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 to sales, servicing, freight shipping and other autocentered operations. Autorelated employment in Japan at present totals 5.5 million people. EMPLOYMENT IN THE AUTOMOBILE MANUFACTURING AND RELATED INDUSTRIES Number of employees Automobile Production... 83, employment in auto manufacturing & related industries: 5.5 million (8.7%) Automobile manufacturing (including motorcycles)... 78, Auto parts and accessories manufacturing... 68, Auto body and trailer manufacturing... 7, 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: 63.5 million (%) Automotive fuel retailing , Auto damage insurance... 2, Automobile recycling... 3, Materials & Equipment Supply , Electrical machinery & equipment... 62, Nonferrous metals... 7, Iron & steel... 8, Metal products... 36, Chemicals (including paints), textiles, and petroleum... 9, Plastics, rubber, and glass... 94, Electronic parts & equipment... 27, Manufacturing machinery... 29, 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 vehicle manufacturers cannot produce themselves. Automakers therefore either outsource production or purchase finished products (such as tires, batteries, air conditioners and audio systems). Finished products purchased by the automakers include products manufactured abroad, and 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 Sensors, ECUs, actuators Lights, cables, optical fibers Air conditioners, air cleaners Starters, alternators, generators, inverters, meters Audio systems, 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 24) NonFerrous Metals,47 (6.9%) Pulp, Paper & Paper Products 575 (2.7%) General Machinery & Equipment 2,26 (.3%) Other 3,77 (7.6%) All Manufacturing Sectors Chemicals 3,63 (4.4%) 2,35 (%) Petroleum & Coal 494 (2.3%) Automotive & Other Transport Equipment 6,27 (29.%) Electronic Circuits, Parts & Equipment 2,6 (9.7%) x million yen Iron & Steel 63 (3.%) Electrical Machinery & Equipment 862 (4.%) Note: Japan s fiscal year (FY) starts on April and ends on March 3 of the following year. Source: Survey on Corporate Finance, Ministry of Economy, Trade and Industry INVESTMENTS IN R&D OF MAJOR MANUFACTURING SECTORS (FY 23) Foods 2,337 (2.%) Iron & Steel,392 (.2%) Other,567 (9.4%) Electrical Machinery & Equipment,724 (9.5%) All General Machinery & Equipment 8,27 (6.%) Chemicals 7,59 (6.7%) Manufacturing Sectors 2,65 (%) IT & Telecommunications Equipment 6,78 (4.8%) Pharmaceuticals 4,37 (2.8%) x million yen Electronic Circuits, Parts & Equipment 5,998 (5.3%) Automotive 24,37 (2.4%) Transport Equipment 24,972 (22.2%) 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 23 automotive shipments accounted for 7.8% of the total value of Japan s manufacturing shipments, and 4.9% 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 52. trillion yen in 23, up 3.4% from the previous year. SHIPMENTS OF MAJOR MANUFACTURING SECTORS IN VALUE TERMS (23) Other 977,885 (33.5%) Metal Products 3,66 (4.5%) Iron & Steel 79,53 (6.%) NonFerrous Metals 88,59 (3.%) 2,92,92 (%) General Machinery 32,9 (.%) Chemicals 274,92 (9.4%) Electrical Machinery & Equipment 368,283 (2.6%) Automotive 59,7 (7.8%) Transport Equipment 582,32 (9.9%) x million yen Breakdown of automotive shipments: Automobiles (including motorcycles)... Auto bodies and trailers... 23,394 Automotive parts and accessories... 5,27 3, COMPARISON OF VALUE OF AUTOMOTIVE SHIPMENTS TO TOTAL VALUE OF ALL MANUFACTURING SHIPMENTS 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, ,994 24,493 25,27 26, ,939 28, , ,2 263,52 26, ,92 Iron & Steel 65,648 3,63 78,956 77,543 82,687 4,727 9,63 4,43 68,964 84,727 2,97 243,322 59,884 8,463 86,656 8,2 79,53 NonFerrous Metals 3,547 39,87 8,86 63,836 78,27 64,964 62,89 6,93 67,6 9,62 7,75 4,85 69,4 89,4 9,225 89,228 88,59 Metal Products 37,277 65,73 6,465 3,944 85,736 76,465 55,868 34,543 4,59 44,5 5,889 5,492 24,267 22,92 2,277 28,67 3,66 General Machinery 68,28 6,2 75,998 24,94 332, ,844 34,32 29,742 32,8 333,33 362,734 42, ,32 36,86 322,495 33,86 32,9 Electrical Machinery & Equipment 73,35 8,23 222,346 48, , ,39 595,87 498, ,83 5, ,265 58,797 4, ,848 43, , ,283 Machinery Industries Transport Equipment 72,758 47, ,536 36, , ,45 444,474 56, , , , 637,666 47, ,36 55,87 564, ,32 Automotive 54,673 5,24 22, , ,6 395,63 4, ,22 489,548 54,9 57, ,53 44,95 472, ,592 52,627 59,7 Subtotal Other 223,8 379,55 682,457,55,932,397,439,33,364,385,62,335,93,385,37,484,34,597,84,558,94,6,779,29,7,232,54,265,,27, , ,87 952,724,63,24,25,939,55,277,5,72 968, ,77,23,649,58,7,5,93 894,53 944,29 955, ,84 977,885 69,348,274,329 2,46,998 2,653,26 3,233,726 3,6,356 3,35,824 2,844,83 2,962,47 3,48,346 3,367,566 3,355,788 2,652,59 2,89,77 2,849,688 2,887,276 2,92,92 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

5 Automotive Industry Automotive Trade Motor Vehicle Exports and Imports Both Show an Increase In 24 Japan s gross exports rose by 4.8% from the previous year, and imports increased by 5.7%. In value terms, automotive exports grew 3.8% from 23 to 4.8 trillion yen, while automotive imports increased by.4% yearonyear to 2. trillion yen. EXPORTS BY PRINCIPAL COMMODITY (FOB) IN 24 Scientific & Optical Equipment 244 (3.3%) Ships 3 (.8%) Electrical Machinery & Equipment,265 (7.3%) Other,46 (4.3%) 7,39 (%) General Machinery,422 (9.5%) Transport Equipment,69 (23.%) Motor Vehicles (including motorcycles and parts),478 (2.2%) Textile Yarn & Textiles 69 (.%) Chemicals 782 (.7%) Iron & Steel Products 396 (5.4%) x billion yen NonFerrous Metals & Metal Products 264 (3.6%) IMPORTS BY PRINCIPAL COMMODITY (CIF) IN 24 Transport Equipment 36 (3.6%) Motor Vehicles (including motorcycles and parts) 29 (2.4%) Electrical Machinery & Equipment,53 (3.4%) General Machinery 676 (7.9%) NonFerrous Metals & Metal Products 287 (3.3%) Other,482 (7.3%) 8,59 (%) Chemicals 686 (8.%) Foodstuffs 673 (7.8%) Petroleum & Petroleum Products,658 (9.3%) Mineral Fuels 2,769 (32.2%) x billion yen Raw Materials 559 (6.5%) AUTOMOTIVE EXPORTS IN VALUE TERMS (FOB) x million yen Motor Vehicles Chg. (%) 85, , , , , , ,4.7 47, Passenger Cars, Trucks, Buses 43,7 37,36 66,933 9,74 82,42 92,25 4,25 9,94 Auto Parts 33,555 3,655 23,89 3,833 29,972 32,5 34,762 34,75 Motorcycles & Motorcycle Parts 8,543 7, 3,657 3,382 3,43 3,22 3,524 3,95 Exports Chg. (%) 839,34.5 8, , , , , , , AUTOMOTIVE IMPORTS IN VALUE TERMS (CIF) x million yen Motor Vehicles Chg. (%) Passenger Cars, Trucks, Buses Auto Parts Motorcycles & Motorcycle Parts Imports Chg. (%) 27 6, ,294 6, , , ,499 6, , , ,549 3, , , ,958 4, , ,85.2 7,352 4, , , ,82 5, , , ,857 6,98,9 82, ,925.4,623 8,48,54 859,9 5.7 Notes:. Passenger Cars, Trucks, Buses includes 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 ). 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 Up for First Time in 2 s In 24 motor vehicle production in Japan increased for the first time in two years, totalling 9.77 million units, up.5% from the previous year. Passenger car production grew.% to a total of 8.28 million units. Within that category, standard car and minicar production rose.9% and.%, to 4.66 million and.87 million units respectively, whereas small car production dropped 7.3% to.75 million units. Truck and bus production showed an increase over 23, growing 3.8% to.36 million units and 5.4% to 39, units, respectively. MOTOR VEHICLE PRODUCTION BY TYPE IN 24 Small 327,928 (3.4%) Mini 425,65 (4.3%) Buses 39,834 (.4%) TRENDS IN MOTOR VEHICLE PRODUCTION x million units 4 2 Standard 64,768 (6.2%) Trucks,357,76 (3.9%) 8 Mini,868,4 (9.%) 9,774,665 (%) Standard 4,657,765 (47.7%) Passenger Cars 6 Small,75,895 (7.9%) Passenger Cars 8,277,7 (84.7%) 25 Trucks & Buses MOTOR VEHICLE PRODUCTION Passenger Cars Standard Small Mini 5,69 29,32 43, ,792,75,783 2,553,73 3,376,447 4,9,36 4,95,428 5,864,354 5,786,333 3,459,589 4,846,4 4,8,36 4,686,396 4,68,4 4,657,765 2,377,639 4,98,55 6,438,847 6,99,432 7,36,224 4,4,629 3,699,893 3,46,622 3,32,265 2,638,842 2,74,43 2,45,279 2,59,9,86,279 2,252,672,888,759,75, ,45 6,272 95,923 6, ,965 96,2,283,94,48,753,537,2,44,44,427,397,257,293,34,832,6,885,65,435,682,55,868,4 3,78,78 4,567,854 7,38,8 7,646,86 9,947,972 7,6,533 8,359,434 9,6,735 9,754,93 9,944,637 9,928,43 6,862,6 8,3,362 7,58,525 8,554,53 8,89,323 8,277,7 Trucks Standard Small Chg. (%) Gasoline Diesel Subtotal Gasoline Diesel ,47 26,53 258,,56,729 97, ,34 23, ,7,44,759 68, ,28 427,99 885,98,663, , , ,42,278,22,28, , ,255 64,27,249,525 57, , ,54 59, ,4 34,495 64, ,28 495,9 649,8 24, , ,53 67,33 723, ,694 23, ,83 63, ,4 23,687 25, , ,639 78,9 77,425 88, ,443 63,48 734,923 63,237 66, , ,244 37,686 27,4 88, ,6 445,6 52,627 33,43 5, ,95 453,39 52,26 35,335 99, ,6 5,4 583,56 62,2 3, ,95 52,6 58,2 68,52 32,23. 7, ,869 64,768 76,76 5,68 Notes:. Passenger cars and trucks are classified under Japan s Road Vehicles Act in three categories, based primarily on engine capacity: standard (over 2,cc), small (66ccvehicle and have 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 9,352,545,89,826 3,22,924 3,6,9 7,26,654,239,33 8,45,638 9,683,44,422,8,,5 7,49,323 8,676,75 4,869,427 4,298,37 4,78,64 4,88,449 3,67,9 3,27,9 2,548,37 2,69,86 2,343,337 3,9,67 2,628,986 2,636,867 85,925 8,3, ,88 2,966,259 79,33,87,367,237,65 2,76,5,69,87 4,7,57,333,394 6,33,669,39,576 7,6,4,293,624 7,56,852,55,68,965,76,27,423 4,56,587,45,46,84,435,486,926 4,26,434,579,5 4,63,54,795,44 5,542,42,793,,953,924,69,428,,558,96,692 2,29,3 2,46,53 2,,682,27,974,684,489,73,798,954,449,987,34 2,89,242,59,934,8,28 849,5 543,48 588, ,272 52, ,435 32, ,8 35,55 422,52 479,94 546, ,498 59,44 5, , ,65 352,5 39,4 32,374 28, ,8 285,454 32,836 32,959 33,522 46,745 64,93 24,764 45,453 4,567 22,267 2,346 36,277 34,778 75,944 89,976 6,29 2,73 8,9 4,39,77 3,79,9 3,4,282 2,58,84 2,967,98 3,77,69 3,99,46 3,22,768,757,37 2,442,34 2,44,743 2,785,996 2,882,286 3,67,232 3,53 34,5 7,647 8,897 27,65 3,726 29,29 36,5 9,723 8,3 97,57 2,992 9,67 24,4 Buses,7 66,988 89,44 9,7 63,69 23,23 264,477 33,594 66,5 2,359 99,3 237,99 29, 38,4 x million yen Grand 24,6 2,273,526 2,3 6,957,27 97,88 4,8,737 89,94 4,424,38 29,674 7,958, ,957 9,726, ,686 2,93, ,79 2,979, ,838 2,998,68 329,659 6,828,56 296,458 4,577, ,9 7,45,62 49,67 7,922,46 442,524 9,52,68 Source: Ministry of Economy, Trade and Industry Subtotal,253,86,6,475 2,3,3,877,893,262,943 99,32 483, ,763 49,44 365, ,758 25,39 238, , ,992 3, ,928 Mini 55, ,987 94,679,388, ,7 84, , ,85 52, , ,78 398, , ,5 47,26 427,53 425,65 2,63,883 2,337,632 3,93,88 4,544,688 3,498,639 2,537,737,726,88,76,6,64,693,538,2,58, ,,29,79,35,996,266,354,38,77,357,76 Buses Large Small Chg. (%) ( 3 passengers) ( 29 passengers) Chg. (%) 2. 5,265 3,3 46, ,289, ,624 22,48 36, ,94, ,47 75,8 9, ,42, ,547 64,44 79,59.2 2,27, ,787 24,398 4, ,486, ,84 34,452 47, ,95, ,35 46,59 54, ,4, ,763 64,55 76, ,799, ,63 77,574 88,637 6.,484, ,56 2,54 3, ,596, ,66 27,442 39,2 22.4,575, ,783 78,2 86, ,934, ,274 99,6 9, ,628, ,427 94,682 4, ,398,63.5,598,622 22, ,943, ,755 22,926 32, ,63, ,42 3,432 39, ,774,665 Chg. (%) 2,cc), and 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 Source: Japan Automobile Manufacturers Association

8 Motor Vehicles New Registrations Motor Vehicle Sales Rise for Third Consecutive Passenger car and commercial vehicle demand in Japan in 24 totalled 5.56 million units, an increase of 3.5% from the previous year. passenger car sales grew 3.% to 4.7 million units, with standard cars rising 2.7% to.44 million units, small cars dropping 3.4% to.42 million units, and minicars surging 8.8% to.84 million units. Meanwhile, sales of trucks and buses increased 6.2% and 6.5% from 23, to 85, and 2, units respectively. NEW MOTOR VEHICLE REGISTRATIONS BY TYPE IN 24 Small 252,828 (4.5%) Standard 64,85 (3.%) Mini,839,9 (33.%) Mini 433,67 (7.8%) Trucks 85,34 (5.3%) Buses,983 (.2%) 5,562,888 (%) Passenger Cars 4,699,59 (84.5%) Standard,437,589 (25.8%) Small,422,883 (25.6%) 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 77,22,27,349,225,867,299,68,25,987,6,75,49,99,39,9,4,7,399,47,437,589,652,899 2,53,396 2,68,25 2,869,527 3,839,22 2,654,29 2,28,387 2,89,992,98,267,654,25,549,677,48,37,57,693,246,26,62,95,472,74,422,883 77,7 57,2 74,3 6,7 795,948 9,355,28,265,387,68,57,598,447,6,426,979,283,429,284,665,38,752,557,68,69,7,839,9 2,379,37 2,737,64 2,854,76 3,4,83 5,2,659 4,443,96 4,259,872 4,748,49 4,64,732 4,4,299 4,227,643 3,923,74 4,22,267 3,524,788 4,572,332 4,562,282 4,699, ,86 2,8 54,472 8,9 93,775 77,264 84,626 97,548 29,283 7,998 46,69 87,692,697 7,29 36,359 43,272 64,85 986, ,55,44,67 945,484,449,678,4,296,5,33 35,78 354,87 293,2 249,655 8,59 87,642 85,97 227, , , ,743 43,8 839,38,367,685,6,456 85, ,66 536,648 56,2 472,73 442,94 44,742 44, ,393 42, ,82 433,67,693,52,55,454 2,37,947 2,43,78 2,649,99 2,43,825,686,599,85,94,8,74 937, , ,943 73,94 674,78 785,45 8,975 85,34 Notes:. Chassisbased through 22, data compilation became vehicle registration numberbased as of Truck figures include specialpurpose vehicles (except large ones). 3. Data

9 NEW MINIVEHICLE SALES BY TYPE Passenger Cars (Minicars),387,68,57,598,447,6,426,979,283,429,284,665,38,752,557,68,69,7,839,9 Commercial Vehicles ( Bonnet minivans) 77,547 68,74 57,59 5,622 42,932 4,63 33,23 27,73 25,99 22,929 Commercial Vehicles (Caboverengine minivans) 97,4 24,838 96,4 85,86 67,358 8,55 68,75 98,843 94,728 94,43 Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ). Commercial Vehicles (Minitrucks) 26,96 242,469 29,64 25,486 94,452 29,62 8,665 95,92 22,893 26,3,923,76 2,23,69,99,89,869,893,688,7,726,42,52,45,979,446 2,2,99 2,272,79 Chg. (%) Source: Japan Mini Vehicles Association RECREATIONAL VEHICLE (RV) SALES Station Wagons Vans OffRoad 4WD Vehicles Minivans Chg. (%) ,667 59,936 46,95 454,64 339, , ,4 43,995 44,75 423,97 9,363 9,46 8,752 9,396 7,433 8,762 8,482,65 9,887 9,69 79,776 2,35 226,59 23,29 57,284 95,783 7,34 22,34 227, ,22 Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ).,69,6,26,26 98,8 938,694 89, , ,33 92,75 77,54 75,999,97,82,856,693,676,42,65,463,394,89,56,583,34,96,556,26,42,35,558, Source: Japan Automobile Dealers Association Buses Large Small Subtotal Chg. (%),256 8,88 9,44 8,798 9,62 6,475 4,333 5,856 6,64 5,53 5,357 4,234 4,777 3,36 4,266 4,8 4,498 7,572,8 3,973 2,775 5,763,828 2,238,898,536,464 9,976 8,338 7,998 7,55 7,672 7,75 7,485 27,828 9,836 23,387 2,573 24,925 7,33 6,57 7,754 7,6 5,67 5,333 2,572 2,775,65,938,256, ,,467 4,38,93 5,5,5 5,556,834 7,777,493 6,865,34 5,963,42 5,852,67 5,739,56 5,353,648 5,82,235 4,69,256 4,956,36 4,2,29 5,369,72 5,375,53 5,562,888 Chg. (%) Vehicle Registrations 2,844,554 3,72,63 4,2,72 4,28,32 5,975,89 5,49,44 4,95,7 3,928,35 3,75,887 3,433,829 3,22,342 2,92,85 3,229,76 2,689,74 3,39,274 3,262,522 3,29,98 Chg. (%) Mini Vehicles Chg. (%) 4.9,255, , ,3, ,528, ,82, ,75, ,867, ,923, ,23, ,99, ,869, ,688, ,726, ,52, ,979, ,2, ,272, includes imported cars. 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

10 Motor Vehicles Imported Vehicle Sales Sales of Imported Vehicles Show First Decrease in 5 s Imported vehicle sales in Japan in 24 totalled 336, units, down 2.9% from the previous year. While passenger car sales fell 3.5% to 32, units, commercial vehicles (trucks and buses) climbed 9.7% to 6, units. Sales of used imported vehicles declined.7% to 54, units, with passenger cars slipping.6% to 485, units, and trucks dropping.8% to 5, units. TRENDS IN IMPORTED MOTOR VEHICLE SALES , Vehicles produced by nonjapanese manufacturers 3, Passenger Cars Commercial Vehicles 2, 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. (%), Passenger Cars Commercial Vehicles Passenger Cars Commercial Vehicles 245,6 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. Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ). 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, ,8 2,57 25,857 56,97 2,88 69,787 26,77 4, , ,546 2,7 24,563 6,48 3,382 74,43 3,594 5,399 35, ,846,694 28,54 52,44 3,53 65,593 33,286 4, , ,83,366 29,96 3,847 4,97 45,764 39,677 6, , Source: Japan Automobile Importers Association IMPORTED MOTOR VEHICLES (ON CUSTOMS CLEARANCE BASIS) Passenger Cars 46,285 52,225 25,69 4, , , ,726 29, ,255 45,687 23,79 273, ,38 343,73 336,764 Chg. (%) Commercial Motor Other Vehicles Vehicles Chg. (%) ,85 47, , , , , , , , , , , , , , , , , , , , , , , ,255,348 36, ,662, , Motorcycles 7,5 7,87 28,696 43,936 74,96 444, , ,722 43,87 367, ,26 386,949 42,99 438,737 4,43 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 USED IMPORTED VEHICLE SALES Passenger SpecialPurpose Cars Chg. (%) Trucks Chg. (%) Vehicles Chg. (%) Other Chg. (%) , , , , , , , , , , , , , , , , , ,547.9, , , , , , , , , , , , , , ,75. 5, , , , , , , Notes:. For motor vehicle classifications in Japan, see page 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 9

