As debate continues over the introduction of the Shinkansen in India, more examples are emerging of Japanese railway exporters establishing a stable supply through thorough localization. Hitachi's and Kawasaki's local production and efforts to establish bases in Europe demonstrate the importance of long-term parts supply and local maintenance systems.
The railway industry has many examples of companies achieving a stable supply through thorough localization. Germany's Knorr-Bremse operates a components business in Japan, has established a 24-hour supply center, and plans to bring a components assembly plant in Saitama Prefecture into operation. These efforts are helping the company earn the trust of Japan's railway market.
As an example of a Japanese company, Hitachi, Ltd. manufactures rail vehicles for the European market at its UK plant and at an Italian plant it acquired, winning the trust of Europe's advanced railway markets and establishing a stable position by completing its supply chain within Europe. Kawasaki Heavy Industries also produces vehicles for the New York City Subway in the United States, and has established a system that enables smooth parts replacement in the event of a breakdown.
Rail vehicles have long operating lives, and must be designed to suit each country's track, power supply system, safety equipment and operating conditions. As a result, competitiveness depends not only on the export of rolling stock but also on establishing long-term parts supply and maintenance systems. Developing local bases and adapting development to local requirements are important, making railway exports highly challenging.