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When I meet people overseas and they ask me what part of Japan I'm from, I often get a better reaction saying "I'm from Toyota" compared to "I'm from Aichi." This highlights the immense global presence of the Toyota automotive company, for which the city of Toyota is named. The company is a household name worldwide, but almost no one outside of Japan knows that it shares its name with the city in Aichi Prefecture where it is based. Despite Aichi being a key center of Japanese manufacturing, it remains relatively unknown outside of the country. In this article, I hope to convey the industrial appeal of Aichi Prefecture.
Geography and population
Aichi Prefecture is located in central Japan and, as of October 2023, ranked fourth in terms of population size. Its prefectural neighbors are Mie to the west, Gifu to the north, Nagano to the northeast, and Shizuoka to the east, and it faces the Pacific Ocean to the south. Although home to one of Japan’s biggest cities, Nagoya, Aichi is a green prefecture awash with forest and farmland.
A landscape steeped in history
Aichi Prefecture is rich in tradition and historical significance. “The Three Great Unifiers”—Oda Nobunaga, Toyotomi Hideyoshi, and Tokugawa Ieyasu—who reshaped Japan during the Warring States period all hailed from Aichi Prefecture, and it was from this region that they united the entire country. Aichi is dotted with various castles dating from this tumultuous period, and while Nagoya Castle is the most popular with tourists, both Inuyama Castle, built by Oda Nobunaga's uncle Oda Nobuyasu, and Okazaki Castle, where Tokugawa Ieyasu was born and spent his childhood, are well worth visiting for anyone with an interest in this pivotal period of Japanese history.
As someone born and raised in Aichi who later decamped to Tokyo, I'd like to share the benefits of working in my home prefecture that I could only fully understand after leaving.
Aichi ranks as one of Japan’s top regions economically. Its GDP of $361.2 billion places it just behind Tokyo, while its impressive unemployment rate in the 25-34 age bracket is, at only 2.4 percent, significantly lower than that of the capital and half that of Osaka. This economic strength is driven by the automotive and manufacturing industries and the fact that many prominent companies have their headquarters in Aichi. Notably, Aichi has remained Japan’s top prefecture for manufacturing shipments since 1977, underscoring its pivotal role in industrial development.Aichi has long been a cradle of innovation and technological advancement, contributing significantly to Japan’s industrial prowess. As well as Toyota Motor Corporation, other globally renowned companies, including Rinnai, Brother Industries, Noritake, NGK Insulators, Buffalo, and Mitsubishi Heavy Industries, are headquartered in or around Nagoya, the capital of Aichi. Today, the prefecture is a domestic leader in industries such as automotive manufacturing, machine tools, robotics, fine ceramics, and aerospace, solidifying its status as an economic powerhouse.While the prefecture boasts numerous large corporations, the number of startups in Aichi is relatively small compared to Tokyo and other economic centers. However, in recent years, the Aichi Prefectural Government and Nagoya City have made significant efforts to foster a new startup boom, paving the way for a new wave of innovation in the region.A prime example of this effort is the opening of STATION Ai, Japan’s largest incubation facility, in October 2024. This facility aims to promote collaboration between startups and large corporations, leveraging Aichi’s concentration of major businesses to encourage new ventures. If startups flourish in this environment, Aichi is poised to experience even greater economic growth.
Aichi Prefecture sits at the heart of Japan, roughly halfway between Tokyo and Osaka, and enjoys exceptional connectivity with the rest of the country by rail, road, and air.From Nagoya, you can reach Tokyo in an hour and a half and Osaka in just 50 minutes via the iconic Shinkansen **bullet train. Meanwhile, Chubu Centrair International Airport provides flights that connect Aichi to other regions in just a few hours. Driving is also a popular mode of travel in Aichi, largely due to the prefecture’s thriving automotive culture, and the prefecture’s central location means that other major cities are well within reach by car.Aichi’s transportation infrastructure has seen significant advancements in recent years, with more improvements on the horizon. In 2021, the Shin-Tōmei Expressway opened, reducing the driving time between Nagoya and Tokyo to less than four hours thanks to a heightened speed limit of 120 km/h, compared to the national standard of 100 km/h. Another major project under development is the Linear Chuo Shinkansen, a state-of-the-art maglev train being constructed by JR Central. Scheduled to begin operations in 2034, this train will cut the travel time between Tokyo and Nagoya to just 40 minutes, revolutionizing intercity connectivity.Aichi’s central location and ever-improving transportation network make it a convenient and strategic base for travel across Japan. Whether you’re traveling for business or leisure, Aichi offers unparalleled accessibility to every corner of the country.
One of Aichi’s greatest advantages is its relatively low cost of living compared to Tokyo and Osaka. The region’s affordable prices and rent make it an attractive place to live and conduct business. In fact, the standard of living for the same rental cost differs significantly between Tokyo and Aichi. Apartments in Aichi are often twice as spacious as those in Tokyo for the same rent. Similarly, the average lot size for single-family homes is 237m² in Aichi—more than double the space available in Japan’s larger metropolitan areas.This affordability makes Aichi an appealing option for those looking to reduce living expenses while still enjoying a high quality of life. The region offers ample space and comfort without the financial strain often associated with living in bigger cities like Tokyo or Osaka.