11 Motor Vehicles Used Vehicle Sales Growth in Sales of Used Mini Passenger Cars In 24 sales of used motor vehicles slipped.8% from the previous year to total 6.84 million units. Used passenger car sales dipped.2% to 5.65 million units, with standard passenger cars and small cars dropping 2.2% to.63 million units and 5.% to.65 million units respectively, but minicars growing 5.% to 2.37 million units. Sales of used trucks slid 3.3% to. million units and sales of used buses fell 2.3% to 3, units. USED VEHICLE SALES BY TYPE IN 24 Buses 2,53 (.2%) Other 76,536 (.%) TRENDS IN NEW AND USED MOTOR VEHICLE SALES Used vehicles New vehicles x million units 9 Small Mini 25,295 72,46 (3.2%) (.5%) Standard Standard 63,536 (2.4%) Trucks,,237 (6.%) 6,84,74 (%),63,42 (23.8%) Mini 2,367,235 (34.6%) Passenger Cars 5,65,87 (82.6%) Small,653,24 (24.2%) USED MOTOR VEHICLE SALES Passenger Cars Trucks Buses Other Standard Small Mini Subtotal Chg. (%) Standard Small Mini Subtotal Chg. (%) Chg. (%) Chg. (%) Chg. (%) 985 6,5 3,295,92 356,726 3,8, , ,32,25,545,854, , , ,722, ,93 3,945,86 34,782 4,554, ,85 555,634,746,495 2,487, , , ,9, ,3 3,845,76 727,259 5,566, ,523 52,244,538,78 2,28, , , ,945, ,742,786 3,5,87,448,546 6,24, ,74 42,5,69,626,783, , , ,23, ,2,563 2,46,4,89,54 6,353,27. 24,6 368,778 98,74,589, , , ,6, ,959,739 2,34,226 2,33,569 6,297, ,77 365,8,3,67,63, , , ,66, ,8,596 2,5,22 2,22,866 5,938, ,989 32,43 935,745,458, , , ,53, ,728,9,944,766,995,333 5,668, , , ,836,389, , , ,78, ,69,37,855,7,864,874 5,339, ,8 266, ,957,248, , , ,698, ,592,,86,696,873,466 5,282, , , ,854,55, , , ,539, ,542,64,733,59,96,523 5,82, ,47 233, ,63,7, , , ,45, ,688,66,826,335 2,33,725 5,648, , , ,469,73,54. 4, , ,99, ,666,732,74,725 2,255,56 5,663,7.3 67, , ,63,38, , , ,895, ,63,42,653,24 2,367,235 5,65, ,536 25,295 72,46,, , , ,84,74 Notes:. Passenger cars and trucks are classified under Japan s Road Vehicles Act in three categories, based primarily on engine capacity: standard (over 2,cc), small (66cc 2,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 99.2

12 Motor Vehicles Motor Vehicles in Use and Motor Vehicle Density Slight Increase in Number of Motor Vehicles in Use At the end of December 24, motor vehicles in use in Japan (excluding motorcycles) totalled 77.2 million units, a.7% increase over the previous year. Passenger cars in use increased.% to 6.7 million units, with standard and minicars growing.2% and 4.4% to 7.7 million and 2. million units respectively, but small cars dropping 2.% to 22. million units. Meanwhile, trucks in use dipped.5% from 23 to 4.6 million units, but buses in use rose.5% to 227, units. At the end of March 24, the average service life of motor vehicles in Japan was 2.64 years for passenger cars, 3.3 years for trucks, and 7.63 years for buses. MOTOR VEHICLES IN USE BY TYPE AT END OF 24 Buses 226,944 (.3%) SpecialPurpose Vehicles,669,9 (2.2%) TRENDS IN MOTOR VEHICLES IN USE x million units 8 7 Small 3,58,884 (4.6%) Standard 2,294,449 (3.%) Mini 2,978,424 (27.2%) Mini 8,748,653 (.3%) Trucks 4,624,986 (8.9%) 77,88,466 (%) Passenger Cars 6,667,57 (78.6%) Standard 7,74,352 (22.9%) Small 2,974,74 (28.5%) 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 6,634,529 6,74,523 6,77,52 6,748,373 6,688,645 6,89,42 7,39,684 7,294,2 7,59,3 7,74,352 6,457,8 4,47,68 2,,96 25,6,79 3,554,652 3,3,462 28,593,49 26,254,546 25,698,33 24,92,226 24,356,3 23,99,9 23,47,3 23,43,892 22,868,749 22,435,835 2,974,74 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 4,2,74 5,8,27 5,93,25 6,76,486 7,42,89 7,986,982 8,486,738 9,258,239 2,9,359 2,978,424 8,778,972 7,236,32 23,659,52 27,844,58 34,924,72 44,68,37 52,437,375 57,9,789 57,52,43 57,623,753 57,864,972 58,9,853 58,347,387 58,67,34 59,42,9 6,35,297 6,667,57 Trucks Chg. (%) Small Mini Subtotal Chg. (%) ,256,58,465,494,464,668,852 2,76,488 2,574,433 2,596,42 2,474,378 2,465,823 2,455,268 2,386,255 2,39,62 2,28,7 2,266,42 2,266,836 2,27,82 2,294,449 4,478,486 6,,26 7,55,22 6,679,665 6,69,536 6,23,45 5,474,66 4,594,363 4,43,3 4,323,579 4,2,553 3,952,534 3,825,632 3,74,36 3,672,649 3,64,925 3,58,884 3,5,7 2,785,82 4,527,794 8,79,289 2,535,45,642,3,54,427 9,665,3 9,62,484 9,495,42 9,47,694 9,288,679 9,77,282 8,963,64 8,895,635 8,88,49 8,748,653 8,28,759,43,853 3,77,479 7,39,86 2,32,439 2,43,49 8,225,58 6,733,87 6,499,4 6,274,267 5,896,52 5,56,825 5,284,625 4,97,422 4,835,2 4,73,886 4,624, 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, 24). Fukui 2. Toyama 3. Yamagata 4. Gunma 5. Tochigi 6. Gifu 7. Ibaraki 8. Nagano 9. Fukushima. Niigata. Yamanashi 2. Saga 3. Ishikawa 4. Mie 5. Tottori 6. Shizuoka 7. Shiga 8. Shimane 9. Iwate 2. Akita 2. Okayama 22. Tokushima 23. Kagawa 24. Miyagi 25. Kumamoto 26. Aichi 27. Oita 28. Okinawa 29. Miyazaki 3. Yamaguchi 3. Aomori 32. Wakayama 33. Kagoshima 34. Ehime 35. Nara 36. Hiroshima 37. Kochi 38. Fukuoka 39. Nagasaki 4. Saitama 4. Hokkaido 42. Chiba 43. Hyogo 44. Kyoto 45. Kanagawa 46. Osaka 47. Tokyo 46. National Average Source: Automobile Inspection & Registration Information Association PASSENGER CARS IN USE BY YEAR OF FIRST REGISTRATION of First Registration April 23March 24 April 22March 23 April 2March 22 April 2March 2 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 March 2 Vehicles in Use Vehicles in Use 2,99,766 2,833,623 2,662,378 2,523,533 2,75,4 2,222,42 2,57,67 2,534,47 2,736,229 2,566,565 2,4,44 2,36,878,88,25,478,845 5,63,265 39,82,43 AVERAGE AGE BY TYPE AVERAGE SERVICE LIFE BY TYPE At March 3, 24 % 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. 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 9,97 9,763 9,62 9,88 8,76 8,36 7,435 7,528 7,723 8,545 Buses Small 83,85 24,98 23,387 22,26 3,849 28,67 25,437 2,86 2,98 2,37 2,873 9,637 9,35 8,53 8,55 8,24 8,399 Subtotal 87,98 226,284 23,2 23, , ,95 235,483 23,733 23,68 23,928 23,68 228, ,27 225, ,79 225, ,944 Chg. (%) SpecialPurpose Vehicles 333,32 584, 789,55 94,647,26,39,5,29,75,733,63,62,66,934,585,873,536,6,55,4,52,593,646,23,643,325,653,956,669,9 Chg. (%) ,58,843 28,9,558 37,856,74 46,57,26 57,697,669 66,853,5 72,649,99 75,686,455 75,859,68 75,74,82 75,528,35 75,324,486 75,36,876 75,52,887 76,25,533 76,69,66 77,88,466 Chg. (%) Trailers 23,79 39,88 56,84 65,485 87,359 2,7 33,676 47,626 5,44 54,798 57,95 52,38 52,834 54, 55,835 57,22 59,863 Three Wheeled Vehicles 243,934 47,998 7,724 6,23 4,56 3,62 3,827 3,28 3,238 3,2 3,9 3,27 3,2 3,89 4,86 5,478 6, 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 2

14 Motor Vehicles Exports An Increase in Exports of Standard Passenger Cars, Trucks and Buses Exports of motor vehicles in 24 declined 4.5% from the previous year to 4.47 million units. While total passenger car exports fell 5.7% to 3.84 million units, exports of standard passenger cars, which account for over 9% of total passenger car exports, increased.8% to 3.59 million units. Truck exports rose 3.5% to 488, units and bus exports grew 3.4% to 42, units. MOTOR VEHICLE EXPORTS BY TYPE IN 24 Small 79,64 (.8%) Mini (.%) Buses 4,556 (3.2%) TRENDS IN MOTOR VEHICLE EXPORTS x million units 7 6 Mini 2,456 (.%) Small 239,98 (5.4%) Standard 48,859 (9.%) Trucks 488,473 (.9%) 4,465,624 (%) Passenger Cars Passenger Cars 3,835,595 (85.9%) Standard 3,593,94 (8.5%) Trucks & Buses MOTOR VEHICLE EXPORTS Passenger Cars Standard Small Mini Subtotal 75,45,82, ,43 493,47,343,967,56,22 2,333,263 3,64,63 3,845,8 4,45,934 4,379,569 2,43,359 3,453,95 3,76,95 3,55, 3,564,559 3,593,94 3,58,623 3,932,44 3,38,47,732,5,462,69,98,273,449,68,359,44,534,975 84,98 88,66 743,59 64, ,54 239,98,36 5,45 2,24,3 6 8, , ,755,2 6,735,49 2, ,586,827,286 3,947,6 4,426,762 4,482,3 2,896,26 3,795,852 4,363,68 5,295,497 5,8,959 5,95,429 3,28,639 4,275,366 3,929,94 4,98,494 4,65,59 3,835,595 Chg. (%) Standard 65,7 68,37 332,257,96, ,737 62,654 53,823 52, , , 567, ,6 397,44 369,973 4,25 397,694 48,859 Small 272, ,232,548,25,29, , ,929 86,329 89,946 89,2 89,28 9,58 48,447 52,98 53,786 66,652 74,465 79,64 Trucks Mini 3,892 22,7 73,77, Notes:. Figures represent exfactory export shipments of motor vehicles manufactured in Japan, which are classified in the above categories as per Japanese law, including the Road Vehicles Act. 2. Vehicle 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 ). 3

15 MOTOR VEHICLE EXPORT TRENDS (BY REGION OF DESTINATION) Asia Middle East Europe North America Latin America Africa Oceania Other (EU) (U.S.A.) ,, 6,, 5,, 4,, 3,, 2,,,, Asia Middle East Europe (EU) North America (U.S.A.) Latin America Africa Oceania Other Chg. (%) 42,67 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, ,44 583, , ,58,727,35,53,26 396,499 88, ,26 7,86 4,84, ,47 49,75 995,33 52,84,585,327,426, ,375 48, ,747 4,92 4,464, , , ,688 4,286,886,386,698,52 346,86 68,36 448,969 5,452 4,83, ,54 584,62 79,39 37,576,887,55,79, , 79,364 47,294 5,454 4,674, ,34 625,78 744,38 452,322,662,6,537,676 36,7 83,86 375,672 7,665 4,465, 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 6, ,974 66,45 658,28 35,57 45,32 423, ,99 472,79 488,473 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, ,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, ,84, ,495 96,247, ,464, ,26 9,52 28, ,83, ,72 7,223 36, ,674, ,886 25,67 4, ,465, type classification in this table differs somewhat from that used in Ministry of Finance export data. 3. KD sets have been excluded since 979; they represent less than 6% of the cost of compositional Source: Japan Automobile Manufacturers Association 4

16 Motor Vehicles Exports by Destination An Increase in Motor Vehicle Exports to the Middle East, Europe, Asia, and Africa Compared to the previous year, motor vehicle exports in 24 climbed 7.% to the Middle East, 4.9% to Europe, 3.7% to Asia, and 2.5% to Africa, but declined 5.4% to Latin America,.9% to North America, and 7.8% to Oceania. MOTOR VEHICLE EXPORTS BY DESTINATION IN 24 Europe 744,38 (6.7%) of which EU 452,322 (.%) North America,662,6 (37.2%) of which U.S.A.,537,676 (34.4%) Middle East 625,78 (4.%) 4,465,624 (%) Asia 56,34 (2.5%) Latin America 36,7 (6.9%) Africa 83,86 (4.%) Note: The figure includes 7,665 units (.2%) shipped to other destinations. Oceania 375,672 (8.4%) million units, units, units MOTOR VEHICLE EXPORT TRENDS (BY REGION OF DESTINATION) In % Asia Middle East Europe (EU) 23.3 (7.7) 2.9 (5.4) 22.9 (4.) 23.6 (2.) 9. (5.) 9.3 (.7) 22.3 (.7) 7.7 (8.4) 5.2 (7.9) 6.7 (.) North America (U.S.A.) 36.7 (32.9) 4.7 (37.9) 37.5 (33.8) 34.5 (3.7) 38. (33.3) 35.7 (3.6) 35.5 (32.) 39.3 (35.4) 4.4 (36.8) 37.2 (34.4) Latin America Africa Oceania Other

17 MOTOR VEHICLE EXPORTS BY DESTINATION IN 24 Standard Small Mini Subtotal Passenger Cars Standard Small Mini Subtotal Trucks Large Small Subtotal Buses 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 Bahrain 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 Brazil Other Subtotal Algeria Egypt Nigeria Kenya South Africa Other Subtotal Australia New Zealand Other Subtotal Destination E U Source: Japan Automobile Manufacturers Association 4,23 25,668 52,334 2,73,768 6,86 24,9 2,95 6, ,57 375,46 9,5 86,47 44,658 65,87 32,529,275 27,88 5, ,93 8,59 4,623 87,958 23,4,627 45,27 84,27 37,389 22,738 7,38 2,7 3, ,277 44,5 8, 6,39 29,759 5,72,68, ,797 6,347,455,38,57,385 54,496 5,326 2,797 3,227,753 25,568 35,92 35,73 94, ,46,243, 2,48 6,525 49, ,445 24,29 4,2 287,865 2,96 3,593, ,836 4,52 6, 75,6 424,52 4,529,6 24, ,63 5,673,838 6,246, ,265,527 3,78 3,74 2, , , ,77 4 3,49, ,57 5,866 57,39 63,75 6,52 2,889 3,9 92 2,666 6, ,89 38, ,64 2 2,585 3,33,648 33,465 8, , , , , , ,456 4,548 29,54 56,486 8,92,768 7,557 26,5 3,339 7,758 4,893 8,8 4,66 9,5 87,44 45,96 66,25 38,22 2,3 28,42 52, ,493 9,46 5,7 98,223 24,574 4,345 5,9 96,8 38,374 25,887 7,82 2,464 6, ,63 446,749 8,856 9,463 22,47 5,72,689, ,98 22,35,52,565,634,95 7,8 8,25 5,988 3,49 4,42 3,95 36,242 4, , ,3,243,22 23,993 9,855 6, 292,9 32,895 4,96 33,765 2,93 3,835, ,225,277 3,75 8,9 5,526 5,389 35,58 4,7,3,798 2,27 43,995 2,28 22, ,72 3,446 6,87,82 7 3, ,9 5, ,294 6, ,46 2,34 23,32 25,454 3,542 7,2 4,245 3,99 2,249 9,62 49,49 5,69 4, , 6,5 8,97 55,88 28,4 4,778 2,975 35,893 2,88 48, ,59 4,332, 32 4,647 2, , ,23,342 2,58 2,82 2, ,,79, , ,455 6, , ,28 2,24 34,392, ,6 79, ,256,79 3,943 9,6 9,858 6,5 35,58 4,833 4,777 23,347 2,769 46,377 3,65 25, ,54 5,54 8,889 32,37 7 3, ,9 5, ,84 6, ,427 2,34 25, 27,245 4,25 7,358 4,557 4,62 2,879 2,67 55,778 5,986 44, ,78 7,78,3 89,58 29,76 5,9 3,74 37,99 2,88 488, ,27 3,67 532,29 2, ,957 72,8 756,569 3, , , , ,27 5,6, , 33,62,667 7,49,58,95 9,594 3,29 3,649 37, , , ,672 3, ,852 2, ,888 6,6 3,249 3, ,864 6,885,87 25, ,79 7, ,45 5,796 2, ,627 36,89,978 8,576 2,4,934 2,26 3,943 4,4 44, ,53, , ,24 7, ,634 3, ,888 6,73 33,279 3,6 46 2,937 6,998,854 4,556 4,573 22,55 64,736 3,77 23,522 7,92 49,774 35,635 55,663,459 37,24 56,34 23,762 42,394 5,4 3,839 38,636 53,653 37,489 75, ,78 9,53 5,7 98,223 24,574 4,345 5,9 96,8 38,374 29,278 7,82 2,464 6, ,53 452,322 9,239 9, ,5,665,248, ,38 24,484,537,676,662,6 9,744 8,25 34,426 8,759 2,785 35,5 36,242 6,84 36,7 7,57 64,298 4,82,45 58,599 37,599 83,86 326,227 38,374,7 375,672 7,665 4,465,624 6

18 Motorcycles Production Motorcycle Production Shows First Increase in 4 s Overall domestic motorcycle production in 24 increased 6.% from the previous year to 597, units. Class motordriven cycles (5cc and under) grew 2.2% to 77, units, Class 2 motordriven cycles (5cc to 25cc) surged 3.9% to 32, units, minisized motorcycles (26cc to 25cc) rose 6.2% to 94, units, and smallsized motorcycles (over 25cc) climbed 6.% to 395, units. The combined total for larger motorcycles (all those over 5cc) expanded 6.6% to 52, units. MOTORCYCLE PRODUCTION BY ENGINE CAPACITY IN 24 TRENDS IN MOTORCYCLE PRODUCTION x million units 2 5cc & Under 76,569 (2.8%).5 Over 25cc 395,424 (66.2%) 597,58 (%) 5cc25cc 3,529 (5.3%) 26cc25cc 93,536 (5.7%) Over 5cc.5 5cc & Under MOTORCYCLE PRODUCTION MotorDriven Cycles Class (5cc & Under) 895,599,3,822 2,493,9 2,4,85,343,22 95,83 636, ,549 36, ,336 62,928 8,47 87,53 4,936 9,886 74,94 76,569 MotorDriven Cycles Class 2 (5cc25cc),47,25,887,7 2,8,26,373, ,734,38,938 63,22 26,343 49,868 78,827 28,38 57,424 8,63 64,57 39,569 27,67 3,529 Over 5cc MiniSized Motorcycles (26cc25cc) 259,45 33,733 66,83 469,728 27,34 27, , , ,43 269,689 92,863 25,384 8,95 4,636 9,925 88,8 93,536 SmallSized Motorcycles (Over 25cc) 385, ,29,98, ,346 56, ,76 85,9 953,49,39, , , , ,82 365,8 373,93 372,59 395,424 Subtotal 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 ,52,73 2,77,725 3,94,64 2,52,497,463,675,8,436,778,845,493,36,465,4,4,76,63,9 536, , ,25 54, ,369 52,489 2,947,672 3,82,547 6,434,524 4,536,347 2,86,895 2,753,239 2,45,39,79,585,77,386,676,97,226, ,9 664,75 639,87 595, ,39 597,

19 Motorcycles Sales Overall Motorcycle Sales Down for First Time in 2 s Domestic motorcycle sales (defined here as exfactory shipments to domestic dealers, not as new registrations) in 24 totalled 47, units, down.6% from the previous year. By engine capacity, whereas sales of Class motordriven cycles (5cc and under) declined 4.% to 229, units and Class 2 motordriven cycles (5cc to 25cc) dropped 4.7% to 96, units, sales of minisized motorcycles (26cc to 25cc) and smallsized motorcycles (over 25cc) grew.% and 2.7%, to 53, and 38, units respectively. Overall sales of motorcycles with engine capacity over 5cc thus totalled 88, units, an increase of 4.% over 23. MOTORCYCLE SALES BY ENGINE CAPACITY IN 24 TRENDS IN MOTORCYCLE SALES x million units 26cc25cc 53,72 (2.8%) 5cc25cc 96,249 (23.%) Over 25cc 38,484 (9.2%) 46,723 (%) 5cc & Under 228,98 (54.9%) 5cc & Under Over 5cc MOTORCYCLE SALES (SHIPMENTS TO DOMESTIC DEALERS) MotorDriven Cycles Class (5cc & Under),978,426,646,5,23,52 884,78 558,459 47, ,96 458,23 295,98 255,56 23, ,45 246,95 238, ,98 MotorDriven Cycles Class 2 (5cc25cc) 2,238 3,574 69,68 38,5 2,6 88,747 82,2,72 2,99 65,888 96,368 95,72 9,29,947 96,249 Over 5cc MiniSized Motorcycles (26cc25cc) 88,88 73,887 58,882 98,833 72,886 99,658 9,395 86,8 55,674 37,8 27,275 3,767 39,77 47,788 53,72 25 SmallSized Motorcycles (Over 25cc) 3,84 45,674 76,92 9,86 46,46 47,86 48,564 4,2 49,743 22,48 25,352 2,9 25,82 3,877 38,484 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 22,48 235,59 222,7 226,92 226,47 25,26 48,995 48,488 55,8 8,62 87,85 Chg. (%) 2,37,36 2,96,25,68,933,22, ,877 76,53 7, , ,35 38,777 38,242 45,533 4,895 49,398 46, Source: Japan Automobile Manufacturers Association 8

