Key facts
- A major earthquake off Japan's coast could trigger a tsunami.
- The tsunami could destroy up to 2 million cars.
- The estimated economic impact could reach 4 trillion yen.
- The survey was conducted by the General Insurance Association of Japan.
A survey conducted by the General Insurance Association of Japan estimates that a major earthquake occurring off the coast of Japan could trigger a tsunami capable of destroying as many as 2 million cars. The potential economic fallout from such a catastrophic event is projected to reach 4 trillion yen. This figure underscores the substantial financial risk associated with natural disasters in Japan, particularly concerning the automotive sector which relies heavily on production and distribution networks that could be severely impacted. The survey's findings serve as a stark warning about the potential consequences of seismic and tsunami activity in a region highly susceptible to such phenomena. The automotive industry, with its complex supply chains and vast inventory of vehicles, represents a significant portion of Japan's economic output, making it particularly vulnerable to disruptions caused by natural disasters. The destruction of millions of cars would not only represent a direct financial loss but would also have cascading effects on manufacturing, sales, and employment within the sector and related industries.