April 8, 2009
Small and Mini-Sized Truck Market Trends
Summary of Results of JAMA’s Fiscal 2008 Survey
The Japan Automobile Manufacturers Association has released the results of its small and mini-sized truck market survey conducted in fiscal 2008 (ending March 31, 2009).
This survey is conducted once every two years to monitor shifts in demand structure by tracking such factors as periods of ownership, purchases, and patterns of use. Also taken into consideration in this survey were the impact on users of new (or newly revised) laws and ordinances pertaining to motor vehicles as well as such background social factors as Japan’s rapidly aging population.
The fiscal 2008 survey sought specifically to determine:
- The status of the driver-hiring environment;
- The extent of awareness of measures to reduce vehicle exhaust emissions and the impact of relevant regulations;
- The impact of Japan’s new category of truck driver’s license;
- Trends in the use of small and mini-sized trucks in farming households; and
- The impact of measures to curb illegal parking.
The principal findings of the survey are summarized as follows.
- Demand for both small and mini-sized trucks, which had been more or less stable, is at present falling off.
- The volume of commercial goods transported by small and mini-sized trucks has dropped slightly. Cost is now the top criterion in freight transport using these vehicles, and there is also a trend to outsource such transport.
- The business environment has deteriorated for commercial operations using small and mini-sized trucks, and further declines in freight volumes and in truck ownership in this category are projected.
- The average age of drivers of commercial-use vehicles in this category is rising. As a result, future hiring will likely hinge on drivers holding licenses for automatic-transmission vehicles exclusively and on part-timers.
- Concern over the fight against global warming and other environmental issues is growing.
- With greater awareness of the new “middle-category motor vehicle” license for truck drivers, the hiring of drivers holding that license is on the rise.
- The average age of truck owners in farming households is increasing, with the lack of successors to take over family businesses now acute.
- Fuel surcharges are imposed by 17% of shipping service operators using small and mini-sized trucks.
- The impact of the stricter enforcement of on-street parking bans seems to be easing.
Reference
JAMA’s Fiscal 2008 Survey of
Small and Mini-Sized Truck Market Trends
Survey Implementation Outline and Results
1. Survey Implementation Outline
| Area of activity surveyed | Individual Use/ Goods Carriers | Commercial (including Carrier-Hiring) Operations |
| Survey area | Nationwide | Within a 50-km radius of metropolitan Tokyo/Within a 30-km radius of Osaka or Nagoya |
| Survey targets | Private owners of small and mini-sized trucks | Commercial operators in enterprises with 5 or more employees |
| Valid responses | 1,851 samples | 857 samples |
| Survey period | August 19-September 22, 2008 | August 19-September 22, 2008 |
2. Survey Results
2.1 Demand for both small and mini-sized trucks, which had been more or less stable, is at present falling off.
- The number of small and mini-sized trucks in use continues to fall, and demand for these vehicles, which had been more or less stable, also steadily declined in 2006-2007.
- Only 12% of respondents said they had purchased small or mini-sized trucks in 2007-2008, a significant decline from the 22% recorded in the last survey, conducted in fiscal 2006. Broken down by user segment, truck purchases by shipping service operators fell from 43% in 2006 to 30%; for all other segments, truck purchases fell from 21% to 11%.
2.2 The volume of commercial goods transported by small and mini-sized trucks has dropped slightly. Cost is now the top criterion in freight transport using these vehicles, and there is also a trend to outsource such transport.
- With respect to small and mini-truck use patterns in commercial operations, the radius of operation remains generally the same compared to the last survey in 2006, but monthly travel distances are shorter. Also, 64% of respondents in this category said their average loading ratio is 50% or less than maximum capacity—a figure that remains virtually unchanged from 2006.
- Whereas the relevant data in Vehicle Transport Annual Statistics compiled by Japan’s Ministry of Land, Infrastructure, Transport and Tourism indicates that the decline in freight volumes for commercial-use small and mini-sized trucks has bottomed out, this survey actually showed a slightly larger number of commercial operators reporting a decrease in freight volumes compared to 2006. On the other hand, the operational status of these vehicles remains unchanged from that reported in 2006.
- The most important criteria when using small and mini-sized trucks in freight transport are “low cost,” “safe and reliable performance,” and “speedy transport,” in that order. The cost factor has thus become the number-one priority, gaining on safety and reliability as per the 2006 survey. Meanwhile, the outsourcing of freight transport and the use of home-delivery services is increasing.