20 Motorcycles Motorcycles in Use Continued Rise in Number of InUse Motorcycles Over 5cc in Engine Capacity As of March 3, 24, the number of motorcycles in use in Japan dipped to.69 million, down.% from the previous year. By engine capacity, Class motordriven cycles, which account for 55.% of all motorcycles in use, dropped 3.4% to 6.44 million units, whereas Class 2 motordriven cycles, minisized motorcycles and smallsized motorcycles in use rose 3.%,.6% and.9%, to.67 million,.98 million and.6 million units respectively. Thus, motorcycles over 5cc in use increased.7%, to a total of 5.25 million units. MOTORCYCLES IN USE BY ENGINE CAPACITY (at March 3, 24) TRENDS IN MOTORCYCLES IN USE (at March 3 yearly) x million units 2 Over 25cc,595,335 (3.7%) cc25cc,98,4 (6.9%) 5cc25cc,674,884 (4.3%),688,632 (%) 5cc & Under 6,438,2 (55.%) 5cc & Under Over 5cc 8 4 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 8,566,63 8,345,225 8,34,692 7,92,5 7,694,9 7,448,862 7,54,455 6,899,459 6,66,87 6,438,2 MotorDriven Cycles Class 2 (5cc25cc) 4,43,745 3,32,88 2,28,6,747,957,57,228,42,3,337,395,353,732,378,74,397,85,429,738,479,588,5,44,54,667,582,925,626,94,674,884 Over 5cc MiniSized Motorcycles (26cc25cc) 583,36 492,37 56,567,47,426,669,77,823,446,74,522,857,439,98,42,95,52,976,829,996,3,992,939,975,623,959,845,969,87,98,4 SmallSized Motorcycles (Over 25cc) 9,77 276,75 383, ,627,45,59,77,229,288,399,397,392,428,49,452,893,478,724,55,34,524,76,535,8,542,856,566,34,595,335 Subtotal 5,24,832 3,9,84 3,7,22 3,57, 4,232,58 4,42,76 4,33,36 4,68,563 4,75,265 4,8,49 4,885,29 4,98,23 5,28,555 5,5,47 5,85,626 5,6,622 5,25,63 Chg. (%) 8,852,258 8,752,98,965,547 8,8,49 7,77,787 5,587,96 3,973,83 3,75,76 3,6,49 2,935,82 2,787,342 2,675,22 2,477,47 2,25,926,985,85,823,429,688, 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 Rise for First Time in 3 s Motorcycle exports in 24 increased 8.% over the previous year to 466, units. By engine capacity, exports of Class motordriven cycles, Class 2 motordriven cycles, and smallsized motorcycles grew.7%, 7.6%, and.%, to 3,, 3,, and 359, units respectively, whereas minisized motorcycles declined.% to 64, units. MOTORCYCLE EXPORTS BY ENGINE CAPACITY IN 24 TRENDS IN MOTORCYCLE EXPORTS x million units.6 5cc & Under 2,778 (2.8%) 5cc25cc 29,77 (6.4%).2 Over 25cc 359,44 (77.%) 465,584 (%) 26cc25cc 63,89 (3.7%) Over 5cc.8.4 MOTORCYCLE EXPORTS 25 5cc & Under MotorDriven Cycles Class (5cc & Under) 326,85 288,843 5,27 369,67 47,3 6,627 82,38 57,86 57,558 34,92 36,234 4,493,522 9,745 7,794 2,56 2,778 MotorDriven Cycles Class 2 (5cc25cc) 94,325,546,7,97,48,35,42 57,84 69, ,4 97,378 24,335 34,57 95,4 44,78 48,976 45,853 35,579 27,676 29,77 Over 5cc MiniSized Motorcycles (26cc25cc) 87,85 328,33 548,36 296,865 7,222 29,96 24,59 77,824 83,98 77,673 49,53,298 85,56 83,594 69,963 64,566 63,89 SmallSized Motorcycles (Over 25cc) 39, , , ,38 4,38 442,689 85,58 899,6 968,53 886,36 72,39 383,38 347,46 355, , ,95 359,44 Subtotal,4,787 2,4,827 3,428,3 2,72,35,36,443,264,83,559,39,274,363,276,468,98,64 965, ,386 48, ,24 46,369 48, ,86 Chg. (%),737,62 2,69,67 3,929,4 2,54,482,83,744,325,7,64,77,332,223,334,26,232,796,2,87 543, ,464 54, ,63 43, , 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 An Increase in Motorcycle Exports to Asia, Europe, Africa, Oceania, and North America Compared to the previous year, motorcycle exports in 24 grew 36.% to Asia, 7.9% to Europe, 8.6% to Africa, 5.% to Oceania, and 3.% to North America, but declined 2.% to Latin America and 6.% to the Middle East. MOTORCYCLE EXPORTS BY DESTINATION IN 24 Europe 74,57 (37.5%) of which EU 6,49 (34.6%) North America 83,589 (39.4%) of which U.S.A. 62,554 (34.9%) Middle East 3,682 (.8%) 465,584 (%) Asia 26,333 (5.7%) Latin America 27,22 (5.8%) Africa 6,888 (3.6%) Oceania 33,383 (7.2%), units, units, units MOTORCYCLE EXPORT TRENDS (BY REGION OF DESTINATION) In % Asia Middle East Europe (EU) 35. (33.8) 34.9 (33.7) 37.7 (36.5) 36.9 (35.6) 38.8 (37.) 46.2 (44.4) 34.5 (33.) 34. (3.9) 34.3 (3.7) 37.5 (34.6) North America (U.S.A.) 47. (42.6) 48. (44.7) 4.4 (36.9) 4.9 (37.2) 33.6 (29.5) 2.5 (7.8) 35.5 (32.6) 38.4 (34.8) 4.4 (36.4) 39.4 (34.9) Latin America Africa Oceania

23 MOTORCYCLE EXPORTS BY DESTINATION IN 24 Asia Middle East Europe North America Latin America Africa Oceania Grand s South Korea Taiwan Hong Kong Thailand Singapore Malaysia Philippines Indonesia Other Subtotal Kuwait 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 Turkey Russia Other Subtotal Canada U.S.A. Subtotal Mexico Guatemala Nicaragua Panama Colombia Ecuador Bolivia Chile Brazil Other Subtotal Senegal Togo Mali Niger Rwanda Dem Rep Congo Ethiopia Kenya Uganda South Africa Other Subtotal Australia New Zealand Other Subtotal ,8 8,427 9, , ,9 2,778 4,74 25, , , , ,38,335 7,322 8, ,58, , ,553 8,654 2,9, ,448 29,77 23, , ,35 2,544, , , ,36 3,48 26,6 29, , , , ,239,35 4,65 6,763 2,33 9 8,886 63,89,93 2,8 2,529 3,37 2,822 5, , , ,233 8, ,497 33, ,37 23, , , ,38 3,493 2, ,46 5,74 2,699 35,873 2, ,2 3, ,57 9,25,7 9, , ,52 7,246, ,38 359,44,98 3,874 2,677 5,56 3, 5,528,74,38,26 26,3 55,4,77, 3,67,47 577,298 22, ,383 35, ,545 25, , , ,46 3,562 2, ,634 9,97 54,27 74,44 2, ,347 6,66 434,37,696 9,797,983 27,2 482,568,84,3 44,668, ,543 3,288 6,86 26,2 5, , ,86,95 3,874 2,677 5,56 3,4 5,528,92,4,36 26,333 52,4,46, 3,682,47 577,298 22, ,833 36,8 94 9,626 25, , , ,482 3,562 2, ,57 2,35 62,554 83,589 2, ,35 6,66 44,37,74 9,797 2,26 27,22 482,568,84,3 44,668, ,66 3,297 6,888 27,775 5, , ,584 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 In 23 Japan s CO2 emissions totalled.3 billion tons (preliminary figure), of which the transportation sector accounted for 7%. Since peaking in 2 following a decade of growth, CO2 emission volumes in Japan s transport sector have steadily declined and, owing largely to increased fuel efficiency in passenger cars and greater efficiency in goods distribution, recently fallen back to roughly the same level recorded in 99. The automobile industry will continue to vigorously promote CO2 emissions reduction in road transport by further improving vehicle fuel efficiency and expanding the market supply of nextgeneration vehicles. CO2 EMISSIONS IN JAPAN The transportation sector accounts for 7% of Japan s total CO2 emissions, which in 23 amounted to.3 billion tons (preliminary figure). Japan s CO2 Emission Volumes, 9923,35,3,25,2,5,,5 x million tons CO2 Emission Shares by Sector in 23 Waste processing 2% Residential 5% Commercial/ Other 2% Industrial processes 4% Energy conversion 7% 23 (preliminary):.3 billion tons Automobiles 5% Industry 33%, 99 Fiscal year (Preliminary) Note: Emission levels here reflect new calculation methods; the preliminary 23 figure does not take into account forest sink, etc. offsetting. Transportation 7% Source: Ministry of the Environment TRENDS IN CO2 EMISSION VOLUMES IN JAPAN S TRANSPORT SECTOR, BY MODE Motor vehicleemitted CO2 accounts for about 9% of the totality of CO2 emitted by Japan s transport sector. CO2 emissions from road transportation in Japan have seen a particularly significant decrease since transportsector emissions peaked in Aircraft Ships Trains Trucks Passenger cars & buses x million tons Fiscal year Source: Ministry of the Environment 23

25 Automobiles and Society Attention to the Environment Climate Change CO2 Emissions Reduction: Improving Vehicle Fuel Efficiency For gasolinepowered passenger cars and trucks weighing 3.5 tons or less, fuel efficiency targets for 25 were formulated in 27, applying top runner criteria whereby the target value for a given vehicle weight category is established based on the leading fuel efficiency performance to date for that weight category. The 25 target for passenger cars signifies a nearly 24% increase in average fuel efficiency compared to the 24 level. For heavyduty vehicles (trucks and buses with GVW>3.5 tons), fuel efficiency targetsthe first in the worldwere introduced in 26. Compliance here will mean that by 25 the average fuel efficiency of heavyduty vehicles will increase by over 2% compared to the 22 level. Japan s automakers are working hard to further advance fuel efficiency technologies, aiming now to comply with an even more stringent target established in 22 for passenger cars for enforcement in AVERAGE FUEL EFFICIENCY TARGETS FOR NEW 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 cyclebased (see page 67), and targets were established assuming the same 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 AVERAGE FUEL EFFICIENCY OF DOMESTIC NEW GASOLINEPOWERED PASSENGER CARS In km/ Fiscal year Note: All figures here have been converted from their 5mode test cycle values to their JC8 test cycle values (see page 67). Source: Japan Automobile Manufacturers Association 25 AVERAGE FUEL EFFICIENCY TARGETS FOR NEW HEAVYDUTY VEHICLES (GVW 3.5t) (Percentage gain) 25 target value 7.9 km/ Trucks (2.2%) 22 actual value 6.32 km/ 25 target value 6.3 km/ Buses (2.%) 22 actual value 5.62 km/ km/ Note: Fuel efficiency here is JE5 test cyclebased (see page 67), and targets were established assuming the same 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 VEHICLE TECHNOLOGIES FOR INCREASED FUEL EFFICIENCY Improved engine efficiency More efficient fuel consumption: Direct injection Variable mechanisms (variable cylinder activation, VVT&L, etc.) Downsized engine supercharging Reduction of friction loss: Reduction of piston & piston ring friction loss Lowviscosity lubricating oil Reduced aerodynamic drag Improved body configuration Reduced vehicle weight Expanded use of lightweight materials Improved body structure 22 AVERAGE FUEL EFFICIENCY TARGET FOR NEW PASSENGER CARS Passenger cars 22 target value 2.3 km/ 29 actual value 6.3 km/ (Percentage gain) (24.%) km/ 2 3 Note: Fuel efficiency here is JC8 test cyclebased (see page 67), and the target was established assuming the same shipment volume ratios by vehicle weight category for 22 as those recorded in 29. Sources: Ministry of Economy, Trade and Industry; Ministry of Land, Infrastructure, Transport and Tourism Improved powertrain performance Expansion of lockup area Expanded number of transmission gears Continuously variable transmission Reduced rolling resistance Low rollingresistance tires Other Electric power steering Idling prevention (stopstart) 24

26 Automobiles and Society Attention to the Environment Climate Change InUse Status of NextGeneration Vehicles Beginning in April 29, when the government s tax incentive/subsidy programs for the purchase of ecofriendly vehicles were first introduced, the share of nextgeneration vehicles (including hybrid, plugin hybrid, electric, fuel cell, natural gas, clean diesel, and other newenergy vehicles) in total passenger car sales surged. In 24 about 5.5 million nextgeneration vehicles were in circulation in Japan, but this is still a very small number, accounting for only 6.7% of all the motor vehicles in use in Japan today. The more widespread use of these vehicles requires not only further advances in vehicle and related technologies, but also, among other government initiatives, the establishment of the necessary fuel/energy supply infrastructures and the continued provision of purchasing incentives. TRENDS IN NEXTGENERATION PASSENGER CAR NEW REGISTRATIONS Fiscal Hybrid vehicles Plugin hybrid vehicles Electric vehicles Fuel cell vehicles Clean diesel vehicles 2 447,84 6,983 7, ,8 2 63,335 3,742,226,86 658, ,24 3,78 3,9 55,53 939, ,5,356 95,294 2,972 4,74 5,594 5, ,384,7,22,36,8,65 Source: Japan Automobile Manufacturers Association STATUS OF NEXTGENERATION VEHICLE USE IN JAPAN Clean diesel passenger cars Natural gas vehicles Fuel cell vehicles Electric vehicles Plugin hybrid vehicles Hybrid vehicles x, units Fiscal year (Preliminary) Source: Japan Automobile Manufacturers Association COMPOSITION OF JAPAN S VEHICLE FLEET, WITH BREAKDOWN OF NEXTGENERATION VEHICLE SHARE (FISCAL 24 ESTIMATE) Conventional vehicles 72.4 million (93.3%) Japan s Vehicle Fleet 77.9 million (%) (6.7%) Clean diesel passenger cars 233, (4.5%) Nextgeneration vehicles 5.5 million (%) Hybrid vehicles 4.76 million (92.4%) Natural gas vehicles 42, (.8%) Fuel cell vehicles (.%) Electric vehicles 7, (.4%) Plugin hybrid vehicles 45, (.9%) Note: Figures are rounded off. Source: Japan Automobile Manufacturers Association 25

27 Automobiles and Society Attention to the Environment Climate Change Promoting FuelConserving Ecodriving Individual drivers can increase fuel efficiency and thus help reduce CO2 emissions by improving their driving habits. JAMA has therefore been conducting an ongoing publicawareness campaign, in collaboration with the government and industry partners, to promote sound, fuelconserving ecodriving practices, urging drivers to adopt the ten smart tips listed below. While the already widespread use of digital tachographs in truck fleet operations in Japan continues to expand, automakers are equipping more and more passenger cars not only with fuel efficiency gauges and systems for realtime onscreen displays of fuel efficiency performance, but also with idlingprevention (stopstart) systems and ecomode buttons that activate fuel efficiencypromoting functions. TEN TIPS FOR FUELCONSERVING ECODRIVING as promoted in Japan. Accelerate gently. Think ecostart when you accelerateincreasing your speed at a relaxed pace, to 2km/h in 5 seconds, boosts fuel efficiency by %. Gentle acceleration also contributes to safer driving. 2. Maintain a steady speed and keep your distance. Maintain a suitably steady speed for safe and fuelefficient driving. Tailgating leads to unnecessary acceleration/deceleration, resulting in 2% and 6% lower fuel efficiency in urban and suburban areas, respectively. 3. Slow down by releasing the accelerator. Releasing the accelerator when recognizing the need to slow down (e.g., at changing traffic lights) stops the fuel supply, resulting in a 2% gain in fuel efficiency. Use your engine s braking function whenever appropriate, including on downhill descents. 4. Make appropriate use of your air conditioner. The AC function is for cooling and dehumidifying only, so don t leave your AC on when you re heating the cabin. When you do use it, be sure not to set it too low. (Continuous use of the AC functioning at 25ºC when the outdoor temperature is 25ºC results in a fuel efficiency loss of 2%.) 5. Don t warm up or idle your engine. Today s passenger cars don t require warming up, so start off slowly right after turning on the ignition. When waiting or loading/unloading, make a habit of turning your engine off instead of letting it idle. Ten minutes of engine idling (with the AC off) wastes 3cc of fuel. (See notes below.) 6. Plan your itinerary to avoid congested routes. Plan the route to your destination using a map or your navigation system before starting off. Check traffic information to avoid congested areas and save time and fuel. Ten minutes of unnecessary driving in a onehour trip results in a 7% drop in fuel efficiency. 7. Check your tire pressure regularly. Driving on tires whose air pressure is 5kPa (.5kg/cm 2 ) lower than it should be decreases fuel efficiency by 2% in urban areas and 4% in suburban areas. Timely replacement of engine oil and items such as oil filters and air cleaner elements also contributes to increased fuel efficiency. 8. Reduce your load. Onboard weight is a key factor in fuel efficiency performance. Driving with kg of unnecessary onboard weight causes a 3% loss in fuel efficiency. Another factor is your vehicle s aerodynamic drag, which you can reduce by removing exterior rack equipment when not in use. 9. Respect parking rules and regulations. Don t leave your vehicle where it blocks traffic. Illegal or imprudent onstreet parking causes traffic congestion which leads to increased emissions and a greater risk of accident. Roads that are not encumbered by illegally or improperly parked vehicles promote smoother traffic flow and higher fuel efficiency.. Check the readings on your fuel efficiencymonitoring equipment. Be aware of your vehicle s fuel efficiency performance by consulting onboard equipment that monitors it. Notes:. Warming up a vehicle engine is necessary only in extremely cold climates (2ºC or colder) or after long periods of nonuse. 2. For drivers stopping engine idling manually, i.e. by turning their vehicle s ignition off and then back on again, caution is advised as follows (but does not apply to drivers of vehicles equipped with idlingprevention systems): ) Stepping on the brake pedal repeatedly during engine shutdown may diminish braking power; 2) Drivers not accustomed to shutting down their engines and starting them up again may experience slow or faulty restarts; 3) Excessive shutting down and restarting may drain the batteries, resulting in engine startup failure; 4) Do not use this method when stopped at the head of a line or on a gradient, because turn signals and windshield wipers, as well as airbags and other safety features, will not function during engine shutdown. 26

28 Automobiles and Society Attention to the Environment Climate Change CO2 Reductions at Manufacturers Facilities Japan s automakers, together with the member companies of the Japan AutoBody Industries Association (JABIA), have for years taken measures to reduce energy consumption and otherwise cut CO2 emissions at their production plants. Having more recently expanded their voluntary CO2 reduction activities to also include administrative and research facilities, their combined facilityemitted CO2 in 23 totalled 7.25 million tons, down, tons from the previous year. JAMA and JABIA members now aim to reduce their combined facilityemitted CO2 to 7.9 million tons (a 28% reduction from the 99 level) by 22 and to 6.62 million tons (a 33% reduction from 99) by 23. Note: In a departure from previous editions of this publication, the 9922 figures in the chart below reflect revisions made to include CO2 emission volumes from JAMA and JABIA members combined facilities. FACILITYGENERATED CO2 EMISSION VOLUMES, 9923 CO2 emissions (x million tons) CO2 emissions/ production value (x, tons CO2 per trillion yen) Fiscal year (Target) (Target) Source: Japan Automobile Manufacturers Association Automobiles and Society Attention to the Environment Hazardous Substances Voluntary Initiatives to Reduce the Use of Hazardous Substances in Motor Vehicles JAMA member manufacturers have, on a voluntary basis, eliminated the use of four socalled substances of concern (SOCs)lead, mercury, hexavalent chromium and cadmiumin new vehicles to lessen their environmental impact, particularly when they are dismantled and processed at the end of their service life. Separate restrictions on the use of SOCs have been established for motorcycles. RESTRICTIONS ON THE USE OF SUBSTANCES OF CONCERN IN NEW VEHICLES & COMPLIANCE STATUS SOC Lead Mercury Hexavalent chromium Cadmium Restrictions As of January 26, a 9% decrease or more from the 996 level of,85 grams (i.e., a maximum permissible level of 85 grams); for large commercial vehicles including buses, a 75% decrease or more from the 996 level (or a maximum level of grams). Batteries are exempt. As of January 25, banned except for trace amounts in safetyrelated components such as: Instrument panel displays Liquid crystal displays in navigation devices Discharge lamps Fluorescent cabin lamps Banned as of January 28. Banned as of January 27. Compliance Status All models have complied since January 26. All models have complied since January 23. Instrument panel displays are now mercuryfree in all models, as are fluorescent cabin lamps in passenger cars. Navigationdevice liquid crystal displays and discharge lamps will be mercuryfree in the near future. All models have complied since January 28. All models have complied since January

