Japan is well renowned worldwide for its automobile production. Today, the country is ranked the third largest producer of cars in the global market. Over the decades, Japan has relied on the automobile industry as the main source of revenue. The countryproduces many different brands such as Subaru, Toyota, Honda, Isuzu, Mazda, Mitsubishi, Suzuki, among other well-established brands. There are several factors that have enabled the Japanese car industry to thrive and gain superiority in the international market. In this essay, the industry will be critically analyzed by applying Porter’s single diamond model of national advantage. By doing so, the factors within Japan that have enabled the industry to thrive in the international market will be identified and reviewed. The porter’s theory of national advantage will help to reveal the competitive advantage the car industry in Japan enjoys due to the factors made available to them.