycling Promotion Center) *Fluorocarbons are destroyed. Airbag Disposal Facilities Fluorocarbon & airbag disposal managed by Japan Auto Recycling Partnership (JARP) Remittance of recyclingfee funds Shredder Residue Recycling Facilities Designated Handling Agent Shredder Residue Recycling Facilities Designated Handling Agent Final Owners Fluorocarbons Payment for recovery Airbags Payment for recovery To markets for recyclable parts, metals, etc. Shredder residue ELVs ELV Collectors ELVs Fluorocarbon Recovery Operators ELVs Dismantlers Vehicle carcasses Press & Shear Operators Shredder Residue Processors Shredding & Sorting Operators Recovery manifests Delivery manifests Recovery manifests Delivery manifests Recovery manifests Delivery manifests Recovery manifests Delivery manifests Delegated Information Management Entity (Japan Automobile Recycling Promotion Center) Inspection & registration verification (MOTAS) MOTAS: Japanesederived acronym for motor vehicle inspection & registration system. Minivehicle inspection Note: The Japan Automobile Recycling Promotion Center assumes the same responsibilities as automobile manufacturers and importers when an ELV has no manufacturer representation under the provisions of this law. It also assumes transporttomainland costs for ELVs turned in on Japan s smallest islands. In addition, this organization provides financial assistance in the disposal of illegally abandoned vehicles. REDUCTIONS IN PRODUCTION PLANTGENERATED WASTE As a result of the efforts made by Japan s automobile manufacturers, the total volume of auto plantgenerated waste destined for landfill has decreased dramatically. Having shrunk in 25 to 8, tons, down more than 97% from the 99 baseline level and for the first time surpassing the 2 target of, tons, plantgenerated waste dropped to, tons in 29, a 99.7% decrease from the 99 level. Waste for landfill disposal (x, tons) Fiscal Target value of vehicle production including motorcycles (x billion yen) Source: Japan Automobile Manufacturers Association 5 33

35 Automobiles and Society Attention to the Environment Recycling Voluntary Initiatives to Recycle Commercial Vehicle Rack Equipment and Motorcycles Japan s EndofLife Vehicle Recycling Law does not cover some types of commercial vehicle rack and custom equipment, nor does it cover motorcycles. In response, JAMA promotes the development and use of rack equipment that is easy to dismantle and contains minimal amounts of hazardous substances. In cooperation with the Japan AutoBody Industries Association (JABIA), it has also introduced a cooperative recycling and disposal system for such equipment; participation in the system by recycling operators is voluntary and steadily expanding. In October 24, JAMA s four motorcyclemanufacturing members along with 2 motorcycle importers in Japan voluntarily launched a motorcycle recycling system, under which endoflife motorcycles are delivered to designated ELV motorcycle dealers (about 5, nationwide) or certified collection centers (about 9 nationwide); abandoned motorcycles are delivered directly to certified collection centers by local authorities. Collected ELV motorcycles are then processed and recycled in the same way as electrical appliances. COMMERCIAL VEHICLE RACK EQUIPMENT NOT COVERED BY THE ENDOFLIFE VEHICLE RECYCLING LAW Voluntary Recovery (from CabType Vehicles) (Color code explains cost burden placement.) Cost Burden for Equipment Not Covered by the Law All equipment whose recovery is not mandated by law Voluntary Recovery (from SingleBody Vehicles) (Color code explains cost burden placement.) Custom and other equipment The EndofLife Vehicle Recycling Law does not cover some types of rack and custom equipment for commercial vehicles. Recovery costs through final disposal are therefore not included in the vehicle recycling fee but rather marketdetermined. Vehicles Not Covered by the EndofLife Vehicle Recycling Law Vantype CVs such as: Tanktype CVs such as: Hauling CVs such as: Freezer trucks/vans, refrigerator trucks/vans, dry vans, etc. Tank trucks, cement mixers, waterspraying trucks, watersupply trucks, sewage removal trucks, etc. Specialized hauling trucks, vehicle carriers, container trucks, liftequipped vehicles, etc. Cost Burden for Equipment Covered by the Law For all commercial vehicle rack equipment covered by the Endof Life Vehicle Recycling Law, including singlebody vehicle equipment (exclusive