29 Automobiles and Society Attention to the Environment Hazardous Substances A Voluntary Approach to Reducing Vehicle Cabin VOCs Newmodel passenger cars marketed in and after 27 and newmodel commercial vehicles sold in and after 28 have met the target values established by Japan s Ministry of Health, Labor and Welfare for indoor concentration levels of 3 volatile organic compounds (VOCs). In July 22, ISO 229 was established as the global standard for restricting the use of incabin VOCs in passenger cars. Accordingly, JAMA s previously established VOC test procedure for passenger cars has been replaced by the ISO procedure. However, for trucks and buses not covered by the ISO standard, JAMA test methods for measuring incabin VOC concentration levels will remain in application. Meanwhile, automakers are working to lower incabin VOC concentration levels even further. This voluntary initiative applies only to vehicles that are manufactured and sold in Japan. COMPARISON OF JAMA AND ISO INCABIN VOC TEST PROCEDURES (for passenger cars) Heating method Incabin temperature Pretest conditions Ambient mode Parking mode (airtight state) Driving mode JAMA Procedure Radiation lamp heating from above the cabin (No radiation density prescribed.) 4ºC in driver s breathing zone (Note: 35ºC for buses.) Cabin doors and windows left open for at least 3 minutes. Cabin air sampletested over a period of 3 minutes, 4.5 hours after reaching the prescribed temperature. Cabin air sampletested over a period of 5 minutes, with engine and AC on (internal air circulation mode). (Note: 3 minutes for trucks and 2 minutes for buses.) ISO Procedure Radiation lamp heating from above the cabin (Radiation density: 4 5 W/m 2 ) No incabin test temperature prescribed. (Presumed to be 4ºC in driver s breathing zone [compact car].) Cabin doors and windows left open for one hour. Cabin doors and windows closed for at least 7.5 hours, then cabin air sampletested over a period of 3 minutes. Cabin air sampletested over a period of 3 minutes, 3.5 hours after start of heating. Cabin air sampletested over a period of 3 minutes, with engine and AC on (external air ventilation mode). Test procedure schematic Incabin temperature (ºC) 4 23 (.52.h) Lamp heating Incabin temperature (ºC) 4.5h 8.h 4 23 Lamp heating 3.5h Sample testing B.G. Parking mode Driving mode B.G. Sample testing Ambient mode B.G. Parking mode Driving mode B.G. B.G. Source: ISO 229:22 TARGET VALUES FOR INDOOR CONCENTRATION LEVELS OF 3 SUBSTANCES (VOCs) Substance Target Value for Indoor Concentration Level B.G.: Background air, i.e., air in test chamber. Principal Sources Formaldehyde Toluene Xylene Paradichlorobenzene Ethylbenzene Styrene Chlorpyrifos Dinbutyl phthalate Tetradecane Di2ethylhexyl phthalate Diazinon Acetaldehyde Fenobucarb Note:. g/m 3 (.7 ppb) for children. g/m 3 (.8 ppm) 26 g/m 3 (.7 ppm) 87 g/m 3 (.2 ppm) 24 g/m 3 (.4 ppm) 3,8 g/m 3 (.88 ppm) 22 g/m 3 (.5 ppm) g/m 3 (.7 ppb) (see note) 22 g/m 3 (.2 ppm) 33 g/m 3 (.4 ppm) 2 g/m 3 (7.6 ppb).29 g/m 3 (.2 ppb) 48 g/m 3 (.3 ppm) 33 g/m 3 (3.8 ppb) Adhesives for plywood, wallpaper, etc. Adhesives/paints for interior finishing materials, furniture, etc. Adhesives/paints for interior finishing materials, furniture, etc. Moth repellents, lavatory air fresheners Adhesives/paints for plywood, furniture, etc. Insulation materials, bath units, tatamimat core materials Insecticides (esp. ant exterminators) Paints, pigments, adhesives Kerosene, paints Wallpaper, flooring materials, wirecoating materials Pesticides Adhesives for construction materials, wallpaper, etc. Insecticides (esp. termite exterminators) 28

30 Automobiles and Society Attention to the Environment Emissions Global Harmonization in the Regulation of Vehicle Exhaust Emissions Japan s vehicle exhaust emissions regulations have always been among the world s most stringent, 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, even in large urban areas, on a steady decline. Based on the Ministry of the Environmentaffiliated Central Environment Council s policy recommendations for future reductions in motor vehicle exhaust emissions (released in April 25), comprehensive and even stricter new regulations, covering both gasoline and diesel vehicles, were implemented by the Japanese government in 29. Japan has participated in international discussions on the global harmonization of emission test cycles and in 2 introduced the UN test cycle for motorcycle emissions. Japan will adopt UN test cycles to measure emissions from heavyduty diesel vehicles and from gasolinepowered passenger cars in 26 and 28, respectively. 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) (2) Postnew longterm regulations (29, 2) Future regulations (26, 27, 28) U.S.A. (GVW=Over 3.85 tons) 998 standard 24 standard 27 standard (3) 2 standard Europe (GVW=Over 3.5 tons) EURO (995) EURO (2) (4) EURO (25) EURO (28) EURO (23) EEV (5) 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 THC 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 () 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 applied to the over2.5t GVW vehicle category; regulations as of 25 apply to the over3.5t GVW vehicle category. (3) The U.S. s 27 standard permitted an NOx compliance level of around.6g until 2 depending on engine family type. (4) EURO (Europe): All vehicle categories were regulated in the steady state (ESC) mode only, except DPF and NOx reduction catalystequipped vehicles, which were regulated in both the steady state (ESC) and transient (ETC) modes. Beginning with EURO, all vehicle categories, whether DPF and NOx reduction catalystequipped or not, are regulated in both modes. (5) 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 (.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 vehicle drivingmode patterns. 29

31 MOTOR VEHICLE EMISSIONS REGULATIONS IN JAPAN Gasoline and LPG Vehicles Diesel Vehicles Motorcycles Vehicle Type Passenger cars Trucks and buses Passenger cars (4) Trucks and buses Motordriven cycles Class Motordriven cycles Class 2 Minisized motorcycles Smallsized motorcycles Class Class Class Mini Lightduty (GVW.7t) Mediumduty (.7t<GVW 3.5t) Heavyduty (GVW>3.5t) Lightduty (GVW.7t) Mediumduty (.7t<GVW 3.5t) Heavyduty (GVW>3.5t) motorcycles* motorcycles* motorcycles* Test cycle JC8 (g/km) () 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) WMTC (g/km) (8) WMTC (g/km) (8) WMTC (g/km) (8) WMTC (g/km) (8) Current Regulations enforced (5) 29 (5) Emission CO NMHC NOx PM (3) CO NMHC NOx PM (3) CO NMHC NOx PM (3) CO NMHC NOx PM (3) CO NMHC NOx PM (3) CO NMHC NOx PM CO NMHC NOx PM CO NMHC NOx PM CO NMHC NOx PM CO THC NOx CO THC NOx CO THC NOx CO THC NOx Regulatory value (Average) Under.5 in engine capacity with a maximum speed of 5km/h, or under.5 in engine capacity with a maximum speed of 99km/h. *Equivalent to motordriven cycles, Class and Class 2. Under.5 in engine capacity with a maximum speed of <3km/h, or.5 or over in engine capacity with a maximum speed of <3km/h. *Equivalent to minisized and smallsized motorcycles with a maximum speed of <3km/h. With a maximum speed of 3km/h. *Equivalent to minisized and smallsized motorcycles with a maximum speed of 3km/h. Test cycle WLTP (g/km) (2) WLTP (g/km) (2) WLTP (g/km) (2) WLTP (g/km) (2) WLTP (g/km) (2) WLTP (g/km) (2) WLTP (g/km) (2) WLTP (g/km) (2) CO NMHC NOx PM (3) CO NMHC NOx PM (3) CO NMHC NOx PM (3) CO NMHC NOx PM (3) CO NMHC NOx PM CO NMHC NOx PM CO NMHC NOx PM CO NMHC NOx (7) PM Regulatory value (Average) () All vehicles weighing 3.5t or less are regulated 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) WLTP: Worldwide harmonized Light vehicles Test Procedure, on the basis of values measured in coldstart state. (3) PM values apply only to directinjection, leanburn vehicles equipped with absorptiontype NOx reduction catalysts. (4) 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. (5) Enforced since 2 for mediumduty diesel vehicles (.7t<GVW 2.5t) and heavyduty diesel vehicles (3.5t<GVW 2t). (6) WHTC: World Harmonized Transient Cycle, on the basis of (values measured in coldstart state) x.4 + (values measured in warmstart state) x.86. (7) Enforcement: 26 for GVW>7.5t; 27 for tractors; 28 for 3.5t<GVW 7.5t. (8) World Motorcycle Test Cycle. Note: CO: Carbon monoxide; NMHC: Nonmethane hydrocarbons; THC: hydrocarbons; NOx: Nitrogen oxides; PM: Particulate matter. Sources: Ministry of the Environment; Ministry of Land, Infrastructure, Transport and Tourism (Continued application of current regulations) WLTP (g/km) (2) WLTP (g/km) (2) WLTP (g/km) (2) WHTC (g/kwh) (6) WMTC (g/km) (8) WMTC (g/km) (8) WMTC (g/km) (8) Future Regulations enforced Emission CO THC NOx CO THC NOx CO THC NOx

32 Automobiles and Society Improving Air Quality Attention to the Environment Emissions Japan s central government as well as local governments in major metropolitan areas have implemented measures to address air quality problems caused by motor vehicles. In accordance with national legislation aimed at curbing nitrogen oxide (NOx) and particulate matter (PM) emissions, the issuance of inspectioncompliance certification is prohibited for vehicles that fail to meet the legal standards at inspection time. Moreover, local governments in major metropolitan areas have introduced additional regulations for diesel trucks and buses for the specific purpose of reducing PM emissions. Enforcement of those regulations means that restrictions are imposed on diesel vehicle circulation in the areas concerned. PROVISIONS OF THE NATIONAL AUTOMOTIVE NOx AND PM LAW/ DIESEL TRUCK & BUS PM EMISSION REGULATIONS FOR MAJOR METROPOLITAN AREAS Areas Regulated Vehicle Types Regulated Substances Regulated Regulatory Values in Force Specific Provisions Grace Periods Provisions of the National Automotive NOx and PM Law (Major Metropolitan Areas) Tokyo and Aichi, Chiba, Hyogo, Kanagawa, Mie, Osaka, and Saitama (designated areas) Diesel, gasoline, and LPG trucks and buses Diesel passenger cars NOx and PM Trucks and Buses GVW = Gross vehicle weight GVW=.7 tons & under: NOx:.48g/km (same as 988 regulatory value for new gasoline vehicles) PM:.55g/km (half the 22 regulatory value for new diesel vehicles) GVW=Over.7 tons to 2.5 tons: NOx:.63g/km (same as 994 regulatory value for new gasoline vehicles) PM:.6g/km (half the 23 regulatory value for new diesel vehicles) GVW=Over 2.5 tons to 3.5 tons: NOx: 5.9g/kWh (same as 995 regulatory value for new gasoline vehicles) PM:.75g/kWh (half the 23 regulatory value for new diesel vehicles) GVW=Over 3.5 tons: NOx: 5.9g/kWh (same as regulatory value for new diesel vehicles) PM:.49g/kWh (same as regulatory value for new diesel vehicles) Passenger Cars NOx:.48g/km (same as 978 regulatory value for new gasoline vehicles) PM:.55g/km (half the 22 regulatory value 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. Provisions of PM Emission Regulations for Diesel Vehicles (Major Metropolitan Areas) Tokyo (except for islands) and Chiba, Kanagawa, and Saitama (all areas); Hyogo (designated areas); Osaka (same areas as those designated under the Automotive NOx & PM Law) Diesel trucks and buses Note: Not applicable to diesel passenger vehicles with up to passenger occupancy. PM only NOx and PM in Hyogo and Osaka In Chiba and Kanagawa, same as 997, 998, and 999 regulatory values for new diesel trucks and buses In Tokyo and in Saitama, same as 22, 23, and 24 regulatory values for new diesel trucks and buses In Hyogo and Osaka, same values as those mandated by the Automotive NOx & PM Law New Vehicles No restriction. Vehicles in Use Vehicles not meeting the standards are prohibited from travelling through regulated areas after grace periods have expired. In Osaka, vehicles not meeting the standards are prohibited from travelling on roads directly accessing regulated areas. In Tokyo and in Chiba, Kanagawa, and Saitama, 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: In Chiba, vehicles neither registered in nor travelling through areas designated under the Automotive NOx & PM Law will be exempted for a period of 2 years, provided vehicle owners apply for such an exemption. In Hyogo, grace periods differ according to year of first registration and vehicle type. In Osaka, grace periods are the same as those specified in the Automotive NOx & PM Law. 3

33 Automobiles and Society Attention to the Environment 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 motor vehicle environmental performance certification criteria keyed to Japan s latest fuel efficiency and emission standards. Trucks and buses that comply with NOx (nitrogen oxides) and PM (particulate matter) emissions requirements are also certified, separately. To boost widespread public awareness of vehicles with advanced fuel efficiency and/or low emissions, such vehicles are identified with appropriately coded stickers. CERTIFICATION FOR VEHICLES WITH ADVANCED FUEL EFFICIENCY For Gasoline and Diesel Passenger Cars For Small Trucks and Buses with GVW 2.5t For Trucks and Buses with GVW 2.5t Performance Criteria Vehicle Sticker Performance Criteria Vehicle Sticker Performance Criteria Vehicle Sticker Compliant +2% with 22 fuel efficiency standards Compliant +35% with 25 fuel efficiency standards Compliant +35% with 25 fuel efficiency standards Compliant +% with 22 fuel efficiency standards Compliant +25% with 25 fuel efficiency standards Compliant +25% with 25 fuel efficiency standards Compliant with 22 fuel efficiency standards Compliant +2% with 25 fuel efficiency standards Compliant +5% with 25 fuel efficiency standards Compliant +2% with 25 fuel efficiency standards Compliant +5% with 25 fuel efficiency standards Compliant +% with 25 fuel efficiency standards Compliant +% with 25 fuel efficiency standards Compliant +% with 25 fuel efficiency standards Compliant +5% with 25 fuel efficiency standards Compliant +5% with 25 fuel efficiency standards Compliant +5% with 25 fuel efficiency standards Compliant with 25 fuel efficiency standards Compliant with 25 fuel efficiency standards Note: Fuel efficiency is JC8 test cyclebased. Compliant with 25 fuel efficiency standards Note: Fuel efficiency is JC8 test cyclebased. Note: Fuel efficiency is JC8 or JE5 test cyclebased. CERTIFICATION FOR VEHICLES WITH LOW EMISSIONS CERTIFICATION FOR TRUCKS AND BUSES WITH LOW NOx & PM EMISSIONS Performance Criteria Vehicle Sticker Performance Criteria Vehicle Sticker Emissions down by % from 29 standards Compliant with 29 emission standards Emissions down by 75% from 25 standards Compliant with 25 emission standards Emissions down by 5% from 25 standards Compliant with other designated NOx and PM emission standards 32

34 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 has, moreover, provided continuous cooperation in, and financial support for, the development, maintenance, and upgrading of related systems. In line with legislative provisions promoting the socalled 3R initiatives ( reduce, reuse, and 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 23 the volume of auto plantgenerated waste destined for landfill disposal totalled 4 tons, representing a 99.9% decrease from the 99 level and surpassing by a very wide margin the 25 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 Recycle 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 Ease of sorting Nonhazardous recycling Materials identification 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 23: 4 tons (a 99.9% reduction from 99) JAMA target:, tons by fiscal 25 *For landfill disposal, including scrap metals, casting sand residue, and other waste Distribution, Servicing and Use Basic premise: Environmentally responsible vehicle design on the part of automobile manufacturers Recovery and recycling of: ) Fluorocarbons 2) Airbags 3) ASR Note: Motorcycles are not covered by the ELV Recycling Law. ELV RECOVERY IN NUMBERS RECYCLING RATES: TARGETED & ACHIEVED Fiscal No. of ELVs recovered Appropriate disposal of three designated items Fluorocarbons Airbags () ASR (2) 23 3,433,356 2,9,89 2,273,857 3,39, ,33,9 2,94,66 2,43,95 3,33,462 () 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 2.9 million vehicle units (23) 9495% (23) % (23) Sources: Governmentaffiliated entities 33

35 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. 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. It surpassed the 25 target of, tons for the first time in 25, shrinking more than 97% from the 99 baseline level to 8, tons. In 23 plantgenerated waste totalled 4 tons, marking not only a decrease from the previous year, but also a 99.9% reduction from the 99 leveland thus very significantly surpassing the 25 target. Waste for landfill disposal (x, tons) Fiscal year Target Source: Japan Automobile Manufacturers Association value of vehicle production including motorcycles (x billion yen) 34

36 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, in cooperation with the Japan AutoBody Industries Association, promotes the voluntary development and use of rack equipment that is easy to dismantle and contains minimal amounts of hazardous substances. JAMA has also introduced a recyclinganddisposal system for such equipment and encourages operator participation in the system. As of January 25, a total of 6 operators across Japan are participating in this system voluntarily. Meanwhile, since October 24 JAMA s four motorcyclemanufacturing members, along with 2 motorcycle importers, have been voluntarily operating a recycling system under which motorcycle dealers nationwide sell only vehicles that feature an official motorcycle recycling mark, enabling, without any additional charge to their final owners, their recovery and processing through the proper disposal channels at the end of their service life. In October 2, the motorcycle recycling fee was eliminated for vehicles sold prior to the introduction of the motorcycle recycling system seven years earlier. The disposal of municipallyowned endoflife motorcycles requires advance approval by the Japan Automobile Recycling Promotion Center. COMMERCIAL VEHICLE RACK EQUIPMENT NOT COVERED BY THE ENDOFLIFE VEHICLE RECYCLING LAW Voluntary Recovery (from CabType Vehicles) Voluntary Recovery (from SingleBody Vehicles) Vehicles Not Covered by the EndofLife Vehicle Recycling Law (Color code explains cost burden placement.) Cost Burden for Equipment Not Covered by the Law All equipment whose recovery is not mandated by law (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. 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 Final Owners Delivery of endoflife motorcycle directly to a certified collection center Delivery of endoflife motorcycle to an ELV motorcycle dealer Motorcycle Recycling Mark EndofLife Motorcycle Dealers ELV Motorcycle Dealer Designation Digits represent dealer s ID code. Verification of ownership Verification of recycling documentation Delivery to certified collection centers EndofLife Motorcycle Processing (nationwide operations) Certified Collection Centers (8) Verification of ownership Verification of recycling documentation Disposal/ Recycling Facilities (4) Note: The cost of ELV motorcycle delivery from ELV dealers to certified collection centers is financed by the motorcycle manufacturers on the basis of the consumer s recycling fee paid at the time of motorcycle purchase. Source: Japan Automobile Recycling Promotion Center 35

37 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. Tires also 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. As regards the noise intentionally emitted through tampered mufflers, which has been recognized as a public nuisance, strengthened regulations in effect since April 2 mandate a) that mufflers be tamperresistant so as to prevent the alteration of their noisesuppression mechanism, and b) that replacement mufflers not only meet Japan s relevant noise standards through type approval compliance but also be IDmarked accordingly. Although very significant progress has been made as a result of all of these efforts, the Japanese government s Central Environment Council is nevertheless working on the updating of noise regulations in line with the results of studies conducted under the United Nations World Forum for Harmonization of Vehicle Regulations (WP.29). Accordingly, in its New Measures for Reducing AutomobileEmitted Noise released in April 22, the government announced its intention to introduce, beginning in 24, UN R44, the new international standard on motorcycle acceleration noise, as well as UN R72, to regulate tire noise generated by passenger cars, trucks and buses. Meanwhile, the Forum s Working Party on Noise continues to discuss the quietness of electric vehicles and hybrid vehicles running at low speed, with a view to creating a global technical standard in this regard. PROCEDURES FOR TESTING MOTOR VEHICLE NOISE LEVELS Accelerated running noise Noiselevel measurement span m m After running at a steady speed up to this point, fullthrottle acceleration Steady running noise Noiselevel measurement span m m Running at a constant speed 7.5m 7.5m Microphone (.2m above ground level) Microphone (.2m above ground level) OVERVIEW OF JAPAN S MOTOR VEHICLE NOISE REGULATIONS (for accelerated running noise) Largesized vehicles Mediumsized vehicles Smallsized vehicles Passenger cars 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 Passenger Cars, Trucks and Buses 4WD vehicles, etc. Trucks Buses 4WD vehicles, etc. Trucks Buses Other than minivehicles Minivehicles Over 6 occupants 6 occupants or fewer Notes:. In pre987 regulations, 5 kw reads 2 horsepower. 2. 4WD vehicles, etc. includes 4WDs, tractors, and cranes In db(a) Regulation Smallsized motorcycles Minisized motorcycles Class (see note) Motordriven cycles Class 2 Class (see note) Motordriven cycles Class Class (see note) Vehicle Type Over 25cc 26cc25cc Over 5 (PMR*based) 5cc25cc 265 (PMR*based) 5cc & under 25 & under (PMR*based) Motorcycles Minisized and smallsized motorcycles under the current classification Mostly Class 2 but also some Class motordriven cycles and some minisized motorcycles under the current classification Class motordriven cycles under the current classification Regulation *PMR: Powertomass ratio. Note: Beginning in 24, for noise regulation purposes, motorcycles in Japan will be classified (based on their PMR values) under the Class, and categories, and the Class motordriven cycle, Class 2 motordriven cycle, minisized motorcycle and smallsized motorcycle categories will no longer apply. Source: Ministry of the Environment

