Japan witnessed annual sales of 4.3 Million vehicles in 2019. The country was a major contributor with more than 43,000 EV sales. In 2019 Japan witnessed a 19% decrease in EV sales after an 8% decrease in 2018. In 2020, country is estimated to witness a drop in new car sales by 19%.



Vans an MPVs accounted for almost 39% of the total car sales in the country in 2019. The Rear AC technology penetration is comparatively low in the country. Honda cars had among the least penetration for rear ac technology. In Japan, the vertical cockpit AC vents are more popular.


infographic: Japan Automotive Hvac Market, Japan Automotive Hvac Market Size, Japan Automotive Hvac Market trends and forecast, Japan Automotive Hvac Market Risks, Japan Automotive Hvac Market report

Owing to high share of automatic ac and high price of electric compressors the average HVAC content for vehicle is 2nd highest for any region.

Installation of air purifier in the cars is growing significantly. 24 of the top 30 selling cars in Japan were equipped with the air purifiers in 2019. Toyota vehicles are mostly equipped with the ‘clear air & pollen removal’ filters in its every top selling model. The Honda cars were fitted with ‘Plasma cluster technology’ filters. Few of the Honda cars were also fitted with ‘high performance deodorizing’ filter. Subaru cars were mostly installed with ‘anti-allergy’ filter.



Automatic HVAC System had around ~92% penetration among the top 30 selling cars in 2019. Top selling premium cars had almost all of its models equipped with automatic HVAC system.

Manual HVAC system was only seen in the top selling budget models of Toyota cars. Nissan is the only other OEM with comparatively higher penetration of manual HVAC system.

Among top selling OEMs Honda had the highest penetration for automatic HVAC system in the country followed by Toyota. Toyota occupies major market share in the passenger vehicle segment of about 58% among top 30 selling vehicles. Almost every top selling Honda vehicle in the country is equipped with automatic HVAC system.

13 of the Toyota models were equipped with electric compressor, highest for an OEM in Japan.

HMI (Human Machine Interface) or the HVAC controller design among the top selling cars is mostly knobs. Honda’s cars were the only few top selling models equipped with touch screen HMI system. The touchscreen HVAC control technology is present in the premium segment cars. 



Most of the cars equipped with automatic HVAC system were fitted with multi zone climate control. Automatic dual zone climate control was the most popular technology in the region. Japan had the higher penetration of tri zone climate control among the top selling 30 models in 2019. Toyota had as many as 3 models with tri zone climate control.  

Among the premium segment cars almost every vehicle with automatic HVAC technology were equipped with the multi zone climate control. The four-zone climate control was limited to premium segment cars.    



The high percentage of vans is expected to boost the rear ac technology penetration in the country, in upcoming years.

Opel has announced the return to Japanese market in 2021. Opel Corsa’s electrified variants are expected to be the first models to be launched.

The HVAC market value too is expected to drop by 20% in 2020 owing to drastic decrease in sales in 2020.



The top global automotive HVAC manufacturers are mostly Japanese such as Toyota Industries, Denso Corporation, Keihin Corporation and Sanden Corporation. Some of the other Global HVAC manufacturers are Mahle GmbH (Germany), Valeo (France), Hanon Systems (South Korea) and Estra Automotive (Luxembourg). Japanese accounted for more than 50% share in the global automotive HVAC segment.



  1. Denso Corporation
  2. Mahle GmbH
  3. Hanon Systems
  4. Valeo
  5. Toyota Industries
  6. Shanghai Highly
  7. Calsonic Kansei Corporation
  8. Sanden Corporation
  9. Keihin Corporation
  10. Estra Automotive
  11. Aotecar New Energy Technology
  12. Brose Fahrzeugteile GmbH & Co. Kg
  13. Johnson Electric
Sl noTopic
1Market Segmentation
2Scope of the report
4Research Methodology
5Executive Summary
7Insights from Industry stakeholders
8Cost breakdown of Product by sub-components and average profit margin
9Disruptive innovation in the Industry
10Technology trends in the Industry
11Consumer trends in the industry
12Recent Production Milestones
13Component Manufacturing in US, EU and China
14COVID-19 impact on overall market
15COVID-19 impact on Production of components
16COVID-19 impact on Point of sale
17Market Segmentation, Dynamics and Forecast by Geography, 2020-2025
18Market Segmentation, Dynamics and Forecast by Product Type, 2020-2025
19Market Segmentation, Dynamics and Forecast by Application, 2020-2025
20Market Segmentation, Dynamics and Forecast by End use, 2020-2025
21Product installation rate by OEM, 2020
22Incline/Decline in Average B-2-B selling price in past 5 years
23Competition from substitute products
24Gross margin and average profitability of suppliers
25New product development in past 12 months
26M&A in past 12 months
27Growth strategy of leading players
28Market share of vendors, 2020
29Company Profiles
30Unmet needs and opportunity for new suppliers


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