A Vast Range of Related Industries

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 5.39 million people. EMPLOYMENT IN THE AUTOMOBILE MANUFACTURING AND RELATED INDUSTRIES Number of employees Automobile Production... 862, employment in auto manufacturing & related industries: 5.39 million (8.3%) Automobile manufacturing (including motorcycles)... 88, Auto parts and accessories manufacturing... 656, Auto body and trailer manufacturing... 8, Road Transport... 2,694, Road freight transport...,74, Road passenger transport... 56, Road transportrelated services... 37, Vehicle rental services... 49, Automotive Fuel/Insurance/Recycling... 349, employment (workforce) in Japan: 65.3 million (%) Automotive fuel retailing... 336, Auto damage insurance... 2, Automobile recycling..., Materials & Equipment Supply... 456, Electrical machinery & equipment... 67, Nonferrous metals... 2, Iron & steel... 27, Metal products... 42, Chemicals (including paints), textiles, and petroleum... 3, Plastics, rubber, and glass... 4, Electronic parts & equipment... 2, Manufacturing machinery... 6, Sales & Services...,3, Automobile retailing (including motorcycles, used vehicles, and auto parts and accessories)... 577, Automobile wholesaling (including motorcycles, used vehicles, and finished/used parts and accessories)... 9, Automobile servicing... 264, Note: Figures are rounded off to the nearest thousand. Sources: Economic Census, Labor Force Survey, InputOutput Tables for Japan, Ministry of Internal Affairs and Communications Statistics Bureau; Ministry of Economy, Trade and Industry

Automotive Industry Investment in Materials, Equipment and Research 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 research activities, are considered a barometer of the economy. PRINCIPAL MATERIALS AND COMPONENTS USED IN AUTOMOBILE MANUFACTURING Cast iron Common steel Special steel Copper Lead, tin, zinc Aluminum Noble metals Other nonferrous metals Synthetic resin Glass Rubber Ceramics Textiles Leather Paper Wood Paints Chemicals Animal and vegetable oils Fats and oils Engine parts, e.g. cylinder blocks Chassis, frames, wheel parts Gears, axle shafts, crankshafts, fuel injection equipment Electricals, radiators, cables Engine metals, solder, body varnish, batteries Engine parts (e.g. pistons, cylinder heads), wheels, chassis Emissions aftertreatment parts Magnets, plating Steering wheels, bumpers, radiator grilles, body components Window glass, mirrors, headlamps Tires, sealing parts, vibration control parts Plugs, electronic parts, sensors, emissions aftertreatment parts Seats, linings, seatbelts Seats, packing Filters Loadcarrying platforms, interior equipment Ornamental and rustproof paints Antifreeze, engine oil, transmission oil, brake oil For casting For lubrication, heat treatment, etc. Springs, dampers Turbochargers Bearings Machined parts, e.g. pumps Tires and tubes Batteries Window glass Onboard tools, e.g. jacks Supplies, e.g. extinguishers, tire chains Electronic parts Lights, cables, optical fibers Air conditioners, air cleaners Starters, alternators, generators, inverters, meters Audio systems, phones, navigation systems Safety equipment, e.g. antilock brakes, airbags, traction control Coke Petroleum, electricity, natural gas Sensors, ECUs, actuators For casting Fuel, heat treatment, paint drying, power generation INVESTMENTS IN EQUIPMENT OF MAJOR MANUFACTURING SECTORS (PROJECTED, FY 2) NonFerrous Metals 2,788 (4.%) Paper & Pulp,537 (2.3%) Other 2,26 (.8%) General Machinery 9,43 (3.8%) Automotive 4,488 (2.2%) All Manufacturing Sectors 68,325 (%) x million yen Electronic Parts & Equipment 3,343 (4.9%) Transport Equipment,43 (22.6%) Iron & Steel 7,82 (.4%) Chemicals,825 (.8%) Electrical Machinery 2,39 (3.5%) Petroleum 2,6 (3.8%) Note: Japan s fiscal year (FY) starts on April and ends on March 3 of the following year. Source: Survey on Planned Capital Spending, Development Bank of Japan RESEARCH EXPENDITURES OF MAJOR MANUFACTURING SECTORS (FY 2) Foods 2,267 (2.%) Electrical Machinery & Equipment,2 (9.7%) Iron & Steel,577 (.3%) General Machinery & Equipment 9,47 (.5%) Chemicals 8,494 (7.3%) Other,734 (9.3%) IT & Telecommunications Equipment 3,572 (.7%) All Manufacturing Sectors Automotive,748 28,7 (%) (24.3%) Pharmaceuticals 3,5 (.7%) x million yen Electronic Circuits, Parts & Equipment 6,75 (5.2%) Transport Equipment 29,255 (25.3%) Source: Survey on Research Activities in Science and Technology, Ministry of Internal Affairs and Communications 2

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 2 automotive shipments accounted for 8.2% of the total value of Japan s manufacturing shipments, and 4.3% 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 57.5 trillion yen in 2, up 7.% from the previous year. SHIPMENTS OF MAJOR MANUFACTURING SECTORS IN VALUE TERMS (2) x million yen COMPARISON OF VALUE OF AUTOMOTIVE SHIPMENTS TO TOTAL VALUE OF ALL MANUFACTURING SHIPMENTS NonFerrous Metals 96,795 (3.%) Other,2,477 (32.4%) Metal Products 43,57 (4.6%) Iron & Steel 8,42 (5.7%) General Machinery 359,7 (.5%) 3,3,285 (%) Automotive 57,524 (8.2%) Chemicals 286,222 (9.%) Electrical Machinery & Equipment 48,6 (3.%) Transport Equipment 646,539 (2.6%) Breakdown of automotive shipments: Automobiles (including motorcycles)... 228,674 Auto bodies and trailers... 6,2 Automotive parts and accessories... 335,678 34.8 26 value of all manufacturing shipments value of automotive shipments 336.8 335.6 54. 57.2 56.6 265.3 289. 288.7 285. 4.5 47.3 44. 5.3 292. x trillion yen 35. 33. 52. 53.3 57. 7 8 9 2 3 4 36 34 32 3 28 26 24 22 2 8 4 2 8 6 4 2 SHIPMENTS OF MAJOR MANUFACTURING SECTORS IN VALUE TERMS x million yen 97 975 98 985 99 995 2 25 26 27 28 29 2 2 22 23 24 2 Chemicals 55,42 4,38 9,787 25,524 235,3 233,625 237,994 25,27 26,995 282,939 28,299 242,757 262,2 263,52 26,379 274,92 28,23 286,222 Iron & Steel 65,648 3,63 8,956 7,543 82,687 4,727 9,63 8,964 84,727 2,9 243,322 9,884 8,463 86,656 8,2 9,53 92,22 8,42 NonFerrous Metals 3,547 39,87 8,86 63,836 78,2 64,964 62,89 67, 9,2,75 4,85 69,4 89,4 9,225 89,228 88,59 94,22 96,795 Metal Products 37,277 65,73,465 3,944 85,736 6,465 5,868 4,9 44,5,889,492 24,267 22,92 2,277 28,67 3,66 39,328 43,57 General Machinery 68,28,2 5,998 24,94 332,249 298,844 34,32 32,8 333,33 362,734 42,477 289,32 36,86 322,495 33,8 32,9 337,273 359,7 Electrical Machinery & Equipment 73,35 8,23 222,346 48,422 545,286 548,39 595,8 495,83 5,634 553,265 58,797 4,593 442,848 43,789 369,426 368,283 394,772 48,6 Machinery Industries Transport Equipment 72,758 47,935 249,536 36,793 468,582 442,45 444,474 539,999 598,356 639, 637,666 47,866 542,36 55,87 564,858 582,32 6,633 646,539 Automotive 54,673,24 22,346 276,927 423, 395,63 4,429 489,548 54,9 57,848 566,53 44,9 472,962 439,592 52,627 59,7 533, 57,524 Subtotal 223,8 379,55 682,457,55,932,397,439,33,364,385,62,385,37,484,34,597,84,558,94,,779,29,,232,4,265,,27,226,332,678,44,34 Other 287,383 589,87 952,724,63,24,25,939,5,277,,72 988,7,23,649,58,,,93 894,53 944,29 955,863 963,84 977,885,,922,2,477 69,348,274,329 2,46,998 2,653,26 3,233,726 3,6,356 3,35,824 2,962,4 3,48,346 3,367,566 3,355,788 2,652,59 2,89,77 2,849,688 2,887,276 2,92,92 3,5,4 3,3,285 Automotive Shipments As % of Value of Machinery Shipments 24.5 27.7 3. 26.2 3.3 29.7 28.9 35.3 36.5 35.8 36.3 34.9 36.6 35.7 39.7 4.9 4. 4.3 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. 5. Because of the nonissuance of Japan s Census of Manufactures in 2, the 2 data in the above chart was obtained from an alternate source (see below). Sources for statistical data on this page: Census of Manufactures, Economic Census, Ministry of Economy, Trade and Industry 7.9 8.3 9.9.4 3. 2.9 3.2.5.2..9.3.4.4.4.8.5 8.2 3

Automotive Industry Automotive Trade In Value Terms, Motor Vehicle Exports Trillion Yen; Imports, 2 Trillion Yen In 2 Japan s gross exports and imports increased from the previous year, by.8% and 4.% respectively. In value terms, automotive exports grew 6.6% from 2 to. trillion yen, and automotive imports expanded.4% yearonyear to 2.3 trillion yen. EXPORTS BY PRINCIPAL COMMODITY (FOB) IN 2 Scientific & Optical Equipment 242 (3.%) Ships 32 (.7%) Electrical Machinery & Equipment,37 (.5%) Other,22 (.5%) x billion yen Motor Vehicles (including motorcycles and parts),6 (2.6%) 7,829 (%) General Machinery,569 (2.%) Transport Equipment,823 (23.3%) Chemicals 89 (.5%) Iron & Steel Products 328 (4.2%) Textile Yarn & Textiles 72 (.9%) NonFerrous Metals & Metal Products 262 (3.3%) IMPORTS BY PRINCIPAL COMMODITY (CIF) IN 2 Motor Vehicles (including motorcycles and parts) 234 (3.%) Other,488 (9.7%) Electrical Machinery & Equipment,25 (.%) General Machinery 72 (9.6%) Transport Equipment 3 (4.2%) 7,538 (%) Chemicals 757 (.%) NonFerrous Metals & Metal Products 292 (3.9%) x billion yen Foodstuffs 72 (9.3%) Raw Materials 472 (6.3%) Petroleum & Petroleum Products 87 (.5%) Mineral Fuels,584 (2.%) AUTOMOTIVE EXPORTS IN VALUE TERMS (FOB) 28 29 2 2 22 23 24 2 2 2 Motor Vehicles 5,26 93,679 25,956,4 27,52 42,4 47,849 8,92,5,92 Chg. (%) 94.5 53.5 34.5 9.6.5.7 3.8.5 95..6 Passenger Cars, Trucks, Buses 37,36 66,933 9,74 82,42 92,25 4,25 9,94 2,463 3,329 8,254 Auto Parts 3,655 23,89 3,833 29,972 32,5 34,762 34,75 34,83 34,6 38,966 Motorcycles & Motorcycle Parts 7, 3,657 3,382 3,43 3,22 3,524 3,95 3,69 3,229 3,872 Exports 8,8 54,76 673,996 655,465 637,476 697,742 73,93 756,39 7,358 782,865 x million yen Chg. (%) 96.5 66.9 24.4 97.3 97.3 9.5 4.8 3.4 92.6.8 AUTOMOTIVE IMPORTS IN VALUE TERMS (CIF) 28 29 2 2 22 23 24 2 2 2 Motor Vehicles,38 8,982,58 2,85,56 8,948 2,925 2,26 2,23 23,49 Chg. (%) 9.6 59.3 28.2.2 2. 22.2.4.6 98.9.4 Passenger Cars, Trucks, Buses 7,499 4,549 5,958 7,352 9,82,857,623,398,78 3,7 Auto Parts Motorcycles & Motorcycle Parts 978 736 682 736 875,9,4,93 93,2 Imports Chg. (%) 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, Japan Tariff Association 6,662 3,696 4,879 4,7 5,549 6,98 8,48 8,77 8,329 9,328 789,548 54,994 67,65 68,2 76,886 82,425 859,9 784,55 66,42 753,792 x million yen 8. 65.2 8. 2. 3.8 4.9.7 9.3 84.2 4. 4

Motor Vehicles Production Motor Vehicle Production Expands for First Time in 3 s In 2 motor vehicle production in Japan totalled 9.69 million units, up 5.3% from the previous year, showing the first increase in three years. Passenger car production rose 6.% to a total of 8.35 million units. Within that category, standard cars grew 3.% to 5. million units, small cars rose 6.5% to.72 million units, and minicars climbed.5% to.49 million units. Meanwhile, truck production increased.6% from 2 to.22 million units, whereas bus production decreased 5.% to 23, units. MOTOR VEHICLE PRODUCTION BY TYPE IN 2 Small 292,9 (3.%) Mini 4,39 (4.3%) Buses 23,97 (.3%) TRENDS IN MOTOR VEHICLE PRODUCTION x million units 4 2 Standard 5,52 (5.3%) Mini,484,6 (.3%) Trucks,29,74 (2.6%) 9,69,674 (%) Standard 5,47,256 (53.%) Passenger Cars 8 6 Small,7,97 (.7%) Passenger Cars 8,347,836 (86.%) Trucks & Buses 4 2 28 9 2 3 4 MOTOR VEHICLE PRODUCTION 97 975 98 985 99 995 2 25 28 29 2 2 22 23 24 2 2 2 Standard 5,69 29,32 43,338 494,792,75,783 2,553,73 3,376,447 4,9,36 5,786,333 3,459,589 4,846,4 4,8,36 4,686,396 4,68,4 4,657,765 4,744,47 4,999,566 5,47,256 Small 2,377,639 4,98,55 6,438,847 6,99,432 7,36,224 4,4,629 3,699,893 3,4,622 2,74,43 2,45,279 2,9,9,86,279 2,252,672,888,759,75,895,555,548,6,486,7,97 Passenger Cars Mini 749,45,272 95,923,592 835,965 9,2,283,94,48,753,427,397,257,293,34,832,,885,6,435,682,55,868,4,53,73,263,834,484,6 Subtotal Chg. (%) 3,8,78 2.7 4,567,854.2 7,38,8 4. 7,646,8 8. 9,947,972 9.9 7,6,533 97.5 8,359,434 3.2 9,,735 3.4 9,928,43 99.8 6,862, 69. 8,3,362 2. 7,8,525 86. 8,554,53 9.5 8,89,323 95.7 8,277,7. 7,83,722 94.6 7,873,886.6 8,347,836. Standard 258, 288, 885,98,278,22,249,525 824,4 649,8 723,663 734,923 37,686 52,627 52,26 583,6 58,2 64,768 586,645 55,97 5,52 Small,253,86,6,475 2,3,3,877,893,262,943 99,32 483,282 436,763 329,758 2,39 238,776 234,586 275,992 3,635 327,928 33,84 3,82 292,9 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 (66cc2,cc), been treated as components since 988. 3. Chg. (%) means change from the previous year (with the previous year s result indexed at ). 5

TRENDS IN MOTOR VEHICLE PRODUCTION IN VALUE TERMS x trillion yen 25 2 Passenger Cars Trucks & Buses 5 28 9 2 3 4 MOTOR VEHICLE PRODUCTION IN VALUE TERMS x million yen Passenger Cars Trucks Buses Standard Small Mini Subtotal Standard Small Mini Tractors Subtotal Large Small Subtotal 985 895,4 7,49,323 85,925 8,3,289,793,,59,934 679,498 46,745 4,39,7 3,53,7 24,6 2,273,526 99 3,7,356 8,676,7 572,88 2,966,259,953,924,8,28 59,44 64,93 3,79,9 34, 66,988 2,3,957,27 995 5,47,637 4,869,427 79,33,87,367,69,428 849,5 5,579 24,764 3,4,282,647 89,44 97,88 4,8,737 2 6,64,75 4,298,37,237,65 2,6,5,,558 543,48 357,765 45,453 2,58,84 8,897 9,7 89,94 4,424,38 25 9,352,545 4,8,64,9,87 4,7,57,9,692 588,224 357,6 4,567 2,967,98 27,65 3,69 29,674,958,829 28 3,6,9 3,27,9,293,624,56,852 2,,682 463,435 32,374 36,277 3,22,768 36, 33,594 449,79 2,979,329 29 7,26,654 2,548,37,5,68,965,76,27,974 32,497 28,888 34,778,757,37 9,723 6, 275,838 2,998,68 2,239,33 2,69,86,27,423 4,56,587,684,489 358,8 323,8 75,944 2,442,34 8,3 2,359 329,659,828,56 2 8,45,638 2,343,337,45,46,84,435,73,798 35,5 285,454 89,976 2,44,743 97,7 99,3 296,458 4,577,636 22 9,683,44 3,9,67,486,926 4,26,434,954,449 422,52 32,836,29 2,785,996 2,992 237,99 358,9,45,62 23,422,8 2,628,986,579,5 4,63,54,987,34 479,94 32,959 2,73 2,882,286 9,67 29, 49,67,922,46 24,, 2,636,872,795,44,542,49 2,89,242 546,377 33,522 8,9 3,7,232 24,4 38,4 442,524 9,2,5 2 2,47,649 2,458,98,473,3,978,95 2,89,38 576,37 3,368 3,2 3,96,445 39,64 328,498 468,2 9,643,57 2 2,32,649 2,438,96,28,853,4,48,888,98 566,78 29,99 29,78 2,876,534 2,96 299,22 472,26 9,39,68 2 2,958,5 2,5,379,5,786,992,32,986,3 539,558 39,8 26,867 2,97,633 5,9 288,3 463,47 2,427,36 Source: Ministry of Economy, Trade and Industry Trucks Buses Mini 55,922 438,987 94,679,388,583 986, 84,276 594,356 546,85 443,78 398,276 449,776 389, 47,26 427,53 425,65 392,29 377,92 4,39 Subtotal 2,63,883 2,337,632 3,93,88 4,544,688 3,498,639 2,537,737,726,88,76,6,58,399 985,,29,9,35,996,266,354,38,7,357,76,39,749,2,73,29,74 Chg. (%) Chg. (%) Chg. (%) 2. 9.8.2.2 89. 93.9 98.8 98.6 98. 65.3 22.7 93.9.5 3.3 3.8 96.5 9.7.6 46,566 36, 9,588 79,59 4,85 47,266 54,544 76,33 39,2 86,795 9,334 4,9 22,22 32,68 39,834 37,85 29,743 23,97.3 78.8 46.4.2 95.5 96.2 2.7 26.3 22.4 62.4 26. 95.2.4 8.6.4 98.6 94. 94.9 5,289,7 6,94,59,42,884 2,27,95 3,486,796,95,536,4,796,799,659,575,644 7,934,57 9,628,875 8,398,63 9,943,77 9,63,8 9,774,665 9,278,32 9,24,72 9,69,674 3..9 4.6. 3.5 96.6 2.5 2.7 99.8 68.5 2.4 87.2 8.4 96.9.5 94.9 99.2.3 97 975 98 985 99 995 2 25 28 29 2 2 22 23 24 2 2 2 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 vehicle and have Sources: Japan Automobile Manufacturers Association; Current Survey of Production, Ministry of Economy, Trade and Industry 6

