As a sign of COVID-19’s continuing adverse impact on the global economy, Japan posted a 21.9 percent fall in exports for the month of April, following an 11.7 drop in March.
A report by the Nikkei Asian Review cites data from the Ministry of Finance, showing the country's 5.2 trillion yen (Php 2.45 trillion) in exports, lower than last year’s figures and representing its biggest dive since October 2009.
Auto industry hit by COVID-19 outbreak
A dip in global demand has seen sales sliding for 17 straight months, with the current coronavirus pandemic accelerating the decline.
The blow was especially heavy for the auto industry, with car exports falling by 50.6 percent as shipments worldwide continued to shrink. Auto parts exports also fell by 39.2 percent.
Overall shipments of cars and auto parts to the U.S. market amounted to 879 billion yen, representing a 37.8 percent plunge, the biggest since July 2009. Exports to the European market also shrunk by 28 percent to 483 billion yen.
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COVID-19 and falling global demand are threatening to stall Japan's auto industry
Exports to Asia fell by 11.4 percent to 3.1 trillion yen, with China accounting for 1.1 trillion or a decrease of 4.1 percent, as Japan’s biggest trading partner.
Carmakers from the land of the rising sun are feeling the pressure. Industry leader Toyota sees rough roads coming up, as reduced consumer spending leads to as much as an 80 percent reduction in profits.
The company forecasts that overall sales for 2020 will hit a nine-year low o 8.9 million units, with president Akio Toyoda remarking that the effects of the coronavirus have been more severe than the 2008 global financial crisis.
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Japan's auto exports to China fell by 4.1 percent
COVID-19 restrictions have also forced Toyota to cancel its participation in the 2020 edition of the 24 Hours of Nürburgring.
Honda is grappling with a 28 percent drop in vehicle sales for the first quarter of 2020, translating into an operating profit of 634 billion yen despite continuing cost reductions, 12.8 percent lower than last year and the lowest earnings for the company in four years.
On top of its management issues, Nissan had been hard-pressed to achieve sales targets prior to the global lockdown. A restructuring plan aims to keep operating costs down by slashing $2.8 billion, with one proposal involving putting the brakes on the Datsun brand.
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