38 Automobiles and Society Road Safety Status of Road Accidents Road Accidents and Resulting Fatalities and Injuries Continue to Decline In 24 road fatalities (defined as occurring within 24 hours after the accident) in Japan fell for the fourteenth straight year, to a total of 4,3. Road accidents and road injuries also declined, for the tenth consecutive year, to 573,842 and 7,374 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 24 stood at 35.% on regular roads and at 7.3% 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 78,8 472, , , ,97 76,794 93,95 934, ,93 692,56 665,38 629,2 573,842 Injuries (Number of persons) Fatalities (Number of persons) 98,96 6, ,467, ,79 8,76 68,346 9,26 79,295, ,677,55,77,57,5,684 9,73 6, ,294 4, ,6 4, ,396 4,4 78,494 4,373 7,374 4,3 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 43, on regular roads and 88, on expressways. Sources: National Police Agency; Japan Automobile Federation ROAD ACCIDENTS IN 24 BY ROAD CONFIGURATION Straightaway 24,473 (42.%) Other 24,37 (4.2%) Number of Accidents 573,842 (%) Near intersection 8,663 (4.2%) Number of accidents Within intersection 226,399 (39.5%) Intersection 38,62 (53.7%) Notes:. Straightaway includes some curves and tunnels. 2. Other includes railroad crossings. Source: National Police Agency 37

39 Automobiles and Society Road Safety Vehicle Safety Equipping More Vehicles with Advanced Safety Features 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 upgrading vehicle safety equipment and expanding its onboard installation rates, 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 ( With lowspeed following mode) ( Fullrange) Lanekeeping assist Blindcorner monitoring Night vision monitoring Navigatorbased gearshift control (ATs only) Adaptive frontlighting system (AFS) Park assist Collisionmitigation braking system (precrash safety) Vehicle proximity warning Automatic hightolowbeam headlamp control Accelerator suppression for pedal misapplication Passive Safety Active head restraints Curtain airbags Rollover curtain airbags Pedestrian protection vehicle design ISOFIX anchorages (for child safety seats) Advanced compatibility vehicle structure Knee airbags Precrash seatbelts Motorcycle airbags Automatic popup hood Source: Japan Automobile Manufacturers Association SAFETY FEATURE ONBOARD INSTALLATION STATUS (for passenger cars produced in 23 for home market) Active Safety Passive Safety Safety Feature Brake assist 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 Curve detection Tire pressure monitoring Driver inattention warning Intervehicle distance warning Lane departure 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 Vehicle proximity warning (for HVs/EVs) (3) Collisionmitigation braking system (precrash safety at lowspeed vehicle operation) Accelerator suppression for pedal misapplication Automatic hightolowbeam headlamp control Side airbags Curtain airbags Active head restraints ISOFIX anchorages (for child safety seats) Threepoint seatbelt for rear center seat (4) Installation Status In no. of models () In % (2) In % (2) (63) (83) (73) (26) (47) (3) (9) (7) (4) () () () (6) (2) () () () () () () () () () (5) (4) (9) (82) (5) () (35) (27) () () () (58) (57) (6) (68) (9) ,67,482 2,63,5 4,83,82 72,555 2,7, ,84 878,848 6,539 92,838 58,25 2,75 46,357 7,858 52,85 75,599 34,698 3,4 97,49 8,996 94,288 98,6 2,953 3,983 45, ,888 2,567,799 2,47,9 4,227 6,855,282, , , ,82 33,86,6,4,73,737 2,58,876 4,89,449 2,52, ,234,874 () 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) In 23 a total of 8 hybrid/electric car models (2,789,874 vehicle units) were produced. (4) In 23 a total of 5 passenger car models (2,956,58 vehicle units) were produced, excluding mini and other passenger cars which are not eligible for rear seat inclusion. Note: Passenger cars here include minicars. Source: Japan Automobile Manufacturers Association 38

40 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 Accidents involving pedestrians or cyclists Special measures for the elderly Greater use of seatbelts Delays in driver recognition and incorrect vehicle control Accidents occurring at twilight/night Accidents occurring at intersections Collisions with stationary objects Compatibility Road Users: Public Awareness Campaigns Continued implementation of road safety public awareness campaigns, based on the results of accident causation studies. Development of road safety educational programs specifically for the elderly. Public awareness campaigns to promote the use of seatbelts. Campaigns aimed at preventing faulty driver recognition and incorrect vehicle control. Campaigns to promote the early lighting of automobile headlamps. Public awareness campaigns to encourage drivers to exercise greater caution at intersections, where the majority of fatal road accidents occur. () Adaptive frontlighting systems. (2) Antilock braking systems. (3) Brakeassist systems. Vehicles: Safety Measures More widespread application of AFS (), ABS (2), BA (3), and stability control. Development of technologies specifically geared to agingrelated physical changes. Research into the mechanisms of accident causation and humanmachine interface conditions using data recorders, etc. More widespread application of AFS. More widespread application of ABS, BA, and stability control. Improvement of sideimpact protection performance. Improvement of sideimpact and vehicle occupant protection performance and of side and curtain airbags. R&D on crashcompatible vehicle bodies and compatibility evaluation methods to improve vehicle performance. Road Infrastructure: Proposals to Government For infrastructural improvements, based on the results of accident causation studies. For more widespread roadway/sidewalk demarcation and greater barrierfree mobility. For improved nighttime road illumination. For road infrastructure regulations for effective utilization of ITS technologies. For expanded provision of underground power lines and impactabsorbing road installations. Automobiles and Society Road Safety National Initiatives Japan s 9th Basic Plan for Road Safety Japan s road safety measures are promoted on the basis of its succession of consecutive basic plans for road safety, the first of which was implemented in 97. In line with the government s goal of eventually achieving zero road accidents nationwide, Japan s 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. 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 39

41 Automobiles and Society Driver s Licenses and the Driving Population 82. Million People Hold Driver s Licenses At the end of 24 there were 82. million people, or 45.4 million men and 36.6 million women, holding valid driver s licenses in Japan. The number of driver s licenses held totalled 28.2 million (with one count allotted to each vehicle category covered, whenever a license covers multiple vehicle categories). By license category, Class 2 licenses were held by 2.27 million people, or 2.2 million men and.6 million women, and Class licenses by 25.9 million people, or 8.5 million men and million women. GENDER TRENDS IN DRIVER S LICENSE HOLDERS (at end of every calendar year) Number of persons Men 45,35,94 45,257,39 45,42,64 45,57,585 45,539,49 45,487, 45,448,263 45,437,26 45,463,79 45,43,245 Women 33,662,88 34,72,475 34,494,598 34,93,257 35,272,526 35,523,236 35,767,3 36,5,586 36,396,22 36,645,978 78,798,82 79,329,866 79,97,22 8,447,842 8,8,945 8,,246 8,25,266 8,487,846 8,86,2 82,76,223 TOTAL NUMBER OF LICENSES HELD, BY YEAR & LICENSE/VEHICLE CATEGORY Number of licenses held Class 2 Licenses Large motor vehicle Middlecategory motor vehicle,6,74,2,328,89,35,62,25,68,347,2,287,46,36,8,474,26,8,42,2,7,743,2,43 986,58 96,34 Ordinary motor vehicle 68,575 9,98 2,96 28,6 24,555 22,43 224,823 Large specialpurpose vehicle 47,753 47,238 46,698 46,55 45,463 45,4 44,33 Traction vehicle 53,73 53,25 52,48 5,76 5,35 5,473 49,665 Subtotal 2,577,63 2,54,946 2,489,773 2,433,666 2,379,353 2,325,73 2,265,64 Class Licenses Large motor vehicle Middlecategory motor vehicle 5,499,24 75,59,457 5,464,835 74,378,38 5,45,73 73,587,938 5,375,268 72,84, 5,337,727 72,7,665 5,299,48 7,49,459 5,253,88 7,632,5 Ordinary motor vehicle,96,68 3,77,24 4,37,5 5,55,78 6,749,966 7,936,69 9,3,94 Large specialpurpose vehicle 2,47,497 2,428,9 2,435,324 2,443,687 2,454,23 2,465,978 2,473,823 Traction vehicle,3,86,39,434,45,69,52,732,6,59,68,25,74,267 Large twowheeler 2,6,75,765,267,472,937,97,93,938,93,73,69,43,75 Ordinary twowheeler 8,663,75 8,839,4 8,996,934 9,54,873 9,3,786 9,472,692 9,69,692 Small specialpurpose vehicle 629,5 598,36 565,3 532,892 53, ,296 45,23 Motorized bicycle 7,358,87 7,34,896 7,9,548 7,75,472 6,977,729 6,95,848 6,784,7 Subtotal 24,724,35 25,96,4 25,8,633 25,297,646 25,53,773 25,838,88 25,933, 27,3,43 27,638,347 27,67,46 27,73,32 27,883,26 28,64,52 28,98,64 Note: In the above figures, one count is allotted to each vehicle category covered, whenever a license covers multiple vehicle categories. CLASS LICENSES AND THE VEHICLE CATEGORIES THEY COVER Vehicle Category Large motor vehicle Middlecategory motor vehicle Ordinary motor vehicle Large specialpurpose vehicle Class Licenses Large twowheeler Ordinary twowheeler Ordinary twowheeler (5cc25cc) Small specialpurpose vehicle Motorized bicycle Large motor vehicle Middlecategory motor vehicle Ordinary motor vehicle Large specialpurpose vehicle Large twowheeler (over 4cc) Ordinary 26cc4cc twowheeler 5cc25cc Small specialpurpose vehicle Motorized bicycle (5cc & under) Notes:. As per a revision to the Road Traffic Act, the middlecategory motor vehicle license went into effect from June 2, The ordinary motor vehicle and large twowheeler license categories include licenses restricted to automatic transmission (AT) cars/motorcycles; the ordinary twowheeler license category includes licenses restricted, respectively, to AT motorcycles, to smallsized (over 25cc) motorcycles, and to smallsized AT motorcycles. Source for all statistical data on this page: National Police Agency 4

42 Automobiles and Society Automotive Freight Transport Motor Vehicles Are Vital to Goods Distribution Accounting at present for 5% of Japan s total freight transport, road transportation plays an essential role in goods distribution. The role of motor vehicles in freight transport, especially small cargo transport, will become even more significant in the years ahead. TRENDS IN DOMESTIC FREIGHT TRANSPORT VOLUMES, BY MODE x million tons/km 6, 5, 4, 3, 2,, Air Maritime Rail Road, ,66.52,836 47,297 4, , ,59 5, , ,93 5,763 5,684 5,688 5,77 5,86 5, , ,78 2,3 2,47 2,88 2,6,879, ,335 3,45 3,533 3,449 3,332 3,6 3,262 4, , ,432 4, , ,3 4,93 9.5, , 4,2 9.7, , Fiscal year Notes:. Since 987, Road includes transport by minivehicles. 2. Survey and calculation methods for Road data changed in Road figures for fiscal 2 (ending March 3, 2) and 2 do not include March and April 2 data from the Tohoku region and Hokkaido as a consequence of the March, 2 earthquake. Sources: Ministry of Land, Infrastructure, Transport and Tourism, etc. Automobiles and Society Automobile Customs Tariffs Automobile Customs Tariffs After repeated reductions in tariff rates, import tariffs in Japan on finished motor vehicles and major auto components were completely abolished in 978. Meanwhile, some countries still impose high tariffs on imported vehicles. The United States imposes a 25% tariff on imported trucks, and EU import tariffs range from % (on finished passenger cars) to 22% (on largersized trucks). China s auto tariffs remain high despite having been progressively lowered after the country s accession to the World Trade Organization. AUTOMOBILE CUSTOMS TARIFFS, JAPAN/U.S.A./EU/CHINA Passenger Cars Trucks Buses Components, etc. Japan U.S.A. EU China None 2.5% % 25% None 25% Gasoline trucks, over 28cc Trucks, under 5t in GVW... 25% Cab chassis, from 5t Diesel trucks, over 25cc... 22% Gasoline trucks, 5t or greater in GVW up to 2t in GVW Gasoline trucks, 28cc or under Diesel trucks, from 5t up to 2t in GVW... 2%... 4% Diesel trucks, 25cc or under... % Diesel trucks, 2t or greater in GVW... 5% None Vehicles for the Vehicles for the transport of or more 25% transport of or persons, incl. the driver more persons, incl. Gasoline buses, over 28cc the driver... 2% Diesel buses, over 25cc... 6% Gasoline buses, 28cc or under Diesel buses, 25cc or under... % Major components: None As of February 25 Bodies, parts and Bodies, parts and accessories % Major components... 6% accessories % Sources: Customs tariff schedules of countries/region concerned 4

43 Automobiles and Society Taxes Taxes on Automobiles 8 Trillion Yen in Annual AutomobileRelated Tax Revenue Since the initial earmarking of funds for road construction and road maintenance programs in line with Japan s first fiveyear road improvement plan in 954, there has been a steady increase both in the number of automobilerelated taxes assessed on users and in their respective rates. Currently, the automobile tax structure consists of nine different taxes, creating a very heavy tax burden for motor vehicle owners in Japan. Under the government s budget for fiscal 25, the total value of tax revenue from these automobilerelated taxes has been estimated at 8.3 trillion yen, or 8.7% of Japan s projected total tax revenue of 96 trillion yen in fiscal 25. TAX REVENUE (Estimated) BY SOURCE IN FISCAL 25 (as per Japan s fiscal 25 budget) Acquisition tax,96 x million yen Consumption tax 95,35 (2.4%) Income tax 64,42 (7.2%) Fixed asset tax 87,95 (9.%) Tax Revenue (national and local taxes) 956,374 (%) Other 252,429 (26.3%) Corporate tax 4,67 (2.%) Breakdown of AutomobileRelated Tax Revenue (estimated) 83,63 (8.7%) Stamp tax,27 (.%) Liquor tax 3,8 (.4%) Business tax 36,42 (3.8%) LPG tax 2 Diesel handling tax 9,383 Regional gasoline excise tax 2,638 Gasoline tax 24,66 Consumption tax (on fuels) 7,758 Taxes on Taxes on Fuels Automobiles 44,639 38,424 While in use Consumption tax (on automobiles) 3,625 On acquisition During ownership Minivehicle tax,999 Tonnage tax 6,37 Automobile tax 5,397 Notes:. Automobilerelated consumption tax revenue is not included in the Consumption tax segment in the chart on the left, but is included in the breakdown of automobilerelated tax revenue appearing in the chart on the right. 2. Automobilerelated consumption tax revenue values (including the consumption tax revenue from automobile servicing, not shown but included in figures here) have been calculated by JAMA. 3. The consumption tax is a national sales tax, of which.7% of the revenue is redistributed as revenue to local governments. Sources: Ministry of Finance; Ministry of Internal Affairs and Communications AUTOMOBILERELATED TAXES IN JAPAN (as of May, 25) On Acquisition Tax Category Acquisition Tax Consumption Tax Tonnage Tax During Ownership How Assessed Assessed on the acquisition of an automobile, whether new or used, based on the purchase price Assessed on the purchase price of the automobile Assessed according to vehicle weight at each mandatory vehicle inspection National/Local Tax Prefectural tax National and local tax National tax Tax Rate/ Amount (Private use) 3% of purchase price (2% for commercial vehicles and minivehicles) Exempted for vehicles purchased for 5, or less Note: For ecofriendly vehicles, reductions/exemptions apply to the acquisition tax (see pages 485). 8% (of which.7% is a local tax) ) Only ecofriendly vehicles and new passenger cars and small trucks and buses (GVW 2.5t) complying with 25 fuel efficiency standards, with emissions down by 75% from 25 standards: 2,5/.5t/year for privateuse passenger cars (i.e., base rate) 2) Vehicles on the road 8 years or longer since first registration: 6,3/.5t/year for privateuse passenger cars 3) Vehicles on the road 3 years or longer since first registration: 5,4/.5t/year for privateuse passenger cars ( 5,7/.5t/year for privateuse passenger cars, from April 26) 4) Other vehicles for private use: Passenger cars: 4,/.5t/year Trucks (GVW>2.5t): 4,/t/year; Trucks (GVW 2.5t): 3,3/t/year Buses: 4,/t/year; Minivehicles: 3,3/year Motorcycles (25cc and over):,9/year Motorcycles (26 to 25cc): 4,9 upon registration Note: For ecofriendly vehicles, reductions/exemptions apply to the tonnage tax (see pages 485). 42

44 JAPAN S ESTIMATED AUTOMOBILERELATED TAX REVENUE IN FISCAL 25 Taxes on Automobiles Taxes on Fuels Grand Notes:. Consumption tax revenue values (including the consumption tax revenue from automobile servicing, not shown but included in figures here) have been calculated by JAMA. 2. Current tax rates effective as of April, 25. TAX RATES IN EFFECT (Examples), 95425, TO SUPPORT ROAD NETWORK IMPROVEMENTS Duration Five Plan Comparison with base tax rate (multiplier value) Base tax rate First Second Third Fourth Fifth Sixth Seventh On acquisition During ownership While in use Eighth Ninth Tenth Eleventh Twelfth As per the national priority infrastructure development plan As per the national mediumterm road infrastructure plan Acquisition tax Consumption tax (on automobiles) Tonnage tax Automobile tax Minivehicle tax Gasoline tax Regional gasoline excise tax Diesel handling tax LPG tax Consumption tax (on fuels) Fiscal Acquisition Tax Commercial and minivehicles excluded 3% 5% 3%. Tax Revenue (x million yen),96 3,625 6,37 5,397,999 38,424 24,66 2,638 9, ,758 44,639 83,63 Tonnage Tax /.5t/year In the case of a passenger car for private use 2,5 5, 6,3 6,3 5, 4, (2,5*) 4, (2,5*).64 Base Tax Rate (for reference) 3% 3% (Excluding commercial/minivehicles) 8% 2,5/.5t/year 4,/.5t/year (Vehicles for private use) (Vehicles for private use) Based on engine capacity (e.g., for,,5cc passenger cars, 34,5/year; see below),8/year (Passenger cars for private use) Gasoline Tax / 3.. *The base tonnage tax rate ( 2,5/.5t/year) is applied only to ecofriendly vehicles and new passenger cars and small trucks and buses (GVW 2.5t) complying with 25 fuel efficiency standards, with emissions down by 75% from 25 standards. Source: Japan Automobile Manufacturers Association 24.3/ 4.4/ 5./ /kg 8% Regional Gasoline Excise Tax / Current Tax Rate 48.6/ 5.2/ 32./ Diesel Handling Tax / Comparison with Base Tax Rate (multiplier value) LPG Tax /kg While in Use Automobile Tax MiniVehicle Tax Gasoline Tax Regional Gasoline Excise Tax Diesel Handling Tax LPG Tax Consumption Tax Fixed amount assessed on the owner each year as of April Fixed amount assessed on the owner each year as of April Assessed on gasoline Included in the fuel price Assessed on light oil Assessed on LPG Assessed on the purchase price of fuels Prefectural tax Municipal tax National tax Prefectural tax National tax National and local tax Passenger cars (for private use) Up to,cc 29,5/year, to,5cc 34,5/year,5 to 2,cc 39,5/year 2, to 2,5cc 45,/year 2,5 to 3,cc 5,/year 3, to 3,5cc 58,/year 3,5 to 4,cc 66,5/year 4, to 4,5cc 76,5/year 4,5 to 6,cc 88,/year Over 6,cc,/year ) Minivehicles (for private use) Passenger cars,8/year Trucks 5,/year 2) Motorcycles Up to 5cc,/year 5 to 9cc,2/year 9 to 25cc,6/year 26 to 25cc 2,4/year 25cc and over 4,/year Note: For ecofriendly new minivehicles (cars and trucks) purchased in fiscal 25, reductions apply to the minivehicle tax in fiscal 26 (see page 5). 48.6/ 5.2/ 32./ (light oil) 7.5/kg (LPG) 8% of the purchase price of fuels (of which.7% is a local tax) For light oil, imposed on the light oil price excluding the diesel handling tax Source: Japan Automobile Manufacturers Association 43