Motor Vehicles New Registrations Motor Vehicle Sales Show First Increase in 3 s Passenger car and commercial vehicle demand in Japan in 2 totalled 5.23 million units, a 5.3% increase over the previous year. passenger car sales grew 5.8% to 4.39 million units, with standard cars rising 3.9% to.55 million units, small cars climbing 6.4% to.39 million units, and minicars expanding 7.3% to.44 million units. Meanwhile, sales of trucks and buses also increased over 2, growing 3.% and.6% to 832, and, units respectively. NEW MOTOR VEHICLE REGISTRATIONS BY TYPE IN 2 Small 255,836 (4.9%) Standard 6,385 (3.4%) Mini,443,367 (27.6%) Mini 399,974 (7.6%) Trucks 832,95 (.9%) Buses,593 (.3%) 5,234,5 (%) Passenger Cars 4,386,377 (83.8%) Small,394,796 (26.6%) Standard,548,24 (29.6%) TRENDS IN NEW MOTOR VEHICLE REGISTRATIONS x million units 28 Passenger Cars Trucks & Buses 9 2 3 4 8 7 6 5 4 3 2 NEW MOTOR VEHICLE REGISTRATIONS 97 975 98 985 99 995 2 25 28 29 2 2 22 23 24 2 2 2 Standard 9,68 49,25 7,93 73,539 467,49 889,26 77,22,27,349,25,987,,5,49,99,39,9,4,7,399,47,437,589,354,54,49,2,548,24 Small,652,899 2,53,396 2,68,2 2,869,527 3,839,22 2,654,29 2,28,387 2,89,992,549,677,48,37,57,693,246,26,62,95,472,74,422,883,349,944,3,275,394,796 Passenger Cars Mini 7, 7,2 4,3, 795,948 9,355,28,265,387,68,426,979,283,429,284,665,38,752,557,68,69,,839,9,5,44,344,967,443,367 Subtotal Chg. (%) 2,379,37.8 2,737,64 9.7 2,854,6 94. 3,4,83.3 5,2,659.9 4,443,96.6 4,259,872 2.5 4,748,49 99.6 4,227,643 96. 3,923,74 92.8 4,22,267.4 3,524,788 83.7 4,572,332 29.7 4,562,282 99.8 4,699,59 3. 4,2,889 89.7 4,46,458 98.4 4,386,377.8 Standard 8,86 2,8 4,472 8,9 93,775 7,264 84,626 97,548 46,69 87,692,697,29 36,359 43,272 4,8 2,52 3,249 6,385 Small 986,673 999,5,44,7 945,484,449,678,4,296,,33 35,78 249,655 8,59 87,642 85,97 227,326 235,883 252,828 259,936 254,56 255,836 Trucks Mini 538,743 43,8 839,38,367,685,6,456 8,265 586,66 536,648 442,94 44,742 44,755 382,393 42,765 422,82 433,67 384,796 38,493 399,974 Subtotal Chg. (%),693,52 95.6,55,454.7 2,37,947 2.2 2,43,8 4.7 2,649,99 93.7 2,43,825 4.6,686,599 99.6,85,94.8 839,259 89.5 672,943 8.2 73,94 8.6 674,78 92.3 785,45.4 8,975 2. 85,34.2 8,234 96. 88,32 98.9 832,95 3. Notes:. Chassisbased through 22, data compilation became vehicle registration numberbased as of 23. 2. Truck figures include specialpurpose vehicles (except large ones). 3. Data 7

NEW MINIVEHICLE SALES BY TYPE 2 2 22 23 24 25 26 27 28 29 2 2 22 23 24 2 2 2 Passenger Cars (Minicars),28,85,273,57,37,296,29,889,372,83,387,68,57,598,447,,426,979,283,429,284,665,38,752,557,68,69,,839,9,5,44,344,967,443,367 Commercial Vehicles ( Bonnet minivans) 38,672 2,,789 89,532 77,297 77,547 68,74 57,59 5,622 42,932 4,63 33,23 27,73 25,99 22,929 8,536 9,456,373 Commercial Vehicles (Caboverengine minivans) 7,43 5,594 3,42 2,644 83,995 97,4 24,838 96,4 85,86 7,358 8,55 8,75 98,843 94,728 94,43 84,27 85,927 2,873 Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ). Commercial Vehicles (Minitrucks) 277,295 284,346 258,23 25,69 257,775 26,96 242,469 29,4 25,486 94,452 29,62 8,665 95,92 22,893 2,3 82,33 5, 8,728,874,9,853,52,83,7,84,755,89,,923,7 2,23,69,99,89,869,893,688,,726,42,52,45,979,446 2,2,99 2,272,79,896,2,725,46,843,34 Chg. (%) 99.7 98.9 98.8 98.6 4.8.7.2 94.9 97.4 9.3 2.3 88. 3..7.6 83.4 9..8 Source: Japan Mini Vehicles Association,256 8,88 9,44 8,798 9,2 6,475 4,333 5,856 5,357 4,234 4,777 3,36 4,266 4,8 4,498 5,26 6,543 6,62,572,8 3,973 2,775,763,828 2,238,898 9,976 8,338 7,998 7,5 7,672 7,75 7,485 8,27 8,955 8,99 Buses Large Small Subtotal 27,828 9,836 23,387 2,573 24,925,33,57,754,333 2,572 2,775,65,938,256,983 3,387,498,593 Mini Chg. (%) Chg. (%) Vehicles Chg. (%) Vehicles Chg. (%) 4.2 87.4 97.5.4.9 97. 4.5 97.8 98.2 82..6 83.4 2. 94.3.5.7.8.6 4,,467 4,38,93 5,,5 5,556,834 7,777,493 6,865,34 5,963,42 5,852,67 5,82,235 4,69,256 4,956,36 4,2,29 5,369,72 5,375,53 5,562,888 5,46,5 4,97,258 5,234,5.9.9 97.3 2.2.2.2.7. 94.9 9.7.5 84.9 27.5. 3.5 9.7 98.5.3 2,844,554 3,72,63 4,2,2 4,28,32 5,975,89 5,49,44 4,95, 3,928,35 3,22,342 2,92,85 3,229,7 2,689,74 3,39,274 3,262,522 3,29,98 3,,3 3,244,798 3,39,824 4.9 8.8 93..3.4 4.8 2.7 99. 93.5 9.9.6 83.3 26. 96.2.8 95.8 3. 4.5,255,93 588,3,3,338,528,72,82,44,7,62,867,925,923,7,869,893,688,,726,42,52,45,979,446 2,2,99 2,272,79,896,2,725,46,843,34.7 82. 8.3 4.8.3.2 99.7.7 97.4 9.3 2.3 88. 3..7.6 83.4 9..8 97 975 98 985 99 995 2 25 28 29 2 2 22 23 24 2 2 2 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 8

Motor Vehicles Imported Vehicle Sales Imported Vehicle Sales Rise for Second Consecutive Imported vehicle sales in Japan in 2 totalled 35, units, up 2.% from the previous year, with passenger cars growing.8% to 333, units and commercial vehicles (trucks and buses) rising 9.4% to 8, units. Meanwhile, sales of used imported vehicles increased 5.4% to 56, units, with used imported passenger cars and used imported trucks climbing 5.6% to 54, units and.6% to, units, respectively. TRENDS IN IMPORTED MOTOR VEHICLE SALES 28 29 2 2 22 23 24 2 2 2 Vehicles produced 4, 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 Passenger Cars Commercial Vehicles Passenger Cars Commercial Vehicles 92,3,585 93,92 3,96,368 25,329 26,278 9,43,76,94 8,746 8,877,623 7,889 8,255,827 82,82 33,28 9,973 43, 23,283 23,8 2,57 25,857 56,97 2,88 69,787 26,77 239,546 2, 24,563 6,48 3,382 74,43 3,594 278,846,694 28,54 52,44 3,3 65,593 33,286 288,83,366 29,96 3,847 4,9 45,764 39,677 284,47,25 285,496 28,6 4,5 43,26 33,8 294,6,54 295,4 33,547,2 48,559 327,67 35,43,45 36,88 28,48,524 44,932 333,45 Commercial Vehicles Grand s Chg. (%) 2,953 29,23 82.7,638 8,527 8.4,8 225,83 26. 4,937 275,644 22.5,399 3,993 4.6 4,847 346,33 9.5,283 335,96 97.,54 328,622 97.8,66 343,673 4.6,569 35,2 2. Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Automobile Importers Association IMPORTED MOTOR VEHICLES (ON CUSTOMS CLEARANCE BASIS) 98 985 99 995 2 25 28 29 2 2 22 23 24 2 2 2 Passenger Cars Chg. (%) 46,285 7.4 52,225 8.3 25,9 28.6 4,836 36. 283,582 9.2 282,654 98.6 228,255 78.3 45,687 63.8 23,79 8.4 273,798 8.6 333,38 2.8 343,73 3. 336,764 98. 32,295 95. 33,27 3.4 336,95.7 Commercial Vehicles 547 38 9 2,469,47,42 4,288 9,88,922 4,85,,255,662,873,455 2,9 Other 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,85 546 76 39 376 66 796 593 78 8 948,348,278 82 65 672 Motor Vehicles Chg. (%) Motorcycles 47,9 72.2, 53, 8.4 7,87 252,84 28.6 28,696 44,695 3.3 43,936 285,428 9.3 74,96 284,734 98.4 444,635 243,339 82.8 43,8 5,368 63.8 367,727 243,493 6.7 353,26 288,799 8.6 386,949 349,435 2. 42,99 36,333 3.4 438,737 354,74 98.2 4,43 336,988 95. 353,59 349,33 3.7 34,254 357,73 2.4 458,4 Passenger SpecialPurpose Chg. (%) Trucks Cars Chg. (%) Vehicles Chg. (%) Other Chg. (%) 28 29 2 2 22 23 24 2 2 2 54,7 47,986 46,5 462,435 487,675 487,75 485,55 495, 52,294 54,946 92.9 93.3 97.9.3.5. 99.4 2. 3.5.6 2,44 2,547 3,38 4,37 4,636,428,6,373,736,984 99.4.9.6.4.9.4 98.2.4 2.4.6 3,292,83 7,878 6,756 5,469 4,724 3,963 3,649 3,3 2,946 75.6 75.9 78. 85.8 8. 86.4 83.9 92. 85. 94.9 355 5 82 4 248 22 85 22 2 53,798 493,78 482,49 483,725 58,28 58,22 54,359 54,363 53,335 56,38 92.6 93. 97.7.3.. 99.3 2. 3.3.4 Notes:. For motor vehicle classifications in Japan, see page 66. 2. Other includes buses, large specialpurpose vehicles and smallsized threewheeled trucks. 3. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Automobile Importers Association 9

Motor Vehicles Used Vehicle Sales Used Vehicle Sales Increase for First Time in 5 s In 2 sales of used motor vehicles were up 2.7% from the previous year to total 6.94 million units. Used passenger car sales grew 3.4% to 5.8 million units, with standard passenger cars climbing 4.3% to.8 million units, small cars increasing.5% to.59 million units, and minicars rising 4.% to 2.4 million units. Sales of used trucks and buses slid.8% and.%, to.4 million units and 3, units respectively. USED VEHICLE SALES BY TYPE IN 2 Buses 3,66 (.2%) Other 75,942 (.%) TRENDS IN NEW AND USED MOTOR VEHICLE SALES Used vehicles New vehicles x million units 9 Small 28,6 (3.%) Standard 6,629 (2.4%) Mini 656,73 (9.5%) Trucks,4,933 (.%) Standard,82,956 (26.%) 8 7 6 Mini 2,44,874 (34.8%) 6,937,58 (%) Passenger Cars 5,86,577 (83.7%) Small,588,747 (22.9%) 5 4 3 2 28 9 2 3 4 USED MOTOR VEHICLE SALES Standard Passenger Cars Trucks Buses Other Small Mini Subtotal Chg. (%) Standard Small Subtotal 985 99 995 2 25 28 29 2 2 22 23 24 2 2 2, 34,93 994,3,742,786 2,2,563,728,9,69,37,592,,542,64,688,66,666,732,63,42,668,429,729,94,82,956 3,295,92 3,945,86 3,845,76 3,5,87 2,46,4,944,766,855,7,8,696,733,59,826,335,74,725,653,24,62,79,564,982,588,747 356,726 34,782 727,259,448,546,89,4,995,333,864,874,873,466,96,523 2,33,725 2,255,56 2,367,235 2,354,77 2,322,533 2,44,874 3,8,968 4,554,6 5,566,646 6,24,49 6,353,27 5,668,89 5,339,3 5,282,272 5,82,656 5,648,666 5,663, 5,65,87 5,625,225 5,6,79 5,86,577.9.2.6 4.8. 95.4 94.2 98.9 98. 9..3 99.8 99.5 99.8 3.4 39,459 85,85 22,523 2,74 24,6 225,848 94,8 7,327 8,47 8,439 7,793 3,536 2,3,7 6,629 589,32 555,634 52,244 42,5 368,778 278,673 266,395 245,642 233,556 235,246 223,734 2,295 2,48 2,544 28,6,25,545,746,495,538,78,9,626 98,74 884,836 787,957 732,854 769,63 769,469 746,63 72,46 7,589 67,935 656,73,854,325 2,487,98 2,28,485,783,85,589,552,389,357,248,532,5,823,,639,3,4,38,8,,237,74,99,5,96,4,933 8.3 2. 2.2 99..8 95.2 89.9 92.6.4. 97. 96.7 97.6 97.8 99.2,655 3,377 3,327,3 8,87,93,293 4,3 3,849 4,799 2,83 2,53 3,3 3,24 3,66 3. 98.3.4 2.7 9.5 98.6 94.4 92.6 97.8.9 86.7 97.7..2 99. 44,62 54,8 84,49 3,475 44,9 4,5 95,452 87,238 82,7 82,484 8, 76,536 74,2 76,3 75,942.7.3 9..2.4 89.9 9.3 9.4 94..6 98.2 94.5 97. 2.4 99.9 5,722,568 7,9,536 7,945,867 8,23,98 8,,46 7,8,255 6,698,592 6,539,496 6,45, 6,99,3 6,895,2 6,84,4 6,786,84 6,756,22 6,937,58 3.3 4.7.4 3.5.3 95.3 93.3 97.6 98.6.3 99.7 99.2 99.2 99.5 2.7 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 (66cc2,cc), and mini (66cc and under); see page 66 for details. 2. Includes imported vehicles. 3. Other refers to emergency vehicles, special vehicles equipped with beds, refrigerated trucks, tank trucks, tractors, bulldozers, steamrollers, snowplows, snowmobiles, etc., that are assigned special registration numbers. 4. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Sources: Japan Automobile Dealers Association; Japan Mini Vehicles Association Mini Chg. (%) Chg. (%) Chg. (%) Chg. (%)

