Japan Automobile Output Drops by 43.4% for Jan-Mar

Japanese automobile output by major 12 automakers is expected to decrease by 43.4% to around 1.8 million cars for January-March from the same period of last year, according to a Japanese integrated steel maker source. The source forecasted in December 2009 the output would be 2.35 million cars for Jan-Mar, but anticipates the output more drops due to decreased car sales and the inventory adjustment. Japanese steel shipment for automobiles is expected to decline by over 50% for Jan-Mar from the same period of last year when component makers’ output or knock-down sets’ output is largely dropping.

Toyota Motors decided the domestic output decreases by 50% for February-March. Nissan Motors pauses the operation for 9 days in Tochigi factory. Mitsubishi Motors halts the operation for 7 days in Mizushima factory. Honda Motor and Mazda Motor will expand non-operating days.

The inventory adjustment is under way by all process steps for such as Japanese automobile makers, coil centers, component makers when their sales are decreasing. An integrated steel maker source said the steel supply increases more than growth of automobile output, but the steel supply fell more than downturn of automobile output.

Some coil centers’ operation rate is decreasing by 30-50% compared with the capacity. Nippon Steel and Isuzu Group, Japanese major coil center will shelve the construction of steel coil processing plant in Kyusyu.