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JAPANESE AUTOMOBILE INDUSTRY
Japan is the world's second largest automobile manufacturer and exporter, and is home to six of the world's 10 largest automobile manufacturers. The 11 members of Japan Automobile Manufacturers Association (JAMA), ranked by size, are : * Toyota Motor Corporation, Nissan Motors (formerly Datsun, Honda, Mitsubishi Motors, Suzuki, Mazda, Daihatsu Motor Company, Hino Motors, Subaru, Isuzu and Mitsuoka. Together, they command wide market share in the United States, Europe, and many of the developing countries.During the Korean War (1950-1953) the United States government ordered a large number of army trucks from Japanese automobile manufacturers. This was for two reasons: Japan was geographically close, and it was still under United States occupation until 1952. This stimulated the growth of Japan's auto industry, and the rapid increase in domestic demand and expansion into foreign markets in the 1970s boosted the growth even further. Automobile production in Japan continued to grow rapidly after the 1970s. Japan was the largest car producer in the world in 2000. It has decreased slightly in recent years, mainly due to two reasons: new competition from China and India, and a shift in the focus of the Japanese government.
In China and India, auto manufacturers have two advantages over their Japanese competitors: their cost of labour is lower, and they have well established iron and steel industries. Iron and steel are essential for automobile manufacturing, and Japan has only limited local iron resources. Recently, the Japanese government has shifted its focus away from the auto industry towards developing their booming high-tech industry. This shift in focus is causing a further decline of Japan's heavy industry. Japanese cars are famous for their high quality and reasonable price. They are well equipped with user-friendly amenities, and priced competitively with vehicles manufactured in Western Europe and the United States.
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