Japan Digital transformation: Automotive industry

New advanced technologies that Industry 4.0 introduced, such as Artificial Intelligence, Big Data, the Internet of Things, and cloud computing, are driving the growth of digital transformation (DX) and influencing the direction of many industries, including automotive. The purpose of the thesis is to investigate how DX as a new world trend influences the automotive industry in Japan – with a particular focus on Toyota, Nissan, and Honda factories. A secondary objective is to identify the role of the government in the digitalization process. The first chapter of the thesis is devoted to the theoretical background in digital manufacturing, covering DX terminology, its main components, its relation to the Industry 4.0 definition, and the risks and benefits for manufacturing companies brought by DX. The second part of the thesis presents the government's role in DX: the overall progress Japan made toward digital transformation, recent government initiatives, programs, and regulations with particular attention to manufacturing. The paper's last chapter comprises the Japanese automotive industry overview, several case studies, and a SWOT analysis that identifies internal and external factors that impact the sector's digital transformation and determine its current position, potential advantages, challenges, and prospects.