Japan Data
Technology
11/01/2025
To build a car, 30,000 parts are necessary if we take into account all the screws and other switches included in the composition of the different parts of the vehicle. A large number of suppliers therefore come into play. However, in their press conference on December 23, Honda and Nissan announced that they were starting talks for a merger which should have a very strong impact on the companies’ suppliers.
According to a study by Teikoku Databank carried out in November 2024, Japan has 68,485 automotive supplier companies, which supply the chains of 10 automobile manufacturers.
With 40,680 subcontractors, Toyota has the largest number of suppliers, followed by Honda (22,465 suppliers) then Nissan (19,084 suppliers). Toyota deals directly with 2,306 Tier 1 suppliers, 22,334 Tier 2 subcontractors and 16,040 Tier 3 or higher. Tier 2 suppliers represent the largest share of automotive subcontracting.
Cumulatively, the total number of suppliers of the 10 Japanese manufacturers seems to amount to 147,207 companies but in reality, subcontractors often work for several companies in the sector, so their real number is only 68,485 if we excludes duplicates.
However, Honda and Nissan have 9,242 suppliers in common and 3,472 of these subcontractors also work for Mitsubishi.
Common suppliers
Furthermore, 4,507 (50.1%) of the 9,242 companies supplying both Honda and Nissan have a turnover “between 100 million and 1 billion yen”, while 1,752 (19.5%) have a capital of “less than 100 million yen”. In total, 70% of these subcontractors have a turnover of less than 1 billion yen (6.12 million euros).
In addition, 550 suppliers working for several manufacturers manufacture “spare parts and accessories”, 480 companies ensure the “manufacture of metal molds, parts and accessories”, 381 subcontractors take care of “transport logistics », 379 of the “manufacture of plastic parts” and 373 of “parts from metal presses”.
(Headline photo: Reuters)
technology company Honda car Nissan
