In 1904, Torao Yamaha produced the first
domestically manufactured bus, which was powered by a steam engine. In
1907, Komanosuke Uchiyama produced the Takuri, the first entirely
Japanese-made gasoline engine car. The Kunisue Automobile Works built
the Kunisue in 1910, and the following year manufactured the Tokyo in
cooperation with Tokyo Motor Vehicles Ltd. In 1911, Kwaishinsha Motorcar
Works was established and later began manufacturing a car called the
DAT. In 1920, Jitsuyo Jidosha Seizo Co., founded by William R. Gorham,
began building the Gorham and later the Lila. The company merged with
Kwaishinsha in 1926 to form the DAT Automobile Manufacturing Co. (later
to evolve into Nissan Motors). From 1924 to 1927, Hakuyosha Ironworks
Ltd. built the Otomo. Toyota, a textile manufacturer, began building
cars in 1936.[2] Most early vehicles, however, were trucks produced
under military subsidy.
Cars built in Japan before World War II tended to be based on European
or American models. The 1917 Mitsubishi Model A was based on the Fiat
A3-3 design. (This model was considered to be the first mass-produced
car in Japan, with 22 units produced.) In the 1930s, Nissan Motors' cars
were based on the Austin 7 and Graham-Paige designs, while the Toyota
AA model was based on the Chrysler Airflow. Ohta built cars in the 1930s
based on Ford models, while Chiyoda built a car resembling a 1935
Pontiac, and Sumida built a car similar to a LaSalle.

The Ford Motor Company of Japan was established in 1925 and a production
plant was set up in Yokohama. General Motors established operations in
Osaka in 1927. Chrysler also came to Japan and set up Kyoritsu Motors.
Between 1925 and 1936, the United States Big Three automakers' Japanese
subsidiaries produced a total of 208,967 vehicles, compared to the
domestic producers total of 12,127 vehicles. In 1936, the Japanese
government passed the Automobile Manufacturing Industry Law, which was
intended to promote the domestic auto industry and reduce foreign
competition; ironically, this stopped the groundbreaking of an
integrated Ford plant in Yokohama, modeled on Dagenham in England and
intended to serve the Asian market, that would have established Japan as
a major exporter[citation needed]. Instead by 1939, the foreign
manufacturers had been forced out of Japan. Vehicle production was
shifted in the late 1930s to truck production due to the Second
Sino-Japanese War.
For the first decade after World War II, auto production was limited,
and until 1966 most production consisted of trucks (including 3-wheel
vehicles). Thereafter passenger cars dominated the market. Japanese car
designs also continued to imitate or be derived from European and
American designs.
SOURCE:
Alain Japan
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