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Business Standard
04-07-2025
- Automotive
- Business Standard
India-made Jimny helps Suzuki top Japan imports in June, overtakes Mercedes
Suzuki Motor Corp overtook Mercedes-Benz to become Japan's top car importer in June, driven by demand for its India-built compact SUVs, led by the Jimny Nomad. The company imported 4,780 vehicles during the month, a 230-fold year-on-year increase, marking its second time leading Japan's import charts this year, after a similar performance in April, according to the Japan Automobile Importers Association, as reported by Bloomberg. The five-door Jimny Nomad, an extended version of Suzuki's cult off-roader, has ignited a buying frenzy in Japan since its April debut. Priced at JPY 2.65 million (around $18,300), the model received 50,000 pre-orders within days, overwhelming the company's monthly sales target of 1,200 units and forcing a temporary halt to new bookings just four days after launch. To meet demand, Suzuki plans to scale up Jimny Nomad production at its Indian facilities starting this month. The Fronx, another India-made SUV added to Suzuki's Japan lineup in October, has also contributed to the surge in imports. Yet, while Suzuki thrives in Japan thanks to its Indian manufacturing base, its Indian subsidiary, Maruti Suzuki, has seen some slowdown in its home market. Maruti Suzuki domestic sales drop in June Maruti Suzuki India Ltd reported a 6 per cent year-on-year drop in total sales in June 2025 to 167,993 units, down from 179,228 units a year earlier. Domestic passenger vehicle dispatches fell 13 per cent to 118,906 units, as part of a broader slowdown in small-car sales. 'The slowdown in passenger vehicle sales is largely due to a sharp decline in the smaller segment cars,' said Rahul Bharti, senior executive officer at Maruti Suzuki India, as earlier reported by Business Standard. 'This is clearly an affordability issue.' He noted that since 2019, industry-wide entry-level prices have jumped over 70 per cent, largely due to tighter safety and emissions regulations, while small-car sales have dropped by more than 70 per cent. Maruti Suzuki, did, however, note a significant rise in its exports to 37,842 units from 31,033 reported in June 2024. Creta becomes India's top-selling PV in H1 2025 In the SUV segment, South Korean automaker Hyundai Motor India's mid-size Creta was the top-selling passenger vehicle in India in June with 15,786 units, narrowly ahead of Maruti's Dzire (15,484). The Creta also ranked as the second best-selling vehicle in the first half of the calendar year 2025 with 100,560 units, just behind the Wagon R (101,424). US-made cars lack 'Japan-friendly offerings' Back in Japan, Suzuki's surge marks a broader shift in consumer attitudes. 'Japanese consumers don't particularly care whether vehicles are produced in Thailand, India or Japan if they want a particular car,' Takeshi Miyao, analyst at Carnorama, told Bloomberg. He contrasted that with the continued struggles of US brands like GM and Ford, which still lack small, Japan-friendly offerings. Honda, too, is leveraging India's manufacturing ecosystem. Its India-built WR-V, launched domestically last year at JPY 2.1 million, which contributed to a 22-fold rise in Honda's annual Japan imports in 2024 to over 45,000 units — earning it the top importer slot in Q1 2025. Mercedes-Benz leads Japan's imports in H1 2025 Yet over the H1 2025, Mercedes-Benz retained its overall lead with 25,016 units imported into Japan, followed by Honda (~22,000) and Suzuki in third. Nissan ranked ninth, with its Thai-made Kicks crossover. Among American brands, Stellantis-owned Jeep led with over 4,000 units imported, outpacing GM and Ford.