Motor Vehicles Motor Vehicles in Use and Motor Vehicle Density Continued Increase in Number of Motor Vehicles in Use At the end of December 2, motor vehicles in use in Japan (excluding motorcycles) totalled 78. million units, a.4% increase over the previous year. Passenger cars in use increased.7% to 6.8 million units, with standard and minicars growing 2.4% and.4% to 8.8 million and 22.2 million units respectively, but small cars dropping.7% to 2.8 million units. Meanwhile, trucks in use slipped.6% from 2 to 4.3 million units, whereas buses in use rose.5% to 233, units. At the end of March 2, the average service life of motor vehicles in Japan was 2.9 years for passenger cars, 4.37 years for trucks, and.39 years for buses. MOTOR VEHICLES IN USE BY TYPE AT END OF 2 Buses 233,466 (.3%) SpecialPurpose Vehicles,72,8 (2.2%) TRENDS IN MOTOR VEHICLES IN USE x million units 8 7 Small 3,5,383 (4.5%) Standard 2,356,279 (3.%) Mini 8,448,55 (.8%) Trucks 4,32,7 (8.3%) 78,77,869 (%) Standard 8,799,73 (24.%) Passenger Cars 6 5 4 3 Mini 22,,847 (28.4%) Passenger Cars 6,83,8 (79.2%) Small 2,842,558 (26.7%) (Minicars) Trucks, Buses & SpecialPurpose Vehicles (Minitrucks) 2 28 9 2 3 4 MOTOR VEHICLES IN USE (at end of every calendar year) 97 975 98 985 99 995 2 25 28 29 2 2 22 23 24 2 2 2 Standard 77,374 27,5 472,34 7,94,784,594 7,874,89 3,942,626,634,529,748,373,688,645,89,42,39,684,294,2,59,3,74,352,935,86 8,357,734 8,799,73 Small 6,457,8 4,4,68 2,,96 25,,9 3,554,652 3,3,462 28,593,49 26,254,546 24,356,3 23,99,9 23,47,3 23,43,892 22,868,749 22,435,835 2,974,74 2,547,282 2,95,62 2,842,558 Passenger Cars Mini 2,244,4 2,6,3 2,6, 2,,487 2,584,926 5,775,386 9,9,258 4,2,74,76,486,42,89,986,982 8,486,738 9,258,239 2,9,359 2,978,424 2,54,99 2,85,275 22,,847 Subtotal 8,778,972,236,32 23,659,52 27,844,58 34,924,2 44,68,37 52,437,375 57,9,789 57,864,972 58,9,853 58,347,387 58,67,34 59,42,9 6,35,297 6,667,5 6,987,342 6,43,63 6,83,8 Chg. (%) 26.6 8.7 4.4 2.6. 4.7 2.5 2..4.3.6.6.3...5.7.7 Standard 798,256,8,465,494,464,668,852 2,6,488 2,574,433 2,596,42 2,474,378 2,386,255 2,39,62 2,28,7 2,266,42 2,266,836 2,27,82 2,294,449 2,3,28 2,337,23 2,356,279 Small 4,478,486 6,,26 7,5,22 6,679,665 6,69,536 6,23,45 5,474,66 4,594,363 4,2,553 3,952,534 3,825,632 3,74,36 3,672,649 3,64,925 3,58,884 3,552,373 3,535,22 3,5,383 Trucks Mini 3,5, 2,785,82 4,527,794 8,79,289 2,535,4,642,3,4,427 9,665,3 9,47,694 9,288,679 9,7,282 8,963,64 8,895,635 8,88,49 8,748,653 8,634,637 8,539,7 8,448,55 Subtotal 8,28,759,43,853 3,7,479,39,86 2,32,439 2,43,49 8,225,58,733,87,896,52,56,825,284,625 4,97,422 4,835,2 4,73,886 4,624,986 4,53,28 4,4,953 4,32,7 Chg. (%). 98.9 4.8.5. 98.9 97.8 99.7 97.7 97.9 98.2 97.9 99. 99. 99.5 99.2 99.4 99.4 Notes:. Specialpurpose vehicles refers to emergency vehicles, special vehicles equipped with beds, refrigerated trucks, tank trucks, tractors, bulldozers, steamrollers, snowplows, vehicles. 3. Chg. (%) means change from the previous year (with the previous year s result indexed at ).

PRIVATE PASSENGER CARS IN USE PER HOUSEHOLDS BY PREFECTURE (at March 3, 2). Fukui 2. Toyama 3. Yamagata 4. Gunma 5. Tochigi 6. Ibaraki 7. Gifu 8. Nagano 9. Fukushima. Niigata. Yamanashi 2. Saga 3. Ishikawa 4. Mie. Tottori. Shizuoka. Iwate 8. Shimane 9. Shiga 2. Akita 2. Okayama 22. Tokushima 23. Kagawa 24. Kumamoto 25. Miyagi 26. Okinawa 27. Oita 28. Aichi 29. Miyazaki 3. Yamaguchi 3. Aomori 32. Wakayama 33. Kagoshima 34. Ehime 35. Kochi 36. Hiroshima 37. Nara 38. Nagasaki 39. Fukuoka 4. Hokkaido 4. Saitama 42. Chiba 43. Hyogo 44. Kyoto 45. Kanagawa 46. Osaka 47. Tokyo 44.5 National Average.2 4.9.2 8. 4.3.9.2 9.4 8.5 6.4 5.4 4.6 2. 49.2 46.6 45.3 4. 4.5 4.4 39.7 38.9 37.3 35.7 33.9 32.6 3.8 29.8 28.7 28.3 28.2 24. 22.8 2.9.5 2.9.6..7 8.8 8..8 98.9 98.9 9.6 82.7 72. 65. 5 2 Source: Automobile Inspection & Registration Information Association PASSENGER CARS IN USE BY YEAR OF FIRST REGISTRATION At March 3, 2 of First Registration April 2March 2 April 2March 2 April 24March 2 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 March 23 Vehicles in Use Vehicles in Use 2,866,925 2,63,7 2,58,77 2,846,32 2,68,35 2,424,667 2,324,947 2,46,2 2,4,862 2,95,3 2,8,487 2,23,376,955,692,58,238 6,676,293 39,49,965 AVERAGE AGE BY TYPE 28 29 2 2 22 23 24 2 2 2 Passenger Cars 7.23 7.48 7.56 7.74 7.95 8.7 8.3 8.29 8.44 8.53 Trucks 8.98 9. 9.62.4.43.73.93.9.23.32 AVERAGE SERVICE LIFE BY TYPE 28 29 2 2 22 23 24 2 2 2 Passenger Cars.67.68 2.7 2.43 2. 2.58 2.64 2.38 2.76 2.9 Trucks.72 3.5 2.72 3.4 2.8 3.24 3.3 3.72 3.89 4.37 % of Vehicles in Use 7.26 6.62 6.54 7.2 6.79 6.4 5.89 6.23 5.8 5.56 5.47 5.38 4.95 4..9. In years Buses.2.26.5.78.2.38.56.76.87.84 In years Buses.62..59.37.82.9.63.95.83.39 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 2,86,633 8,967 4,89 4,478,46 9,9 9,88 8,76 8,36,435,528,723 8,545,96 2, 2,672 Buses Small 83,85 24,98 23,387 22,26 3,849 28,6 25,437 2,8 2,873 9,637 9,35 8,53 8,55 8,24 8,399 9,293 2,3 2,794 Subtotal 87,98 226,284 23,2 23,228 245,668 243,95 235,483 23,733 23,68 228,397 227,27 225,948 226,79 225,927 226,944 229,389 232,32 233,466 SpecialPurpose Vehicles Chg. (%) Chg. (%).5.7.4.5.6 99. 99.9.3 99.9 99. 99.5 99.4. 99.9.5..3.5 333,32 584, 789,5 94,647,26,39,5,29,75,733,63,62,536,,5,4,52,593,646,23,643,325,653,956,669,9,684,382,72,6,72,8.5.7.4.5.6 99. 99.9 98.8 96.9 98.6 99.2 9.6 99.8.6.9.9..,58,843 28,9,558 37,856,4 46,7,26 57,697,669 66,853,5 72,649,99 75,686,455 75,528,3 75,324,486 75,36,876 75,52,887 76,25,533 76,69,66 77,88,466 77,44,33 77,75,52 78,77,869 Chg. (%).2 4.9 4.5 3.7 4.7 2.8.3.4 99.8 99.7..2.8.6.7.3.4.4 23,79 39,88 56,84 65,485 87,359 2, 33,676 47,626 7,95 2,38 2,834 4, 5,835 7,22 9,863 2,35 5,769 9,989 Three Wheeled Vehicles 243,934 47,998,724 6,23 4,56 3,62 3,827 3,28 3,9 3,27 3,2 3,89 4,8,478,376,39 8,494 9,457 97 975 98 985 99 995 2 25 28 29 2 2 22 23 24 2 2 2 snowmobiles, etc., that are identified as specialpurpose vehicles by special registration numbers. 2. Threewheeled vehicles includes threewheeled passenger cars, trucks, and specialpurpose Source: Ministry of Land, Infrastructure, Transport and Tourism Trailers 2

Motor Vehicles Exports Motor Vehicle Exports Increase for Third Consecutive Exports of motor vehicles in 2 totalled 4.7 million units, with passenger car exports rising 2.4% from the previous year to 4.22 million units while truck exports were tallied at 368, units and bus exports at 9, units. (Exceptionally, yearonyear increase/decrease rates for total exports as well as for truck and bus exports in 2 are not available owing to incomplete data; see note 4. below.) MOTOR VEHICLE EXPORTS BY TYPE IN 2 Small 42,287 (.9%) Mini (.%) Buses 9,2 (2.5%) TRENDS IN MOTOR VEHICLE EXPORTS x million units 7 6 Mini 3,76 (.%) Small 27,77 (5.8%) Standard 326,2 (6.9%) Trucks 368,47 (7.8%) 4,75,848 (%) Passenger Cars 5 4 3 Passenger Cars 4,28,429 (89.7%) Standard 3,944,646 (83.8%) Trucks & Buses 2 28 9 2 3 4 MOTOR VEHICLE EXPORTS 97 975 98 985 99 995 2 25 28 29 2 2 22 23 24 2 2 2 Standard 7,45,82,835 345,43 493,47,343,967,6,22 2,333,263 3,4,63 4,379,569 2,43,359 3,453,95 3,6,95 3,55, 3,564,559 3,593,94 3,759,77 3,87,859 3,944,646 Small 3,58,623 3,932,44 3,38,47,732,5,462,69,98,273,534,975 84,98 88,66 743,59 64,749 499,54 239,98 25,727 24,26 27,77 Passenger Cars Mini,36 5,45 2,24,3 8,44 52 292 885 3 2,755,2 6,735,49 2,456 4,55 5,367 3,76 Subtotal Chg. (%) 725,586 29.5,827,286.8 3,947, 27.2 4,426,762.2 4,482,3.8 2,896,2 86.2 3,795,852. 4,363,8 3.5 5,9,429.8 3,28,639 54.2 4,275,366 33.2 3,929,94 9.9 4,98,494.8 4,65,59 96.8 3,835,595 94.3 3,97,3 3.5 4,8,432 3.7 4,28,429 2.4 Standard 65, 8,37 332,257,96,973 944,737 62,654 53,823 52,848 567,596 267,6 397,44 369,973 4,25 397,694 48,859 392,53 339,82 326,2 Small 272,549 643,232,548,25,29,757 364,376 236,929 86,329 89,946 9,58 48,447 52,98 53,786 66,652 74,465 79,64 74,245 44,38 42,287 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 cost of compositional components per vehicle and have been treated as components since 988. 4. Export figures for December 2 do not include data from one JAMA member 3

MOTOR VEHICLE EXPORT TRENDS BY DESTINATION Asia Middle East Europe North America Latin America Africa Oceania Other (EU) (U.S.A.) 28 29 2 2 22 23 24 2 2 2 7,, 6,, 5,, 4,, 3,, 2,,,, Asia Middle East Europe (EU) North America (U.S.A.) Latin America Africa Oceania Other Chg. (%) 525,8 952,749,589,54 82,3 2,38,254 2,68,62 5,9 35,762 46,56,73 6,727,9 2.7 378,84 428,42 685,26 542,2,379,,22,732 244,96 45,3 347,394 8,389 3,6,8 53.8 576,44 583,684 936,496 568,58,727,35,53,26 396,499 88,644 425,26 7,86 4,84,46 33.9 572,4 49,7 995,33 52,84,585,327,426,833 358,375 48,599 379,747 4,92 4,464,43 92.2 572,976 525,954 848,688 4,286,886,386,698,2 346,86 8,36 448,969 5,452 4,83,59.6 54,4 584,62 79,39 37,35,887,5,79,793 362,23 9,352 47,294 5,454 4,674,633 97.3 56,34 625,78 744,38 452,322,662,,537,676 36, 83,86 375,672 7,665 4,465,624 95.5 529,29 684,886 737,58 524,77,749,28,64,446 3, 8,234 39,89 8,49 4,578,78 2.5 586,954 5,325 88,93 6,559,898,93,735,48 294,378 34,497 393,457 6,578 4,634,33.2 6,24 443,963 864,58 646,679,925,356,736,765 32,236 8,845 434,458 7,268 4,75,848 Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ). Trucks Buses Mini 3,892 22,7 73,7,374 8 276 78 2 4 8 2 Subtotal 35,6 833,673,953,685 2,238,4,39,2 849,859 6,87 6,956 658,28 3,57 45,32 423,767 476,99 472,9 488,473 466,776 383,959 368,47 Chg. (%) Chg. (%) Chg. (%) 2.9 95.3 37.2 8. 9.6 82.8.8 89..8 47.9 42.7 94. 2.5 99. 3.5 95.6 82.3 9,579,653 66, 65,66 39,96 44,734 4,3 77,937 3,444 92,22,782,742 28,8 36,935 4,556 4,299 3,642 9,2 4.6 4.3 9.4.7 3.7 6.8.3 39.6 26.3 6. 25.8 95.6.7.8 3.4 99.8 93.2,86,776 2,677,62 5,966,96 6,73,472 5,83,22 3,79,89 4,454,885 5,53,6 6,727,9 3,6,8 4,84,46 4,464,43 4,83,59 4,674,633 4,465,624 4,578,78 4,634,33 4,75,848 26.7 2.3 3.8.2 99. 85...9 2.7 53.8 33.9 92.2.6 97.3 95.5 2.5.2 97 975 98 985 99 995 2 25 28 29 2 2 22 23 24 2 2 2 Act. 2. Vehicle 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 manufacturer. 5. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Automobile Manufacturers Association 4

Motor Vehicles Exports by Destination An Increase in Motor Vehicle Exports to Oceania, Latin America, Europe, Asia, and North America Compared to the previous year, motor vehicle exports in 2 climbed to Oceania (434, units), Latin America (32, units), Europe (865, units), Asia (6, units), and North America (.93 million units), but declined to Africa (9, units) and the Middle East (444, units). (Exceptionally, yearonyear increase/decrease rates for export destinations in 2 are not available owing to incomplete data; see note on opposite page.) MOTOR VEHICLE EXPORTS BY DESTINATION IN 2 Europe 864,58 (8.4%) of which EU 646,679 (3.7%) North America,925,356 (4.9%) of which U.S.A.,736,765 (36.9%) Middle East 443,963 (9.4%) 4,75,848 (%) Asia 6,24 (2.8%) Latin America 32,236 (6.8%) Africa 8,845 (2.3%) Oceania 434,458 (9.2%) million units, units Note: The figure includes 7,268 units (.2%) shipped to other destinations., units MOTOR VEHICLE EXPORT TRENDS BY DESTINATION In % Asia 7.8.5.9 2.8.9.6 2.5.6 2.7 2.8 Middle East 4.2.8 2. 9.4. 2.5 4...8 9.4 Europe (EU) 23.6 (2.) 9. (.) 9.3 (.7) 22.3 (.7).7 (8.4).2 (7.9).7 (.). (.5).7 (3.2) 8.4 (3.7) North America (U.S.A.) 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) 38.2 (35.) 4. (37.5) 4.9 (36.9) Latin America Africa Oceania Other 7.7 5.2 6.8 2 6.8 4. 9.6.2 8.2 3.9 8.8. 8. 3.4 8.5. 7.2 3.5 9.3. 7.7 3.8 8.7. 6.9 4. 8.4.2 6.8 3.7 8.5. 6.3 2.9 8.5. 6.8 2.3 9.2.2 28 9 2 3 4

MOTOR VEHICLE EXPORTS BY DESTINATION & BY VEHICLE TYPE IN 2 28,799 95,786 75,99,488,244 25,77 8,587,73 4,583 4 27,752 4,268,924 52,85 3,396 42,67 33,9 97,453,388 56,4 34,692 2,96 6,9 92,476 4,45,475 4,736,347 57,245 43,2 9,783 22,775,927 332 4,74 49,474 8,595,7 33,922 6,29,22 2,956 684,99 83,26,69,286,873,32 95,49 8,435,746 7,523,88 4,936 9,864 3, 225,578 95 6,488 2 8 28,9,266 47,886 32,369 35,379 5,25 352,998 2,3 3,944,646 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 5,228 3,63 4,99 2,239 3,93,33,725 4,949,48 27,29 8 45 32 7,483 724 364 9,95,594 4,89 53,473 6,6 3,7,5 22,452 3,9,83 745,769 4,36 2,687 8,6 45,823 2,44 4,966 326 96 97 68 4,835 2,27,28 9,335,92 233 434 32 786 4,7 6,838 29,23 2,8 565,675 2,999 7,83 4 29,245 27,77 9 4 2 5 695 5 5 2,4 2,4 3 3 2,3 29 29 3,76 28,8 2,4 78,72,657,246 26,3 2,68 9,3,3 5,89 29,4 444,254 2,5 53, 3,44 42,739 4,393 98,7,494 56,579 35,838 23,555,98 45,949 2,5 2,9 59,927 28,799 6,335 59,985,528 24,544 2,233 3,9 48,88 638,437 2,77 2,77 34,248 7,9,29 3,574 842,45 85,233,77,44,892,647,6 8,668,8 7,835,64 46,652 9,864 36,974 254,838 953 6,488 2 8 3,9,83 49,56 333,368 43,29 5,666 382,243 2,3 4,28,429 234 3 9,5 5,243 6,56 7,54 3,636,222,99 8,334,34 9,865,627 8,659,964 2,576,53 4,57,78 3,339 65,983 3 5,98 7 2,95 8,98 3 7,339 4,57 488 2,833 3,358 27, 3,529,539 2 7,74 2,42 3,27 2,445,389 4,76 948 4,87 57 4,358 9,7 9,77 29,76 34,9 5,9 2,99 42,28 3,225 326,2 35 2,62 538 3,24,927 2 5,22 4,3 343 862 74 595 8,47 874 9 2,436,596,596 2,8 2,8 54 8,348 337,95 4,249 48,5 36 24,56 774 4,68 3,52 533 42 3,727 42,287 234 3 9,3 7,864 6,56 8,42,84 2,49,99 8,55 2,56,896,97 9,52 2,678 3,,53 22,7 2,592 4,24 78,49 3 5,98 7 2,95 8,98 3 8,935 4,57 488 22,429 3,358 29,35 32,79,8 2 7,92 2,42 4,68 2,782 3,294 46, 996 6,37 93 4,562,27,545 33,774 37, 5,723 3,5 45,945 3,225 368,47 84 89 9,623 26,82 27,68 4,3,43 3,327 5,54,39,495,8 2,973 4,352,652,378 4,76 44 44 44 8,54 8,264 2,3 48 6,2 9,388,548 78 5 8,87 4,397 25,5 3,9 649 2,52 6,27 2,4 9,2 29,34 22,5 88,82 25,43,925 34,69 39,62 58,797 36,453,7 53,297 6,24,4 74,26 34,936 58,883 42,923 25,246 2,738 72,97 443,963 23,555,98 45,95 2,524 2,9 59,927 28,799 6,335 65,893,539 24,544 2,347 3,9 5,75 646,679 2,7 2,77 43,83,597,77 3,574 864,58 88,59,736,765,925,356 35,645 8,67 25,2,4 23,522 49,842 9,864 56,38 32,236,949 4,47 93 4,78 6,23 26,773 8,845 373,648 49,58,229 434,458 7,268 4,75,848 Source: Japan Automobile Manufacturers Association Passenger Cars Standard Small Mini Subtotal Trucks Buses Destination Standard Small Mini Subtotal E U Note: Export figures for December 2 do not include data from one JAMA member manufacturer.

