Japanese minicar makers opening up new battlefront

Brutal environment driving focus beyond saving fuel

TOKYO -- Minicar manufacturers in Japan are anxiously seeking fresh engines of growth in a slowing market after cutthroat competition for market share led to a string of fuel economy scandals this year.

Mitsubishi Motors, desperate for better mileage numbers, went astray by falsifying them. And Suzuki Motor employed testing methods not specified under Japanese law.

With Mitsubishi Motors trying to rebuild under Nissan Motor, and Suzuki collaborating with Toyota Motor, the market will have just three main players: these two groups and Honda Motor. Jazzing up new offerings in areas other than fuel efficiency is a key concern for all.

The local connection

Suzuki Motor Chairman Osamu Suzuki was seen at a hotel this October in Hamamatsu, Shizuoka Prefecture, bowing deeply to dealership owners for the fuel economy testing issue that came to light in May. He thanked them for their support and is continuing his apology tour of Japan even now.

This may owe to the company's heavy reliance on smaller dealerships offering used vehicles and on repair shops as sales channels. Such a network of locally rooted businesses has helped Suzuki maintain high market share.

But Suzuki has failed to capture new consumer needs beyond fuel efficiency of late. "More customers are seeking safety features like automatic braking as accidents involving the elderly increase," a Suzuki dealer in greater Tokyo said. Customers' needs have taken a back seat at Suzuki amid its frantic race for market share with rival Daihatsu Motor.