Market Trends of japan electric car Industry
Japan's electric vehicle market grows gradually due to government and industry partnerships
- The electric vehicle industry in Japan is growing gradually, and the government's norms and targets to electrify all new car sales by 2035 are shifting the country toward electric mobility. Moreover, government efforts in terms of subsidies and rebates are driving the country's electric vehicle market. In November 2021, the government of Japan announced that it would provide subsidies on electric vehicles, i.e., up to USD 7200 per vehicle. However, hybrid vehicles are not included in the subsidy program. Such factors contribute to the growth of electric vehicles (passenger cars) by 11.11% in 2022 over 2021.
- Various companies are signing partnerships and ventures to enhance electric mobility in various sectors across Japan. In June 2022, the technology company Sony and the Japanese automaker Honda signed a joint venture to work on electric mobility together. The objective of the venture is to produce and sell electric cars in Japan by 2025. Moreover, Honda has announced the launch of 30 electric vehicles and the production of 2 million vehicles annually by 2030. Each company has invested approximately USD 37.52 million in the venture. Such factors are expected to impact electric mobility positively.
- In April 2022, the US-based automaker General Motors announced an expand its partnership with Honda to produce electric vehicles. As part of the expansion, the companies will develop new affordable electric vehicles, including cars. The production of the vehicles is expected to start in early 2027. Moreover, such international expansions are expected to develop new designs and enhanced cars, which further is expected to raise the sales of electric cars During the 2024-2030 period in Japan, which will also accelerate the demand for battery packs across Japan.
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OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT
- Japan's population decline, driven by aging demographics and low birth rates, presents challenges and highlights the need for policy reforms
- Japan's automotive market in the Asia-Pacific region displays a trend of cautious recovery in 2022-2023 after a period of fluctuations
- Japan's auto interest rates have shown a sustained downward trend, driven by the country's low-interest-rate policy and efforts to combat deflation
- Japan's EV charging network stabilizes at 29,400 stations, reflecting maturity and technological excellence
- Automakers are launching electric SUVs to drive electrification and battery pack demand in Japan
- The Japanese government decided to extend its gasoline subsidy program until the end of 2023, citing concerns over potential price hikes should the program be discontinued
- Japan's GDP per capita is poised for a robust rebound, projected to reach USD 47,745.41 by 2030
- Japan's transition from deflation to moderate inflation signals cautious economic progress
- Japan's MaaS Journey: Navigating growth and transformation in shared mobility
- In 2022, while South Africa, Kenya, and Morocco witnessed decreasing inflation hinting at economic stabilization, Nigeria faced a surge before stabilizing in 2023; future projections suggest a trend towards declining inflation and economic stability for all four countries
- The impact of demographics, technology, and sustainability are expected to affect the Japanese used car sales market
- Japan's vehicle production shows a shift toward mini cars and buses with market adjustments across segments, reflecting evolving consumer and economic trends
