Factors that favour car manufacturing and electronic industry in Japan

Factors that favour car manufacturing and electronic industry in Japan

  • The historical background is associated with the rise of Emperor Meiji (1868-1912), who encouraged the establishment and development of industries as Japan abandoned aggressive military policies.
Factors that favour car manufacturing and electronic industry in Japan
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  • Availability of capital provided other industries like shipbuilding, machinery, textiles, fishing and tourism, which is invested in the development of other industries. Japan is also a rich nation.
  • The ready market provided by Japan’s large population with high purchasing power and the external market. Japan’s products like cars and electronics are favoured all over the world. The vehicles have minimal fuel consumption and are durable.
  • Availability of skilled labour in the industry. The Japanese are skilled and dedicated to their development ventures. They are also hard-working which has led to the production of qualitative and quantitative automobiles.
  • The abundance of water to run the industry. The country is surrounded by the Pacific Ocean and has many rivers and small lakes whose water is used in the iron and steel industry.
  • The rugged landscape of Japan which does not favour agriculture hence heavy investment in industries as alternative income sources.
  • Availability of Hydro Electric Power which has led to the growth of the industry.
  • Use of advanced technology e.g. use of computers which lead to mass production of high-quality products.
  • Accessibility of the Japanese island to many parts of the world by seaways making importation of raw materials and exportation of finished goods very easy.




  • The government emphasizes on an education system with a technical bias to ensure ample skilled labour.
  • Japanese free market policy encourages industrial investment in the country.
  • Government support through loans and carrying out research.

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