In Japan, around 90pc of auto and auto ancillaries have been hit due to the COVID-19 outbreak, Chinese Association of Automotive Manufacturers stated citing a survey by Imperial Data Bank.

 

Toyota, Honda and eight major Japanese car manufacturers have shut their production. Parts and material manufacturers like Toray and Murata have also suspended operations due to COVID-19 cases among their employees and a halt in auto production

 

The report states that in February, 63.4pc of Japan’s auto sector was negatively impacted by COVID-19 which has now exceeded 90pc. Further, the pandemic is also affecting the supply chain of the Japanese auto sector.

 

Japanese carmakers like Toyota, Honda, Nissan and Mazda had to cut large scale production amid COVID-19, mainly due to shortage of raw materials, spare parts and a decline in auto sales. Toyota has suspended seven production units in Japan and North America. This shutdown has been extended for two more weeks until May 4. Meanwhile, Honda’s 17 plants in North America will remain shut until May 1. Nissan had planned to resume operations at the beginning of April but as  COVID cases increased, the suspension was extended till the end of April. Suspension of production activities affects the upstream and downstream enterprises in the supply chain, according to CAAM.

 

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