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Does Ford sell cars in Japan?
By Product Expert | Posted in FAQs on Sunday, December 6th, 2020 at 7:53 pm
American Cars in the Japanese Market
Japanese cars are a big part of the American automotive landscape. Honda, Toyota, Nissan, Mitsubishi and the like tend to take up a sizable portion of streets, parking lots, and driveways in the U.S. You may wonder if the reverse is true in Japan: do they purchase a lot of American cars? For example, does Ford sell many cars in Japan?
Since the end of 2016, Ford has not sold cars in Japan. The automaker announced in January of that year that it would withdraw from the Japanese (and Indonesian) markets. The reason? Ford simply did not see any profit coming from the regions in the foreseeable future.
This may seem strange, as Japanese consumers buy a lot of cars: the country is the world’s third-largest car market. But all the major American brands have met the same fate as Ford- none of them can seem to turn a profit in the country.
Bummer, because that means Japanese citizens don’t get to experience the very-fast 2020 Ford Mustang.
Why don’t Japanese consumers typically buy American cars?
The general consensus among industry analysts is that there are three main reasons why American car brands haven’t succeeded in Japan:
- American brands don’t make cars that suit Japanese tastes
- American brands haven’t invested in a significant dealership presence in the country
- Some Japanese consumers have a perception of American vehicles as unreliable and inefficient
Regarding the first point, Japanese consumers tend to buy very small cars that are easy to maneuver on narrow city streets and fit into tight parking spaces. Conversely, American brands, as we know, tend to lean towards a “bigger is better” mentality.
Did Ford ever sell cars in Japan?
Yes, Ford used to sell cars in Japan. The first Ford vehicles were sold in Japan in 1919. In 1925, Ford founded a subsidiary in Yokohama. For the next ten years, American vehicles dominated the Japanese car market.
However, economic and political factors led Ford and other American manufacturers to virtually withdraw from the Japanese market in 1939. In 1941, the brand was outlawed after war was declared between the two countries.
Ford resumed importing cars to the country in 1974, but things never picked up much steam. As noted above, they threw in the towel in 2016.
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