Nikkei survey shows boost in Japanese automaker spending in emerging markets

A Nikkei fiscal 2011 survey on capital spending plans revealed that the Japanese auto sector wants to spend more on emerging markets and environmentally friendly vehicles. Electric machinery firms on the other hand will concentrate on infrastructure exports. The survey also showed that automaker’s spending could surge to 33% on the year. Suzuki Motor Corp. has plans to construct an engine factory in Indonesia and build assembly plants in Thailand and India. This will raise the company’s outlay by 61.2% to ¥210 billion (US$2.8 billion). Mitsubishi Motors Corp will increase its output in China and build a new plant in Thailand. The company will thus lift capital spending by 88.6% to ¥99 billion (US$1.3 billion). The investment plans of Suzuki Motor Corp. and Mitsubishi Motors Corp. indicate that Japanese automakers are expanding investments in response to emerging market demands. (August 8, 2011)