An analysis by the Nikkei finds that emerging markets are rapidly rising as a percentage of Japanese automakers’ earnings, at the expense of Japan, Europe and the US.
Six major domestic carmakers earned a combined 62%, or ¥788.4 billion (US$9.9 billion), of their operating profits from emerging markets in fiscal 2011, up from 57% the year before, according to data tabulated by The Nikkei. In value terms, the profits jumped 60% from five years earlier.
Operating profits from emerging markets came to roughly ¥480 billion (US$6 billion) in fiscal 2006—slightly above 10% of the overall tally. The 2008 financial shock drastically transformed the earnings structure at the automakers as demand plunged in the US and other industrialized nations.
Higher sales volumes spurred by economic growth in emerging countries have raised Japanese automakers’ percentage of sales from such markets to 26% from 15% in fiscal 2006.