Motorcycles Production Motorcycle Production Expands for Second Consecutive Overall domestic motorcycle production in 2 rose.4% over the previous year to 647, units. Class motordriven cycles (5cc and under) surged 3.9% to 3, units, Class 2 motordriven cycles (5cc to 25cc) grew 7.% to 34, units, minisized motorcycles (26cc to 25cc) rose 7.9% to 79, units, and smallsized motorcycles (over 25cc) increased 3.4% to 44, units. The combined total for larger motorcycles (all those over 5cc) climbed 2.% to 5, units. MOTORCYCLE PRODUCTION BY ENGINE CAPACITY IN 2 TRENDS IN MOTORCYCLE PRODUCTION x million units 2 5cc & Under 3,49 (2.%).5 Over 25cc 44,6 (62.5%) 646,983 (%) 5cc25cc 33,665 (5.2%) 26cc25cc 78,993 (2.2%) Over 5cc.5 5cc & Under 28 9 2 3 4 MOTORCYCLE PRODUCTION 97 975 98 985 99 995 2 25 28 29 2 2 22 23 24 2 2 2 MotorDriven Cycles Class (5cc & Under) 895,599,3,822 2,493,9 2,4,85,343,22 95,83 636,546 298,549 2,928 8,4 87,53 4,936 9,886 74,94 76,569 66,438 99,39 3,49 MotorDriven Cycles Class 2 (5cc25cc),47,25,887,7 2,8,26,373,423 686,734,38,938 63,22 26,343 28,38 57,424 8,63 64,57 39,569 27,67 3,529 3,886 3,465 33,665 Over 5cc MiniSized Motorcycles (26cc25cc) 259,45 33,733 66,83 469,728 27,34 2,738 297,433 279,274 92,863 25,384 8,95 4,636 9,925 88,8 93,536 76,945 73,94 78,993 SmallSized Motorcycles (Over 25cc) 385,723 552,29,98,577 678,346 56,637 544,76 85,9 953,49 742,667 353,676 387,82 365,8 373,93 372,59 395,424 348,25 356,558 44,6 Subtotal Chg. (%) 2,52,73 2,77,725 3,94,64 2,52,497,463,675,8,436,778,845,493,36,63,9 536,484 576,662 534,25 54,587 488,369 52,489 455,956 46,2 5,834 2,947,672 3,82,547 6,434,524 4,536,347 2,86,895 2,753,239 2,4,39,79,585,226,839 644,9 664,5 639,87 595,473 563,39 597,58 522,394 56,536 646,983 4.4 84.3 43.8 2.7.4..3 3. 73.2 52.6 3. 96.2 93.2 94.6. 87.5.3.4 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 988. 2. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Automobile Manufacturers Association

Motorcycles Sales Motorcycle Sales Show First Increase in 4 s Domestic motorcycle sales (defined here as exfactory shipments to domestic dealers, not as new registrations) in 2 totalled 357, units, up 5.7% from the previous year. By engine capacity, whereas sales of Class 2 motordriven cycles (5cc to 25cc) decreased 2.5% to 89, units, sales of Class motordriven cycles (5cc and under), minisized motorcycles (26cc to 25cc), and smallsized motorcycles (over 25cc) increased 7.5% to 4, units, 42.3% to 57, units, and 7.5% to 37, units, respectively. Overall sales of motorcycles with engine capacity over 5cc totalled 83, units, an increase of 4.% over 2. MOTORCYCLE SALES BY ENGINE CAPACITY IN 2 TRENDS IN MOTORCYCLE SALES x million units Over 25cc 36,789 (.3%).75 26cc25cc 57,45 (.%) 357,264 (%) 5cc & Under 4,259 (48.8%).5 5cc25cc 88,765 (24.8%) 5cc & Under.25 Over 5cc 28 9 2 3 4 MOTORCYCLE SALES (SHIPMENTS TO DOMESTIC DEALERS) Over 5cc 98 985 99 995 2 25 28 29 2 2 22 23 24 2 2 2 MotorDriven Cycles Class (5cc & Under),978,426,646,,23,52 884,78 558,459 47,922 295,98 255,56 23,247 257,45 246,95 238,786 228,98 93,842 2,3 4,259 MotorDriven Cycles Class 2 (5cc25cc) 2,238 3,574 9,68 38, 2, 88,747 2,99 65,888 96,368 95,72 9,29,947 96,249 94,85,424 88,765 MiniSized Motorcycles (26cc25cc) 88,88 3,887 8,882 98,833 72,886 99,658 55,674 37,8 27,275 3,767 39,77 47,788 53,72 48,5 4,383 57,45 SmallSized Motorcycles (Over 25cc) 3,84 45,674 76,92 9,86 46,4 47,86 49,743 22,48 25,352 2,9 25,82 3,877 38,484 35,488 34,2 36,789 Note: Chg. (%) means change from the previous year (with the previous year s result indexed at ). Subtotal Chg. (%) 39,6 45,35 45,42 328,34 22,48 235,59 226,47 25,2 48,995 48,488 5,8 8,62 87,85 8,854 6,8 83,5 2,37,36 2,96,25,68,933,22,852 779,877 76,53 522,3 38,777 38,242 45,533 4,895 49,398 4,723 372,696 338,48 357,264 22.7 2.6 97.6.6 93.2.9 76.3 72.9 99.9.7 99. 4.4 99.4 89.4 9.7.7 Source: Japan Automobile Manufacturers Association 8

Motorcycles Motorcycles in Use Million Motorcycles in Use At March 3, 2, motorcycles in use in Japan totalled.96 million units, down 2.3% from the previous year. By engine capacity, Class motordriven cycles, accounting for 5.2% of all motorcycles in use, dropped 4.8% to 5.62 million units and minisized motorcycles slipped.5% to.96 million units in 2, whereas Class 2 motordriven cycles and smallsized motorcycles in use rose.2% and.8%, to.74 million and.64 million units respectively. Thus, motorcycles over 5cc in use increased.5%, to a total of 5.34 million units. MOTORCYCLES IN USE BY ENGINE CAPACITY (at March 3, 2) TRENDS IN MOTORCYCLES IN USE (at March 3 yearly) x million units 2 Over 25cc,64,58 (.%) 2 26cc25cc,96,9 (.9%),955,96 (%) 5cc & Under 5,6,36 (5.2%) 5cc & Under 8 5cc25cc,737,9 (.9%) Over 5cc 4 28 9 2 3 4 MOTORCYCLES IN USE (at March 3 yearly) 97 975 98 985 99 995 2 25 28 29 2 2 22 23 24 2 2 2 MotorDriven Cycles Class (5cc & Under) 3,727,426 4,85,4 8,794,335 4,69,399 3,539,269,5,39 9,643,487 8,566,63 7,92,5 7,694,9 7,448,862 7,4,455 6,899,459 6,66,87 6,438,2 6,88,7 5,899,276 5,6,36 MotorDriven Cycles Class 2 (5cc25cc) 4,43,745 3,32,88 2,28,6,747,957,5,228,42,3,337,395,353,732,429,738,479,588,5,44,54,667,582,925,626,94,674,884,74,83,7,92,737,9 Over 5cc MiniSized Motorcycles (26cc25cc) 583,3 492,37 56,567,47,426,669,77,823,446,74,522,857,439,976,829,996,3,992,939,975,623,959,845,969,87,98,4,978,462,97,47,96,9 SmallSized Motorcycles (Over 25cc) 9,77 276,7 383,639 775,627,45,59,7,229,288,399,397,392,478,724,55,34,524,6,535,8,542,856,566,34,595,335,6,89,628,46,64,58 Subtotal Chg. (%) 5,24,832 3,9,84 3,,22 3,57, 4,232,58 4,42,76 4,33,3 4,68,563 4,885,29 4,98,23 5,28,555 5,5,47 5,85,626 5,,622 5,25,63 5,293,634 5,3,24 5,34,6 8,852,258 8,752,98,965,547 8,8,49,77,787,587,96 3,973,83 3,5,6 2,787,342 2,675,22 2,477,4 2,25,926,985,85,823,429,688,632,482,344,2,3,955,96.5.9 9.8 4.8 97.6 98. 98. 99.3 98.9 99. 98.4 97.8 98.2 98.7 98.9 98.2 97.7 97.7 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

Motorcycles Exports Motorcycle Exports Post Second Straight of Growth Motorcycle exports in 2 grew 8.% from the previous year to 463, units. By engine capacity, exports of Class motordriven cycles rose 3.3% to, units and smallsized motorcycles climbed 2.4% to 363, units, whereas Class 2 motordriven cycles and minisized motorcycles fell.9% and 2.%, to 25, units and 59, units respectively. MOTORCYCLE EXPORTS BY ENGINE CAPACITY IN 2 TRENDS IN MOTORCYCLE EXPORTS x million units.6 5cc & Under,559 (3.6%) 5cc25cc 25,395 (5.5%).2 463,23 (%) 26cc25cc 58,6 (2.6%).8 Over 25cc 362,558 (78.3%) Over 5cc.4 28 5cc & Under 9 2 3 4 MOTORCYCLE EXPORTS 97 975 98 985 99 995 2 25 28 29 2 2 22 23 24 2 2 2 MotorDriven Cycles Class (5cc & Under) 326,8 288,843 5,27 369,7 47,3 6,627 82,38 57,86 36,234 4,493,522 9,745,794 2,56 2,778,76,3,559 MotorDriven Cycles Class 2 (5cc25cc) 94,325,546,,97,48,35,42 57,84 69,433 549,4 97,378 95,4 44,78 48,976 45,853 35,579 27,676 29,77 3,823 3,8 25,395 Over 5cc MiniSized Motorcycles (26cc25cc) 87,85 328,33 548,36 296,865,222 29,96 24,59 7,824 49,53,298 85,56 83,594 69,963 64,566 63,89 59,85 59,85 58,6 SmallSized Motorcycles (Over 25cc) 39,277 527,344 972,226 525,38 4,38 442,689 85,58 899, 72,39 383,38 347,46 355,793 355,827 326,95 359,44 3,24 322,62 362,558,4,787 2,4,827 3,428,3 2,2,3,36,443,264,83,559,39,274,363 965,953 529,386 48,942 485,24 46,369 48,337 452,86 45,888 42,588 446,564,737,62 2,69,67 3,929,4 2,54,482,83,744,325,7,64,7,332,223,2,87 543,879 493,464 54,985 479,3 43,897 465,584 4,649 428,69 463,23 Subtotal Chg. (%) 33.8 83. 44. 9.7.3 94.2..4 8.3 54.3 9.7 2.3 94.9 89.9 8. 89.7 2.6 8. 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 988. 4. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Automobile Manufacturers Association 2

Motorcycles Exports by Destination An Increase in Motorcycle Exports to Latin America, Asia, Europe, and North America Compared to the previous year, motorcycle exports in 2 climbed to Latin America (25, units), Asia (34, units), Europe (225, units), and North America (32, units), but declined to the Middle East (5, units), Africa (4, units), and Oceania (29, units). MOTORCYCLE EXPORTS BY DESTINATION IN 2 Europe 224,762 (48.5%) of which EU 22,247 (45.8%) North America 3,56 (28.4%) of which U.S.A. 2,43 (24.3%) Middle East 4,682 (.%) 463,23 (%) Asia 33,569 (7.3%) Latin America 24,779 (5.4%) Africa 4,439 (3.%) Oceania 29,332 (6.3%), units, units, units MOTORCYCLE EXPORT TRENDS BY DESTINATION Asia 5. 4.9.8 9.6 8.3 7.7.2 Middle East.7.8.8 4.5.9 5.7.8 7..2 In % 5.9 7.3.4. Europe (EU) 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) 4.9 (38.) 47. (44.) 48.5 (45.8) North America (U.S.A.) 4.9 (37.2) 33.6 (29.5) 2.5 (.8) 35.5 (32.6) 38.4 (34.8) 4.4 (36.4) 39.4 (34.9) 32. (27.6) 3.2 (26.) 28.4 (24.3) Latin America Africa Oceania 6.3 3.4 6.7 4.6 4.5 8.2 7.9 5.2. 9. 4.2 8.2. 4. 7.3 7.9 3.6 7.4 5.8 3.6 7.2 6.7 4.9 7.2 4. 4.4 7. 5.4 3. 6.3 28 9 2 3 4 2

MOTORCYCLE EXPORTS BY DESTINATION & BY ENGINE CAPACITY IN 2 Asia Middle East Europe North America Latin America Africa Oceania Grand s South Korea China Taiwan Hong Kong Thailand Singapore Malaysia Philippines Indonesia Other Subtotal Saudi Arabia Israel United Arab Emirates Other Subtotal Sweden Denmark UK Netherlands Belgium France Germany Portugal Spain Italy Poland Austria Hungary Greece Slovenia Czech Republic Other Subtotal Norway Switzerland Turkey Russia Other Subtotal Canada U.S.A. Subtotal Mexico Guatemala Panama Colombia Peru Chile Brazil Argentina Other Subtotal Guinea Togo Mali Niger Dem Rep Congo Ethiopia Kenya Uganda South Africa Other Subtotal Australia New Zealand Other Subtotal 9 3 3 39 39 2 2 33 3 57,437 555 288 47 36 66 2,529 42 72 2,643,3 9,52,82 99 6 6 8 45 6 352 39 2 5 2,28 475 2 2,5,559 6 953 3 6 278,469 44 66 2 3 43 2 87 2,9 59 98 28 4 2 4,63 5 28 8 4,49,56 8,265 9,826 4 8 8 2 45 6 264 94 667 86 756 96 46,2 4 6 97,289 5,57 2,54 997 33 3,57 25,395 4 36 68 4 4 46 5,438 35 6,846 8 3 22 4 382 229 63 59 2,423 48 2,42,244 3 239,244 6 45 7 25 98 247 8,88 36 26 32 9,47 3,423 2,266 23,689 43 743 48,353 98 467 823 822 4,967 262 643, 869 8,598 82 2 896 593 6,243 5,48,683 3 7,337 58,6 3,493 759 4,445 2,425 6,828 2,353 2,6,34 2 79 25,34 325 2,593 367 8 4,,29 68,25 27,569,52 56,9 36,364 2,92,96 36,33 733 596,56,76,2,4 982 96,847 738 7,83 3,58 873 24 28,823 2,862 74,362 87,224 2,38 87 26 3,29 48,49 6,658 4,53 927 8,793 3 9,63 959 2,575 4,66,677 6,99 362,558 3,53 759 5,398 2,576 7,476 2,659 2,635,486 5,888,69 33,449 377 2,79 589 869 4,625,522 743,795 3,863,668 6,24 38,99 2,223,298 37,765 793 64,647,747,3,24,249 29,78 774 7,494 3,96 93 24 222,9,846 2,893 2,739 2,834 948 49 4,462 266,76 6,764 5,4,843 24,427 348,399 2,9,329,92,67 346 62 2,696 2,84 4,388 22,88 4,357 372 26,8 446,564 3,52 759 5,398 2,66 7,476 2,659 2,638,525 5,888,8 33,569 398 2,79 622 872 4,682,522 743,795 3,863,668 6,678 38,754 2,223,586 37,92 793 64,647,783,366,24,249 22,247 774 7,536 3,8 93 24 224,762 9,47 2,43 3,56 2,933 954 49 4,462 326,842 6,764 5,85,94 24,779 348,399 2,9,329,92,67 346 62 2,735 2,853 4,439 24, 4,832 384 29,332 463,23 Source: Japan Automobile Manufacturers Association E U MotorDriven Cycles Class (5cc & Under) Destination MotorDriven Cycles Class 2 (5cc25cc) MiniSized Motorcycles (26cc25cc) SmallSized Motorcycles (Over 25cc) Subtotal Over 5cc 22

