Japanese Automobile Production in Fiscal 2006 would Increase to 10.9 Million cars

Japanese integrated steel manufacturers expects that Japanese automobile production in fiscal 2006 at the ended of March would increase to be at 10.75 million-10.9 million sets of completed car slightly from last year and increase to 8.5 million-8.8 million sets of Knock Down by 8-10% from last year.Since Japanese automobile makers are expanding the production capacity in overseas, automobile maker’s needs for the steel products export is expected to rise. Especially, the supply and demand of the hot dip galvanized steel sheets and the special steel are expected to continue to be tight situation.Completed car production in domestic in fiscal 2002 was at 10.32 million cars and recovered over 10 million cars; it was at 10.36 million cars in fiscal 2003; it was at 10.62 million cars in fiscal 2004. The automobile sales for domestic have peaked. However, the export sales are increasing because a Japanese automobile assessment is rising against low-fuel consumption or re-sales value. Japanese automobile production in overseas in fiscal 2004 closed in at 10 million cars, achieved to 10.9 million cars in fiscal 2005, and is expected to expand to over 12 million cars.In overseas, there are many regions that the high grade components and material purchase is difficult. Consequently, the knock down set exports from Japan are extending to 6.7 million sets in fiscal 2003 and to 7.3 million sets in fiscal 2004.Japanese integrated steel manufactures are and the special steel makers building up the production capacity by the elimination of production process bottlenecks against the supply and demand of the steel products for automobile are tight.Japan iron & Steel Federation expects that the common steel products consumption for automobile would expand to 13.3 million tones in fiscal 2006 from the last year at 13.3 million tones.