Japan’s vehicle production in April plummeted 60.1 per cent from a year earlier to 292,001 units, the largest monthly drop, in the aftermath of the March 11 earthquake and tsunami, an industry group said Tuesday.
The disaster knocked out many production facilities in the region and disrupted supply chains, leading to severe shortages of parts.
The sharp fall in domestic output, the seventh straight year-on-year decline, was larger than the previous record in March of 57.3 per cent, the Japan Automobile Manufacturers Association said.
Passenger car production declined 60.2 per cent to 249,772 units while truck output declined 57.5 per cent to 40,305 units.
Vehicle shipments in April dropped 67.8 per cent to 126,061 vehicles, with passenger car exports diving 67.3 per cent to 113,291 units and truck shipments sinking 68.2 per cent to 10,917 units, the association said.
The industry association’s chairman Toshiyuki Shiga welcomed the government’s recent decision to begin negotiations on a free trade agreement between Japan and the European Union.
“The Japanese automobile industry’s longstanding presence in Europe reflects its significant investment in the region over many years,” Mr. Shiga said.
He said a Japan-EU economic partnership agreement “will enhance trade and investment between Japan and the EU and thereby promote further development of the auto industry on both sides.”
