Automotive Industry in Japan and Germany

Automotive today is rightfully considered the basic industry of the German and Japanese economies. Automotive products account for most of the national GDP and provide jobs for hundreds of thousands of people. Automotive in Germany and Japan is the most developed industry. If we compare the total turnover for various industrial sectors of the country, it is the automotive industry that occupies a leading position.

In my essay, I would like to compare the Japanese and German auto industry. What are their advantages? And what is their secret to success?

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The Japanese automobile industry is one of the most famous industries in the world. It is home to a number of large companies manufacturing automobiles, construction vehicles, motorcycles, ATVs, engines, etc. Japanese car manufacturers include Toyota, Honda, Daihatsu, Nissan, Suzuki, Mazda, Mitsubishi, Subaru, Isuzu, Kawasaki, Yamaha, and Mitsuoka .

Japan was the largest automaker in the world in 2008, but lost one position in 2009 to its current leader, the auto industry in China.

The automotive industry is one of the leading places in the German economy. About 6 million cars are produced annually, accounting for 35.6% of the total automobile production of the European Union. Since the mid-1950s, Germany has been a leader in European automobile production, and in the world currently takes 4th place, behind China, Japan and the United States.


Here are the main principles of Toyota, which remain relevant to this day.

  • quality above all. One of the main approaches to product quality at Toyota is if something can be done better than it is now, then it must be done;
  • minimizing the amount of marriage. It is not possible to completely eliminate a marriage in large-scale production, but you should always make every effort to reduce its quantity. If for this it is necessary to stop production for a while, to carry out a reorganization or something else – all this was done, despite the difficulties;
  • compliance with all deadlines. The supply of materials for the manufacture of products, the release of cars on the market – all this should not go beyond the pre-established deadlines. The company was firmly convinced that if the deadline for even an insignificant task was missed, everything else could go downhill;
  • no negligence in the performance of their duties. Negligence, carelessness, irresponsibility – this is not the style of Toyota employees. The principle of “no negligence” extended not only to the staff of the company itself, but also to its partners and all those who had any business relationship with it.


The main characteristic that makes German cars successful against the backdrop of the high competition of the global automakers is high quality, focus on reliability, comfort and solidity. Moreover, the Germans combine not only operational reliability (which in the future allows saving on the purchase of new cars), but also the standard of efficiency from the first sale to operation.

German cars are of high quality and reliable if they need to follow and comply with all the prescribed rules of the automaker. It is also much cheaper than German cars. In addition, initially, engineers lay down scenarios when car owners begin to deviate from the prescribed rules.

Japanese cars last longer. Especially if their owners do not particularly follow the machines. German cars are more capricious and require proper care from their owners.

BMW Strategy

The first step in the strategy is the use of hybrid technology, the potential of which is revealed, first of all, on cars with higher power and a higher class.

BMW executives understand that digital technology has a future, as it simplifies driving process for customers. BMW quickly recognized the growing importance of other electronic services by introducing products such as DriveNow, ParkNow, and ChargeNow as key success factors,

concern. During this year, the BMW Group announces next steps to improve these services.

In addition to self-developed services, the BMW Group also invests in a number of promising startups and service providers through the BMW i Ventures Foundation. This unit helps Concern highlight global trends and quickly respond to them. This gives a significant advantage, because the development phase in the IT sector is much shorter compared to the automotive industry.

Basically, the BMW Group uses an offensive type of strategy, since with increasing competition it the most effective way to maintain market leadership.

In a highly competitive global market, BMW is trying to maintain its current market position in the premium car segment, so for several decades, innovation has been the main driving force behind the development of the BMW Group. The company focuses on the vision of its strategy.

on product innovations, which allows it to more steadily go through economic crises and faster than competitors to recover in the market.

Holding the position of the world’s largest car manufacturer, Toyota has been struggling for four years with the effects of numerous crises, from the financial in 2009 to the catastrophic earthquake in Japan in 2011, which has done tremendous damage to the entire Japanese automotive industry.

“Not a single company in our industry was able to sell more than 10 million cars in a year, but we would like to achieve such an indicator,” Toyoda told reporters. “And we intend to do this using the TNGA strategy.” The company set itself such a task in 2008, but because of the crisis, it was not possible to complete

In addition, automotive brands also have advertising wars.

For example: It all started with a BMW print: the auto giant “cute” congratulated Audi on winning the “Car of the Year” contest -2006 in South Africa, signing “Winner of the“ Car of the World “-2006 contest.

Audi did not hide grievances by delivering a response poster: “Congratulations to BMW on winning the 2006 World Machine contest. From the six-time winner of the race Consecutive Le Mans 24 Hour (2000-2006). ‘

Perhaps all of this would be limited, but the Japanese company Subaru decided to intervene in this war: Subaru said that BMW and Audi – well done, win beauty contests, while Subaru, meanwhile, became the best in International Engine 2006 (Best Engine).

In 1966, Toyota launched a small car called the Corolla, designed for the European market. And this series has become the best-selling car in Europe ahead of all its competitors. In order to at least somehow protect or support the domestic auto industry.

In 1992, the European Union introduced a standard for Euro-0 cars. And the import of the Toyota Corolla brand fell sharply, as this car did not meet Euro-1 standards. But not a long thought company Toyota in 1997 produces a hybrid car ‘Prius’.The car has a low level of harmful emissions and low fuel consumption. For its environmental friendliness and originality of the design, he received many prizes and awards, including being recognized as the car of the year in Japan, North America and Europe.

In Germany, people prefer the Japanese auto industry more as it is better than their domestic brands. The Germans themselves explain this by the fact that German cars are good when you use them exactly as in the instructions, observing all the rules. And Japanese engineers made their cars, so that they can function even when you do not follow any rules to the extent that you do not change the engine oil. Because of this, German cars are considered moody than Japan cars.

As for Japan, its government does not need to protect its domestic producers.

The Japanese drive their cars more. As for imported cars, Mercedes-Benz occupies the 9th leading place, and the Japanese auto industry takes the first nine places.

The marketability of Japanese cars did not appeal to Russia either. So, even in our country (because we enter the EAEU), the import of right-hand drive cars has been banned since 2015, explaining this by the fact that accidents have become more frequent because of them.

This essay was written by a fellow student. You may use it as a guide or sample for writing your own paper, but remember to cite it correctly. Don’t submit it as your own as it will be considered plagiarism.

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Automotive Industry in Japan and Germany. (2021, Dec 17). Retrieved from