45 Automobiles and Society Taxes Tax Incentive Measures for EcoFriendly Vehicles Tax Incentives to Promote the Wider Use of EcoFriendly Vehicles To help expedite the shift to lowcarbon road transport in the interest of curbing global warming, the Japanese government has, since April 29, applied autorelated tax incentives to promote the wider use of ecofriendly vehicles. A new package of incentives, introduced for application beginning in April 25, updates vehicle eligibility requirements in line with upgraded fuel efficiency standards. INCENTIVES & ELIGIBILITY REQUIREMENTS FOR NEW VEHICLES ACQUISITION AND TONNAGE TAX REDUCTIONS/EXEMPTIONS Period in effect: April, 25 through March 3, 27 for the acquisition tax; May, 25 through April 3, 27 for the tonnage tax. Vehicle Type Reductions/Exemptions Requirements Certification Sticker(s) Acquisition Tax (3) Tonnage Tax (4) Passenger Cars Electric Vehicles, Fuel Cell Vehicles, PlugIn Hybrid Vehicles, Clean Diesel Vehicles (), Natural Gas Vehicles (2) Exempt Exempt at time of st and 2nd vehicle inspection Gasoline Vehicles (including hybrid vehicles) Compliant +2% with 22 fuel efficiency standards, with emissions down by 75% from 25 standards Compliant +% with 22 fuel efficiency standards, with emissions down by 75% from 25 standards Exempt 8% reduction Exempt at time of st and 2nd vehicle inspection 75% reduction Compliant with 22 fuel efficiency standards, with emissions down by 75% from 25 standards 6% reduction 5% reduction Compliant +% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards Compliant +5% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards 4% reduction 2% reduction 25% reduction Small Trucks and Buses (GVW 2.5t) Electric Vehicles, Fuel Cell Vehicles, PlugIn Hybrid Vehicles, Natural Gas Vehicles (2) Exempt Exempt at time of st and 2nd vehicle inspection Gasoline Vehicles (including hybrid vehicles) Compliant +25% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards Compliant +2% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards Exempt 8% reduction Exempt at time of st and 2nd vehicle inspection 75% reduction Compliant +5% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards 6% reduction 5% reduction Compliant +% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards Compliant +5% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards 4% reduction 2% reduction 25% reduction () Passenger cars complying with 29 emission standards. (2) With NOx emissions down by % from 29 emission standards. (3) Acquisition tax reductions/exemptions are applied once, at the time of new vehicle purchase during the period in which these reductions/exemptions are in effect. (4) Tonnage tax reductions are applied once, at the time of new vehicle purchase during the period in which these reductions/exemptions are in effect. Note: In addition to the tonnage tax reductions/exemptions for passenger cars and small trucks and buses (GVW 2.5t) listed here, new passenger cars and small trucks and buses (GVW 2.5t) complying with 25 fuel efficiency standards and with emissions down by 75% from 25 standards benefit from the application of the base tonnage tax rate (see pages 4647). 44

46 Vehicle Type Reductions/Exemptions Requirements Certification Sticker(s) Acquisition Tax (3) Tonnage Tax (4) MidSized Trucks and Buses (2.5t GVW 3.5t) Electric Vehicles, Fuel Cell Vehicles, PlugIn Hybrid Vehicles, Natural Gas Vehicles (2) Exempt Exempt at time of st and 2nd vehicle inspection Diesel Vehicles (including hybrid vehicles) Compliant +5% with 25 fuel efficiency standards, with NOx and PM emissions down by % from 29 standards Compliant +% with 25 fuel efficiency standards, with NOx and PM emissions down by % from 29 standards Exempt 8% reduction Exempt at time of st and 2nd vehicle inspection 75% reduction Compliant +5% with 25 fuel efficiency standards, and compliant with 29 emission standards 8% reduction 75% reduction Compliant +5% with 25 fuel efficiency standards, with NOx and PM emissions down by % from 29 standards 6% reduction 5% reduction Compliant +% with 25 fuel efficiency standards, and compliant with 29 emission standards 6% reduction 5% reduction Compliant with 25 fuel efficiency standards, with NOx and PM emissions down by % from 29 standards 4% reduction 25% reduction Compliant +5% with 25 fuel efficiency standards, and compliant with 29 emission standards 4% reduction 25% reduction Gasoline Vehicles (including hybrid vehicles) Compliant +5% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards Compliant +% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards Exempt 8% reduction Exempt at time of st and 2nd vehicle inspection 75% reduction Compliant +5% with 25 fuel efficiency standards, with emissions down by 5% from 25 standards 8% reduction 75% reduction Compliant +5% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards 6% reduction 5% reduction Compliant +% with 25 fuel efficiency standards, with emissions down by 5% from 25 standards 6% reduction 5% reduction Compliant with 25 fuel efficiency standards, with emissions down by 75% from 25 standards 4% reduction 25% reduction Compliant +5% with 25 fuel efficiency standards, with emissions down by 5% from 25 standards 4% reduction 25% reduction HeavyDuty Trucks and Buses (GVW 3.5t) Electric Vehicles, Fuel Cell Vehicles, PlugIn Hybrid Vehicles, Natural Gas Vehicles (2) Exempt Exempt at time of st and 2nd vehicle inspection Diesel Vehicles (including hybrid vehicles) Compliant +5% with 25 fuel efficiency standards, with NOx and PM emissions down by % from 29 standards Compliant +% with 25 fuel efficiency standards, with NOx and PM emissions down by % from 29 standards Exempt 8% reduction Exempt at time of st and 2nd vehicle inspection 75% reduction Compliant +5% with 25 fuel efficiency standards, and compliant with 29 emission standards 8% reduction 75% reduction Compliant +5% with 25 fuel efficiency standards, with NOx and PM emissions down by % from 29 standards 6% reduction 5% reduction Compliant +% with 25 fuel efficiency standards, and compliant with 29 emission standards 6% reduction 5% reduction Compliant with 25 fuel efficiency standards, with NOx and PM emissions down by % from 29 standards 4% reduction 25% reduction Compliant +5% with 25 fuel efficiency standards, and compliant with 29 emission standards 4% reduction 25% reduction 45

47 Automobiles and Society Taxes Tax Incentive Measures for EcoFriendly Vehicles ACQUISITION AND TONNAGE TAX REDUCTIONS/EXEMPTIONS FOR HEAVYDUTY VEHICLES EQUIPPED WITH ADVANCED SAFETY FEATURES AND PUBLICUSE ASSISTEDMOBILITY VEHICLES Period in effect: April, 25 through March 3, 27 for the acquisition tax; May, 25 through April 3, 28 for the tonnage tax. Vehicle Type Reductions/Exemptions Acquisition Tax Tonnage Tax Trucks (3.5t GVW 22t) and Buses (GVW 2t, for seated passengers only) equipped with a collisionmitigation braking system and/or an electronic stability control system Equipped with either of the two systems Equipped with both systems 3.5 million deduction from purchase price (), (2) 5.25 million deduction from purchase price (), (2) 5% reduction (), (3) 75% reduction (), (3) Assisted Mobility Vehicles Lowfloor ( nonstep ) buses (for use in public transport) Buses equipped with an electric lift (for use in public transport) million deduction from purchase price (2) For large buses (occupancy 3 persons), 6.5 million deduction from purchase price (2) For small buses (occupancy<3 persons), 2 million deduction from purchase price (2) Exempt (3) Exempt (3) Universal designbased taxis (for use in public transport). million deduction from purchase price (2) Exempt (3) () For large trucks (2t<GVW 22t) equipped with only one of the systems, period in effect: April, 25 through October 3, 26. Thereafter, only those equipped with both systems will be eligible for incentives (specifically, an acquisition tax incentive of a 3.5 million deduction from vehicle purchase price and a tonnage tax incentive of a 5% reduction from the applicable tonnage tax rate). Eligibility for small buses (GVW 5t, for seated passengers only) requires that they be equipped with a collisionmitigation braking system. (2) Deductions are applied once, at the time of first registration. (3) Tonnage tax reductions/exemptions are applied once, at the time of new vehicle purchase during the period in which these reductions/exemptions are in effect. Notes:. The acquisition tax is assessed on the amount remaining after deduction. 2. The above tonnage tax reductions/exemptions do not apply to vehicles targeted by this scheme that are eligible for the tonnage tax reductions/exemptions prescribed for ecofriendly vehicles (see pages 48 and 49), to which the latter measures only are applied. Regarding the acquisition tax, owners of vehicles covered under this scheme can opt either for the deductions indicated here or for the acquisition tax reductions/exemptions prescribed for ecofriendly vehicles (see pages 48 and 49). FISCAL 2425 AUTOMOBILE TAX REDUCTIONS FOR PASSENGER CARS AND SMALL TRUCKS AND BUSES (GVW 2.5t) * Requirements Electric Vehicles, Fuel Cell Vehicles, PlugIn Hybrid Vehicles, Clean Diesel Vehicles (), Natural Gas Vehicles (2) Compliant +2% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards (also, compliant with 22 fuel efficiency standards) Compliant +% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards Reduction 75% reduction approximately (3) 5% reduction approximately (3) *Also applies to trucks and buses (2.5t<GVW>3.5t, gasoline vehicles only) certified as fuelefficient and lowemission vehicles. () Only passenger cars complying with 29 emission standards. (2) With NOx emissions down by % from 29 emission standards. (3) For eligible vehicles newly registered in 24 and 25, the onetimeonly automobile tax reduction is applied in the fiscal year subsequent to the year of registration. Note: This scheme also mandates a yearly 5% (% for trucks and buses) surcharge on the automobile tax for gasoline and LPGpowered vehicles on the road 3 years or longer, and for diesel vehicles on the road years or longer, since first registration. FISCAL 25 MINIVEHICLE TAX REDUCTIONS (Minicars and MiniTrucks) * Minicars MiniTrucks Requirements Electric Vehicles, Fuel Cell Vehicles, Natural Gas Vehicles () Compliant +2% with 22 fuel efficiency standards, with emissions down by 75% from 25 standards Compliant with 22 fuel efficiency standards, with emissions down by 75% from 25 standards Electric Vehicles, Fuel Cell Vehicles, Natural Gas Vehicles () Compliant +35% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards Compliant +5% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards Reduction 75% reduction approximately (2) 5% reduction approximately (2) 25% reduction approximately (2) 75% reduction approximately (2) 5% reduction approximately (2) 25% reduction approximately (2) *Applies only to newly registered three or fourwheeled minivehicles. () With NOx emissions down by % from 29 emission standards. (2) Reductions to be applied in fiscal 26 for new vehicles purchased in fiscal 25. Note: This scheme also mandates a yearly 2% surcharge on the minivehicle tax for minivehicles (excluding electric vehicles) on the road 3 years or longer since first registration. 46

48 INCENTIVES & ELIGIBILITY REQUIREMENTS FOR USED VEHICLES ACQUISITION INCENTIVES FOR PASSENGER CARS AND SMALL TRUCKS AND BUSES (GVW 2.5t) * Period in effect: April, 25 through March 3, 27. Requirements () Certification Stickers Incentive Passenger Cars Compliant +2% with 22 fuel efficiency standards, with emissions down by 75% from 25 standards (2) 45, deduction from purchase price Compliant +% with 22 fuel efficiency standards, with emissions down by 75% from 25 standards (2) 35, deduction from purchase price Compliant with 22 fuel efficiency standards, with emissions down by 75% from 25 standards (2) 25, deduction from purchase price Compliant +% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards (2) 5, deduction from purchase price Compliant +5% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards (2) 5, deduction from purchase price Small Trucks and Buses (GVW 2.5t) Compliant +25% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards (2) 45, deduction from purchase price Compliant +2% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards (2) 35, deduction from purchase price Compliant +5% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards (2) 25, deduction from purchase price Compliant +% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards (2) 5, deduction from purchase price Compliant +5% with 25 fuel efficiency standards, with emissions down by 75% from 25 standards (2) 5, deduction from purchase price *Also applies to trucks and buses (gasoline vehicles only) and heavyduty trucks and buses (hybrid vehicles only) certified as fuelefficient and lowemission vehicles. () Applies additionally to electric vehicles, fuel cell vehicles, plugin hybrid vehicles, clean diesel passenger cars (compliant with 29 emission standards) and natural gas vehicles (with NOx emissions down by % from 29 emission standards). (2) Fuel consumption and exhaust emission requirements are JC8 test cyclebased, with Compliant +2% with 22 fuel efficiency standards, Compliant +% with 22 fuel efficiency standards, Compliant with 22 fuel efficiency standards, Compliant +25% with 25 fuel efficiency standards, Compliant +2% with 25 fuel efficiency standards, Compliant +5% with 25 fuel efficiency standards, Compliant +% with 25 fuel efficiency standards, and Compliant +5% with 25 fuel efficiency standards being equivalent to Compliant +8% with 2 fuel efficiency standards, Compliant +65% with 2 fuel efficiency standards, Compliant +5% with 2 fuel efficiency standards, Compliant +57% with 2 fuel efficiency standards, Compliant +5% with 2 fuel efficiency standards, Compliant +44% with 2 fuel efficiency standards, Compliant +38% with 2 fuel efficiency standards, and Compliant +32% with 2 fuel efficiency standards, respectively, when measured in the 5mode test cycle. Note: The acquisition tax is assessed on the amount remaining after deduction. 47

49 Automobiles and Society Taxes The Burden on Motor Vehicle Users AutomobileRelated Taxes Are Onerous Consider the case of a passenger car costing.8 million yen when purchased new and providing 3 years of service to the original owner for private use. During that period, six different categories of taxes (including consumption tax at the time of vehicle purchase and on fuel) will be assessed on the owner/user, amounting to a grand total of roughly.7 million yen. In addition to these various taxes, the user will also be required to pay onerous highway tolls, automobile insurance premiums (mandatory and optional), a recycling fee, periodic inspection fees, and maintenance costs. INTERNATIONAL COMPARISON OF AUTOMOBILERELATED TAXES Taxes on automobiles Consumption tax 4.4 Acquisition tax 4.9 Tonnage tax 6. Automobile tax 5.3 Japan Value added tax 36. Automobile tax 42.4 Value added tax 34.2 Automobile tax 27.3 Value added tax 36. Registration tax 5.2 Retail tax 6. Automobile tax 2. UK Germany France U.S.A. x, yen Assumptions: ) Engine capacity: 8cc. 2) t<gvw.5t. 3) Purchase price:.8 million. 4) Fuel consumption (JC8 test cyclebased): 5.3km/ (CO2 emissions: 52g/km). 5) France = Paris; U.S.A. = New York City. 6) France: Vehicle in no. 8 horsepower class. 7) Service life: 3 years. 8) Currency exchange rates: EUR = JPY 4, GBP = JPY 8, USD = JPY (averaged April 24March 25). Notes:. As shown here, tax amounts other than Japan s may not be the most current. 2. Does not include applicable incentives/surcharges, if any. 3. Does not include registration fees. 4. Automobile tax on private vehicles (i.e., for personal use only) was abolished in France as of 2. Source: Japan Automobile Manufacturers Association TAXES ASSESSED ON PASSENGER CAR OWNERSHIP/USE (PRIVATE) (assuming a 3year service life),4, Yen,2, 2nd to 3th year,, 8, 6, 4, 2, Consumption tax (on automobile) st year (on acquisition) 44, (44,) 48,6 (48,6) Acquisition tax 59,9 (36,9) Tonnage tax 53,5 (39,5) Automobile tax 63,8 (48,6) Gasoline tax 67,6 (5,2) Regional gasoline excise tax 35, 2 (,4) Consumption tax (on fuel) 388,7 (29,9) Highway tolls 78,32 (39,2), (,) Mandatory insurance Recycling fee Baseline = New vehicle purchase price Assumptions: ) A passenger car with 8cc engine capacity and purchase price of.8 million (retail price, excluding consumption tax). 2) t<gvw.5t. 3) Annual fuel consumption:, liters. 4) Tonnage tax imposed yearly, but collected only at time of mandatory vehicle inspection. 5) Tax amounts reflect rates in effect from April, 25. 6) Consumption tax = 8% of retail price. 7) The recycling fee indicated is the average rate for an 8cc passenger car. Notes:. Estimated highway tolls, mandatory insurance premium payments and recycling fee are included here because they can be considered similar to taxes. (Mandatory insurance premium values indicated effective as of April, 25.) 2. Value of highway tolls was estimated by JAMA based on highway toll revenue in 23. Source: Japan Automobile Manufacturers Association 2,278,62 (43,22),8, 48

50 Global Operations Overseas Production Global Manufacturing Operations Expand Their Range Japanese automobile manufacturers have continued to develop local production operations, whether as whollyowned subsidiaries or as joint ventures, in the United States, Europe, Southeast Asia, China and, recently, Russia and other countries with emerging markets. These operations contribute to the strengthening of local economies GEOGRAPHICAL DISTRIBUTION OF JAPANESE AUTOMAKERS OVERSEAS PRODUCTION BASES Belgium 8 Russia UK 3 France Poland Czech Republic Hungary 27 Kazakhstan 9 Spain 7 Portugal 5 Morocco 5 Italy 8 Tunisia Turkey 2 Egypt 22 Bangladesh 3 Pakistan 24 China 3 Myanmar 33 Taiwan 6 Nigeria 2 Saudi Arabia 25 India 28 Laos 34 Thailand 29 Malaysia 35 Vietnam 23 Cambodia 32 Philippines 3 Kenya 26 Indonesia 9 Zimbabwe 4 Mauritius 2 Australia 7 South Africa JAPANESE AUTOMAKERS OVERSEAS PRODUCTION BASES: Number of Plants by Country & Country/ Territory Europe Belgium Czech Republic France Hungary Italy Poland Portugal Russia Spain Turkey UK Europe Country No. (see map) Motor Vehicles (incl. parts) Motorcycles (incl. parts) 2 Motor Vehicles & Motorcycles (incl. parts) Parts Only 2 6 Country/ Territory Africa Egypt Kenya Mauritius Morocco Nigeria South Africa Tunisia Zimbabwe Africa Middle East Saudi Arabia Middle East Oceania Australia Oceania Country No. (see map) Motor Vehicles (incl. parts) Motorcycles (incl. parts) 2 2 Motor Vehicles & Motorcycles (incl. parts) Parts Only 49

51 through employment creation, local parts purchasing and, in many cases, export revenue for the host countries. Locallyproduced automobile parts such as engines and transmissions, as well as finished vehicles of some models, are exported to Japan and other destinations. 36 Canada 37 U.S.A. 42 Mexico 44 Venezuela 4 Colombia 4 Ecuador 43 Peru 39 Brazil 38 Argentina Items Produced Country/ Territory Asia Bangladesh Cambodia China India Indonesia Kazakhstan Laos Malaysia Myanmar Pakistan Philippines Taiwan Thailand Vietnam Asia Country No. (see map) Motor Vehicles (incl. parts) Motorcycles (incl. parts) Motor Vehicles & Motorcycles (incl. parts) 2 4 Parts Only Country/ Territory Country No. (see map) North America Canada U.S.A. North America Latin America Argentina Brazil Colombia Ecuador Mexico Peru Venezuela Latin America World Motor Vehicles (incl. parts) Motorcycles (incl. parts) Motor Vehicles & Motorcycles (incl. parts) Parts Only Source: Japan Automobile Manufacturers Association

52 Global Operations Overseas Production Volumes Overseas Production Benefits Local Economies The global operations of Japanese automobile manufacturers continue to grow, focusing increasingly on onsite manufacturing to meet local needs. Whether as independent operations, joint ventures or technical tieups, local manufacturing activities are conducted in numerous countries around the world (see pages 5455). Overseas production brings significant benefits to local economies and host countries, including employment, industrial development, and technology transfer. OVERSEAS PRODUCTION BY JAPANESE AUTOMOBILE MANUFACTURERS Asia Middle East Europe EU North America U.S.A. Latin America Africa Oceania ,589 44,658 43,75 296, ,569 9,252 99,5 5,574 89, ,92 75,63 73,93 426,87 425,644 87,5 9, 33,9,23, ,758 2,943,794 68, ,76 4,925 34, 27,3,433, ,489 32,29 3, , ,766 25,53 45, 52,334,734, ,42 25,5 23,25,4, ,242 44,8 84,5 66,54 2,339, ,39 226,63 223,64,57,4,298,878 6,654 86, 69,69 3,264,94 99,35,75 285, ,278,684,964,378,97 69, 72, 34,5 3,48, ,2,43 358,6 35,296,853,97,547,36 95,6 67,5 9,276 3,84,65 993,35, , ,744 2,3,478,69,239 2,82 79, 6,754 4,339, ,553,585 52, ,728 2,346,69,982,29 97,325 68, 28,23 4,896,74 995,882,85 64, ,852 2,595,436 2,25,657,66 226, 2,96 5,559,48 996,95,62 738,378 65,99 2,64,45 2,275,525 4,3 95,674 8,97 5,784, ,3,286 84,689 74,699 2,664,588 2,29,685 9,596 82,28 36,7 5,99, ,25,22 5,688 92,985 84,847 2,674,299 2,27,56 26,3 44,8 5,685 5,37,7 999,547,67 3, ,33 835,582 2,797,75 2,3,63 246,7 3,26 25,575 5,78,43 2,673,74 4, ,7 837,679 2,99,924 2,48,69 387,732 46,435 3,933 6,288,92 2,872,52 5,66,32,4 939,34 3,6,62 2,45,496 47,887 62,825 37,84 6,679, ,38,62 6,,53,59,5,748 3,375,453 2,72, ,862 55,973 35,498 7,652, ,7,348 5,82,338,476,245,469 3,487,2 2,82, ,467 62,969 48,47 8,67, ,638,978,8,454,93,296,56 3,84,744 3,43,63 534,863 9,537 25,726 9,797, ,964,29,5,545,355,369,556 4,8,73 3,383, ,74 225,725 34,58,66, ,29,856,4,72,836,59,42 4,,639 3,28,73 745, ,5 2,635,972, ,523,75 3,342,976,47,789,875 4,49,68 3,324, ,99 252,332 59,7,859, ,877,74,876,9,693,5 3,576,246 2,893,466 92, ,646 43,74,65, ,45,48,228,294,36,45 2,687,527 2,8,6 79,794 68,65 96,836,7,52 2 7,27,42,356,26,25,226 3,39,95 2,653,23 982,342 26,476 9,473 3,8, ,547,259,4,628,32,277 3,68,979 2,422,52,29,5 233,79 93,675 3,383, ,5,993,484,,383,583 4,253,869 3,324,73,234, ,7,38 5,823, ,56,388,537,25,379,733 4,54,685 3,627,226,284,87 232,9 6,278 6,756, ,2, ,654,27,382,6 4,785,769 3,83,35,59,42 24,84 9,25 7,476,29 Notes:. Data in principle is for Japanesebrand vehicles only. 2. Until 997, data was based on statistics supplied by the national automobile trade associations of respective countries. 3. Mexico is included in Latin America and Turkey in Europe. 4. Data excludes vehicles produced with technical assistance only provided by Japanese automakers. 5.The figures reflect the use of a new method, adopted as of January 27, for computing overseas unit production. Source: Japan Automobile Manufacturers Association 5