of custom equipment), the vehicle recycling fee covers the entire cost of recovery through final disposal. Specialpurpose CVs such as: Special allterrain vehicles, fire trucks, wreckers, pump trucks, ladderequipped vehicles, etc. THE MOTORCYCLE RECYCLING FLOW ELV motorcycle flow Payment/funds remittance flow Information flow Motorcycle Recycling Mark (the R mark ) ELV Motorcycle Dealer Designation Local Governments (for abandoned motorcycle processing, etc.) Motorcycles with recycling marks Final Owners Motorcycles without recycling marks Payment Invoicing EndofLife Motorcycle Dealers Payment of recycling fee Motorcycle Manufacturers/ Importers Designated Administrative Entity Certified Collection Centers Disposal/Recycling Facilities Postal Savings Bank/ Post Offices Note: Payment of the motorcycle recycling fee will be mandatory at the time of vehicle purchase as of October, 2, except for some imported motorcycles. Source: Voluntary Motorcycle Recycling Operators Association 34

36 Automobiles and Society Road Safety Status of Road Accidents Road Accidents and Resulting Fatalities and Injuries Continue to Decline Road fatalities (defined as occurring within 24 hours after the accident) in Japan in 2 declined for the tenth consecutive year, to a total of 4,863. Road accidents and road injuries also declined, for the sixth consecutive year, to 725,773 and 896,28 respectively. Increased seatbelt use is one of the major factors behind the downward trend in road fatalities. The June 28 revision to the Road Traffic Act requires all automobile passengers, including rearseat occupants, to use seatbelts. Although the rate of use of rear seatbelts in 2 stood at 33.% on regular roads and at 63.7% on expressways, those rates remain low compared to the rate of use of front seatbelts, which approaches %. Further measures are needed to encourage rearseat occupants to buckle up. ROAD ACCIDENTS/INJURIES/FATALITIES Injuries (Number of persons) 2,,,5, 2, 5, Fatalities (Number of persons) Accidents (Number of accidents),, 5,, 5, ROAD ACCIDENTS/INJURIES/FATALITIES (exact figures) Accidents Injuries (Number of persons) Fatalities (Number of persons) ,8 472, , , ,97 76,789 93, , , , ,47 737, ,773 98,96 622, ,79 68,346 79, ,677,55,697,56,633,98,99,34, ,54 9,8 896,28 6,765,792 8,76 9,26,227,679 9,66 6,87 6,352 5,744 5,55 4,94 4,863 Source: National Police Agency SEATBELT USE RATES BY SEAT POSITION Driver s seat Front passenger s seat Rear seat Regular Roads Expressways In % Notes:. The survey on seatbelt use is conducted annually in October survey samples totalled roughly 47, on regular roads and 88, on expressways. Sources: National Police Agency; Japan Automobile Federation ROAD ACCIDENTS IN 2 BY ROAD CONFIGURATION Straightaway 32,89 (4.6%) Other 24,828 (3.4%) Number of Accidents 725,773 (%) Near intersection 89,42 (2.3%) Number of accidents Intersection 398,856 (55.%) Within intersection 39,74 (42.7%) Notes:. Straightaway includes some curves and tunnels. 2. Other includes railroad crossings. Source: National Police Agency 35

37 Automobiles and Society Road Safety Vehicle Safety Equipping More Vehicles with Advanced Safety Features Road accidents, injuries and fatalities in Japan continued to decline in 2 (see page 38). Nevertheless, road accidents still claim thousands of lives every year in Japan and in 2, they injured nearly 9, people. Further efforts are therefore required to make the nation s roads safer for all their users. Road safety involves three factorsvehicles, road users, and road infrastructureand greater road safety requires that progress be made in all three areas. The automotive industry continuously strives for greater active safety by enhancing and expanding the installation rates of onboard vehicle safety equipment to help prevent accident occurrence. At the same time, it seeks to increase passive safety through enhanced structural safety and vehicle features designed to mitigate injury when accidents do occur. VEHICLE SAFETY FEATURES & YEAR OF INTRODUCTION Active Safety Intervehicle distance warning Adaptive cruise control Lanekeeping assist Blindcorner monitoring ( With lowspeed following mode) ( Fullrange) Night vision monitoring Navigatorbased gearshift control (ATs only) Adaptive frontlighting system (AFS) Park assist Collisionmitigation braking system (precrash safety) Passive Safety Active head restraints Curtain airbags Pedestrian protection vehicle