Japan Data

Nearly 10,000 Suppliers Work for Both Honda and Nissan

Economy

As Honda and Nissan have begun discussions on integrating their businesses, the thousands of companies in their supply chain indicate the size of their operations.

According to estimates from a study conducted by Teikoku Databank, as of November 2024, there were a total of 68,485 supply-chain companies in Japan’s automotive industry for 10 automakers.

Toyota has the largest number of suppliers, at 40,680 companies, followed by Honda with 22,465 and Nissan with 19,084. The breakdown of supply-chain companies for Toyota shows that 2,306 were categorized as Tier 1, meaning that they do direct business with Toyota; meanwhile, there were 22,334 Tier 2 companies that engage in direct business with Tier 1 companies. In addition, there were 16,040 other companies categorized as Tier 3 or beyond. For all automakers, Tier 2 was the largest segment among supply-chain companies.

Supply-Chain Companies by Automaker

Simply adding up the number of supply-chain companies listed here for the 10 manufacturers gives a total of 147,207, which is more than double the actual total of 68,485 companies. As some companies utilize the same suppliers, they are counted more than once.

There are 9,242 companies that operate within the supply chain of both Honda and Nissan, and 3,472 companies that are suppliers to those two companies and also to Mitsubishi Motors.

Suppliers to Multiple Companies

Honda and Nissan 9,242 companies
Honda, Nissan, and Mitsubishi Motors 3,672 companies

Among the 9,242 companies in the supply chains of both Honda and Nissan, the largest segment, at 50.1% or 4,507 companies, have total sales that range from ¥100 million up to ¥1 billion, followed by the 1,752 companies, or 19.5%, whose sales are below ¥100 million. In other words, roughly 70% of the companies have sales of less than ¥1 billion.

Among companies supplying multiple automakers, the most common specialty is the manufacture of automotive parts and accessories (550 companies), followed by the manufacture of molds, mold-produced parts, and supplemental parts (480 companies); transport of general cargo and automobiles (381 companies); manufacture of industrial-use plastic products (379 companies); and manufacture of metal stamping products (373 companies).

Scale of Sales for Companies Supplying Both Honda and Nissan

(Translated from Japanese. Banner photo © Reuters.)

Nissan Honda automobile