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Daily Newsletter

07 August 2023

Daily Newsletter

07 August 2023

Japan sales continue recovery

Market has expanded 16% YTD

Graeme Roberts August 07 2023

New vehicle sales in Japan rose 8.5% to 379,053 units in July 2023 compared with 349,335 units a year earlier, according to the Japan Automobile Manufacturers Association (JAMA).

The vehicle market began to recover from the pandemic lows in the second half of last year, helped by improved semiconductor supplies which enabled domestic vehicle manufacturers to significantly increase output.

Economic activity continued to strengthen in recent months from the weak year-earlier level with second quarter GDP data expected to show year on year growth of 3.1% when it is released later this month, up from 2.7% in the first quarter and driven by strong consumer spending and fixed investment.

In the first seven months of the year, the market expanded 16% to 2,829,653 units after declining 14% to 2,435,513 YTD 2022, with passenger vehicle sales rising 18% to 2,368,691 units while truck sales were 6% higher at 456,44 units.

Sales of buses and coaches surged 48% to 4,513 units as the segment continued to recover from the Covid lockdowns.

Toyota sales increased 30% to 958,873 units year to date following severe supply chain shortages last year while Suzuki sales rose 14% to 384,229 units; Daihatsu 344,188 (+9%); Honda 329,662 (-3%); Nissan 292,188 (+9%); and Mazda 114,855 (+22%).

AI is a key part of the digital revolution shaping the automotive sector

GlobalData estimates the total AI market will be worth $909 billion in 2030, having grown at a CAGR of 35% between 2022 and 2030. The automotive sector is undergoing a digital transformation fuelled by changing global supply-chain dynamics, tighter market competition, and rising inflation. AI is a key part of this digital revolution. Focus is directed toward driver assistance features for safety and hazard detection and greater automation of many vehicle processes and functions. Simultaneous localization and mapping (SLAM), facial recognition, and motion tracking will be vital for developing incockpit safety features such as early driver fatigue detection. For the most part, the automotive sector will not play a significant role in creating and developing generative AI hardware or platforms. Instead, it will be a key driver for innovations in machine learning platforms and associated IoT hardware for autonomous driving and ADAS. This will also help to drive advances and greater scale-up of adoption of these AI technologies in adjacent sectors such as travel and tourism and construction.

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