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Nikkei: Japan carmakers now rely on emerging markets for 62% of profit

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.


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