Japan Car Output to Increase by 21% for Jul-Sep

Japanese completed car production is expected to be 2.064 million cars for July-September with a quarterly estimation of knock down set production at 1.803 million sets, according to Japanese car makers’ output plans. Completed car increases by 20.6% for July-September from April-June when car makers advanced the inventor y adjustment. Eco-car sales are steady thanks to governmental measures to stimulate domestic economy. Car production in Asia is recovering. Knock down set increases by 15.9%. Steel demand for car is expected to increase.

Japanese car makers entered output reduction from November 2008 after financial crises. Domestic completed car output decreased to 2.59 million cars for October-December 2008 and 1.61 million cars for January-March 2009. The output decreased by 47.1% to 485,405 cars in April from a year earlier. Some car makers slightly recovered production in May with active sales of hybrid cars. Component makers are easing output reduction when car production in Asia is recovering.

Japanese integrated steel maker source said car production is expected to recover with actual demand for July-September thanks to progressive inventory adjustment.