Automobiles and Society Road Safety National Initiatives Japan s th 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. The provisions of the tenth national road safety plan (222) are premised on the ultimate goal of eliminating road accidents altogether and were formulated on the basis of three guiding principles, namely: ) the overarching priority of protecting human life, with a particular emphasis on promoting road safety for children, the elderly, and the disabled; 2) the application of advanced technologies to improve road safety; and 3) the promotion of research activity and technological innovation targeting greater road safety. JAPAN S ROAD SAFETY TARGETS To reduce the annual number of road fatalities to 2,5 or fewer by 22, and thus to make Japan s roads the safest in the world. To reduce the annual number of road injuries (including fatalities for deaths occurring within 24 hours of accident) to 5, or fewer by 22. Automobiles and Society Road Safety JAMA Initiatives JAMA Initiatives in Promoting Greater Road Safety Road safety involves three factorsroad users, road infrastructure, and vehicles. Accordingly, those three factors are the focus of JAMA s and its member manufacturers road safety activities. While the automakers vehiclerelated measures for increased active and passive safety are detailed elsewhere (see page 28), JAMA s activities targeting greater road safety awareness among road users as well as improvements in road infrastructure are summarized here. JAMA regularly submits to Japan s relevant authorities recommendations on road infrastructurerelated measures for greater safety and convenience in road use. PROMOTING GREATER ROAD SAFETY AWARENESS. Through road safety promotional campaigns Every year in spring and autumn, JAMA carries out its own road safety campaigns (whose launch dates are intended to coincide with the start of the central government s National Police Agencyconducted semiannual traffic safety campaigns) which promote specific measures for increased road user safety, including the early use of headlamps at dusk, the appropriate use of highbeam headlamps, the secure fastening of motorcycle chinstraps, and the use of seatbelts by all vehicle occupants including rearseat occupants. 2. Through handson driver education programs Together with the Japan Automobile Federation and the Japan Traffic Safety Association, JAMA conducts the Safe Driving Training Program, featuring handson training sessions to heighten drivers awareness of safe driving practices, and the Senior Drivers School Program, focusing on its elderly participants driving habits to raise their awareness of the impacts of agingrelated physical changes on driving practices. To gain experience with advanced safety features, participants in both programs also drive vehicles equipped with such features. 3. Through original road safety educational materials targeting elderly drivers JAMA has developed study materials for a refresher course for elderly drivers in which issues related to safe driving are examined and information and tips on safe driving practices are provided, to promote their continued enjoyment of automobile use and its benefits. JAMA also provides a training course for instructors who utilize these materials. 23

Automobiles and Society Road Safety Status of Road Accidents Road Fatality Lowest Ever on Record; Road Accidents and Resulting Injuries Drop for Thirteenth Straight In 2 road fatalities (defined here as deaths occurring within 24 hours after accident) in Japan dropped to 3,694, the lowest level recorded since the start of road fatality data compilation in 948 by the National Police Agency. Road accidents and road injuries also declined, for the thirteenth consecutive year, to 472,5 and 58,847 respectively. Seatbelt use is a major contributing factor to reduced fatalities and reduced injuries in road traffic accidents. The June 28 revision to the Road Traffic Act requires all automobile occupants, including rearseat occupants, to use seatbelts. Although the rate of use of rear seatbelts in 2 stood at 36.4% on regular roads and at 74.4% 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 2,, 2, Injuries (Number of persons),5,, Fatalities (Number of persons),,, Accidents (Number of accidents) 5, 5, 97 975 98 985 99 995 2 25 2 2 ROAD ACCIDENTS/INJURIES/FATALITIES (exact figures) 97 975 98 985 99 995 2 25 2 23 24 2 2 2 Accidents 78,8 472,938 476,677 552,788 643,97 76,794 93,95 934,346 725,924 629,33 573,842 536,899 499,2 472,5 Injuries (Number of persons) Fatalities (Number of persons) 98,96,765 622,467,792 598,79 8,76 68,346 9,26 79,295,227 922,677,684,5,77 9,73,7,3 6,937 896,297 4,948 78,492 4,388 7,374 4,3 666,23 4, 68,853 3,94 58,847 3,694 Source: National Police Agency SEATBELT USE RATES BY SEAT POSITION Driver s seat 28 Front passenger s seat Rear seat Regular Roads 95.9 96.6 97.3 97.5 97.7 98. 98.2 98.4 98.5 98.6 89.2 9.8 92.2 92.7 93.2 93.9 93.9 94.6 94.9 95.2 3.8 33.5 33. 33.2 33.2 35. 35. 35. 36. 36.4 9 2 3 4 Expressways 99. 99.2 99.2 99.3 99.5 99.4 99.5 99.4 99.5 99.5 96.4 96.9 97. 97.3 97.7 97.9 98. 98. 98. 98.3 62.5 63.4 63.7 63.5 65.4 68.2 7.3 7.3 7.8 74.4 In % 28 9 2 3 4 Notes:. The survey on seatbelt use is conducted annually in October. 2. 2 survey samples totalled roughly 47, on regular roads and 88, on expressways. Sources: National Police Agency; Japan Automobile Federation 8 6 4 2 8 6 4 2 ROAD ACCIDENTS IN 2 BY ROAD CONFIGURATION Number of accidents Straightaway 95,69 (4.3%) Other 2,74 (4.6%) Number of Accidents 472,5 (%) Near intersection 64,82 (3.7%) Within intersection 9,536 (4.4%) Intersection 255,356 (54.%) Notes:. Straightaway includes some curves and tunnels. 2. Other includes railroad crossings. Source: National Police Agency 24

Automobiles and Society Road Safety ITS and ASVs Wider ITS Applications and Advanced Safety Vehicle Technologies Intelligent Transport Systems aim to radically improve transport safety, efficiency and convenience through the use of information and communication technologies integrating road users, road infrastructure, and vehicles. In 996 the Japanese government formulated its Comprehensive Concept for the Promotion of ITS, on the basis of which it has promoted, as a national project, ITS development in a number of areas. Advanced navigation systems are already widely in use, as are ETC (electronic toll collection) and smart highway toll stations using ETC exclusively. A wide range of technologies developed on the basis of Advanced Safety Vehicle (ASV) research are also in application. The PublicPrivate ITS Initiative/Roadmaps policy initiative formulated by the Japanese government in June 24 (and updated in May 2) details measures to be taken for further ITS development under publicprivate cooperative efforts, with the focus on ITS and automated driving systems development, data utilization strategies to facilitate automated driving, and expanded use of road traffic data. To achieve the stipulated goals, coordinated interministerial and interagency efforts, including the upgrading of communication infrastructures, are required. INTRODUCTION OF ROADTOVEHICLE DRIVING SAFETY SUPPORT SYSTEMS ( DSSS ) Incorporating ITS technologies, roadtovehicle systems providing driving safety support and cruise assistance have been in operation in Japan since 2. More recently, ETC 2., an advanced electronic toll collection system that also provides drivers with realtime information on traffic conditions, has been introduced, for use on intercity and intracity expressways. DSSS SYSTEM FEATURES (EXAMPLES). Oncoming traffic warning (here, on right turn) ETC 2. DEVICEBASED SYSTEM FEATURES (EXAMPLES) 2. Signal recognition enhancement system Visual traffic congestion ahead warning Visual sharp curve ahead warning Audio warning Audio warning Source: Universal Traffic Management Society of Japan Sources: Ministry of Land, Infrastructure, Transport and Tourism, etc. EXPANDING AVAILABILTY OF ASV TECHNOLOGIES IN THE MARKET In the area of safedriving assistance using ITS technologies, a wide range of vehicle safety features, including adaptive frontlighting systems, lanekeeping assist systems, fullrange adaptive cruise control systems and collisionmitigation braking systems, have been developed based on the results of research conducted on the Advanced Safety Vehicle (ASV) concept. Most of these advanced technologies have already been introduced to the market (see page 28 for details on the status of their onboard installation). PRACTICAL APPLICATION OF ASV TECHNOLOGIES. LaneKeeping Assist Sensors (cameras) positioned on the vehicle monitor the road ahead and, through auxiliary control of the steering wheel, help keep the vehicle centered in the lane whenever the vehicle deviates from its course because of, for example, a crosswind or road surface unevenness. Lanekeeping assist Lane departure warning Area monitored Area monitored 2. FullRange Adaptive Cruise Control Information from front sensors helps a vehicle keep a safe distance from the vehicle ahead through brake or speed control according to a preset vehicle speed. Monitoring of distance to the vehicle ahead When vehicle ahead slows down, auxiliary braking is activated. 25

3. CollisionMitigation Braking System (precrash safety) Based on the distance from and speed relative to the vehicle ahead obtained principally by means of radar technology, the system s electronic control unit calculates the risk of collision. In the event of such a risk, multiple warnings are emitted and auxiliary braking is applied. When a collision is imminent, full braking power is applied and seatbelts are retracted automatically. 4. Vehicle Perimeter Monitoring & BlindCorner Monitoring In blindcorner monitoring (bottom image), front cameras with builtin prisms transmit both left and right views to the incabin display screen. Sideview camera Radar sensors and a camera continuously monitor the distance to the vehicle ahead. Forwardview camera Rearview camera Sideview camera Auxiliary braking activated When the distance to the vehicle ahead narrows dangerously, multiple warnings are emitted and auxiliary braking is automatically applied. Full braking power activated When a collision is imminent, full braking power is automatically applied and seatbelts are rapidly retracted. Automobiles and Society Road Safety Safety Support Cars Promoting Public Awareness of Safety Support Cars Japan s Ministry of Economy, Trade and Industry, Ministry of Land, Infrastructure, Transport and Tourism, National Police Agency and Financial Services Agency, as well as automobilerelated organizations, have been working cooperatively to promote the widespread use of safety support cars (or sapocars for short) equipped with advanced safety features such as automatic braking to help drivers of all ages avoid road accident occurrence and to mitigate damage/injury when accidents do occur. In line with this effort, Japan s automakers have upgraded advanced safety technologies and expanded their onboard installation rates, and aim to offer automatic braking and accelerator suppression for pedal misapplication as standard or optional equipment in all newmodel passenger cars by 22. Meanwhile, they are actively providing opportunities for testdriving safety support cars in order to raise public awareness of them. THE SAFETY SUPPORT CAR Ver. CONCEPT Safety Support Car (or Sapocar ) Safety Support Car S (or Sapocar S ) Sapocar S Classification The Sapocar S concept has three subclassifications, based on the safety features installed. Type: Wide Automatic braking (pedestrian collision avoidance) Accelerator suppression for pedal misapplication () Lane departure warning (2) Advanced headlamp control (3) Passenger cars equipped with automatic braking; suitable for all drivers Passenger cars equipped with automatic braking and accelerator suppression for pedal misapplication; suitable especially for elderly drivers Type: Basic + Type: Basic Automatic braking (vehicle collision avoidance) Accelerator suppression for pedal misapplication () Automatic braking (vehicle collision avoidance) for lowspeed vehicle operation (4) Accelerator suppression for pedal misapplication () () In automatictransmission vehicles only. (2) Including lanekeeping assist. (3) Automatic hightolowbeam headlamp control, glarefree high beam headlamp control, or adaptive frontlighting system. (4) 3km/h or lower. 26

Automobiles and Society Road Safety Vehicle Safety Equipping More Vehicles with Advanced Safety Features 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. For example, 66.2% of the totality of passenger cars produced in 2 for the domestic market were equipped with forward collisionmitigation braking systems (including those for lowspeed vehicle operation) and 47.% with systems enabling accelerator suppression in the event of pedal misapplication. Automakers also continuously seek to increase passive safety through enhanced structural safety and vehicle features designed to mitigate injury when accidents do occur. SAFETY FEATURE ONBOARD INSTALLATION STATUS (for passenger cars produced in 2 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) Backingup 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 Forward collisionmitigation braking system Forward collisionmitigation braking system (for lowspeed vehicle operation) Accelerator suppression for pedal misapplication Adaptive cruise control Adaptive cruise control with lowspeed following mode Fullrange adaptive cruise control Lanekeeping assist Backingup monitoring (parking assistance) Navigatorbased gearshift control Precrash seatbelts Electronic stability control Traction control with antilock braking system Navigatorbased stop sign alert with brake assist Rearwardapproachingvehicle warning Emergency braking warning Vehicle proximity warning (for HVs/EVs) (3) Automatic hightolowbeam headlamp control Glarefree high beam headlamp control Backingup monitoring (movingobject warning) Backingup collisionmitigation braking system Vehicle perimeterbased collisionmitigation braking system (for lowspeed operation) Rear collisionmitigation braking system Lane departure prevention Side airbags Curtain airbags Active head restraints ISOFIX anchorages (for child safety seats) Threepoint seatbelt for rear center seat (4) Automatic collision notification (ACN) Advanced automatic collision notification (AACN) Installation Status In no. of models () In % (2) In % (2) () 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 2 a total of 9 hybrid/electric car models (,994,32 vehicle units) were produced. (4) In 2 a total of 3 passenger car models (2,75,948 vehicle units) were produced, excluding mini and other passenger cars which are not eligible for rear seat inclusion. Notes:. Passenger cars here include minicars. 2. Criteria for inclusion in the calculations whose results are shown here were revised in 2. Source: Japan Automobile Manufacturers Association 8 8 29 5 29 34 53 5 32 2 8 45 92 3 95 5 83 55 3 4 38 3 2 3 6 32 5 48 25 3 23 45 42 39 3 7 35 28 (8) (8) (8) (29) (75) () (3) (4) (8) (5) () (3) (4) () (8) (8) () (8) () (3) (3) (9) (2) (8) () () (3) (4) (48) (3) (4) (99) (48) (9) (2) (2) () () () (9) (7) (66) (3) (5) (35) (2) (8) 98.9 63.7 98.9.9 9.7.9 73.6 29. 27.5.6.5.5 9.9 24.7 55.5 5.5.6 52.2 28. 45.6 3.2.5 22. 2.9 9.3 7. 8.2 94.5 84. 3.3.6 63.7 45.9 26.4 8.2 3.7.6 8.8 2.6 24.7 78. 76.4 72. 97.3 88.2 9.3.4 3,728,4 2,723,376 3,737,3 656,388 2,24,57,752,655,837 437,93 496,332,46 25 28,9 9,98 6,74,968,965,72,54 984,8,78 663,594,763,724 52,5 55,686 586,543 588,355 8,28 68,683 4,874 3,538,834 3,25,525 29,722 367,567 3,,628 925,829 774,27 96, 27,96 23,93 36,27 382,33 586,23,6,595,347,884 3,3,37 3,7,988 2,443,337 96,83 265,898 82 3,744,64 99.6 72.7 99.8.5 59.9 2.7 44.2.7 3.3 4.6. 5.8 2.5.4 52.6 45.9. 48.5.7 47. 3.9 4.7.7.7 2..8.4 94.5 83.5.8 9.8 8.2 46.4 2.7 2.6 5.5.6 9.6.2.7 42.8 36. 8.9 99. 88.8 2.6 7. 27

Automobiles and Society Automated Driving The Transition to Automated Driving JAMA S VISION OF AUTOMATED DRIVING In November 2, JAMA released a roadmap for achieving safe and efficient road transport for all road users in Japan through the use of automated driving. Targeting the elimination of accidents and congestion and optimized road and vehicle use for people and the transport of goods, the roadmap envisions the wider introduction of automated driving functions in the leadup to 22; between 22 and 23, the expanded application of automated driving technologies in various driving environments; and by 25, predicated on full public acceptance which Japan s automakers will promote, a comprehensive deployment of advanced levels of automated driving, the result of integrated efforts on the part of industry, government, and academia. ACHIEVING THE ZEROS RESOLVING RELATED ISSUES Zero accidents Zero congestion Enabling optimally accessible mobility Through optimally efficient Enabling optimally efficient freight transport Through the elimination of human error Through more efficient road and vehicle use (via telematics) doortodoor vehicle use, any time and anywhere Driver assistance systems Automated driving functions AUTOMATED DRIVING DEMONSTRATIONS IN TOKYO In 22 the Tokyo Olympic and Paralympic Games will attract worldwide attention to the city, providing an opportunity to demonstrate Japan s advanced technologies and model mobility systems as the world s safest, most comfortable, and most environmentfriendly. To make full use of this opportunity, JAMA established its 22 Preparation Committee in February 2 and is working with the public and private sectors to organize and conduct, under Japan s national strategic special zone initiative, automated driving demonstrations in Tokyo. 28