53 Global Operations Global Industry Ties Japanese Automakers Forge Extensive International Alliances With economic globalization, Japanese automobile manufacturers have rapidly adapted to the needs of individual markets, not only by shifting production to those markets but also by forging extensive alliances with overseas manufacturers. Various forms of partnership currently exist between Japanese, U.S. and European automakersincluding capital and technical tieups, joint R&D and production operations, and cooperative sales tiesand such arrangements are expanding yearly. With the rapid spread of motorization in China and Southeast Asia, Japanese automakers are actively building relationships with local manufacturers there on the basis of capital tieups and the supply of production as well as environment and safetyrelated technologies. At March 3, 25 Japan Yamaha Technical cooperation Daihatsu 5.89% equity stake 3.58% equity stake and business tieup 5.9% equity stake Supply of finished vehicles Supply of finished vehicles Joint venture in bus business Hino Supply of CVs 5.% equity stake Supply of finished vehicles Technical cooperation Toyota 6.48% equity stake; Supply of finished vehicles Collaborative development of a compact FR sports car Mutual capital participation Fuji Heavy Industries UD Trucks Suzuki Supply of finished vehicles Mitsubishi Supply of CVs Supply of CVs Supply of finished vehicles Mutual supply of finished vehicles Mutual supply of finished vehicles 5% equity stake Isuzu Supply of CVs Supply of CVs Nissan 5% equity stake NMKV Mutual supply of CVs Mutual supply of finished vehicles Mitsubishi Fuso Mazda Supply of hybrid technologies under licence Note: In principle, the tieups shown above cover only technical cooperation related to motor vehicle production and exclude sales tieups. Source: Japan Automobile Manufacturers Association 52

54 Global Operations Global Industry Ties Japan U.S.A. Isuzu Toyota Mazda Supply of diesel engines EVdevelopment Business tieup 2.% equity stake GM Japan % equity stake General Motors Tesla Motors, Inc. Ford FC CoDevelopment Honda Japan Europe Daimler AG (Germany) 89.29% equity stake Mitsubishi Fuso.55% equity stake 3.% equity stake Nissan 5% equity stake 43.4% equity stake.55% equity stake 3.% equity stake Renault (France) 67.3% equity stake Alliance Rostec Auto BV Toyota 5% equity stake Toyota Peugeot Citroën Automobile Czech (TPCA) (Czech Republic) Supply of diesel engines in Europe Environmental technologies collaboration Supply of finished vehicles in Europe 5% equity stake BMW (Germany) PSA Peugeot Citroën (France) Supply of finished vehicles in Europe Mitsubishi Fuji Heavy Industries UD Trucks Suzuki Cooperative sales ties on Japanese market % equity stake Supply of diesel engines Porsche (Germany) Volvo (Sweden) Fiat (Italy) 53

55 At March 3, 25 Japan China GAC Toyota Motor Co., Ltd. FAW Cars Co., Ltd. Production outsourcing of Mazda 6 and Mazda 8 Tianjin FAW Xiali 3.5% equity stake; Automobile Production of Camry, Co., Ltd. Camry Hybrid, Yaris, E Z and Highlander Production of 3% equity stake Vitz, Belta and Platz 47.73% equity stake 2% equity stake FAW Group Corporation 5% equity stake Mazda 25% equity stake Toyota 4% equity stake; Production of Vios, Corolla, Crown, Reiz and Corolla EX 5% equity stake; Production of Coaster, Land Cruiser, Prado, Prius and RAV4 Tianjin FAW Toyota Motor Co., Ltd. Sichuan FAW Toyota Motor Co., Ltd. 5% equity stake Changang Mazda Automobile Co., Ltd. Ford 25% equity stake 5% equity stake Changan Ford Mazda Engine Co., Ltd. 5% equity stake Chongqing Changan Automobile Co., Ltd. Suzuki 5% equity stake; Production of Alto, Cultus, Swift, SX4, SX4 SCROSS and Alivio Chongqing Changan Suzuki Automobile Co., Ltd. 5% equity stake Changan Automobile Liability Co., Ltd. % equity stake 46% equity stake; Production of WagonR Wide, Liana, Landy and Splash Jiangxi Changhe Suzuki Automobile Co., Ltd. 4% equity stake Jiangxi Changhe Automobile Co., Ltd. Isuzu 2% equity stake; Production of Elf and Forward Qingling Motors Co., Ltd. Qingling Motors Group Co., Ltd. 5% equity stake JiangxiIsuzu Motors Co., Ltd. 5% equity stake 5% equity stake Jiangling Motors Group Co., Ltd. GAC Mitsubishi Motors Co., Ltd. 33% equity stake; Production and sales of ASX, Pajero and Pajero Sport Mitsubishi 25% equity stake; Production and sales of Lancer, Zinger and Galant Southeast (Fujian) Motor Co., Ltd. Dongfeng Motor Group Co., Ltd. 5% equity stake 5% equity stake 5% equity stake % equity stake Dongvo Truck Co., Ltd. Dongfeng Motor Co., Ltd. Dongfeng Honda Automobile Co., Ltd. Honda Automobile (China) Co., Ltd. 5% equity stake 5% equity stake 5% equity stake; Production of CRV and Civic 65% equity stake; Production of Accord to CIS, Middle East and Africa UD Trucks Nissan Honda 5% equity stake; Production of NV2 and Paladin 5% equity stake; Production of Accord, Odyssey, City and Fit 25% equity stake Guangzhou 5% equity stake Automobile Group 3% equity stake Co., Ltd. 5% equity stake Zhengzhou Nissan Automobile Co., Ltd. Guangqi Honda Automobile Co., Ltd. Shanghai Electric Group Corp. 2% equity stake Shanghai Hino Engine Co., Ltd. 5% equity stake Hino 5% equity stake Guangqi Hino Motors Co., Ltd. 54

56 Motor Vehicles Worldwide Global Production (Including Motorcycles) Motor Vehicle Production Increases Worldwide Except in Latin America In 24 worldwide motor vehicle production (excluding motorcycles) grew 3.6% from the previous year to a total of million units. By region, production increased in Africa (up.3% to 78, units), North America (up 4.5% to 4.5 million units), AsiaOceania (up 3.4% to million units), and Europe (up 2.3% to 2.38 million units), but decreased in Latin America (down 5.9% to 7.23 million units). MOTOR VEHICLE PRODUCTION EXCLUDING MOTORCYCLES (MAJOR PRODUCING COUNTRIES) x, units UK Germany Russia Canada U.S.A , , , ,2 France Italy China , , , ,4 Spain India South Korea Japan , Mexico South Africa Thailand Australia Brazil GLOBAL MOTORCYCLE PRODUCTION (BY COUNTRY/TERRITORY) Country/ 2 Territory Mopeds Motorcycles Austria Czech Republic France Germany Italy Spain UK Brazil China India Indonesia Japan Malaysia Pakistan Philippines Taiwan Thailand 39,6 24,654, ,87 48,7,55 74,359,84 44, 95,399 23,886 2,36,89 27,5,224 5,427,532 8,6, ,87 498,76 865,82 762,947,27,428 2,43,39 Note: means data is not available at the end of March Mopeds Motorcycles Mopeds Motorcycles 76,575 2,297 2,39 26,328,354 56,963,69 33, 44,9 2,59,69,87,69,87,673,477,673,477 2,36,97 23,629,79 2,467,563 22,89,723 5,744,56 6,879,89 7,79,72 7,78, , , ,39 563,39 543,88 824, , ,98 729,48,76,37 2,66,6 2,28,625 Sources: Motorcycle manufacturers associations of individual countries, etc. 55

57 Austria Belgium Finland France Germany Italy Netherlands Portugal Spain Sweden UK Czech Republic Hungary Poland Romania Slovakia Slovenia Double Countings Germany/Belgium Double Countings Germany/Italy Double Countings Portugal/Japan European Union (EU27) Turkey Serbia Russia Belarus Ukraine Uzbekistan Double Countings Ukraine/World Other CIS Europe Canada U.S.A. North America Mexico Argentina Brazil Venezuela Double Countings Venezuela/World Other Latin America North and Latin America Australia China India Indonesia Iran Japan Malaysia Pakistan Philippines South Korea Taiwan Thailand Vietnam Double Countings China/World AsiaOceania Egypt Morocco South Africa Double Countings Egypt/World Double Countings South Africa/World Other Africa Grand s 23 Country/Region/ Territory 23,62 54,66 8,6,682,84 5,388, ,87 24,895 5,735,539,68 62,84,464,96,7,774 25,44 539,67 326, ,555 26,836 76,42 5,4 4,637,95 577,296,227,97,87 69,687 44,98 2,84,754 7,4,227,4,298 4,9,3 5,49,3,8,7 497,376 2,589,236 67,226 55,8 7,686 4,978,73,28,42 89,949 5,523,658 3,296,24 745,44 856,927 8,554,53 59,62 37,424 46,39 4,67,89 278,43 945, 38,9 27,6 35,6,378 36,88 3, ,873,66 22,8 38,377 63,8,24 Passenger Cars 9,487 34, ,95 26,8 274,95 3,744 47, ,499 2,39 7,22 2,4 5,85,29 4,3 7,7,637, , ,6 3,6 6,594 9,2 39,42 2,453,482,423,66 6,226,752 7,649,88,9,87 267,9 83,272 36,857 2,64 24,322 2,3,737 9,96,555 36,553 3,748,5 878,473 37,75 43,62,388,574 59,999 22,75 8,97 394,677 6,995,484,42,57 8,535,9 9,6 5, ,55 6,4 84,4 5,769 25,9 2,55,47 Trucks & Buses 43,89 538,848 8,688,967,765 5,649,26 67,768 55,639 63,56,979,79 62,84,576,945,78,995 27,84 654, , ,555 3,949 76,42 5,4 7,7 6,275,525,72,978,32 2,233,3 3,6 76,28 64,8 2,54,74 9,863,79 2,463,364,335,765 2,799,29 3,,84 764,495 3,42,58 4,83 77,44 95,8 7,29,468 2,89, ,52 9,27,88 4,74,73,52,895,,89 9,943,77 569,62 59,599 55,36 4,56, ,38 2,429,42 4,47 27,6 43,696,469 56,48 8, ,424 7,8 6,22 5, ,396 84,236,7 24 Passenger Cars Trucks & Buses 22 Passenger Cars Trucks & Buses GLOBAL MOTOR VEHICLE PRODUCTION (BY COUNTRY/REGION/TERRITORY) Sources: International Organization of Motor Vehicle Manufacturers (OICA); for Japan, Japan Automobile Manufacturers Association Notes:. Includes preliminary figures. 2. Some EU countries do not release truck and bus production data. 46, ,54 7,6,458, 5,439,94 388,465 9,698,754,668 6,8,59,762,28,473 22, 475, 4, , 89,395 72,4 5,3 4,662, ,64,,99,599 2,553 45, ,64 37,469 2,252,2 7,558,98 965,9 4,368,835 5,334,26,77,987 56,539 2,722,979 45,986 29,59 74,9 5,92,8,426,827 7,88 8,84,69 3,55, ,753 63,597 8,89, ,892 2,234 48,56 4,22,64 29,37,7,76 38,9 48,7 37,243,937 25,65 46, ,257 8, 2,5 49,589 65,638,45 9,862 38, 3 282, 278,38 269,74 29,83 44,38 48,67 88, 4,458 2,4 5, ,339 6,84,578,65 49, ,667 2,373 4,69 3, ,73 2,364,523,44,643 6,697,597 8,2,24,282, , ,4 25,767 4,6 24,322 2,592,22,74,46 45,8 4,32, ,73 28,65 3,5,44,858 57,55 2,9 3,7 398,825 47,683,385,98 2,2 8,572,663 3,4 2,6 28,656 4, 89,45 5, ,93 2,868,576 66,428 53,54 7,73,74, 5,78, ,26 29,83 54,6 2,63,338 6,8,597,872,32,93 222,4 59,59 4, , 93,734 72,4 5,3 6,84 6,24,989,25,534,95 2,84,266 22,926 5, ,64 4,9 2,545,93 9,922,62 2,379,834,66,432 3,446,266 3,54,849 79,7 3,72,38 7,753 44,9 99,222 7,685,2 2,3,287 25,926 22,6,825 3,898,425,26, ,647 9,63,8 6,47 42,45 52,26 4,52, ,72 2,457,57 4,92 48,7 45,86,6 39,5 67, ,93 2,2 9,455 5, ,59 87,57,27 36, 48,637 45,,495, 5,64,26 4,37 7,744,898,342 54,73,528,48,246,56 224,63 473, 39, , 8,533 73,2 5,48 5,229, ,439 9,98,683,677 9,35 25,94 245,66 37,57 2,,785 7,975,82 93,533 4,253,98 5,66,63,95,79 363,7 2,34,789,39 7,8 69, 4,667,68 9,833,799 45,67 9,99,795 3,58,25,,26 925,975 8,277,7 547,5 23,9 55,5 4,24,6 332, ,678 38,9 63,8 39,238,995 7,83 29, ,49 5,64 22,3 477,37 67,525,346 8,34 35, , 33, ,547 29,87 43,765 54,636 7,73 4,74 2,4 2, ,749,746,95 437, ,969 3,64 2,8 3, ,67 2,47,277,48,357 7,47,6 8,887,958,449, ,68 83,329 8,72 4,82 24,322 2,562,766,45,724 34,74 3,83,95 68, ,263 64,87,497,488 49,45 22,23 4,72 4,86 46,594,37,329 2,6 8,33,5 9,9 2, ,592 2,73 9,83 5,769 23,978 22,222,84 54,34 56,832 45,35,87, 5,97, ,864 29,87 6,59 2,42,978 54,73,598,879,25,22 227,3 593,94 39, , 8,59 73,2 5,48 5,749 6,976,883,7,445,675,886,646 22,99 28,75 245,66 4,49 2,224,456 2,382,459 2,393,89,66,699 4,54,589 3,365,36 67,329 3,46,8 9,759,9 93,322 7,229,934 2,284,523 8,3 23,722,89 3,84,6,298,523,9,846 9,774, ,6 46,3 6,22 4,524, ,223,88,7 4,5 63,8 47,372, 27,2 23, ,83 8,37 4,4 5,769 78,348 89,747,43 56

58 Motor Vehicles Worldwide New Registrations Motor Vehicle Sales Rise in Argentina, China, Portugal, the UK, Indonesia, Turkey, the U.S.A., and Elsewhere In 23 overall new motor vehicle registrations (excluding motorcycles) increased 4.% over the previous year to a global total of million units. Vehicle sales rose in Argentina (up 6.% to 964, units), China (up 3.9% to 2.98 million units), Portugal (up.7% to 27, units), the United Kingdom (up.2% to 2.6 million units), Indonesia (up.2% to.23 million units), Turkey (up 9.2% to 893, units), the United States (up 7.4% to 5.88 million units), and Mexico (up 7.4% to. million units). On the other hand, new registrations dropped from the previous year in the Netherlands (down 5.9% to 48, units), India (down 9.9% to 3.24 million units), and Italy (down 8.% to.42 million units). NEW REGISTRATIONS OF MOTOR VEHICLES EXCLUDING MOTORCYCLES (SELECTED COUNTRIES) x, units Sweden Netherlands UK Germany Italy Russia France 269 China 2 233, , ,98 Spain 2,2 93 South Korea Japan South Africa India Australia Canada U.S.A.,34 2,479 3,588,6 Mexico Brazil

59 Austria Belgium Czech Republic Denmark Finland France Germany Greece Hungary Italy Netherlands Poland Portugal Romania Slovakia Spain Sweden UK Russia Switzerland Turkey Canada U.S.A. Mexico Brazil Argentina Venezuela China India Japan South Korea Malaysia Indonesia Thailand Australia Egypt South Africa Other Grand s Country 2 Passenger Cars Commercial Vehicles 22 Passenger Cars Commercial Vehicles 23 Passenger Cars Commercial Vehicles NEW REGISTRATIONS OF PASSENGER CARS AND COMMERCIAL VEHICLES (BY COUNTRY) Sources: Automobile manufacturers associations of individual countries; for Japan, Japan Automobile Dealers Association; Japan Mini Vehicles Association; Japan Automobile Manufacturers Association 356,45 572,2 73,595 7,36 26,23 2,24,229 3,73,634 97,68 45,94,749,74 555,82 277,427 53,44 8,79 68,23 88,5 34,984,94,253 2,653,688 38, ,59 68,956 6,89,43 592, 2,647, ,37 65,339 4,472,46 2,5,33 3,524,788,36,32 535,3 62,29 39, 559,34 2,3 396,292 5,63,72 57,258,425 4,5 7,3 2,35 28,482 8,32 482, ,82 7,2 5,899 93,29 7,945 59,799 37,958 3,799 9,7 23,353 54,82 38,23 247,924 36,298 27,92 938,265 6,95,2 33, ,3 22,84 55,35 4,32, , ,43 263, 65, 29,873 4, 449,23 6,6 75,949,553,275 2,668,56 396, ,5 94,945 98,58 44,425 2,687,52 3,58,454 4,682 6,993,942, , ,226 9,362 95,58 77,94 93,44 359,66 2,249,483 2,9,62 355, ,439,62,22 3,4,63 95,886 3,633, ,85 2,689 8,55,4 3,287,737 4,2,29,579,32 6,23 894,64 79,,8,437 27,9 572,24 7,66,977 77,926,94 336, 486,737 74,9 7,763,25,898,76 3,82,54 58,482 53,59,43, 52, ,79 95,39 66,436 69, , ,899 2,44,69 2,755, ,39 556,28 748,53 7,24,9 649,333 2,85,54 596,397 6,776 5,495,24 2,78,99 4,572,332,325, ,89 78,785 66,24 576, ,7 44,2 5,474,889 6,475,59 38,89 63,782 9,786 28,384 5, ,97 3,498 4,36 5,9 42,754 69,349 57,8 8,26 4,287 8,92 9,42 46, ,54 386,67 38,34 26,34 967,648 7,544,36 375,24 95,53 233,66 69,777 3,8,95 83, ,388 24,35 75, , , ,77 63,6 83,99,6,92 2,723, ,829 55,59 93,795 99,47 26,55 2,33,73 3,394,2 62,58 68,68,545,764 57, ,799 3,435 8,723 78,89 79,99 326,44 2,333,763 3,4,55 366,273 87,62,76,78 4,785,936,24,574 3,82,7 83,58 3,553 9,36,435 3,595,58 5,369,72,565, ,753,6,23,423,58,2,32 286,3 623,92 7,85,79 82,99,56 39,35 486,65 64,736 82,86 3,455,79,456 2,952,43 58,694 56,39,34,648 46,77 289,93 5,92 57,7 66, 722, ,599 2,264,737 2,649,8 37, , ,65 7,585,34 698,27 2,763,78 684,379 43,887 7,927,73 2,553,979 4,562,282,35,57 576,657 88,32 663, ,454 22, 45,56 5,285,592 62,756,52 38,857 6,74 2,23 28,753 3,93 46,97 35,287 3,876 6,836 6,66 64,399 63,284 2,768 3,36 9,26,26 43,468 33, ,469 35, ,469,24,98 8,298,2 42,325,3, ,538 54,99 4,56, ,323 83,23 25,56 79,36 349, , ,773 63, 2,84,636,25 22,78,35 357, ,39 85,939 2,839 7,368 2,27,373 3,257,78 62,57 72,975,42,84 48,6 353,97 26,689 7,6 75,26 822,95 33,67 2,595,73 2,998,65 343,78 893,24,78,523 5,883,443,,542 3,767,37 963,97 98,878 2,984,79 3,24,32 5,375,53,556,86 655,793,229,8,33,672,36, , 65,745 6,92,843 85,474,87 58

