Japan remains bogged down by economic malaise but the country’s car sector will focus as a priority on revitalising the domestic vehicle market and improving the business environment, according to the Japan Automobile Manufacturers Association (JAMA).

In his New Year’s message, JAMA chairman Akio Toyoda acknowledged the 11 March 2011 earthquake and tsunami and the continued effects of the calamity and said that his first hope for 2013 is that this be a year of redoubled efforts to advance post-disaster reconstruction and recovery.

Turning to Japan’s domestic market in 2012, he said that purchasing subsidies helped new vehicle sales recover to over five million units. He added: ‘But under the impact of sustained, excessive yen appreciation, Japanese exports have lost their competitive edge. Despite some monetary easing measures implemented by the Japanese government and the Bank of Japan, no significant progress has been made in reversing the Japanese economy’s 15-year-long deflationary trend.’

Speaking about the challenges ahead, he said: ‘Reversing the protracted stagnation of Japan’s vehicle market requires, as a first step, the supply of products that genuinely appeal to consumers. Accordingly, our industry is adopting new strategies to attract interest in its products from a broad range of potential customers.’

Mr Toyoda added that improving the business environment will be a key focus for JAMA under the country’s new administration, adding: ‘The fact is, however, that businesses in Japan continue to struggle in a very harsh environment, the result of various factors including the unprecedented yen appreciation referred to earlier, the higher cost of electric power, and slow progress in the conclusion of free trade-promoting economic partnership agreements.  A continuation of this situation, it is feared, will defy even the most diligent competitive efforts of private enterprises, making it extremely difficult to maintain manufacturing in Japan.

‘Our objective at JAMA is to foster, through constructive dialogue, a thorough understanding on the government’s part of the automobile industry’s dynamic and tenacious efforts to cope with these circumstances, so as to achieve a lowering of the hurdles it faces, including those I mentioned above.

‘Furthermore, sound diplomatic ties with the other countries of the world are a critical underpinning to the auto industry’s increasingly global business activities. In this area as well, we look to the government for strong and enlightened leadership.’