Japanese automakers, including Toyota, Honda, and Nissan, have agreed to standardize the criteria for determining defective automotive parts. Minor scratches or blemishes that do not affect functionality and are not easily noticeable when installed in vehicles will no longer be classified as defects, allowing for their actual use in production. This decision comes as the worsening situation in the Middle East has raised concerns over the procurement of naphtha, a key raw material for plastics and interior components, prompting a relaxation of Japan's traditionally strict quality standards to reduce material waste.
The Nihon Keizai Shimbun reported on June 1 that eight Japanese passenger car manufacturers, along with parts suppliers, are working together to establish unified standards for defective parts. The Japan Automobile Manufacturers Association, which includes 14 major automakers, and the Japan Automobile Parts Industry Association, comprising around 450 parts suppliers, are collaborating on this initiative. Both parties plan to gradually implement the new standards for each part by the end of 2026.
The core of the new standards is that minor defects that do not impact performance will not be excessively classified as defects. Previously, parts suppliers often discarded components with small black spots or scratches, even if they posed no functional issues. Under the new guidelines, as long as the parts meet national standards and do not have significant functional or aesthetic problems, automakers will accept them. This aims to reduce overly stringent defect classifications and increase the yield of parts.
For instance, about 60% of defect classifications for plastic connectors used in automotive electronics are due to the presence of black dots. By standardizing the criteria to exclude these as defects, it is estimated that Japan could reduce waste by 10,000 discarded parts each month. This change is also expected to shorten inspection times. Similarly, headlight components with small bubbles will be deemed acceptable as long as they do not affect functionality or appearance.
The adjustment of quality standards by the Japanese automotive industry is largely driven by concerns over raw material supply from the Middle East. As tensions in the region have made naphtha procurement more challenging, fears of rising prices and supply disruptions for raw materials used in automotive parts have increased. The industry is now under pressure to lower waste rates and enhance the efficiency of raw material usage to ensure stable production and procurement of parts.
Labor shortages and rising raw material prices are also putting pressure on parts manufacturers. According to Japan's Ministry of Health, Labour and Welfare, the average monthly wage for regular workers in manufacturing has risen by about 20% over the past decade to 370,000 yen. Competition from emerging overseas companies is intensifying, with Chinese electric vehicle (EV) manufacturers leveraging rapid development and cost competitiveness. Chinese parts suppliers are securing raw materials domestically and hiring skilled technicians from overseas manufacturers to produce high-quality, cost-effective components. Japanese parts manufacturers must enhance production efficiency while also adapting to trends in sustainability and electrification.
Toyota has established a dedicated organization to begin evaluating parts according to the unified standards in collaboration with parts suppliers. Regular joint evaluation meetings are being held with participating automakers, including Toyota, Honda, and Nissan. Hayashi Telenph, a supplier of interior components to the Toyota Group, has set up an exhibition space within its headquarters to showcase related activities and promote the new standards among its partner small and medium-sized enterprises.
The Japan Automobile Manufacturers Association and the Parts Industry Association aim to extend these unified standards to small and micro parts manufacturers, thereby enhancing production efficiency and competitiveness across the entire Japanese automotive industry.
* This article has been translated by AI.
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