Auto Output Soars in Japan

Not surprisingly, Japan's three largest automakers report huge year-over-year increases in domestic vehicle production last month compared with March 2011, when the country's earthquake and tsunami crippled output. The carmakers' global output also rose.

In March, Toyota Motor Corp. (including its Daihatsu and Hino units) nearly tripled production to 455,600 vehicles in Japan and boosted global output 65% to 976,300 units. Nissan Motor Co. hiked domestic and global production 112% to 100,800 units and 23% to 470,700 units, respectively. Honda Motor Co.'s output more than tripled to 119,700 units in Japan and grew 42% to a record 400,100 units worldwide.

In the fiscal year ended March 31, Toyota raised production 6% to 3.9 million vehicles in Japan and 4% to 8.6 million units worldwide. Nissan's output jumped 12% to 1.2 million vehicles at home and 15% to a record 4.8 million units globally. Honda's production fell 5% to 870,500 vehicles in Japan and 12% to 3.1 million units worldwide.

Japanese carmakers say the persistent strength of the yen, which inflates the overseas price of domestically made vehicles, has made it difficult to rebuild export volume. But analysts note that domestic demand is being bolstered by 300 billion yen ($3.7 billion) in subsidies from the Japanese government to buyers of fuel-efficient vehicles.