The impact of aftermath of the earthquake on Malaysia’s trade with Japan can be seen in various industries especially in Japan’s main industries particularly the automotive, iron and steel as well as electrical and electronics industries (E&E).
In 2010, Malaysia’s exports of automotive part and accessories to Japan registered at USD 154.65 million, up by 14.45 percent from the previous year. Electrical equipment such as car audio contributed a majority share of total exports of automotive part and accessories as well as rubber and plastic components.
Japan's major automakers will produce about 400,000 fewer vehicles domestically as a result of the 11 March 2011 earthquake and tsunami. The disaster caused damage to only a few auto assembly plants, such as a new facility set up by a Toyota Motor Corp. subsidiary in Miyagi Prefecture. However, it has crimped automakers' parts procurement since many factories making auto and electronic parts are located in the hardest-hit regions of northeastern Japan.
The nation's eight manufacturers of passenger vehicles and four truck makers are expected to cut production by a combined 385,000 vehicles or so. The figure represents almost 5 percent of annual output.
Toyota shutdown domestic auto assembly plants from 14 March 2011 till 2 April 2011 and this caused reducing production by about 140,000 units. Honda Motor Co. suspended operations at two domestic plants through 3 April 2011, with its output likely to fall by 46,600 units. Nissan Motor Co.'s production expected to slide by 42,000, while Mazda Motor Corp. anticipates a drop of 31,000.
According to the Japan Automobile Manufacturers Association, a large number of parts are in short supply. Engine control units, brake-related parts and steel sheet are among the components most severely affected.
Toyota plans to tap its parts stockpile when it resumes partial production on 4 April 2011. Simultaneously, it will also look for fresh alternatives for procuring parts. The automaker intends to gather information from affiliated parts suppliers and others to gain a complete understanding of the extent of the damage and hopes to resume full production in mid-April 2011.
Nissan is considering importing engines from its plant in the U.S. state of Tennessee because its engine factory in Fukushima Prefecture has been damaged.
Meanwhile, parts suppliers are starting to show some progress in bringing production back up. Renesas Electronics Corp., the world's largest producer of automotive semiconductors, plans to restart its main plant in Ibaraki Prefecture in July 2011. As it makes repairs, the firm aims to continue to provide a steady supply by fabricating chips at its own facilities in western Japan and by outsourcing from overseas. Hitachi Automotive Systems Ltd. resumed production of suspension systems at its Fukushima plant on 1 April 2011. And Keihin Corp. has begun making engine control units and other components on a trial basis at an affected factory in Miyagi Prefecture.
One of Nippon Steel Corp.'s three steel plants along the Pacific coast in northeastern Japan has been crippled. The plant in the hard-hit city of Kamaishi, Iwate Prefecture, has stopped running as it was partially flooded by the tsunami. Because of those damaged, the auto industry may also face a serious shortage of steel sheets used for car bodies.