2.3 The business environment has deteriorated for commercial operations using small and mini-sized trucks, and further declines in freight volumes and in truck ownership in this category are projected.
- In contrast with the 2006 survey, which reflected signs of recovery in the business environment, there has been a rise in the number of commercial operators who perceive the business environment to be “worsening,” with 45% fearing that the situation will deteriorate even further. Especially in the construction and home appliance sectors and in foodstuffs and textiles manufacturing and transport, the present and projected situation was perceived to be “bad.”
- As indicated above, more respondents said there has been a decrease in freight transport volumes compared to the 2006 survey, and an even larger number anticipate further declines in the future. This trend was particularly pronounced among shipping service operators (at 56%).
- Although rates of small and mini-sized truck ownership have not seen dramatic changes over the past five years, more respondents—both shipping service operators (47%) and other users (35%)—now feel that ownership rates will decline in the future.
2.4 The average age of drivers of commercial-use small and mini-sized trucks is rising. As a result, future hiring will likely hinge on drivers holding licenses for automatic-transmission vehicles exclusively and on part-timers.
- Driver shortages are a problem for 3% of all survey respondents and for 25% of shipping service operators. The rise in average driver age is being experienced most markedly in shipping service operations.
- The hiring rate for older drivers now stands at 29%, up 2% from 2006. For women drivers, the hiring rate is 7%, down from 10% in the last survey.
- It is anticipated that future driver hirees will largely consist of those licensed to operate automatic-transmission vehicles exclusively and part-time employees. Shipping service operators will likely increase their hiring of women drivers. Meanwhile, cutbacks are expected in the hiring of older drivers.
2.5 Concern over the fight against global warming and other environmental issues is growing.
- Over 70% of the commercial operators surveyed expressed awareness of the need to “stop vehicle idling” and “travel at speeds that promote good fuel economy.” Also, a larger number of commercial operators than in the 2006 survey indicated they were “much concerned” about “climate change caused by CO2 emissions,” the “impact on air quality of nitrogen oxide (NOx) and particulate matter (PM) emissions,” and “automotive parts and materials recycling.”
- Japan’s PM and NOx regulations have had or are now having an impact on 38% of all respondents, more than in the 2006 survey. This impact is particularly heavy on commercial operators owning diesel vehicles. Again among all respondents, over 30% said they would respond by purchasing regulations-compliant diesel replacement vehicles, while another 30% said their replacement purchases would be regulations-compliant gasoline vehicles. The share of shipping service operators who said their replacement purchases would be regulations-compliant diesel vehicles was much higher, at 68%.
2.6 With greater awareness of the new “middle-category motor vehicle” license for truck drivers, the hiring of drivers holding that license is on the rise.
- Among commercial operators owning trucks with maximum payload capacity of between 2 and 3.5 tons, 27% (that is, more than in the last survey) said they were aware of the new license category and its details. Such awareness was particularly high among shipping service operators, at 77% (or 20% higher than in 2006). However, only 1% of commercial operators reported finding it necessary to exploit the new license category.
- On the other hand, 43% of shipping service operators owning trucks with maximum payload capacity of between 2 and 3.5 tons reported hiring drivers holding the new category of license, with 70% indicating their intention to do so in future.
2.7 The average age of truck owners in farming households is increasing, with the lack of successors to take over family businesses now acute.
- Persons aged 60 years or older account for 57% of small and mini-sized truck users in the agricultural sector.
- As regards the intention to continue farming operations, 28% of these respondents said they would do so at a reduced scale (up from the 2006 level). At 45%, more respondents than in 2006 also said they have no successor to take over the family farming operations.
- With respect to the continued use of small and mini-sized trucks, 87%, or fewer than in 2006, replied that no changes were planned, with 93% stating that currently-owned models would remain in use.
2.8 Fuel surcharges are imposed by 17% of shipping service operators using small and mini-sized trucks.
- Cited as measures taken to address the sudden, sharp rises in fuel prices in 2008 were longer postponements of vehicle purchases, refuelling at discount gasoline stations, avoidance of vehicle idling, and travelling at speeds that promote good fuel economy.
- Over 80% of shipping service operators are familiar with the practice of imposing fuel surcharges. Respondents among commercial operators said they have imposed (21%) or will impose (24%) fuel surcharges.
2.9 The impact of the stricter enforcement of on-street parking bans seems to be easing.
- Among all survey respondents, 26% reported having already felt the impact of the stricter enforcement of on-street parking bans, while 9% are anticipating such an impact. Both these figures are lower than in the last survey, indicating that the impact of enforcement measures is easing.