Aichi’s relatively low population density makes it an ideal location for those who want to work in an economically developed area without having to contend with overcrowding. Personally, after moving to Tokyo from Aichi, I was shocked at the difference. Even in Aichi’s city centers, cafes and restaurants are not as crowded as in Tokyo, and you can usually get a table without making a reservation. In Tokyo, cafes near major stations tend to fill up quickly, and finding a spot in a cafe to get some work done can be a real challenge.It seems I’m not the only one to find the capital a little overwhelming in comparison—I've heard stories of people who were transferred from Tokyo to Aichi and ended up deciding to stay. Having gotten used to living in Tokyo, whenever I take a trip back to Aichi, I’m immediately reminded of the benefits that my home prefecture’s more relaxed atmosphere can have on a person’s headspace.
Aichi Prefecture offers an appealing blend of urban and natural beauty, with countless perfect outdoor spots within a short drive of Nagoya. Aichi’s neighboring prefectures are also rich in natural beauty—for example, the famous Nakatsugawa in Gifu is only an hour's drive to the north. Or, if you want to hit the beach, you can head to the seaside resort of Gamagori. For winter sports like skiing or snowboarding, you can head north and visit one of the many ski resorts in Nagano for a day trip. It’s a beautiful part of the country that is waiting to reward you when you feel you’ve earned a break.Thriving industries in Aichi PrefectureIn this final section, we’ll take a look at two industries that are thriving in Aichi Prefecture: the automotive and aerospace industries.Automotive industryThe keystone of the automotive industry in Aichi Prefecture is, of course, Toyota Motor Corporation. As well as the company’s headquarters, all 11 domestic Toyota factories are located in Aichi Prefecture—six in Toyota City and three in next-door Miyoshi City. There are also two facilities—Toyota Kaikan and Toyota Kuragaike Memorial Museum—where visitors can learn about the company’s history.Toyota GroupAichi Prefecture is also home to the Toyota Group—companies that produce parts used in Toyota vehicles. The Toyota Group has such a significant presence that there's even a "Toyota Calendar" showing the three companies' shared holiday schedule.Toyota Group companies include:
Not only has Toyota lent its name to the region and driven the local economy, but it has continued to give back to the community through various local projects and funding initiatives.
The entire Chubu region, of which Aichi Prefecture lies at the center, is a major hub for Japan's aerospace industry, accounting for approximately 50 percent of the country's aircraft parts production. It's a central location for developing and producing Boeing aircraft structures, aircraft engines, H3 rockets, and other aerospace technologies. Aichi Prefecture hosts manufacturing facilities for companies like Mitsubishi Heavy Industries, Kawasaki Heavy Industries, Subaru, and Mitsubishi Heavy Industries Aviation Engines, along with many other aerospace-related companies. Interestingly, Aichi's connection to the aviation industry dates back quite far. In the late Taisho era, a private flight school was established in Moriyama, Nagoya, to train pilots and engineers. The aerospace industry gained momentum during the industrial boom following the Manchurian Incident in 1931. Around this time, the steel manufacturer Daido Special Steel, which still has its headquarters in Nagoya, was designated as a joint military management factory and began increasing production of special steel for aircraft and springs.As the Pacific War began, military production increased further. The Mitsubishi Heavy Industries aircraft manufacturing plant in Nagoya created the Imperial Japanese Navy's first domestically produced carrier-based fighter aircraft. After World War II, Japan was prohibited from researching, developing, and producing aircraft, and its aircraft companies were dismantled. However, production resumed in 1952, and in 2011, the central region of Aichi and Gifu Prefectures were given government dispensation to aim to become Asia's largest aerospace industry cluster, encompassing research and development, design, manufacturing, and maintenance.Chubu Centrair International Airport symbolizes Aichi's aerospace industry and serves as a gateway to the entire Chubu region. Built on an artificial island in Ise Bay and opened in 2005 to coincide with the Aichi Expo, the airport plays a crucial role in the aerospace industry. Aircraft parts manufactured by Mitsubishi Heavy Industries, Kawasaki Heavy Industries, and Fuji Heavy Industries are transported to the airport by ship and then exported via specialized aircraft, further contributing to the development of the local aerospace industry.
Aichi has been growing as an economic zone through strong manufacturing industries since before World War II, and the results are plain to see. The prefecture already stands tall as a powerhouse of heavy industry and relishes the challenge of responding to the rapid changes happening in the world of business. To that end, Aichi is seeking to innovate in industries outside manufacturing, such as software development, and the recent and ongoing developments in its transportation networks and startup support policies in recent years are all key to these future strategies.As a native of this region, I am excited to see these transformations take shape.
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