60 Motor Vehicles Worldwide Motor Vehicles & Motorcycles in Use/Motor Vehicle & Motorcycle Density More than.5 Billion Motor Vehicles in Use Worldwide There were over.5 billion motor vehicles (excluding motorcycles) in use worldwide in 23, equivalent to 6 motor vehicles per, inhabitants or one vehicle for every 6.2 persons. Meanwhile, the number of motorcycles currently in use around the world is estimated at some 3 million. Motorcycle density in recent years has been particularly high in Malaysia, Indonesia, and Thailand, with one motorcycle in use for every three persons; and in Italy, with one in use for every seven persons. In Japan, one motorcycle is in use for every persons. MOTOR VEHICLE DENSITY: INTERNATIONAL COMPARISONS (at end of 23) Country U.S.A. Australia Italy Canada Japan Austria France Switzerland Spain UK Germany Belgium World Average No. of Motor Vehicles per, Inhabitants Motor Vehicles Passenger Cars No. of Persons per Motor Vehicle (No. of Persons per Passenger Car).3 (2.6).4 (.8).5 (.6).6 (.7).7 (2.).7 (.8).7 (2.).7 (.9).7 (2.).7 (2.).7 (.9).8 (2.) 6.2 (9.) x person Sources: Ministry of Land, Infrastructure, Transport and Tourism; Ward s, etc.; for population data, OECD, UN MOTOR VEHICLES IN USE WORLDWIDE (at end of 23) Country Germany Italy France UK Spain Netherlands Belgium Austria Sweden Poland Switzerland Turkey Russia U.S.A. Canada Mexico Argentina Brazil Japan China South Korea India Thailand Indonesia Australia South Africa Other Grand s Passenger Cars 43,85,23 36,963, 3,65, 3,97,885 22,24,538 8,53,897 5,439,295 4,64,38 4,52,32 9,389, 4,32,885 9,283,923 39,32, 2,23,973 2,26,66 24,286,354 9,452, 3,339, 6,35,297 55,93, 5,78,344 2,55, 7,9,,484,54 3,,2 6,376,733 37,684,46 796,259,637 Commercial Vehicles 3,63,469 4,867, 6,55, 4,364,78 5,3,,52, , ,33 58,34 3,345, 43,52 4,33,733 7,9, 32,5,723,72,34,93,2 3,4, 8,356, 6,583,769 63,58, 4,322,52,948, 6,83, 7,9,83 3,38,742 2,922,634 42,534,27 357,59, 47,4,699 4,83, 38,2, 36,282,63 27,54,538 9,26,595 6,298,57 5,75,639 5,82,454 22,734, 4,752,397 3,64,656 47,22, 252,74,696 22,333,794 34,379,555 2,493, 39,695, 76,69,66 9,5, 9,4,864 32,499, 3,922, 9,386,37 6,38,763 9,299,367 8,28,677,53,38,737 Sources: Ministry of Land, Infrastructure, Transport and Tourism; Ward s, etc. MOTORCYCLE DENSITY: INTERNATIONAL COMPARISONS (No. of Persons per Motorcycle) Malaysia Indonesia Thailand Italy Switzerland Spain Japan Austria Netherlands China x person Note: Data for Japan as at March 3. Sources: Ministry of Land, Infrastructure, Transport and Tourism; Ministry of Internal Affairs and Communications; Federation of Asian Motorcycle Industries (FAMI); European Association of Motorcycle Manufacturers (ACEM), etc.; for population data, OECD, UN MOTORCYCLES IN USE WORLDWIDE Country/Territory Italy Spain France UK Netherlands Switzerland Austria Poland Czech Republic Germany Greece Turkey U.S.A. Mexico China Indonesia Japan Thailand Taiwan Malaysia Philippines Myanmar 8,582,796 5,2,965 3,89,25,224,849,2,729 85,56 73,5 2,27, ,9 3,843,55,776,435 2,657,722 8,454,939,589,78 95,326,38 75,98,927,823,429 9,964,99 5,39,628,59,668 4,2,35 3,53,2 Sources: Ministry of Land, Infrastructure, Transport and Tourism; Ministry of Internal Affairs and Communications; Federation of Asian Motorcycle Industries (FAMI); European Association of Motorcycle Manufacturers (ACEM), etc. 59

61 Motor Vehicles Worldwide Exports (Including Motorcycles) Motor Vehicle Exports Increase in Brazil, Spain, the U.S.A., and India Motor vehicle exports (excluding motorcycles) in 23 increased over the previous year in Brazil (to 59, units, up 25.3%), Spain (to.88 million units, up 8.7%), the United States (to 2.9 million units, up 7.8%), and India (to 67, units, up 4.9%), but decreased in China (to 949, units, down 6.6%) and Italy (to 393, units, down 3.5%). Motorcycle exports in 23 showed a yearonyear rise in Taiwan (to 339, units, up 4.%) and India (to 2.8 million units, up 6.3%), but declined in Indonesia (to 27, units, down 64.8%) and Japan (to 43, units, down.%). MOTOR VEHICLE EXPORTS (MAJOR EXPORTING COUNTRIES) x, units UK Germany China France Italy Japan U.S.A Spain 6 India 6 South Korea Brazil MOTOR VEHICLE EXPORTS (MAJOR EXPORTING COUNTRIES) Country Japan U.S.A. Germany UK France Italy Spain Brazil South Korea China India Passenger Cars 3,929,94,3,75 4,58,973,24,676 4,336,759 23,769,642,578 45,575 2,98,659 47,9 58,783 2 Commercial Vehicles 534,59 427,562 97,77 69, , ,39 478,49 73,53 7,49 379,78 92,258 4,464,43,727,637 4,76,5,94,52 4,893,5 452,88 2,2,68 578,728 3,5,78 849,88 6,4 Passenger Cars 4,98,494,55,337 4,3,279,2,766 3,898,9 74,54,326,777 38,693 3,2, ,7 559,44 22 Commercial Vehicles 65,97 425,622 89,548 63,733 56,33 232,867 42,395 63,354 58,5 428,29 8,27 4,83,59,94,959 4,32,827,275,499 4,44,322 47,38,729,72 472,47 3,7,634,5, ,44 Passenger Cars 4,65,59,624,236 4,97,56,2,395 3,842,99 69,576,493,73 397,554 2,948, , ,57 23 Commercial Vehicles 69,4 467,236 27,244 47,9 53, , ,243 93,794 4,93 395,2 77,56 4,674,633 2,9,472 4,44,76,249,35 4,372, ,233,879,974 59,348 3,89, ,549 67,563 Sources: Ward s, etc.; for Japan, Japan Automobile Manufacturers Association MOTORCYCLE EXPORTS (MAJOR EXPORTING COUNTRIES/TERRITORY) Country/Territory Japan China Taiwan Indonesia India Mopeds 2 Motorcycles & Scooters 54,985,555, ,866 54,985,555, ,866 3,995,975, Mopeds Note: means data is not available at the end of March 25. Sources: Automobile/motorcycle manufacturers associations of individual countries; for Japan, Japan Automobile Manufacturers Association 22 Motorcycles & Scooters 479,63 8,77,2 297, ,63 8,77,2 297,275 77,29,956,378 Mopeds 23 Motorcycles & Scooters 43,897 8,982,98 43,897 8,982,98 339,238 27,35 2,83,938 6

62 VehicleBased Systems Motor Vehicle Classification Classifications According to the Road Vehicles Act and the Road Traffic Act Japan classifies motor vehicles according to the provisions of two basic laws: the Road Vehicles Act and the Road Traffic Act. Road Vehicles Act classifications are used for registration statistics, vehicle inspection, and related maintenance and repair. Road Traffic Act classifications determine the different categories of driver s licenses. Vehicle registration number/character combinations are determined by vehicle type and usage in accordance with Road Vehicles Act designations, and a vanity plate system has been introduced nationwide. Standard Over 2m Small 2m and under Over.48m to.7m Mini 2m and under CLASSIFICATION UNDER THE ROAD VEHICLES ACT (for registration, inspection, etc. ) Over.7m.48m and under Over 2,cc in engine capacity, excluding diesel engines Over 4.7m Over 66cc to 2,cc in engine capacity, excluding diesel engines Over 3.4m to 4.7m 66cc and under in engine capacity 3.4m and under Note: A vehicle that exceeds any one of the requisites above is classified in the higher category. CLASSIFICATION UNDER THE ROAD TRAFFIC ACT (for driver s license issuance) Large Motor Vehicles Gross vehicle weight: tons Payload: 6.5 tons or Occupancy: 3 persons Ordinary Motor Vehicles Gross vehicle weight: <5 tons Payload: <3 tons or Occupancy: < persons () As per a revision to the Road Traffic Act, the middlecategory motor vehicle classification went into application in June 27. (2) Projections on small specialpurpose vehicles should not exceed 2.8m. Note: The Road Traffic Act stipulates that the driver of any onerider, three or fourwheeled vehicle of up to 5cc in engine capacity, with a legal maximum speed of 5km/h and a maximum load of 3kg, is required to hold an ordinary motor vehicle driver s license. CLASSIFICATION OF MOTORCYCLES Category Smallsized Minisized Motordriven cycles Class 2 Motordriven cycles Class Engine Capacity Over 25cc 26cc to 25cc 5cc to 25cc 5cc and under Road Vehicles Act Rated Output Over.kW Over.kW Over.6kW to.kw.6kw and under Width Over.3m.3m and under.3m and under.3m and under MiddleCategory Motor Vehicles () Gross vehicle weight: 5 tons< Payload: 3 tons<6.5 or Occupancy: persons<3 SpecialPurpose Motor Vehicles Motor vehicles with caterpillar treads such as bulldozers, steamrollers, graders, snowplows, tractors, etc. are classified into two categories: large and small. Small specialpurpose motor vehicles are those of up to 5km per hour in maximum speed, up to 4.7m in length, up to 2m in height (2), and up to.7m in width. Height Over 2.m 2.m and under 2.m and under 2.m and under Length Over 2.5m 2.5m and under 2.5m and under 2.5m and under Note: A motorcycle that exceeds any one of the requisites above is classified in the higher category. Road Traffic Act Category Large Ordinary Motorized bicycles Engine Capacity Over 4cc 5cc to 4cc 5cc and under SIGNIFICANCE OF VEHICLE REGISTRATION DATA & NUMBER PLATE TYPES LargeSized Number Plates Largerthanstandardsize plates are issued to vehicles weighing 8 tons or more, with payload of 5 tons or more, or 3person or more occupancy. MidSized Number Plates Standardsize plates are issued to standard and small vehicles and minivehicles with engine capacity of more than 36cc, whether for private or commercial business use. SmallSized Number Plates Smallsize plates are issued to small and minisized motorcycles and minivehicles with engine capacity of 36cc or less, excluding those designated with any one of the 4to49, 5to59 or 8to89 number categories. Usage Designations Ordinary and large motor vehicles Private use Commercial business use Rental vehicle Foreign military vehicle Minivehicles Private use 22cm 44cm 6.5cm 33cm 2.5cm 23cm Commercial business use Rental vehicle Foreign military vehicle Hiragana character indicates vehicle usage category: private, commercial business, rental or foreign military vehicle (private or official). Motor Vehicle Registry Designation: Kanji indicate geographical area of vehicle registration. Designated Number Categories Indicating Vehicle Type Ordinary trucks Ordinary buses Ordinary passenger cars Three or fourwheeled small trucks Three or fourwheeled small passenger cars and buses Specialpurpose vehicles Large specialpurpose vehicles Large specialpurpose vehicles used as construction machinery Number Assignment From to 9999 Number Plate Colors Ordinary and large motor vehicles Private use or rental vehicle Commercial business use Minivehicles Private use or rental vehicle Commercial business use, 9, 99 2, 229, , 339, , 449, , 669, , 559, , 779, , 889, , 999, 9999, 9, 99 Green characters on white background White characters on green background Black characters on yellow background Yellow characters on black background Source: Ministry of Land, Infrastructure, Transport and Tourism 6

63 VehicleBased Systems Measuring Motor Vehicle Fuel Consumption and Emissions Japan s Test Cycles for Measuring Fuel Consumption and Exhaust Emissions The JC8 test cycle is now the only test cycle applied in Japan to measure fuel consumption rates as well as exhaust emissions in nonheavyduty vehicles, having replaced the 5mode and (less commonly used) mode test cycles. The objective in using the JC8 test cycle is to obtain test results that are as close as possible to actual onroad fuel consumption rates. Certified fuel efficiency values are therefore indicated on the basis of JC8 test cycle results and, for heavyduty vehicles, on the basis primarily of JE5 test cycle results. THE JC8 TEST CYCLE Vehicle speed (km/h) ,,2 Time (sec) The JC8 cycle reflects typical realworld driving patterns in congested urban and urban expressway traffic (including idling and frequentlyalternating acceleration and deceleration), but, compared to its predecessors, it increases the duration of the test cycle and the variation in driving modes. Measurement is made with both a cold start and a warm start, at a maximum speed of 82km/h. THE JE5 TEST CYCLE FOR HEAVYDUTY VEHICLES (GVW 3.5t) Vehicle speed (km/h) ,,2,4,6,8 Time (sec) The JE5 cycle for heavyduty vehicles includes idling and frequentlyalternating acceleration and deceleration, also reflecting typical driving patterns in today s congested urban areas, as well as an expressway runnning mode. Engine revolution and torque are predetermined to reach target speed based on test vehicle specifications. Measurement is made on the engine alone, while following the transient driving pattern. 62

64 VehicleBased Systems Automobile Certification Alternative Systems Expedite Certification Motor vehicle certification in Japan is based primarily on the Type Approval System, which is applied both to domestic and imported automobiles and covers most massproduced models. The Preferential Handling Procedure for imported motor vehicles is an alternative procedure which was instituted to expedite the certification of foreignmade vehicles that are imported in limited quantities. The third procedure, the Type Notification System, is mainly applied to large commercial vehicles. THE TYPE APPROVAL SYSTEM This certification procedure is applied to domestic and imported massproduced models. The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) inspects a sample vehicle and the qualitycontrol system of the automobile manufacturer concerned, then completes the type approval process within two months in principle. All finished vehicles that have been granted type approval are then inspected by the manufacturer, eliminating the need to present them for new vehicle inspection. For imported vehicles, the MLIT not only dispatches officials overseas to conduct certification inspections but also accepts the test results of designated foreign testing institutes. THE PREFERENTIAL HANDLING PROCEDURE FOR IMPORTED VEHICLES This procedure is applied to models that are imported into Japan in quantities of 5, units or less per year. Designed to make the importation of vehicles simpler and faster, it exempts the applicant from undergoing the sample vehicle inspection that is mandatory under the Type Approval System. The MLIT inspects only the application documentation and issues a form indicating completion of the procedure within one month. RATIONALIZATION OF MOTOR VEHICLE/RECIPROCAL EQUIPMENT TYPE APPROVAL SYSTEMS Increased globalization in the automobile industry worldwide is underscoring the need for the more widespread adoption of reciprocal recognition systems, under which certification is mutually recognized between importing and exporting countries or regions. Meanwhile, the UNECE World Forum for Harmonization of Vehicle Regulations (also known as WP.29) is making steady progress towards the establishment of global technical regulations (GTRs) focusing on vehicle safety and environmental standards. In 998 the Japanese government officially acceded to the UNECE 958 Agreement, under which each signatory government reciprocally recognizes certifications of vehicle structure and equipment issued by all the other signatory countries. It also introduced the Vehicle Equipment Type Approval System, which specifically addresses the expanding common use of equipment in vehicle manufacturing. This system not only allows equipment and parts that have been certified by 958 Agreement cosignatory countries to be exempted from undergoing certification procedures in Japan, but furthermore does not require them to be inspected again if they are used in other models. JAPAN S RATIONALIZATION OF MOTOR VEHICLE/RECIPROCAL EQUIPMENT TYPE APPROVAL SYSTEMS Motor Vehicle Type Approval System Vehicle Equipment Type Approval System Certification in Japan Application for vehicle type approval Vehicle Type A Vehicle Type B Vehicle Type C Omission of multiple inspections on different vehicle types Equipment type approval by Japanese government Omission of equipment type approval Vehicle type approval Certification Overseas Reciprocal recognition according to UNECE 958 Agreement Country X Country Y Country Z Omission of multiple inspections on different vehicle types Omission of equipment type approval Equipment type approval by other (national) government 63

65 Locations of Auto Manufacturing Plants At April, 25 Vehicle Assembly Plants Parts Plants Hokkaido Toyota Motor Hokkaido Shiga Daihatsu (Shiga) Mitsubishi (Shiga) Gunma Hino (Nitta) Fuji Heavy Industries (Main Plant) Fuji Heavy Industries (Yajima) Fuji Heavy Industries (Ota North) Fuji Heavy Industries (Oizumi) Osaka Daihatsu (Ikeda) Kyoto Daihatsu (Kyoto) Mitsubishi (Kyoto) Hyogo Kawasaki (Akashi) Okayama Mitsubishi (Mizushima) Hiroshima Mazda (Head Office) Mazda (Miyoshi) Yamaguchi Mazda (Hofu) Mie Honda (Suzuka) Toyota Auto Body (Inabe) Gifu Pajero Manufacturing (Sakahogi) Oita Daihatsu Kyushu (Oita) Fukuoka Nissan Motor Kyushu (Kanda) Daihatsu Kyushu (Kurume) Toyota Motor Kyushu (Miyata) Toyota Motor Kyushu (Kanda) Toyota Motor Kyushu (Kokura) Kumamoto Honda (Kumamoto) Tochigi Isuzu (Tochigi) Nissan (Tochigi) Honda (Tochigi) Aichi Suzuki (Toyokawa) Toyota (Honsha) Toyota (Motomachi) Toyota (Kamigo) Toyota (Takaoka) Toyota (Miyoshi) Toyota (Tsutsumi) Toyota (Myochi) Toyota (Shimoyama) Toyota (KinuUra) Toyota (Tahara) Toyota (Teiho) Toyota (Hirose) Toyota Auto Body (Fujimatsu) Toyota Auto Body (Yoshiwara) Toyota Auto Body (Kariya) Mitsubishi (Okazaki) Iwate Toyota Motor East Japan (Iwate) Miyagi Toyota Motor East Japan (MiyagiOhira) Toyota Motor East Japan (MiyagiTaiwa) Fukushima Nissan (Iwaki) Ibaraki Hino (Koga) Saitama UD Trucks (Ageo) UD Trucks (Hanyu) Honda (Sayama) Honda (Yorii) Honda (Ogawa) Tokyo Hino (Hino) Hino (Hamura) Kanagawa Isuzu (Fujisawa) Nissan (Yokohama) Nissan (Oppama) Mitsubishi Fuso (Kawasaki) Mitsubishi Fuso (Nakatsu) Shizuoka Suzuki (Takatsuka) Suzuki (Iwata) Suzuki (Osuka) Suzuki (Kosai) Suzuki (Sagara) Toyota Motor East Japan (HigashiFuji) Toyota Motor East Japan (Suyama) Honda (Hamamatsu) Yamaha (Iwata Main) Yamaha (Iwata South) Yamaha (Hamakita) Yamaha (Nakaze) Yamaha (Fukuroi) Yamaha (Toyooka) Yamaha (Morimachi) 64

66 JAMA Member Manufacturers Daihatsu Motor Co., Ltd. Head Office : Daihatsucho, Ikeda, Osaka Tel: (72) 7588 Tokyo Branch Office : 2 Nihonbashi Honcho 2chome, Chuoku, Tokyo Fuji Heavy Industries Ltd. Head Office : Ebisu Subaru Bldg. 28 Ebisu chome, Shibuyaku, Tokyo Tel: (3) HINO Motors, Ltd. Head Office : Hinodai 3chome, Hino, Tokyo 9866 Tel: (42) HONDA MOTOR CO., LTD. Head Office : MinamiAoyama 2chome, Minatoku, Tokyo Tel: (3) Isuzu Motors Limited Head Office : 26 MinamiOi 6chome, Shinagawaku, Tokyo Tel: (3) Kawasaki Heavy Industries, Ltd. Kobe Head Office : Kobe Crystal Tower, 3 Higashi Kawasakicho chome, Chuoku, Kobe, Hyogo Tel: (78) Tokyo Head Office : 45 Kaigan chome, Minatoku, Tokyo 5835 Tel: (3) MAZDA MOTOR CORPORATION Head Office : 3 Shinchi, Fuchucho, AkiGun, Hiroshima Tel: (82) 282 Tokyo Head Office : NBF Hibiya Bldg. 7 Uchisaiwaicho chome, Chiyodaku, Tokyo Tel: (3) MITSUBISHI MOTORS CORPORATION Head Office : 338 Shiba 5chome, Minatoku, Tokyo 884 Tel: (3) Note: Manufacturers are listed in alphabetical order. 65

67 Mitsubishi Fuso Truck and Bus Corporation Head Office : 2 Kashimada chome, Saiwaiku, Kawasaki, Kanagawa 2258 Tel: (44) Nissan Motor Co., Ltd. Global Headquarters : Takashima chome, Nishiku, Yokohamashi, Kanagawa Tel: (45) Suzuki Motor Corporation Head Office : 3 Takatsukacho, Minamiku, Hamamatsu, Shizuoka Tel: (53) 4426 Tokyo Branch Office : Suzuki bldg. HigashiShimbashi 2F, 28 HigashiShimbashi 2chome, Minatoku, Tokyo 52 Tel: (3) TOYOTA MOTOR CORPORATION Head Office : Toyotacho, Toyota, Aichi Tel: (565) 2822 Tokyo Head Office : 48 Koraku chome, Bunkyoku, Tokyo 287 Tel: (3) 3877 Nagoya Office : 7 Meieki 4chome, Nakamuraku, Nagoya, Aichi 4587 Tel: (52) UD Trucks Corporation Head Office : Ageo, Saitama Tel: (2) YAMAHA MOTOR CO., Ltd. Head Office : 25 Shingai, Iwata, Shizuoka Tel: (538) 325 Tokyo Office : Marunouchi 2chome, Chiyodaku, Tokyo 5 Tel: (3) Special Friend: General Motors Japan Ltd. Head Office : 28 HigashiShinagawa 4chome, Shinagawaku, Tokyo Tel: (3)