- German firms see Japan as a manufacturing hub for Asia, not just sales.
- 2. 41% export to ASEAN, 38% to China, 29% to North America.
- 3. Weak yen, stability, proximity to markets drive appeal; 84 firms run 132 sites.
German companies are increasingly perceiving Japan not just as a sales market but as a strategically located manufacturing hub for the whole of Asia, as per a survey by the German Chamber of Commerce and Industry in Japan (AHK Japan) published on September 15, 2025.
The survey of 34 German businesses highlights Japan as an attractive production base because of its stability, strong regulatory framework, and affordability - the latter being a result of the yen being weak against the euro.
Moreover, Japan's closeness to the leading Asian markets, such as the Southeast Asia and China, also adds to its attractiveness.Out of the nearly 730 German companies that have operations in Japan, 84 of them run 132 production or assembly sites.
Also Read:
The survey revealed that 41% of the companies make products in Japan and export them to ASEAN countries, 38% to China, and 29% to North America which is a clear indication of Japan's role as a regional manufacturing gateway. It matches Japan's intention to enhance its industrial ecosystem, which is worth $1.5 trillion, in the face of the global supply chain changes.
The weak yen, which is hovering around 160 to the euro in 2025, is cutting down the operational costs, thus, making Japan very competitive compared to other Asian hubs. It is also mentioned in the survey that Japan's dependable infrastructure and highly-skilled workforce are some of the factors that attract investors, though the country is facing issues like labor shortages.
German firms, such as those in the automotive and machinery sectors, are using these opportunities to cater to the Asia market which is worth $10 trillion and at the same time they are diversifying from China.