design ISOFIX anchorages (for child safety seats) Advanced compatibility vehicle structure Rollover curtain airbags Knee airbags Precrash seatbelts Automatic popup hood Motorcycle airbags Source: Japan Automobile Manufacturers Association SAFETY FEATURE ONBOARD INSTALLATION STATUS (for passenger cars produced in 29 for home market) Active Safety Passive Safety Antilock braking system (ABS) Brake assist Unfastened seatbelt warning (driver s seat) Unfastened seatbelt warning (front passenger s seat) Powerwindow jamming prevention (with autoup function) Powerwindow jamming prevention (without autoup function) Highintensity discharge headlamps Adaptive frontlighting system (AFS) Backup monitoring (rear obstacle detection) Vehicle perimeter monitoring Vehicle perimeter obstacle warning Blindcorner monitoring Night vision monitoring Night vision pedestrian ahead warning Curve detection Tire pressure monitoring Driver inattention warning Intervehicle distance warning Lane deviation warning Rear collision warningequipped headrest control Collisionmitigation braking system (precrash safety) Adaptive cruise control Adaptive cruise control with lowspeed following mode Fullrange adaptive cruise control Lanekeeping assist Backup monitoring (parking assistance) Navigatorbased gearshift control Precrash seatbelts Electronic stability control Traction control with ABS Navigatorbased stop sign alert with brake assist Rearwardapproachingvehicle warning Emergency braking warning Side airbags Curtain airbags Active head restraints ISOFIX anchorages (for child safety seats) Threepoint seatbelt for rear center seat* Safety Feature In no. of models (see Note ) 9 (64) 74 (53) 9 (9) 64 (64) 83 (8) 3 () 48 (63) 46 (23) 4 (2) 4 (7) 3 (4) 2 () 5 () 3 () 22 () 9 (8) 25 () 44 (2) 23 () 7 () 48 (3) 46 (3) 3 () 6 () 9 () 9 () 29 (9) 4 (6) 3 (56) 8 (52) (5) () 3 (3) 27 (54) 26 (5) 5 (2) 3 (2) 7 (64) Installation Status In % (see Note 2) In % 3,44,75 3,388,34 3,73,877,27,5 3,7,737 3,36,527,38 26,29 56,598 23,244 23,958 48, ,352 72,5 286,597 35,437 6,74 5,7 35,96 35,,425 3,384 4,438 64,67 7,644 39,498 75,939 73,58 87, ,32 855,259 85,978 2,247,42 3,,4,23,5 92 3,788,552 (see Note 2) Notes:. In no. of models indicates the number of models in which the safety feature is installed as standard or optional equipment. Figures in parentheses indicate the number of models in which the safety feature is standard equipment. 2. In % means as a percentage of the total number of models/units produced. 3. Passenger cars here include minicars. *In 29 a total of 39 passenger car models (2,462,32 vehicle units) featured a rear center seat. Minicars do not feature a rear center seat. Source: Japan Automobile Manufacturers Association 36

38 Automobiles and Society Road Safety JAMA Initiatives JAMA Initiatives in Promoting Greater Road Safety In April 24, JAMA pledged its support of the Japanese government s goal to reduce road fatalities by 5% over a period of ten years. JAMA s own initiatives towards that goal are outlined below. JAMA S ROAD SAFETY INITIATIVES IN EIGHT PRIORITY AREAS Priority Area Road Users: Public Awareness Campaigns Vehicles: Safety Measures Road Infrastructure: Proposals to Government Accidents involving pedestrians or cyclists Continued implementation of road safety public awareness campaigns, based on the results of accident causation studies. More widespread application of AFS (), ABS (2), BA (3), and stability control. For infrastructural improvements, based on the results of accident causation studies. Special measures for the elderly Development of road safety educational programs specifically for the elderly. Development of technologies specifically geared to agingrelated physical changes. For more widespread roadway/sidewalk demarcation and greater barrierfree mobility. Greater use of seatbelts Public awareness campaigns to promote the use of seatbelts. More widespread application of warning devices that remind vehicle occupants to buckle up. Delays in driver recognition and incorrect vehicle control Campaigns aimed at preventing faulty driver recognition and incorrect vehicle control. Research into the mechanisms of accident causation and humanmachine interface conditions using data recorders, etc. Accidents occurring at twilight/night Campaigns to promote the early lighting of automobile headlamps. More widespread application of AFS. For improved nighttime road illumination. Accidents