Market Trends of Japan Transportation Infrastructure Construction Industry
Growth in e-vehicle transportation
Japan's electric vehicle sales are expanding rapidly, led by more affordable kei minicars. But EVs still accounted for just 2.1% of new passenger car sales here in fiscal 2022, compared with nearly 20% in China and Europe.
Electric passenger car sales in Japan reached a record 77,238 units in the year ended March, 3.1 times the year-earlier tally, according to data released Thursday by the Japan Automobile Dealers Association and the Japan Light Motor Vehicle and Motorcycle Association.
EVs are gaining a presence in the market for imported cars. Sales of electric passenger cars from abroad surged 64% to 16,430 in fiscal 2022, for a share of 6% in the imports market -- up 2.6 percentage points on the year. While electric lineups under Japanese brands are limited, centering on minicars, such foreign players as Tesla, BYD Auto and Audi offer luxury options.
Japan is bolstering support to develop battery-charging infrastructure. It will also continue offering up to 850,000 yen in subsidies for buyers of qualified vehicles. In comparison, the U.S. plans under new legislation to give a tax credit of up to USD 7,500 to buyers of newly qualified vehicles made in North America. China scrapped EV sales subsidies at the end of 2022.
Airports Infrastructure Driving the Market
Successful infrastructure planning will play a key role in the continued growth of tourism in Japan. The association cites the development of Tokyo-Haneda’s international network, the privatization of Sendai and Osaka’s Kansai and Itami Airports, and continuous efforts to improve competitiveness by reducing costs and optimizing infrastructure as positive developments. While Japan is a leader in self-service technology for domestic operations, many features are not available for international travelers.
On May 8, 2022, the new Palau International Airport Terminal, constructed through the "Renovation, Expansion, and Management of Palau International Airport Project" (Private Sector Investment Finance), was fully opened in Koror City, Republic of Palau. The existing terminal building at Palau International Airport was constructed in 2003 with grant aid from JICA and has been in use for about 20 years. Still, with the increase in the number of tourists, there was a need to overhaul the airport’s facilities and functions.
To address these issues, this project saw the construction of a new departure terminal building and renovation of the existing terminal building, now to be used exclusively for arrivals, while introducing Japan's excellent airport operation and maintenance management technologies. This is the largest infrastructure development project in Palau and the first public-private partnership (PPP) project in a Pacific Island country, ever supported by Japan.
On 29th March 2022, Hokkaido Airports (HAP, Chitose City, Hokkaido) announced the 2022 business plan for the seven Hokkaido airports it operates. The investment amount will be JPY 11,230 million, which is almost double the plan for FY2009 (JPY 5.82 billion). It also announced a policy to set up a loan facility of JPY 9 billion for financial institutions in preparation for the downturn in aviation demand due to the new coronavirus. Eighty percent of the investment, or JPY 8.99 billion, will be used for operations related to repairs of airport facilities.
