The Japanese automotive industry has the distinction of being the biggest automobile manufacturer and exporter in the world. The country is noted for its efficient and reasonably priced cars and motorcycles.

Japan is home to world's 10 biggest automobile manufacturing companies. The country is the biggest automobile manufacturer in the world and exports more vehicles per year than any other nation.

Japanese automotive history
The history of Japanese automotive industry starts from 1902. Early period saw a small number of cars being produced. These vehicles were of 12 horsepower and manufactured on a trial basis. Japanese vehicle manufacturers failed to compete against US car imports and soon closed down. American companies like General Motors and Ford imported parts and assembled them in Japan during the early 20th century. Japanese subsidiaries were also established by a number of US vehicle firms. The Japanese personal market at that time was very small. Fuel was imported and expensive. Mass transport like buses were preferred by the common people. Taxis were also popular.

Pre-World War II era saw cars being manufactured in Japan through business joint ventures. Vehicle examples of this type include Mitsubishi Model A. Protectionist policies followed by the Japanese Government during that era helped the rise of indigenous firms like Toyota and Nissan.

Post World War II
The period just after World War II saw Japanese vehicle manufacturers produce trucks for military use. This intensified particularly during the Korean War (1950 -1963). All companies at that stage were closely allied with the Japanese government. The first Japanese car to be exported into the United States market was the Toyota Crown model.

The 1960s heralded the maturity of Japanese car manufacturers. Small cars of engine capacity 360cc were launched and became popular. These cars attracted lower taxes compared to bigger vehicles and was more affordable. The Subaru 360 was a pioneer in this regard. The Honda N360 were also launched at that time. By the end of the 1970s, Japanese car manufacturers like Mitsubishi and Honda had gained substantial market share in the world market- which they still holds.