occurring at intersections Public awareness campaigns to encourage drivers to exercise greater caution at intersections, where the majority of fatal road accidents occur. More widespread application of ABS, BA, and stability control. Improvement of sideimpact protection performance. For road infrastructure regulations for effective utilization of ITS technologies. Collisions with stationary objects Improvement of sideimpact and vehicle occupant protection performance and of side and curtain airbags. For expanded provision of underground power lines and impactabsorbing road installations. Compatibility R&D on crashcompatible vehicle bodies and compatibility evaluation methods to improve vehicle performance. () Adaptive frontlighting systems. (2) Antilock braking systems. (3) Brakeassist systems. Automobiles and Society Road Safety National Initiatives Japan s 9th Basic Plan for Road Safety Japan s road safety measures are promoted in line with the nation s consecutive basic plans for road safety, the first of which was implemented in 97. Under the slogan Towards a Zero Road Accidents Society, the ninth road safety plan (225) aims to create a highly road safetyconscious society that places maximum priority on human life and, in particular, the safety of those of its members who are most vulnerable to road accidentsnamely, pedestrians, senior citizens, and persons who are disabled. The plan emphasizes the need to pursue aggressive measures targeting further reductions in the occurrence of road accidents and fatalities. JAPAN S ROAD SAFETY TARGETS To reduce the annual number of road fatalities (occurring within 24 hours postaccident) to below 3,* by 25, and thus to make Japan s roads the safest in the world. *Or about 3,5 when fatalities occurring within 3 days postaccident are included (based on the ratio in 2) To reduce the total annual number of road fatalities (occurring within 24 hours postaccident) and injuries to below 7, by 25. EIGHT MAJOR AREAS OF ROAD SAFETY PROMOTIONAL ACTIVITY Road Infrastructure Improvements Sidewalk construction/upgrades, especially in school zones More pedestrian routes suitable for the elderly and disabled Increased use of ITS Promotion of Safe Driving Implementation of special drivereducation programs for the elderly Vehicle fleet operationrelated road accident analysis Enforcement of Road Traffic Laws Strict enforcement of traffic regulations Stronger crackdowns on hotrodding motorcyclists Provision of Fair Compensation for Road Accident Victims Enhanced support for the provision of fair damages compensation Road Safety Public Awareness Campaigns Promotion of safe cycling Promotion of road safety education for the elderly Promotion of seatbelt use by all vehicle occupants Promotion of road safety activities in local communities with the participation of residents Enhancement of Vehicle Safety Expanded development and onboard application of Advanced Safety Vehicle technologies Implementation of improvements to the national vehicle recall system Promotion of regular vehicle checks and maintenance Reinforcement of Emergency Rescue Operations Infrastructure Improved training and deployment of emergency rescue personnel Upgrading of emergency dispatch support systems Promotion of doctorstaffed helicopters Promotion of Road Safety Research and Analysis Promotion of further safedriving research Promotion of comprehensive analysis of road accident causation Source: Japan s 9th Basic Plan for Road Safety 37

39 Automobiles and Society Motor Vehicle Thefts Efforts to Prevent Theft Since peaking at 64,223 in 23, the annual number of automobile thefts in Japan has fallen significantly, dropping to 23,775 in 2. This is largely attributable to the widespread use of immobilizers (portable electronic lock systems). Meanwhile, although 73,49 motorcycle thefts were reported in 2, that figure nevertheless represents a continuing steady decline in such thefts since 2. To enhance motor vehicles theftresistance, the automobile industry has introduced and promotes the use of electronic devices such as smart keys equipped with immobilizers. TRENDS IN CONFIRMED MOTOR VEHICLE THEFTS TRENDS IN CONFIRMED MOTORCYCLE THEFTS With key Without key number of confirmed thefts With key Without key number of confirmed thefts Number of thefts Number of thefts 2 2,743 4,532 63, ,346 92,7 242,57 2 2,24 42,469 62, ,39 55,63 98, ,568 45,655 64, ,969 2, 54, ,999 