Setting records: Japan's auto sales are up for 2004

Automotive Industries, July, 2004

After breaking sales and earnings records in 2001 and 2002, Japanese automakers did it again in 2003 and are primed to turn in another big year in 2004.

With Toyota Motor leading the pack, the combined operating income of Japan's 12 vehicle manufacturers soared to $30.8 billion, up 6.6 percent over fiscal 2002 levels, on 1.7 percent higher sales of $424.8 billion. [See table 1]

This year, with most analysts predicting sales growth, earnings are expected to remain close to record levels: $30.5 billion and $18.0 billion.

All vehicle manufacturers, with the exception of Mitsubishi Motors and its truck-making affiliate, Mitsubishi Fuso Truck & Bus Co., are expected to report profits.

In fiscal 2004, Toyota is expected to report an operating profit of $14.7 billion followed by Nissan Motor at 57.8 billion, Honda Motor at $6 billion and Suzuki Motor at $909 million.

Against this backdrop, an estimated 52 percent of Japanese cars are now produced overseas (see table 3). By 2010, this ratio is expected to increase to more than 60 percent or 15 million units out of global output approaching 25 million. In terms of unit sales, two-thirds of demand for Japanese cars is now outside Japan (see table 4).

TABLE 1: FISCAL 2003 SALES & EARNINGS RESULTS

                    Sales              Operating Profit

Toyota              Y17.3 trillion     Y1.7 trillion
Honda               Y8.2 trillion      Y600.1 billion
Nissan              Y7.4 trillion      Y824.9 billion
Mitsubishi          Y2.5 trillion      -Y96.9 billion
Suzuki              Y2.2 trillion      Y95.1 billion
Mazda               Y2.6 trillion      Y70.2 billion
Fuji Heavy          Y1.4 trillion      Y50.3 billion
Isuzu               Y1.4 trillion      Y84.5 billion
Daihatsu            Y993.6 billion     Y28.4 billion
Hino                Y1.1 trillion      Y44.5 billion
Mitsubishi Fuso *   N.A.               N.A.
Nissan Diesel       Y453.0 billion     Y19.1 billion
Total               Y45.5 trillion     Y3.4 trillion

                    Net Profit

Toyota              Y1.2 trillion
Honda               Y464.3 billion
Nissan              Y503.7 billion
Mitsubishi          -Y215.4 billion
Suzuki              Y43.8 billion
Mazda               Y33.9 billion
Fuji Heavy          Y33.4 billion
Isuzu               Y54.7 billion
Daihatsu            Y17.3 billion
Hino                Y34.0 billion
Mitsubishi Fuso *   N.A.
Nissan Diesel       -Y40.3 billion
Total               Y2.1 trillion

* Mitsubishi Fuso delayed announcing its fiscal 2003 financial
results and fiscal 2004 forecast until early July due to problems
it has had with recalls.

TABLE 2: FISCAL 2004 SALES & EARNINGS FORECAST

                    Sales              Operating Profit

Toyota *            Y17.6 trillion     Y1.6 trillion
Honda               Y8.5 trillion      Y660 billion
Nissan              Y8.2 trillion      Y860 billion
Mitsubishi          Y2.25 trillion     -Y120 billion
Suzuki              Y2.2 trillion      Y100 billion
Mazda               Y2.7 trillion      Y70 billion
Fuji Heavy          Y1.5 trillion      Y45 billion
Isuzu               Y1.35 trillion     Y70 billion
Daihatsu            Y1.1 trillion      Y30 billion
Mitsubishi Fuso *   N.A.               N.A.
Hino                Y980 billion_      N.A.
Nissan Diesel       Y402 billion       Y16.5 billion
Total               Y46.726 trillion   Y3.3537 trillion

                    Net Profit

Toyota *            Y1.1 trillion
Honda               Y390 billion
Nissan              Y519 billion
Mitsubishi          -Y230 billion
Suzuki              Y60 billion
Mazda               Y34 billion
Fuji Heavy          Y32 billion
Isuzu               Y50 billion
Daihatsu            Y17.5 billion
Mitsubishi Fuso *   N.A.
Hino                Y16 billion
Nissan Diesel       Y17.5 billion
Total               Y1.9854 trillion

* Toyota did not include consolidated net profits in its forecast. The
forecast came from industry analysts. ** Mitsubishi Fuso delayed
announcing its fiscal 2003 financial results and fiscal 2004 forecast
until early July due to problems it has had with recalls.