Automobiles and Society A MidtoLongTerm Vision for Mobility The Mid and LongTerm Mobility Vision Formulated by JAMA The 22 Tokyo Olympic and Paralympic Games provide an excellent opportunity to promote collaboration among auto industry and other stakeholders to advance the development of automated driving and other new transportation technologies for the benefit of current and future generations. Accordingly, in February 28 JAMA formulated its Mid and LongTerm Mobility Vision which, establishing the year 23 as a critical milestone in the evolution of mobility, emphasizes the need for a multisectoral approach to creating mobility s future. SUMMARY OF THE JAMAFORMULATED MOBILITY VISION. 2. 3. 4. Reaffirming the automobile s role to date in enhancing people s lives, the vision not only defines mobility s multifaceted universal mission going forward, which includes improving safety in road transport, reducing its environmental burdens, optimizing its efficiency and accessibility, and creating emotional value, but also identifies priority mobility issues for the future. Targeting the year 23 as a critical milestone, the vision proposes solutions for those priority issues based on the use of automated driving systems, electrification, and connectivity technologies which exceed the limits of human ability. The vision advocates the promotion of those solutions to expedite the achievement of zero accidents, zero environmental burdens, optimal efficiency and accessibility in road transport, and the full enjoyment of mobility by road users. The vision presents a plan for showcasing the realworld operation of automated driving systems during the Tokyo Olympics and Paralympics in 22a stepping stone in addressing the challenges to be met by 23and emphasizes the need for multisectoral collaboration, involving industry, government, and academia, to develop new systems and infrastructures which will constitute crucial legacies for future mobility. THE POTENTIAL FOR ROAD TRANSPORT: A VISION OF MOBILITY FOR 23 Priority mobility issues in the future 23 2XX Safe and secure travel for everyone Further reduction of the environmental burden Reduction in travel time Efficient travel Improvement of logistics productivity Solutions to travel restrictions Effective use of travel time Enhancement of shared mobility / public transportation Geographical factors Ability factors Smooth travel even for nonjapanese people Response to increasingly diverse values From controlling human errors to more advanced risk prediction Improve not only driving performance, but also environmental performance over lifecycle Achieve smooth traffic flow, in addition to providing traffic information From comfortable driving to comfortable and useful ways of using travel time Multiple forms of transport in addition to sharing From reduction of drivers workload to needing less personnel Improve the transport efficiency of the whole logistics network, instead of each part Provide sustainable transportation for people/areas facing practical travel restrictions Universal transport regardless of language ability Propose attractive products/services tailored to individual lifestyles Go beyond the limits of human ability with technology Provide solutions beyond hardware improvement NO traffic accidents NO environmental burden NO timewasting on travel Free travel of excitement A world where everyone feels safe and secure A world filled with smiles and greenery A world where vehicles, people, and goods circulate freely A world where mobile society brings PLEASURE to people all around the world For more information and a video on JAMA s Mid and LongTerm Mobility Vision, please visit: http://www.jamaenglish.jp/ publications/mobility.html 29

Automobiles and Society The Tokyo Motor Show The 45th Tokyo Motor Show 2 Under its BEYOND THE MOTOR theme, the 45th Tokyo Motor Show was held from October 27 through November 5, 2 at Tokyo Big Sight with the participation of 3 companies and organizations, including JAMA s 4 member manufacturers (presenting brands) and 3 foreign automakers (presenting 9 brands). The 38 vehicles on display featured 64 world premieres, including electric and fuel cell models, while auto parts and equipment manufacturers exhibited more than 4 technology world premieres. The show focused on cuttingedge technologies and services related to automated driving systems, electrification, and connectivity. In the TOKYO CONNECTED LAB 2 special exhibit, three separate, interactive programs, THE FUTURE, THE MAZE and THE MEET UP, let visitors experience mobility s connected future and contemplate its transformative impacts. Testdrive/ride programs held in the neighboring Tokyo Waterfront City area gave participants the opportunity to experience advanced safety features and nextgeneration technologies not only in passenger cars, commercial vehicles and motorcycles, but also in personal mobility transport. Additional show events and visitor services included the Tokyo Motor Show Symposium, tours (for individual/group visitors as well as for elementaryschool class visits) of the show guided by automotive journalists, and the highly popular Gourmet Kingdom event featuring food stands set up at multiple locations in the show s venue. Visitors to the show totalled 77,2, with 87,4 on November 2 alone, representing the largest weekday attendance since the 42nd show (the first to be held at Tokyo Big Sight). Visitors aged 39 accounted for 5.3% of the total, up 9. points from the previous show, and female visitors for 24.%, up 6.4 points. The 45th Tokyo Motor Show thus saw increased attendance by women and young people. TOKYO MOTOR SHOW HISTORICAL DATA No. Dates held (month/day) Duration (days) Venue Number of visitors 4 42 43 44 45 29 2 23 2 2 Oct. 23Nov. 4 Dec. 2Dec. Nov. 22Dec. Oct. 29Nov. 8 Oct. 27Nov. 5 3 Makuhari Messe Tokyo Big Sight 64,4 842,6 92,8 82,5 77,2 The 46th Tokyo Motor Show 29 In the leadup to 22 when Tokyo will be the focus of worldwide attention, the 46th Tokyo Motor Show, which will aspire to be the most exciting technologydriven motor show ever, will be held in the autumn of 29 at the main Tokyo Big Sight venue. Various show events are being planned to take place again in the Tokyo Waterfront City area as well as in other areas of Tokyo, to create an optimally enjoyable experience for visitors. 3

Automobiles and Society Attention to the Environment Climate Change Climate Change and CO2 Emissions Reduction: The Response of the Transport Sector In 2 Japan s CO2 emissions totalled.22 billion tons (preliminary figure), of which the transportation sector accounted for 8%. Since peaking in 2 following a decade of growth, CO2 emission volumes in Japan s transport sector have steadily declined, owing largely to increased fuel efficiency in passenger cars and greater efficiency in goods distribution, although they have not yet reached the 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 8% of Japan s total CO2 emissions, which in 2 amounted to.22 billion tons (preliminary figure). Japan s CO2 Emission Volumes, 992,35,3,25,2,,,5, 99 Fiscal year x million tons 995 2 25 2 2 (Preliminary) CO2 Emission Shares by Sector in 2 Residential % Commercial/ Other 8% Waste processing 2% Industrial processes 4% Energy conversion 9% 2 (preliminary):.22 billion tons Automobiles % Transportation 8% Industry 34% 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 significant decrease since transportsector emissions peaked in 2. x million tons 35 3 Aircraft Ships Trains Trucks Passenger cars & buses 259 25 2 26 7 3 7 92 8 4 7 96 8 4 8 96 9 3 7 96 9 4 8 4 7 7 7 98 4 7 96 4 7 95 7 94 4 7 93 4 8 9 4 8 88 3 8 88 3 8 87 2 8 86 2 8 85 8 82 8 78 9 8 78 9 9 77 78 77 76 23 9 76 5 87 94 3 8 4 9 22 24 29 29 34 33 3 26 22 8 8 4 9 99 9 92 93 94 95 96 97 98 99 2 2 3 4 5 6 7 8 9 2 3 4 Fiscal year Source: Ministry of the Environment 3

Automobiles and Society Attention to the Environment Climate Change CO2 Emissions Reduction: Improving Vehicle Fuel Efficiency Fuel efficiency targets for passenger cars, trucks, and buses are formulated by 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. To comply with stringent 2 average fuel efficiency targets for passenger cars and small trucks and buses as well as for heavyduty vehicles and, subsequently, with even stricter 22 targets for passenger cars and 222 targets for small trucks, JAMA member manufacturers have been making continuous efforts to increase the fuel efficiency of conventional vehicles and expand the supply of alternativeenergy vehicles. 2 AVERAGE FUEL EFFICIENCY TARGETS FOR NEW PASSENGER CARS & SMALL TRUCKS/BUSES () Passenger cars Small trucks (GVW 3.5tons) 2 target value (3).8 km/ 24 actual value 3.6 km/ 2 target value (3).2 km/ 24 actual value 3.5 km/ Up 23.5% Up 2.6% 2 target value (3) 8.9 km/ Small buses Up 7.2% 24 actual value 8.3 km/ km/ 5 2 2 AVERAGE FUEL EFFICIENCY TARGETS FOR NEW HEAVYDUTY VEHICLES (GVW>3.5t) (2) 2 target value (3) 7.9 km/ Trucks Up 2.2% 22 actual value 6.32 km/ 2 target value (3) 6.3 km/ Buses Up 2.% 22 actual value 5.62 km/ AVERAGE FUEL EFFICIENCY OF DOMESTIC NEW GASOLINEPOWERED PASSENGER CARS 28 26 24 22 2 8 4 2 8.2.6. 2.7 3.2 3.8 3.9 4.2 4.3 4.8.6 4.9 In km/ 22.4 22. 22.4 2.3 9.8 8 6 2 2 3 4 5 6 7 8 9 2 3 4 Fiscal year Note: Figures here are JC8 test cyclebased (see page 67). Source: Japan Automobile Manufacturers Association VEHICLE TECHNOLOGIES FOR INCREASED FUEL EFFICIENCY km/ 2.5 5 7.5 Improved engine efficiency Reduced aerodynamic drag 22 AVERAGE FUEL EFFICIENCY TARGET FOR NEW PASSENGER CARS () Passenger cars 22 target value (3) 2.3 km/ 29 actual value.3 km/ Up 24.% km/ 2 3 222 AVERAGE FUEL EFFICIENCY TARGET FOR NEW SMALL TRUCKS () 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 Improved body configuration Reduced vehicle weight Expanded use of lightweight materials Improved body structure Small trucks (GVW 3.5tons) 222 target value (3).9 km/ 22 actual value 4.2 km/ Up 26.% Improved powertrain performance Reduced rolling resistance km/ 2 3 () Fuel efficiency is JC8 test cyclebased (see page 67). (2) Fuel efficiency is JE5 test cyclebased. (3) Targets were established assuming the same shipment volume ratios by vehicle weight category for target years as those recorded in the years showing the actual value of fuel efficiency performance. Sources: Ministry of Economy, Trade and Industry; Ministry of Land, Infrastructure, Transport and Tourism Expansion of lockup area Expanded number of transmission gears Continuously variable transmission Low rollingresistance tires Other Electric power steering Idling prevention (stopstart) 32

Automobiles and Society Attention to the Environment Climate Change InUse Status of NextGeneration Vehicles Beginning in 29, when the government s tax incentive/subsidy programs for the purchase of ecofriendly vehicles were first introduced, the share of (socalled in Japan) nextgeneration vehiclesincluding hybrid, plugin hybrid, electric, fuel cell, clean diesel, and other newenergy vehiclesin total passenger car sales surged. In 2 nextgeneration vehicles accounted for more than 36% of new passenger car registrations. 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. NEXTGENERATION PASSENGER CAR NEW REGISTRATIONS, 282 28 29 2 2 22 23 24 2 2 2 Hybrid vehicles 8,58 347,999 48,22 45,38 887,863 92,45,58,42,74,926,275,56,385,343 Plugin hybrid vehicles,968 4,22,8 4,88 9,39 36,4 Electric vehicles,78 2,442 2,67 3,469 4,756,,467,299 8,92 Fuel cell vehicles 7 4,54 849 Clean diesel vehicles 4,364 8,927 8,797 4,2 75,43 78,822 3,768 43,468 4,83 8,58 353,44 492,59 472,727 952,5,25,353,9,59,253,76,444,77,595,9 Source: Japan Automobile Manufacturers Association TRENDS IN NEXTGENERATION VEHICLE SHARE IN NEW PASSENGER CAR REGISTRATIONS In % 4 36.4 34.8 35 3 29.7 25 2.8 22.5 24.9 2.7 3.4 9. 5 2.6 28 29 2 2 22 23 24 2 2 2 Source: Japan Automobile Manufacturers Association 33

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. 6. Plan your itinerary to avoid congested routes. Think ecostart when you accelerateincreasing your speed at a relaxed pace, to 2km/h in 5 seconds, boosts fuel efficiency by %. 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. 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 % 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. 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. Don t leave your AC on when you re heating the cabin. When you use it for cooling, 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%. 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. 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.). 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. 34

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 2 totalled 6.59 million tons, down 3, tons from the previous year. In line with targets set in 2, JAMA and JABIA members now aim to reduce their combined facilityemitted CO2 to 6.43 million tons (a 35% reduction from the 99 level) by 22 and to 6. million tons (a 38% reduction from 99) by 23. FACILITYGENERATED CO2 EMISSION VOLUMES, 992 CO2 emissions (x million tons) 9 8 544 9.9 354 376 373 389 48 38 356 32 32 6 5 4 3 CO2 emissions/ production value (x, tons CO2 per trillion yen) 7 6 6.7 5.86 6. 6.52 7.38 7.43 7.2 6.62 6.59 6.43 6. 2 5 99 Fiscal year 28 29 2 2 22 23 24 2 2 22 23 (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. *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. Safetyrelated components listed here in the left column are now mercuryfree in all models. All models have complied since January 28. All models have complied since January 26. 35

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 was replaced by the ISO procedure. For trucks and buses not covered by the ISO standard, however, JAMA test methods for measuring incabin VOC concentration levels 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 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 minutes, with engine and AC on (internal air circulation mode). (Note: 3 minutes for trucks and 2 minutes for buses.) ISO Procedure (For passenger cars) 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 (For passenger cars) Incabin temperature (ºC) 4 23 Lamp heating 4.5h (.52.h) Incabin temperature (ºC) 4 23 8.h 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. B.G.: Background air, i.e., air in test chamber. TARGET VALUES FOR INDOOR CONCENTRATION LEVELS OF 3 SUBSTANCES (VOCs) Source: ISO 229:22 Substance Formaldehyde Toluene Xylene Paradichlorobenzene Ethylbenzene Styrene Chlorpyrifos Dinbutyl phthalate Tetradecane Di2ethylhexyl phthalate Diazinon Acetaldehyde Fenobucarb Target Value for Indoor Concentration Level 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) Principal Sources 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) Note:. g/m 3 (.7 ppb) for children. 36

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. 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. In 28 Japan adopted the UN WLTP test cycle to measure emissions from new gasolinepowered passenger cars and light commercial vehicles, following its adoption in 2 of the UN WHTC test cycle for measuring diesel exhaust emissions from new heavyduty vehicles (see corresponding notes below). MOTOR VEHICLE EMISSIONS REGULATIONS IN JAPAN Gasoline and LPG Vehicles Diesel Vehicles Motorcycles Vehicle Type Passenger cars Trucks and buses Passenger cars (3) Trucks and buses 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) Class motorcycles* Under. in engine capacity with a maximum speed of 5km/h, or under. in engine capacity with a maximum speed of 99km/h. *Equivalent to motordriven cycles, Class and Class 2. Class motorcycles* Under. in engine capacity with a maximum speed of <3km/h, or. 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. Class motorcycles* 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) () WLTP (g/km) () WLTP (g/km) () WLTP (g/km) () WLTP (g/km) () WLTP (g/km) () WLTP (g/km) () WLTP (g/km) () JE5 (g/kwh) WLTP (g/km) () WLTP (g/km) () WLTP (g/km) () WHTC (g/kwh) (4) WMTC (g/km) (6) WMTC (g/km) (6) WMTC (g/km) (6) enforced 28 28 29 29 28 28 29 29 29 28 28 29 2 2 (7) 2 (7) Current Regulations Emission CO NMHC NOx PM (2) CO NMHC NOx PM (2) CO NMHC NOx PM (2) CO NMHC NOx PM (2) CO NMHC NOx PM (2) CO NMHC NOx PM CO NMHC NOx PM CO NMHC NOx PM CO NMHC NOx (5) PM CO Regulatory value (Average)...5.5 4.2..5.5...5.5 2.55..7.7..23.7..63.24..5.63.24..5.63.24.24.7 2.22..4..4 () WLTP: Worldwide Harmonized Light Vehicles Test Procedure, on the basis of values measured in coldstart state. (2) PM values apply only to directinjection, leanburn vehicles equipped with absorptiontype NOx reduction catalysts. (3) Smallsized diesel passenger cars have an equivalent inertia weight (EIW) of.25t (GVW of.265t) or less, and midsized diesel passenger cars have an E W over.25t. (4) WHTC: World Harmonized Transient Cycle, on the basis of (values measured in coldstart state) x.4 + (values measured in warmstart state) x.86. (5) Enforcement: 2 for GVW>7.5t; 2 for tractors; 28 for 3.5t<GVW 7.5t. (6) WMTC: World Motorcycle Test Cycle. (7) 2 enforcement for inproduction models first launched prior to 2. 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 THC NOx CO THC NOx 2 (7) CO THC NOx.3.7.4.2.7.4..9 37

Automobiles and Society Attention to the Environment Emissions Improving Air Quality 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:.5g/kWh (half the 23 regulatory value for new diesel vehicles) GVW=Over 3.5 tons: NOx: 5.9g/kWh (same as 998999 regulatory value for new diesel vehicles) PM:.49g/kWh (same as 998999 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 person 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. 38

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 2, 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 2 the volume of auto plantgenerated waste destined for landfill disposal totalled 3 tons. Having long surpassed the target of, tons set for 22, JAMA members will nevertheless continue to promote the reduction of plantgenerated waste for landfill disposal. 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 (2): Use of reusable/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 2: 3 tons JAMA target:, tons by fiscal 22 *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. () Nineteen products including automobiles have been designated in this legislation as requiring reduce initiatives in their design. (2) Twentythree products including automobiles have been designated in this legislation as requiring reuse and recycle initiatives in their design. ELV RECOVERY IN NUMBERS RECYCLING RATES: TARGETED & ACHIEVED Fiscal No. of ELVs recovered Appropriate disposal of three designated items Fluorocarbons Airbags () ASR (2) 2 3,96,79 2,674,57 2,373,276 3,29,98 2 3,34,942 2,86,858 2,639,27 3,97,796 () 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. Sources: Japan Automobile Recycling Promotion Center; Japan Auto Recycling Partnership; Toyotsu Recycle Corporation; ART group of companies Three Designated Items Fluorocarbons Airbags ASR Target Destruction 85% 25: 3% 2: 5% 2: 7% Achieved 2.7 million vehicle units (2) 9394% (2) 97.398.7% (2) Sources: Governmentaffiliated entities 39