42,738 58, ,574 98,43 26,77 5 3,86 33,542 46, ,758 8,397 4,55 6,355 25,73 36,58 6 2,45 72,49 93, ,695 23,95 3,79 7 9,686 63,342 83,28 8 7,628 9,887 27,55 8 8,496 6,858 8, ,38 8,777 25,85 9 8,458 63,658 82,6 6,355 7,42 23,775 7,349 56,42 73,49 2, 4, 6, 8,, 2, 3, 4, Source: National Police Agency Source: National Police Agency A SAMPLE IMMOBILIZER DEVICE AND HOW IT WORKS Transponder Key Vehicle manufacturer s original product ID code ID accepted ID verification ID rejected Ignition turned on Ignition not turned on The transponder incorporated in the key transmits a signal (ID code) to the computer installed onboard the vehicle. The ignition is turned on electronically only when the ID has been accepted. This technology combining a sophisticated lock function and electronic coding effectively protects the vehicle against theft. Note: The above diagram illustrates the operation of a vehicle manufacturer s original product. Other types of immobilizers are available in the aftersales market. 38

40 Automobiles and Society ITS and ASV Widespread Applications of Intelligent Transport Systems (ITS) Intelligent Transport Systems (ITS) use cuttingedge information and communication technologies to network data between road users, roads (i.e., infrastructure) and vehicles for the dual purpose of reducing road congestion and accident occurrence. In 996 the Japanese government formulated its Comprehensive Concept for the Promotion of ITS, on the basis of which it has promoted, as a national project, ITS development in a number of areas. In 24 Japan established its ITS Promotion Council which, in October of that year, announced ITS developmental guidelines aimed at achieving progress with respect to safety and security, fuel efficiency and environmental protection, and comfort and convenience. Accordingly, a wide range of ITS technologies and services, including safedriving, cruiseassist, advanced navigation, onboard telematics and electronic toll collection systems, have been energetically promoted in parallel with the further development of Advanced Safety Vehicle (ASV) technologies. Many of these technologies/services are already in extensive use in Japan. IMMINENT INTRODUCTION OF SAFEDRIVING AND CRUISEASSIST SYSTEMS Following their fullscale testing in 28, two roadtovehicle intelligent communication systems for drivers are scheduled for imminent practical introduction: a safedriving support system (or DSSS, for Driving Safety Support System ) and an advanced cruiseassist system for highways ( AHS ) that both use vehicle navigation systemintegrated telematics. Expanded development of these and other ITS technologies is expected in the coming years. HOW A SAFEDRIVING SUPPORT SYSTEM WORKS (EXAMPLE) Note: Use of the illustration below was permitted on the proviso that it not be altered in any way. B A B B2 D E B3 A A3 B4 B5 D D2 E2 E3 E E4 A2 A4 C D3 F C C2 F2 F3 F A Collision Prevention Warning System A Vehicle detection sensor A2 Optical beacon A3 Vehicle sensor data transmission A4 Invehicle collision prevention warning B SafeDriving Assistance System Operations B Central processing B2 B3 B4 B5 C C C2 C3 C3 Data processing & assessment Warning issuance command Data collection & transmission Twoway transmission of road traffic information Excessive Speed Warning System Optical beacon Speed calculation unit Invehicle excessive speed warning D Imminent Collision Warning System D Imminent collision data transmission D2 Optical beacon Invehicle imminent collision warning FeedIn Traffic Warning System Vehicle detection sensor Optical beacon Speed calculation unit Source: UTMS Meeting Report, National Police Agency HOW AN ADVANCED HIGHWAY CRUISEASSIST SYSTEM WORKS (EXAMPLE) Note: English captions for this illustration were sourced from the organization indicated below on the proviso that no changes be made to them. D3 E E E2 E3 E4 F F F2 F3 F4 F4 Invehicle feedin traffic warning Pedestrian Crossing Warning System Pedestrian detection sensor Optical beacon Speed calculation unit Invehicle pedestrian crossing warning Obstacle (stopped vehicle) 2 Information collection technologies 3 Road condition detection sensor 4 Information provision antenna 5 Roadvehicle communication technologies 6 Operational support 7 Decelerates 8 Warning 9 Warning, stopped vehicle ahead Information Stopped vehicle 3m ahead 2 Communication technologies 9 2 Source: Highway Industry Development Organization 39