Japan Forward
03-06-2025
- Business
- Japan Forward
Washington Wants More from Japan: Defense Burden, Readiness, and Resolve
Former United States Deputy Secretary of State Richard Armitage and Harvard University Professor Emeritus Joseph Nye — both regarded as leading "Japan hands" in Washington — have recently passed away. John Hamre, president of the Center for Strategic and International Studies (CSIS), has also announced his retirement. For years, visiting Armitage had become a near-ritual for Japanese politicians traveling to Washington. However, a senior researcher at a US think tank familiar with Japan-US relations notes that Japan still seems stuck in an outdated mindset. Tokyo, he notes, seems to think that simply engaging with a few Japan-friendly figures in Washington is enough to assure their interests are represented, even though that era is long over. It's a valid criticism. Perhaps reflecting a growing sense of urgency within the Japanese government, the Japan Foundation recently invited Oren Cass (41) to Japan. Cass, the founder of the conservative think tank American Compass and a close associate of US Vice President JD Vance who is known for expressing his views on the Donald Trump administration's trade policy. US President Donald Trump and Vice President JD Vance shake hands at the Republican National Convention (RNC), at the Fiserv Forum in Milwaukee, Wisconsin, US, July 15, 2024. (©REUTERS/Elizabeth Frantz) In a recent Chuo Koron dialogue, however, it was not his views on trade that stood out most. Instead, he emphasized that debates over what percentage of GDP should go to defense were missing the point. What mattered, he argued, was whether countries like Japan and Germany could credibly defend themselves — Japan against China, and Germany against Russia — even if that meant substantially increasing their defense budgets. Elbridge Colby, US Under Secretary of Defense for Policy and the Pentagon's third-ranking official, expressed a similar view in written testimony submitted to a Senate Armed Services Committee hearing. He called for Japan to raise its defense budget to 3% of GDP as soon as possible. In his oral remarks, he also suggested that Taiwan should aim for 10%. Cass's position closely aligns with Colby's. During a recent visit to Japan, US Secretary of Defense Pete Hegseth expressed confidence that Japan would make sound decisions regarding the defense capabilities it needs. Although he refrained from commenting directly on defense spending, Cass's comments seem to reflect the prevailing sentiment within circles close to the Trump administration. Fred Fleitz is vice president of the America First Policy Institute (AFPI), a think tank closely aligned with the Trump administration. He offered similar views in an interview with Seiron , speaking to The Sankei Shimbun 's Washington correspondent Yoshihisa Komori. While his tone was more restrained than Cass's, he suggested that President Trump is generally satisfied with Japan's recent moves to double its defense budget and, for the time being, isn't pressing for additional commitments. Although some in Trump's political base have called for more aggressive demands on Japan, Fleitz indicated that the president hasn't gone that far. Still, he noted that if expectations were to grow for Japan to assume greater responsibility and reduce the asymmetry in the alliance, the Trump administration would likely convey those expectations discreetly and amicably. This approach would contrast with the more public pressure it has applied to Europe. Matt Pottinger, former Deputy National Security Advisor under President Trump, also stressed the importance of preparing for a potential Taiwan contingency in a recent Bungei Shunju interview. He welcomed Japan's increased defense spending and the reinforcement of its bases in the Nansei Islands as positive developments. However, he argued that Japan, the US, and Taiwan must engage in more detailed coordination on how they would respond in the event of a crisis. According to Pottinger, the more clearly Japan demonstrates both the capability and determination to defend itself, the less likely it is that an actual conflict will occur. He underscored that while war can be avoided, it requires active measures. Deterrence is not possible through inaction. As Russia continues its assault on Ukraine and China asserts itself in the Indo-Pacific, authoritarian regimes are increasingly challenging the status quo by force. For experts close to the Trump administration, the message to Japan is clear: every country must be able to defend itself. The real concern, they suggest, is Japan's persistently passive stance. Economist Keiichiro Kobayashi, writing in Bungei Shunju , cautioned that Japan should not treat ongoing negotiations with the United States as merely a bilateral dispute over Trump tariffs. Instead, he urged Japanese policymakers to seize the moment. He wants them to propose a new framework for global economic governance and articulate a broader strategic vision. However, officials such as Defense Minister Gen Nakatani have maintained that trade and security issues should be treated separately. So far, there has been little indication that the government is prepared to engage in the kind of integrated, forward-looking dialogue Kobayashi advocates. This reluctance stands in stark contrast to the rapidly shifting geopolitical landscape. Despite the intensifying pressure around Japan, the political response remains muted. On May 3, near the Senkaku Islands in Okinawa Prefecture, a China Coast Guard (CCG) vessel intruded into Japanese territorial waters. The CCG then launched a helicopter launched from the vessel, which intentionally entered Japanese airspace. A CCG vessel (No. 2303) equipped with a 76mm cannon, as seen on the China Coast Guard website. Some members of the ruling Liberal Democratic Party (LDP) expressed frustration that the government's response amounted to this airspace violation little more than formal expressions of "regret" or "strong protest." It remains unclear, however, whether Japan's political leadership fully grasps the seriousness of the threat. This month, the only noteworthy political commentary came in the form of a Seiron dialogue between former LDP Policy Research Council Chair Koichi Hagiuda and former Minister for Economic Security Takayuki Kobayashi. Hagiuda acknowledged that the so-called Trump tariffs present a serious national challenge, but also framed them as a chance for Japan to reexamine its domestic policies. While emphasizing the importance of maintaining shared values with the US as allies, he argued that Japan must begin reducing its dependence on America. This includes areas such as food self-sufficiency. Kobayashi agreed, expressing a similar sense of urgency. He stressed the importance of building a nation that is not swayed by foreign trends or external pressures. Offering advice to Kobayashi, who is considered a potential contender for LDP leadership, Hagiuda emphasized the need for political courage — the strength to stand firm and resist when necessary. The same standard, he implied, applies to himself. If Japan is to chart a more independent course, its politicians must act with conviction and demonstrate a willingness to confront challenges head-on. Relying on a handful of "Japan experts" in Washington is no longer sustainable. (Read the article in Japanese .) Author: Takashi Arimoto, The Sankei Shimbun
