Regulation maintains sales of aftermarket OE parts and services
The Japanese auto aftermarket has been shrinking each year, due to improvements in parts’ quality and more recently the downturn in the economy. But, with approx 54 million cars in Japan, it remains one of the largest auto aftermarkets.
The auto parts’ aftermarket in Japan is worth just under Yen 2,000 billion a year. The auto market continues to be dominated by large Japanese companies, among them Toyota and Nissan while foreign cars have an insignificant market share. The largest distributors of non-OE parts have combined sales of Yen 200 million and operate a total of 55 distribution centres or hubs.
The system of mandatory inspections (Shaken) maintains the service aftermarket and ensures strong sales of original equipment (OE) parts. OE parts account for almost all sales of replacement parts in Japan.
The 87,000 Japanese maintenance and repair facilities includes affiliated car maker dealerships and independents. Repair facilities must be certified under a regulatory regime which, though partially deregulated, is still strict.
The auto aftermarket in Japan includes outlets that sell cars and parts, and also offer repair and maintenance services, along with outlets that only offer repair and maintenance services. Unlike other markers, such as the USA, there are few chains or franchise repair outlets in Japan. This is partly due to the regulatory system. However, the market is consolidating as larger players take share from the small-sized repair shops.
