Fraud incidents hit Japan's auto industry, affecting shipments of various materials

On August 10, it was reported that the recent exposure of counterfeiting problems by Japanese car companies triggered a chain reaction, which not only led to a reduction in vehicle production, but also had a significant impact on shipments of materials used in auto parts. From rubber and synthetic resin, to aluminum and steel plates, the supply chain of these key materials has felt a lot of shock.

In July this year, the Japan Automobile Tire Association made new forecasts for the demand for new tires in 2024, reducing the demand to 37.25 million, a decrease of 6% compared with the previous one. This adjustment reflects the negative impact of fraud incidents on the overall demand of the automobile industry.

In the field of synthetic resins, shipments of polypropylene and ABS plastics also showed a downward trend. According to the latest data, shipments of polypropylene in June decreased by 7% year-on-year, while shipments of ABS plastics fell sharply by 14% year-on-year. These two materials are widely used in automobile manufacturing, and the reduction in shipments has undoubtedly brought greater production pressure to Japanese automobile companies.

In addition, aluminum is an indispensable metal material in automobile manufacturing, and its shipments have also been affected. According to data provided by the Japan Aluminum Association, shipments of aluminum rolled products for automobiles in June this year were 11141 tons, a decrease of 6% from the same period last year. Although this reduction may not seem large, it may trigger a chain reaction in the automobile industry chain, further exacerbating production pressure.

It is understood that the reduction in shipments of these materials not only affects the production plans of automobile companies, but may also have a long-term impact on the stability and cost of the entire supply chain. Currently, Japanese car companies and related suppliers are actively responding to this challenge and seeking solutions to ensure stability and continuity of production.