Nissan Motor Co. and Mazda Motor Corp. led a rise in June auto production as revamped, fuel-efficient models boosted exports.
The country's 12 automakers boosted their combined output 4.5 percent to 1.04 million vehicles in June, the Japan Automobile Manufacturers Association said Wednesday. Exports climbed 5.5 percent to 594,684 vehicles.
Demand for updated Nissan and Mazda models offset a decline in production of large vehicles at Toyota Motor Corp. and Honda Motor Co., Japan's two largest carmakers. Mazda's U.S. car sales rose 2.6 percent in June, compared with a 10 percent overall drop in the world's largest auto market as gasoline topped $4 a gallon.
"People are panicked out of large, heavy vehicles," said Michael Wynn-Williams, a London-based analyst at consulting company Global Insight Inc. "So they're transferring to fuel-efficient models" offered by Japanese carmakers.
Japan output rose 17 percent at Mazda, which exports almost 80 percent of its domestic production. Shipments to Europe and the U.S. rose on the strength of its revamped Demio compact and Atenza sedan.
Nissan's Japan production rose 33 percent to 118,771 as exports to North America of small sport utility vehicles, including the Rogue and revamped Murano, surged 52 percent.
Toyota last month cut domestic output 0.9 percent to 365,135 units. Exports to the U.S. dropped 9 percent on fewer shipments of FJ Cruiser and 4Runner large SUVs.
Honda cut Japan output in June by 8.6 percent as it curbed exports to the U.S. The carmaker is reducing inventory of Accord sedans and light trucks in the U.S. while boosting output of Civic compacts.
Mitsubishi Motors Corp., maker of the Outlander SUV and Eclipse sports car, raised production 5.1 percent to 70,747 vehicles as exports rose 7.6 percent last month.