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) Minivehicle inspection MOTAS: Japanesederived acronym for motor vehicle inspection and registration system. 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 Waste for landfill disposal (x, tons) 5 4 3 8.6 352 22.7 24.3 2. 9.5 8.8 8.8.6.2 9.8.9 2.8 2.6 2. 9.9 value 9. 2 of vehicle.7 8. production including motorcycles (x billion yen) 25 2 5 33 2 8 2 8 6 2.4..3.6.4.3.4.3 5 99 Fiscal year 2 2 3 4 5 6 7 8 9 2 3 4 22 Target Source: Japan Automobile Manufacturers Association 4

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. A total of 9 operators across Japan are now 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.) All equipment whose recovery is not mandated by law (Color code explains cost burden placement.) Custom and other equipment Vantype CVs such as: Tanktype CVs such as: Freezer trucks/vans, refrigerator trucks/vans, dry vans, etc. Tank trucks, cement mixers, waterspraying trucks, watersupply trucks, sewage removal trucks, etc. Cost Burden for Equipment Not Covered by the Law Cost Burden for Equipment Covered by the Law 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. For all commercial vehicle rack equipment covered by the EndofLife Vehicle Recycling Law, including singlebody vehicle equipment (exclusive of custom equipment), the vehicle recycling fee covers the entire cost of recovery through final disposal. Hauling CVs such as: Specialpurpose CVs such as: Specialized hauling trucks, vehicle carriers, container trucks, liftequipped vehicles, etc. 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 4

Automobiles and Society Attention to the Environment Noise Further Progress in 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 tireroad noise. Automotive noise in Japan is regulated by standardson acceleration noise, constant speed noise, and proximity exhaust noisewhich have become progressively more stringent, requiring automakers to develop the technologies necessary for compliance. Although very significant progress has been made as a result of these efforts, the Japanese government is nevertheless updating its noise regulations in line with the results of studies conducted under the United Nations World Forum for Harmonization of Vehicle Regulations (WP.29). UN Regulation (or UN R ) 44 has been enforced in Japan since January 24 to regulate motorcycle acceleration noise. Since October 2, UN R53 has been enforced for motor vehicle noise regulation, covering acceleration noise testing, proximity exhaust noise relative value regulation (to maintain newmodel performance levels), and compressed air noise regulation (new to the Japanese market), and test methods have changed accordingly. Along with UN R2 regulating tire noise, UN R53 is expected to contribute greatly to automobileemitted noise reduction. Moreover, to counter the quietness of electric and hybrid vehicles at low speeds, UN R38, which requires those vehicles to be equipped with a proximity warning system mainly for the protection of pedestrians, is to be enforced from March 28. PROCEDURES FOR TESTING MOTOR VEHICLE NOISE LEVELS Acceleration noise Noiselevel measurement span m m 7.5m After operating at a steady speed up to this point, fullthrottle acceleration Proximity exhaust noise Stationary test: after operating at a designated engine rotation, fullthrottle acceleration 7.5m m 45 Microphone (discharge position.2m) Microphone (.2m above ground level) JAPAN S SHIFT FROM DOMESTIC TO INTERNATIONALLY HARMONIZED MOTOR VEHICLE NOISE REGULATIONS 95 96 97 98 99 2 2 22 23 Japan s domestic regulations Japan s internationally harmonized regulations (partial) Acceleration noise 97 regulation (for new vehicles) UN R44 (for motorcycles) 976977 regulation 979 regulation UN R53 (for motor vehicles) (replacing 9982 reg.) Phase 982987 regulation 9982 regulation Phase 2 Phase 3 (adoption undecided) Constant speed noise 95 regulation 97 regulation 9982 regulation Exhaust noise 95 regulation 97 regulation Proximity exhaust noise 986989 regulation (replacing 97 reg.) 9982 regulation Relative value regulation Compressed air noise Compressed air noise regulation (UN R53) 42

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 28, the total value of tax revenue from these automobilerelated taxes has been estimated at 8.4 trillion yen, or 8.2% of Japan s projected total tax revenue of 2 trillion yen in fiscal 28. TAX REVENUE (Estimated) BY SOURCE IN FISCAL 28 (as per Japan s fiscal 28 budget) Consumption tax 2,76 (9.6%) Income tax 9,2 (8.6%) Fixed asset tax 9,38 (8.8%) Tax Revenue (national and local taxes),22,726 (%) Corporate tax 95,22 (9.%) Other 239,92 (23.4%) Breakdown of AutomobileRelated Tax Revenue (estimated) 83,52 (8.2%) Stamp tax,54 (.%) Liquor tax 3, (.3%) LPG tax Consumption tax (on fuels) 7,758 Diesel handling tax 9,492 Regional gasoline excise tax 2,493 Gasoline tax 23,3 Taxes on Fuels 43,23 While in use Acquisition tax,665 Consumption tax (on automobiles) 4,3 On acquisition Taxes on Automobiles 4,38 During ownership Minivehicle tax 2,64 x million yen Tonnage tax 6,66 Automobile tax,258 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, 28) Tax Category Acquisition Tax On Acquisition 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 4649). 8% (of which.7% is a local tax) ) Only ecofriendly vehicles and new passenger cars (excluding minicars and hybrids) and small trucks and buses (GVW 2.5t) compliant +% with 2 fuel efficiency standards, with emissions down by 75% from 25 standards or by 5% from 28 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: 5,7/.5t/year for privateuse passenger cars 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 4649). 43

JAPAN S ESTIMATED AUTOMOBILERELATED TAX REVENUE IN FISCAL 28 Taxes on Automobiles On acquisition During ownership Acquisition tax Consumption tax (on automobiles) Tonnage tax Tax Revenue (x million yen),665 4,3 6,66 Base Tax Rate (for reference) 3% 2,5/.5t/year (Vehicles for private use) Comparison with Base Tax Current Tax Rate Rate (multiplier value) 3% (Excluding commercial/minivehicles). 8% 4,/.5t/year.6 (Vehicles for private use) Automobile tax,258 Based on engine capacity (e.g., for,,5cc passenger cars, 34,5/year; see below) Minivehicle tax 2,64,8/year (Passenger cars for private use) 4,38 Taxes on While Gasoline tax 23,3 24.3/ 48.6/ 2. Fuels in use Regional gasoline excise tax 2,493 4.4/ 5.2/.2 Diesel handling tax 9,492./ 32./ 2. LPG tax.5/kg Consumption tax (on fuels) 7,758 8% 43,23 Grand 83,52 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 May, 28. TAX RATES IN EFFECT (Examples), 95428, TO SUPPORT ROAD NETWORK IMPROVEMENTS Duration 95457 9586 963 96466 96769 9772 97377 97882 98387 98892 99397 99822 237 28 2 22 28 Five Plan Comparison with base tax rate (multiplier value) Base tax rate First Second Third Fourth Fifth Sixth Seventh Eighth Ninth Tenth Eleventh Twelfth As per the national priority infrastructure development plan As per the national mediumterm road infrastructure plan Fiscal 54 55 56 57 59 6 64 66 67 68 7 7 74 76 79 93 98 Acquisition Tax [Commercial and mini vehicles excluded] 3% 5% 3%. 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 Gasoline Tax / 3.. 4.8 9.2 22. 24.3 29.2 36.5 45.6 48.6 48.6 2. Regional Gasoline Excise Tax / 2. 3.5 4. 4.4 5.3 6.6 8.2 5.2 5.2.8 Diesel Handling Tax / 6. 8..4 2.5. 9.5 24.3 32. 32. 2.4 LPG Tax /kg *The base tonnage tax rate ( 2,5/.5t/year) is applied only to ecofriendly vehicles and new passenger cars (excluding minicars and hybrids) and small trucks and buses (GVW 2.5t) compliant +% with 2 fuel efficiency standards, with emissions down by 75% from 25 standards or by 5% from 28 standards. Source: Japan Automobile Manufacturers Association 5.5.5. 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 Note: For some ecofriendly vehicles, reductions apply to the automobile tax (see page 49). ) Minivehicles (for private use) Passenger cars,8/year Trucks 5,/year Note: Above tax rates apply to new vehicles registered in or after fiscal 2 and took effect from fiscal 2. 2) Motorcycles Up to 5cc 2,/year 5 to 9cc 2,/year 9 to 25cc 2,4/year 26 to 25cc 3,6/year 25cc and over 6,/year Note: For some ecofriendly minivehicles, reductions apply to the minivehicle tax (see page 49). 48.6/ 5.2/ 32./ (light oil).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 44

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 and to help improve air quality, the Japanese government has, since April 29, applied autorelated tax incentives to promote the wider use of ecofriendly vehicles. New incentives and eligibility requirements came into effect beginning in April 2. For passenger cars, updated incentives and eligibility requirements come into effect beginning in April 28. INCENTIVES & ELIGIBILITY REQUIREMENTS ACQUISITION AND TONNAGE TAX REDUCTIONS/EXEMPTIONS Period in effect: April, 2 through March 3, 29 for the acquisition tax; May, 2 through April 3, 29 for the tonnage tax. Alternative Energy Vehicles Passenger Cars; Small, MidSized & HeavyDuty Trucks and Buses Acquisition Tax Tonnage Tax Electric vehicles/fuel cell vehicles/plugin hybrid vehicles/ Clean diesel passenger cars ()/Natural gas vehicles (2) New vehicles Used vehicles Exempt 45, deduction Exempt on initial inspection mandated for new vehicle purchase and at time of first vehicle inspection postpurchase () Only vehicles complying with 29 or 28 emission standards. (2) With NOx emissions down by % from 29 emission standards, or complying with 28 emission standards. or Passenger Cars Emissions down by 75% from 25 standards Emissions down by 5% from 28 standards Gasoline vehicles/ LPG vehicles (including hybrids) Compliant +4% with 22 fuel efficiency standards Compliant +3% with 22 fuel efficiency standards Compliant +2% with 22 fuel efficiency standards Compliant +% with 22 fuel efficiency standards Compliant with 22 fuel efficiency standards Compliant +% with 2 fuel efficiency standards Acquisition Tax New vehicles Used vehicles Exempt 45, deduction 6% reduction 25, deduction 4% reduction, deduction 2% reduction 5, deduction Tonnage Tax Exempt* 75% reduction 5% reduction 25% reduction *For vehicles compliant +4% with 22 fuel efficiency standards, exemption applies on initial inspection mandated for new vehicle purchase and at time of first vehicle inspection postpurchase; for vehicles compliant +3% with 22 fuel efficiency standards, exemption applies only on initial inspection mandated for new vehicle purchase. Note: Incentives and eligibility requirements as shown in the above chart in effect from April, 2 through March 3, 28 for the acquisition tax, and from May, 2 through April 3, 28 for the tonnage tax; updated incentives and eligibility requirements for passenger cars in effect beginning in April 28 (see page 48). Small Trucks and Buses (GVW 2.5t) Emissions down by 75% from 25 standards or Emissions down by 5% from 28 standards Gasoline vehicles (including hybrids) Compliant +25% with 2 fuel efficiency standards Compliant +2% with 2 fuel efficiency standards Compliant +% with 2 fuel efficiency standards Compliant +% with 2 fuel efficiency standards Compliant +5% with 2 fuel efficiency standards Acquisition Tax New vehicles Used vehicles Exempt 45, deduction 8% reduction 35, deduction 6% reduction 25, deduction 4% reduction, deduction 2% reduction 5, deduction Tonnage Tax Exempt* 75% reduction 5% reduction 25% reduction *Exemption applies on initial inspection mandated for new vehicle purchase and at time of first vehicle inspection postpurchase. Fuel consumption and exhaust emission requirements shown here are JC8 test cyclebased. For the purpose of assessing the acquisition tax on used passenger cars and on used small trucks and buses (GVW 2.5t) whose certified fuel efficiency was measured in the old mode test cycle, the equivalence of JC8 test cycleobtained fuel efficiency values to the mode test cycle as listed in the two charts below is applied. For passenger cars: For small trucks and buses (GVW 2.5t): JC8 Test CycleObtained Fuel Efficiency Value Compliant +4% with 22 fuel efficiency standards Compliant +3% with 22 fuel efficiency standards Compliant +2% with 22 fuel efficiency standards Compliant +% with 22 fuel efficiency standards Compliant with 22 fuel efficiency standards Compliant +2% with 2 fuel efficiency standards Compliant +% with 2 fuel efficiency standards = = = = = = = Equivalence to the Mode Test Cycle Compliant +% with 2 fuel efficiency standards Compliant +95% with 2 fuel efficiency standards Compliant +8% with 2 fuel efficiency standards Compliant +65% with 2 fuel efficiency standards Compliant +5% with 2 fuel efficiency standards Compliant +5% with 2 fuel efficiency standards Compliant +38% with 2 fuel efficiency standards JC8 Test CycleObtained Fuel Efficiency Value Compliant +25% with 2 fuel efficiency standards Compliant +2% with 2 fuel efficiency standards Compliant +% with 2 fuel efficiency standards Compliant +% with 2 fuel efficiency standards Compliant +5% with 2 fuel efficiency standards = = = = = Equivalence to the Mode Test Cycle 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 Compliant +32% with 2 fuel efficiency standards 45

MidSized Trucks and Buses (2.5t<GVW 3.5t) Emissions down by 75% from 25 standards or Emissions down by 5% from 28 standards Emissions down by 5% from 25 standards or Emissions down by 25% from 28 standards Emissions down by 75% from 25 standards or Emissions down by 5% from 28 standards Emissions down by 5% from 25 standards or Emissions down by 25% from 28 standards Gasoline vehicles (including hybrids) Compliant +% with 2 fuel efficiency standards Compliant +% with 2 fuel efficiency standards Compliant +% with 2 fuel efficiency standards Compliant +% with 2 fuel efficiency standards Compliant +5% with 2 fuel efficiency standards Compliant with 2 fuel efficiency standards Compliant +5% with 2 fuel efficiency standards Acquisition Tax New vehicles Used vehicles Exempt 45, deduction 75% reduction 35, deduction 5% reduction 25, deduction 25% reduction, deduction Tonnage Tax Exempt* 75% reduction 5% reduction 25% reduction *Exemption applies on initial inspection mandated for new vehicle purchase and at time of first vehicle inspection postpurchase. MidSized Trucks and Buses (2.5t<GVW 3.5t) NOx and PM emissions down by % from 29 standards or Compliant with 28 emission standards Compliant with 29 emission standards NOx and PM emissions down by % from 29 standards or Compliant with 28 emission standards Compliant with 29 emission standards Diesel vehicles (including hybrids) Compliant +% with 2 fuel efficiency standards Compliant +% with 2 fuel efficiency standards Compliant +% with 2 fuel efficiency standards Compliant +% with 2 fuel efficiency standards Compliant +5% with 2 fuel efficiency standards Compliant with 2 fuel efficiency standards Compliant +5% with 2 fuel efficiency standards Acquisition Tax New vehicles Used vehicles Exempt N/A 75% reduction N/A 5% reduction N/A 25% reduction N/A Tonnage Tax Exempt* 75% reduction 5% reduction 25% reduction N/A: Not applicable. *Exemption applies on initial inspection mandated for new vehicle purchase and at time of first vehicle inspection postpurchase. HeavyDuty Trucks and Buses (GVW>3.5t) NOx and PM emissions down by % from 29 standards or Compliant with 2 emission standards Diesel vehicles (including hybrids) Compliant +% with 2 fuel efficiency standards Compliant +% with 2 fuel efficiency standards Compliant +5% with 2 fuel efficiency standards Compliant with 2 fuel efficiency standards Acquisition Tax New vehicles Used vehicles (hybrid vehicles only) Exempt 45, deduction 75% reduction 35, deduction 5% reduction 25, deduction 25% reduction, deduction Tonnage Tax Exempt* 75% reduction 5% reduction 25% reduction *Exemption applies on initial inspection mandated for new vehicle purchase and at time of first vehicle inspection postpurchase. Notes concerning the charts on pages 46 and 47:. Acquisition tax reductions/exemptions are applied on initial inspection mandated for new vehicle purchase during the period in which the above reductions/exemptions are in effect; for used vehicles, deductions are made from vehicles purchase price and the acquisition tax is assessed on the amount remaining after deduction. 2. Tonnage tax reductions are applied on initial inspection mandated for new vehicle purchase during the period in which the above reductions/exemptions are in effect. 3. Vehicles complying with or surpassing the fuel efficiency standards stipulated in Japan s Energy Conservation Law are identified with appropriately coded stickers. 4. Vehicles complying with or surpassing emission standards are certified by Japan s Ministry of Land, Infrastructure, Transport and Tourism. 46

