Japan Auto Service Aftermarket - Size and Structure 2004/03



August 2006

Regulation maintains sales of aftermarket OE parts and services

The Japanese auto aftermarket has been shrinking each year, due to improvements in parts’ quality and more recently the downturn in the economy. But, with approx 54 million cars in Japan, it remains one of the largest auto aftermarkets.

The auto parts’ aftermarket in Japan is worth just under Yen 2,000 billion a year. The auto market continues to be dominated by large Japanese companies, among them Toyota and Nissan while foreign cars have an insignificant market share. The largest distributors of non-OE parts have combined sales of Yen 200 million and operate a total of 55 distribution centres or hubs.

The system of mandatory inspections (Shaken) maintains the service aftermarket and ensures strong sales of original equipment (OE) parts. OE parts account for almost all sales of replacement parts in Japan.

The 87,000 Japanese maintenance and repair facilities includes affiliated car maker dealerships and independents. Repair facilities must be certified under a regulatory regime which, though partially deregulated, is still strict.

The auto aftermarket in Japan includes outlets that sell cars and parts, and also offer repair and maintenance services, along with outlets that only offer repair and maintenance services. Unlike other markers, such as the USA, there are few chains or franchise repair outlets in Japan. This is partly due to the regulatory system. However, the market is consolidating as larger players take share from the small-sized repair shops.



Who can benefit from this research?
· Suppliers of OE, certified, non-OE, used or salvage parts
· Car makers
· Car dealerships
· Certified repairers
· Car insurers
· Providers of IT and logistics services


Sources: Diagonal Reports interviewed leading Japanese auto service aftermarket experts.

Interviews were conducted in mid 2004. Diagonal Reports has been tracking the automotive service aftermarket since the mid 1990s. Findings are published in the Global Aftermarket Panel series of reports.

Report · Title: Japan Auto Service Aftermarket - Size and Structure 2004/03
· Price: Euro1,500 (US$1,905)
· Published: October 2004
· Pages: 44
· Series: The Automotive Service Aftemarket Size and Structure Series 04 includes the US, UK, Japan, Korea and other key automotive markets. Each report follows the same format and approach to facilitate global and regional comparisons



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