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However, in the event of a war the government could take these vehicles from the citizens for use by the military. The subsidies were handed out to manufacturers who produced more than 100 vehicles. Manufacturers were given a 3,000 Yen subsidy. Individuals who owned these vehicles were given 1,000 Yen plus about 400 Yen for a period of 5 years for maintenance (Togo, 2007). With this new law in place it gave incentive for automakers to begin manufacturing vehicles in Japan. It also gave citizens a reason to buy Japanese automobiles rather than purchasing imported goods.
In order to advance the auto industry even further and to improve the quality of automobiles produced in Japan the Ministry of Commerce and Industry formed the Rationalization Council for the Automobile Industry in 1931...
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