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During the Korean War ( 1950 - 1953 ) the United States government ordered a large number of army trucks from Japanese automobile manufacturers. This had two reasons, Japan was geographically close and (until 1952 ) it was still under United States occupation. All of this stimulated the growth of Japan's auto industry. and the rapid increase in domestic demand and expansion into foreign markets in the 1970 's boosted the growth even further. Automobile production in Japan continued to grow rapidly after the 1970s (Japan was the largest car producer in the world in 2000 ) but has decreased slightly in recent years. This recent reduction is mainly due to two reasons: New competition from China and a shift in the focus of the Japanese government. China's auto manufactures have two advantages over their Japanese competitors, the cost of labour in China is lower and China has a well established iron and steel industry. Iron and steel are essential for automobile manufacturing and Japan has only limited local iron resources. Also the Japanese government has shifted its focus away from the auto industry towards developing their booming high-tech industry. This shift in focus is causing a further decline of Japan's heavy industry. Japanese cars are famous for their high quality and reasonable price. They are well-equipped with user-friendly amenities, but with prices much lower than cars manufactured in Western Europe or America . SOURCES
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