Automobiles and Society Taxes Tax Incentive Measures for EcoFriendly Vehicles ACQUISITION AND TONNAGE TAX REDUCTIONS/EXEMPTIONS For passenger cars, the following updated incentives and eligibility requirements come into effect beginning in April 28. or Passenger Cars Emissions down by 75% from 25 standards Emissions down by 5% from 28 standards Gasoline vehicles/ LPG vehicles (including hybrids) Compliant +5% with 22 fuel efficiency standards Compliant +4% with 22 fuel efficiency standards Compliant +3% with 22 fuel efficiency standards Compliant +2% with 22 fuel efficiency standards Compliant +% with 22 fuel efficiency standards Compliant with 22 fuel efficiency standards Acquisition Tax New vehicles Used vehicles Exempt 45, deduction 8% reduction 35, deduction 6% reduction 25, deduction 4% reduction, deduction 2% reduction 5, deduction Tonnage Tax Exempt* 75% reduction 5% reduction 25% reduction *For vehicles compliant +5% with 22 fuel efficiency standards, exemption applies on initial inspection mandated for new vehicle purchase and at time of first vehicle inspection postpurchase. Notes:. Incentives and eligibility requirements as shown in the above chart in effect from April, 28 through March 3, 29 for the acquisition tax, and from May, 28 through April 3, 29 for the tonnage tax. (For incentives and eligibility requirements for alternativeenergy passenger cars, see page 46.) 2. For used vehicles, deductions are made from vehicles purchase price and the acquisition tax is assessed on the amount remaining after deduction. Passenger cars meeting the following performance criteria are not covered by the tax incentives for ecofriendly vehicles shown on pages 4648, but when they undergo the initial inspection mandated for new vehicle purchase during the relevant period in effect stipulated below, they will be eligible for a tonnage tax reduction, in that the base tax rate rather than the (higher) current tax rate for the tonnage tax will be assessed on them (see page 45). Period in Effect Emissions Performance Criteria Fuel Efficiency Performance Criteria May, 2 through April 3, 28 Emissions down by 75% from 25 standards or Emissions down by 5% from 28 standards Compliant +5% with 2 fuel efficiency standards May, 28 through April 3, 29 Emissions down by 75% from 25 standards or Emissions down by 5% from 28 standards Compliant +% with 2 fuel efficiency standards Notes:. The provisions shown in the above chart were established in Japan s 2 revised tax regimen and apply to qualifying passenger cars (excluding minicars and hybrids) only once, on initial inspection mandated for new vehicle purchase. Prior to the establishment of these provisions, the current tax rate for the tonnage tax was assessed on vehicles not covered by the tax incentives for ecofriendly vehicles. 2. Example of the amount assessed when the base tonnage tax rate is applied over a threeyear period in the case of a qualifying.5ton passenger car for private use: 22,5 (as opposed to the 36,9 assessed at the current tax rate ). 47

ADDITIONAL ACQUISITION AND TONNAGE TAX REDUCTIONS/EXEMPTIONS (For Vehicles Equipped with Advanced Safety Features [ASVs] and PublicUse AssistedMobility Vehicles [AMVs]) Period in effect (ASVs) : April, 28 through March 3, 29 for the acquisition tax; May, 28 through April 3, 22 for the tonnage tax. Period in effect (AMVs): April, 2 through March 3, 29 for the acquisition tax; May, 28 through March 3, 22 for the tonnage tax. Vehicle Type Reductions/Exemptions Acquisition Tax Tonnage Tax ASVs equipped with one of three systems Collisionmitigation braking system Electronic stability control system Lane departure warning system 3.5 million deduction from purchase price (), (3).75 million deduction from purchase price (), (3) 5% reduction (), (2) 25% reduction (), (2) ASVs equipped with more than one of the above systems Up to 5.25 million deduction from purchase price (), (3) Up to 75% reduction (), (2) AMVs Lowfloor ( nonstep ) buses (for use in public transport) million deduction from purchase price (3) Exempt (2) Buses equipped with an electric lift (for use in public transport) For large buses (occupancy 3 persons), 6.5 million deduction from purchase price (3) For small buses (occupancy<3 persons), 2 million deduction from purchase price (3) Exempt (2) Universal designbased taxis (for use in public transport). million deduction from purchase price (3) Exempt (2) () Eligible vehicles are trucks (3.5t<GVW 22t) and buses (including person occupancy vehicles); buses with GVW>2t are required to be equipped with a lane departure warning system; electronic stability control systems are not included in the eligibility requirements for buses with GVW<5t. (2) Applied once, on initial inspection mandated for new vehicle purchase. (3) Applied once, at the time of new vehicle registration. Notes:. The acquisition tax is assessed on the amount remaining after deduction. 2. When vehicles targeted by this scheme are also covered by the ecofriendly vehicle tax incentives scheme (see pages 46 and 47), vehicle owners can opt either for one of the acquisition tax deductions shown here or for one of the acquisition tax reductions/exemptions prescribed in the ecofriendly vehicle tax incentives scheme. 3. When vehicles targeted by this scheme are also covered by the ecofriendly vehicle tax incentives scheme, the most favorable tonnage tax incentive between the two schemes is applied; when the tonnage tax incentive is identical in both schemes, it is implemented under the ecofriendly vehicle tax incentives scheme. FISCAL 2 & 28 AUTOMOBILE TAX REDUCTIONS (Passenger Cars and Trucks & Buses) Passenger Cars Trucks & Buses Requirements Electric vehicles/fuel cell vehicles/plugin hybrid vehicles/ Clean diesel passenger cars ()/Natural gas vehicles (2) Compliant +3% with 22 fuel efficiency standards, with emissions down by 75% from 25 standards or down by 5% from 28 standards Compliant +% with 22 fuel efficiency standards, with emissions down by 75% from 25 standards or down by 5% from 28 standards Electric vehicles/fuel cell vehicles/plugin hybrid vehicles/natural gas vehicles (3) Reduction 75% reduction (4) 5% reduction (4) 75% reduction (4) () Only vehicles complying with 29 emission standards. (2) With NOx emissions down by % from 29 emission standards. (3) With NOx emissions down by % from 29 emission standards, or complying with 28 emission standards. (4) Reductions effective on initial inspection mandated for new vehicle purchase are applied in the fiscal year following the year of purchase. Note: This scheme also mandates a yearly % (% 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; electric vehicles, fuel cell vehicles, natural gas vehicles, methanol vehicles, gasoline hybrid vehicles, public transport buses and trailers are exempt. FISCAL 2 & 28 MINIVEHICLE TAX REDUCTIONS (Minicars and MiniTrucks) * Minicars Mini Trucks Requirements Electric vehicles/fuel cell vehicles/natural gas vehicles () Compliant +3% with 22 fuel efficiency standards, with emissions down by 75% from 25 standards or down by 5% from 28 standards Compliant +% with 22 fuel efficiency standards, with emissions down by 75% from 25 standards or down by 5% from 28 standards Electric vehicles/fuel cell vehicles/natural gas vehicles () Compliant +35% with 2 fuel efficiency standards, with emissions down by 75% from 25 standards or down by 5% from 28 standards Compliant +% with 2 fuel efficiency standards, with emissions down by 75% from 25 standards or down by 5% from 28 standards Reduction 75% reduction (2) 5% reduction (2) 25% reduction (2) 75% reduction (2) 5% reduction (2) 25% reduction (2) *Applies only to three or fourwheeled minivehicles at the time of new vehicle registration. () With NOx emissions down by % from 29 emission standards, or complying with 28 emission standards. (2) Reductions effective on initial inspection mandated for new vehicle purchase are applied in the fiscal year following the year of purchase. Note: This scheme also mandates a yearly 2% surcharge on the minivehicle tax for minivehicles on the road 3 years or longer since first registration; electric vehicles, fuel cell vehicles, natural gas vehicles, methanol vehicles, gasoline hybrid vehicles and trailers are exempt. 48

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 expressway tolls, automobile insurance premiums (mandatory and optional), a recycling fee, periodic inspection fees, and maintenance costs. INTERNATIONAL COMPARISON OF TAXES ASSESSED ON AUTOMOBILE OWNERSHIP 9 8 7 during ownership 67.3 during ownership 28.5 during ownership 23.8 during ownership 2.2 x, yen (Vehicle service life: 3 years) during ownership 8.3 6 5 4 3 2 Consumption tax 4.4 Acquisition tax 4.9 On acquisition Japan Tonnage tax. Automobile tax 5.3 During ownership Value added tax 36. On acquisition UK x 2.4 Automobile tax 28.5 During ownership Value added tax 34.2 On acquisition x 2.8 Automobile tax 23.8 During ownership Germany Value added tax 36. Registration tax 4.8 On acquisition France During ownership On acquisition U.S.A. x 3 Consumption tax 8.8 Automobile Retail tax tax. 2.2 Acquisition tax 2. During ownership On acquisition Tonnage tax 4.3 Minicar tax 4. During ownership Japan (Minicar) Assumptions: ) Engine capacity: 8cc. 2) GVW.5t. 3) Purchase price:.8 million (. million for a minicar). 4) Fuel consumption (JC8 test cyclebased):.8km/ (CO2 emissions: 47g/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 3, GBP = JPY, USD = JPY 2 (averaged April 2March 28). Notes:. Figures here are based on tax rates in effect in April 28. 2. Figures here do not take into account applicable incentives/surcharges, such as tax incentives for ecofriendly vehicles in Japan, if any. Source: Japan Automobile Manufacturers Association TAXES ASSESSED ON PASSENGER CAR OWNERSHIP AND USE (PRIVATE) IN JAPAN (assuming a 3year service life),4,,2,,, 2nd to 3th year st year (on acquisition) 2,34,32 (4,89) Yen 8, 6, 4, 2, 44, (44,) 48,6 (48,6) Consumption tax (on automobile) Acquisition tax 9,9 (36,9) Tonnage tax 53,5 (39,5) Automobile tax 63,8 (48,6) Gasoline tax 67,6 (5,2) Regional gasoline excise tax 38,32 (,64) Consumption tax (on fuel) 46,5 (35,5) Expressway tolls 5, (35,95) Mandatory insurance, (,) Recycling fee Assumptions: ) A passenger car with 8cc engine capacity and purchase price of.8 million (retail price, excluding consumption tax). 2) 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, 28. 6) Consumption tax = 8% of retail price. 7) The recycling fee indicated is the average rate for an 8cc passenger car. Notes:. Estimated expressway tolls, mandatory insurance premium payments and recycling fee are included here because they can be considered similar to taxes. (Mandatory insurance premium values indicated in effect at April, 28.) 2. Value of expressway tolls was estimated by JAMA based on expressway toll revenue in 2. Source: Japan Automobile Manufacturers Association Baseline = New vehicle purchase price,8, 49

Automobiles and Society Driver s Licenses and the Driving Population 82.3 Million People Hold Driver s Licenses At the end of 2 there were nearly 82.3 million people, or 45. million men and 37. million women, holding valid driver s licenses in Japan. The number of driver s licenses held totalled 27.5 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 2.8 million people, or 2. million men and.6 million women, and Class licenses by 25.4 million people, or 8.6 million men and 44.78 million women. GENDER TRENDS IN DRIVER S LICENSE HOLDERS (at end of every calendar year) 28 29 2 2 22 23 24 2 Men Women 45,5,585 34,93,257 8,447,842 45,539,49 35,272,526 8,8,945 45,487, 35,523,236 8,,246 45,448,263 35,767,3 8,2,266 45,437,26 36,5,586 8,487,846 45,463,79 36,396,22 8,86,2 45,43,245 36,645,978 82,76,223 45,344,259 36,85,749 82,,8 Number of persons 2 2 45,255,994 45,33,77 36,949,9 37,2,424 82,25,9 82,255,95 TOTAL NUMBER OF LICENSES HELD, BY YEAR & LICENSE/VEHICLE CATEGORY 2 22 23 24 2 Class 2 Licenses Class Licenses Large motor vehicle Middlecategory motor vehicle Ordinary motor vehicle Large specialpurpose vehicle Traction vehicle Subtotal Large motor vehicle Middlecategory motor vehicle Quasimiddlecategory motor vehicle Ordinary motor vehicle Large specialpurpose vehicle Traction vehicle Large twowheeler Ordinary twowheeler Small specialpurpose vehicle Motorized bicycle Subtotal,46,36,8,474 28,6 46,55 5,7 2,433,666 5,375,268 72,84, 5,55,78 2,443,687,2,732,97,93 9,4,873 532,892,75,472 25,297,646 27,73,32,26,8,42,2 24,555 45,463 5,35 2,379,353 5,337,727 72,7,665 6,749,966 2,454,23,,59,938,93 9,3,786 53,338,977,729 25,53,773 27,883,26,7,743,2,43 22,43 45,4 5,473 2,325,73 5,299,48 7,49,459 7,936,9 2,465,978,8,25,73,69 9,472,692 477,296,95,848 25,838,88 28,4,52 986,58 96,34 224,823 44,33 49,665 2,265,64 5,253,88 7,632,5 9,3,94 2,473,823,4,267,43,75 9,69,692 45,23,784,7 25,933, 28,98,64 964,383 9,42 229,494 43,65 48,844 2,23,468 5,98,85 69,732,685,297,59 2,476,598,8,79,2,584 9,752,54 422,2,68,6 25,789,54 27,992,522 Note: In the above figures, one count is allotted to each vehicle category covered, whenever a license covers multiple vehicle categories. Number of licenses held 2 942,526 873,879 234,7 42,997 48,34 2,4,66 5,43,533 68,83,88,473,646 2,475,52,82,86 9,799,8 9,877,6 394,952,45,534 25,62,23 27,753,837 2 99,242,55,23 3,38 42,32 47,325 2,77,3 5,86,73 67,87,73,739,992 95,528 2,47,4,87,3 9,466,72 9,994,9 367,63,29,972 25,38,868 27,458,8 CLASS LICENSES AND THE VEHICLE CATEGORIES THEY COVER Vehicle Category Large motor vehicle Middlecategory motor vehicle Quasimiddlecategory motor vehicle Ordinary motor vehicle Class Licenses Large specialpurpose vehicle Large twowheeler Ordinary twowheeler Ordinary twowheeler (5cc25cc) Small specialpurpose vehicle Motorized bicycle Large motor vehicle Middlecategory motor vehicle Quasimiddlecategory motor vehicle Ordinary motor vehicle Large specialpurpose vehicle Large twowheeler (over 4cc) Ordinary twowheeler 26cc4cc 5cc25cc Small specialpurpose vehicle Motorized bicycle (5cc & under) Note: 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 5

Automobiles and Society AssistedMobility Vehicles AssistedMobility Vehicles Provide Freedom of Movement Assistedmobility vehicles provide a comfortable and convenient means of displacement for people with otherwise limited mobility, such as elderly persons and the physically disabled, and are increasingly gaining recognition as meeting a significant need. They also play an essential role in the provision of public transportation services for all users. Japan s automakers have been working to enhance the convenience of assistedmobility vehicles and thereby provide their users with optimalquality mobility. TYPES OF ASSISTEDMOBILITY VEHICLES Vehicle Type Nursing care Selfoperating Other Vehicle Feature Wheelchairaccessible (with ramp or lift) Elevator seat Revolving seats Revolving sliding seats Revolving tilting seats Driveassist system Assistedmobility bus Description Equipped with a ramp or an electricallyoperated lift that allows boarding/deboarding while remaining seated in a wheelchair. Some types of ramps are operated electrically. Equipped with a powered passenger or rear seat that, once rotated and slid out to the exterior, can be lowered to adjustable positions for easy boarding/exiting. Assists those who have considerable difficulty in boarding/exiting as well as wheelchair users. Passenger and rear seats can be rotated, rotated and slid out, or rotated and tilted to the exterior. Helpful for those who have a little difficulty in boarding/exiting. Equipped with driveassist devices, such as a leftfoot accelerator and hand/footoperated equipment, so that it can be driven by the physically disabled. A nonstep bus equipped with an electric lift or ramp allowing boarding/deboarding while seated in a wheelchair. Their use in local intracommunity transport is being promoted. TRENDS IN ASSISTEDMOBILITY VEHICLE SALES Fiscal 23 24 2 2 2 5, Buses MiniVehicles 4, Standard & Small Vehicles 3, 2,, Standard & Small Vehicles Chg. (%) Wheelchairaccessible vehicles Vehicles with elevator seats Vehicles with revolving seats Vehicles with driveassist systems Wheelchair vans (multiple capacity) MiniVehicles Chg. (%) Wheelchairaccessible vehicles Vehicles with elevator seats Vehicles with revolving seats Vehicles with driveassist systems Buses Chg. (%) Chg. (%) 24,366 97. 3,96,29 47 49,47.2 2,954 2,474 43 4,352 9.9 44,89 2.5 25,4 2.6 4,3,65 552 374 8,56 2. 4,487 4,55 8 4,35 98.9 47,869 8.3 23,398 93.6 3,525 7,454,552 427 44,837 85.3 2,75 2,848 273 5,5 28. 44,745 93.5 24,38 4.2 4,493 6,2 2,838 37 462 3,796 87.,2 2,49 93 6,38 4.5 44,484 99.4 23,4 94.5 4,455 5,45 2,245 264 625 4,446 4.7,444 2,748 254 6,8 95.2 43,494 97.8 Notes:. JAMA member manufacturers provided the unit sales figures here, which do not include vehicles customized postpurchase. 2. Buses include minibuses. 3. Standard & Small Vehicles includes passenger cars and vantype commercial vehicles; definitions for standard and small vehicles here differ from those in Japan s Road Vehicles Act. 4. Vehicles with elevator seats and vehicles with revolving seats have been calculated separately since 2; figures for Vehicles with elevator seats prior to 2 include vehicles with revolving seats. 5. Chg. (%) means change from the previous year (with the previous year s result indexed at ). Source: Japan Automobile Manufacturers Association 5