Japan Automobile Output to Keep Slow in April-June

Japanese automobile output is expected to be around 1.2 million units for finished car in April-June, according to their plans as of end of April. The volume is around half of the former plan at around 2.2 million units as of February. The makers resumed the production at almost all domestic plants by April 18. The production level is around half at Toyota Motor and Honda Motor. Depending on the parts supply, Nissan Motor tries to increase the production rate in May from around 40% level in April compared with the level a year earlier. However, the production could be low level due to limited availability of parts supply chain.

Japanese automakers also reduce the production at the offshore plants due to limited supply of the parts. The domestic production will be around 1.3 million units for knockdown sets in April-June, which is more than 40% lower than original plan of 2.2 million units.

Toyota tries to increase the domestic production from July gradually. However, micro computer major, Renesas Electronics plans to resume operation of 200 millimeters line at Naka plant on June 15. However, the maker cannot release schedule of resumption for other lines. Japanese automotive parts supply chain couldn’t recover the normal level in July-September as before the major earthquake. The limited parts supply could limit the automobile production.

Automotive steel represents largest applications in domestic manufacturers’ steel consumption. The steel demand should decrease significantly both for domestic and export users. The lower demand could impact on production of integrated steel makers and special steel makers.

Japanese automobile production was 404,039 units in March, which was 57.3% lower than a year earlier, announced by Japan Automobile Manufacturers Association on Thursday.