TABLE 3: WORLDWIDE & JAPANESE PRODUCTION (in units)

                       Fiscal 2003              Fiscal 2004 Forecast
                       Worldwide (Japan)        Worldwide(Japan)

Toyota *               6,513,791 (3,558,000)    7,025,000 (3,610,000)
Nissan *               3,063,071 (1,475,063)    3,340,000 (1,483,000)
Honda *                2,968,000 (1,170,000)    3,160,000 (1,220,000)
Mitsubishi             1,527,000 (359,000)      1,453,000 (300,000)
Suzuki                 1,927,000 (905,000)      1,942,000 (935,000)
Mazda **               1,065,691 (811,333)      1,128,500 (859,000)
Daihatsu               888,000 (723,000)        1,066,000 (828,000)
Fuji Heavy             560,000 (460,000)        630,000 (510,000)
Isuzu ***              N.A. (231,000)           N.A. (183,000)
Mitsubishi Fuso ****   192,700 (141,300)        177,860 (130,420)
Hino                   87,071 (87,071)          83,600 (83,600)
Nissan Diesel ***      N.A. (40,300)            N.A. (35,300)
Total                  19,063,624 (9,961,067)   20,224,260 (10,177,320)

* Toyota totals include vehicles built by affiliated assemblers such as
Toyota Auto Body Co. Ltd., Toyota Industries Corp. and Hino Motors Ltd.
Nissan's total includes vehicles built by Nissan Shatai Co., Ltd.
Honda's total includes vehicles built by Yachiyo Kogyo Co., Ltd.
** Mazda's fiscal 2004 forecast was based on fiscal 2003 results.
*** Isuzu, which sold its equity stake in SIA Automotive Inc., its joint
venture with Fuji Heavy Industries, did not disclose overseas
production figures. **** Mitsubishi Fuso, due to problems the company
has had with recalls, did not yet announce its fiscal 2004 production
forecast.

TABLE 4: WORLDWIDE & JAPANESE SALES (in units) *

                     FISCAL 2003              FISCAL 2004 FORECAST
                     Worldwide (Japan         Worldwide (Japan)

Toyota               6,710,000 (2,303,078)    7,020,000 (2,330,000)
Nissan *             3,057,000 (826,823)      3,380,000 (870,000)
Honda                2,910,000 (735,000)      3,200,000 (800,000)
Mitsubishi           1,509,000 (358,000)      1,450,000 (300,000)
Suzuki               1,927,000 (626,000)      1,942,000 (645,000)
Mazda *              1,076,000 (291,000)      1,180,000 (310,000)
Daihatsu             744,000 (513,000)        786,000 (532,000)
Fuji Heavy           551,000 (246,000)        626,000 (298,000)
Isuzu                380,000 (101,000)        387,000 (78,000)
Mitsubishi Fuso **   191,500 (95,100)         191,500 (95,100)
Hino ***             87,071 (51,000)          83,600 (42,000)
Nissan Diesel        39,700 (23,400)          36,300 (18,200)
Total                19,182,200 (6,169,401)   20,282,100 (6,318,300) *

* The total includes 660cc minivehicles built by Suzuki Motor Corp.
** Mitsubishi Fuso did not yet announce its fiscal 2004 sales
forecast due to problems the company has had with recalls. *** The Hino
total did not include vehicles built and sold by Toyota under the
Toyota brand.