In 2021, the number of employees in the Japanese lumber and wood products manufacturing industry amounted to approximately 86.07 thousand, the lowest number of the past decade. Within the observed period, figures peaked in 2016 at around 95.54 thousand employees, but the industry has been shrinking with each year since then.

In 2024, Japanese automakers manufactured around 16.48 million vehicles at production facilities outside of Japan, decreasing from 17.51 million in the previous year. This was more than double the domestic production. The leading region was Asia, assembling more than half of the vehicles produced abroad. Trends in overseas production Japanese carmakers whose overseas production exceeds a million vehicles per year are Toyota, Honda, Nissan, and Suzuki, manufacturing more automobiles overseas than domestically. A large share of production divides itself among China, South-East Asia, and North America, which are at the same time the primary markets (apart from Japan). In the future, production might shift further towards less-regulated markets, as Europe becomes more and more difficult to supply due to environmental restrictions. Emission targets and automotive electrification in Japan Japan had increased its reduction target of emissions up to 46 percent by 2030 (compared to 2013) to remain on track for carbon neutrality by 2050. As automobiles account for roughly 16 percent of Japan’s carbon emissions, the Japanese government announced that all new passenger cars sold domestically should be electrified by 2035. Electrified cars, particularly hybrid vehicles (HV), already account for a large share of new sales today.

The number of foreign nationals working in Japan amounted to around 2.3 million people as of October 2024. It was the second time the number of foreign workers exceeded the two million mark. Foreign workers in Japan The number of foreign workers in Japan has risen considerably within the last decade. Over one-quarter of workers were employed in Tokyo Prefecture, Japan’s capital and economic and financial center. In terms of the number of people employed, the manufacturing industry continued to be the most important employer of foreign labor. The majority of foreign workers came from countries in Asia, with workers from Vietnam making up the largest share at around 25 percent. Population decline and severe labor shortages Just a decade ago, the number of foreign workers was below one million. That was less than one percent of a population of over 127 million. Today, amid its aging population and a shrinking labor force, Japan is facing severe labor shortages in some industries. A growing number of businesses are reliant on foreign labor, and the government has recently announced a number of policy amendments to attract more workers to Japan. This includes plans to expand the specified skilled workers program and to abolish and replace the controversial technical intern training program.

In 2024, Kawasaki was the leading brand in the large motorcycle category, including products with an engine displacement of more than 250cc, with roughly 25.76 thousand units sold. The numbers furthermore indicate that Japanese motorcyclists have an affinity to other overseas brands when it comes to heavier bikes. Domestic market The demand in Japan’s domestic motorcycle market is shrinking, as indicated by the declining trend in the number of motorcycles in use in Japan. The overall decline stems from the light-weight motorcycle category of 50cc and under, accounting for nearly half of all motorcycles used in Japan, which shrank considerably during the past decade. On the other hand, all other segments of larger sized motorcycles increased in usage. In terms of domestic motorcycle production, the industry is a shadow of what it was during the three decades from 1970 to 2000. Much of the production has been shifted to overseas factories. Exports A substantial number of motorcycles are still produced in Japan, only a part of which is sold domestically. Most motorcycles produced in Japan are exported. Leading export regions of domestically produced motorcycles include Europe and North America. The vast majority of exports are large-sized bikes, of 250cc and more, while there are hardly any exports of motorcycles with an engine capacity of 50cc and smaller.