Business

Japan's car production plunges due to parts shortages

A worker assembles cars at Honda Motor's factory
Image caption Carmakers have been amongst the hardest hit businesses by the earthquake and tsunami in Japan

Japanese car production plunged in April as manufacturers continued to face a shortfall in parts supply.

Toyota, the world's biggest carmaker, said its domestic production fell 74.5% compared with the same month last year.

Honda's Japanese output plummeted 81%, while Nissan reported a 48.7% decline at its factories in Japan.

Japan's carmakers have been facing a shortage of parts as the 11 March earthquake and tsunami disrupted the country's supply chain.

As a result, the country's top car manufacturers have been forced to suspend or slow down production at their factories.

Global impact

The effects of the disruption in Japan's supply chain have been felt well beyond the country's shores.

Leading Japanese carmakers have reported a sharp drop in their global production numbers as well.

Toyota Motors, which has curbed production at its plants in various countries, said its factories outside Japan produced 25% fewer vehicles in April.

Honda Motors has reported a decline of 43.5% in output at its overseas factories, while Nissan Motors said its foreign output dipped by 12.7%.

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