China’s auto parts industry has long dominated the Japanese market, but the Japanese government has recently moved to regulate the industry in an attempt to diversify its market.
The government’s plans include the formation of an automotive safety agency and the establishment of an independent regulator, and a government task force has been working to implement the measures.
However, a number of Japanese auto parts manufacturers have not been able to secure a share of the Japanese auto market, as they face difficulties in securing financing from the government.
This has led to a glut of Japanese car parts, including parts from several Chinese auto parts companies.
In March, the head of a Japanese auto supplier group told Al Jazeera that there were only two Chinese companies supplying Japanese carmakers with parts in the country, one of which was the country’s biggest.
“There are two Chinese auto companies in Japan,” Hiroaki Ueda, a vice president at Takayasu Industries, a Japanese carmaker, told Aljazeera.
“The first is a company called Yoyogi, and the second is a small Japanese company called Nippon Steel.”
We can’t sell the Japanese car to them, because there’s no foreign demand for it,” he said.
A number of Chinese carmakers have also not been given the green light to enter the Japanese automotive market.
Ahead of the Tokyo auto show, the government has launched a special programme to increase its investments in auto parts production.
It is also launching a series of pilot projects to attract more foreign companies into the Japanese industry, with a view to opening a manufacturing facility in Japan, which would help reduce costs.
Al Jazeera’s Yvonne Ng, reporting from Beijing, said the plan to attract foreign firms was a sign of the government’s commitment to diversifying the economy, as it would reduce the reliance on imports from the country.”
This plan is aimed at bringing more foreign investment into the industry, so that it can diversify from imports,” Ng said.
The government is also hoping to attract new investment into its domestic auto industry, but this is unlikely to happen, as the country relies heavily on foreign-made cars.
The new government is looking to expand its market share in the auto industry.
However, this is likely to require some political capital, as many of the countrys main opposition parties are against the idea.
Aljazeera’s Hui Ching-ling contributed to this report