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Last Updated: Apr 25, 2025 | Study Period: 2024-2030
Japan is a country situated in East Asia. It is the 11th most populous country in the world and its capital Tokyo is the most metropolitan area in the world. After WWII the country has recorded the sudden growth in their economy.
As of 2021, it has recorded the 3rd largest nominal GDP growth in the world. Japan is well known for its culture, values, cuisine, music, etc. It has contributed a lot in the development of science and technology and it has been recognized as a world leader in the automotive and electronics industry.
Japan imports the raw material for their industries from countries like the USA, China, Australia, etc. It ranks 29th out of 190 countries in Ease of doing business. Japan is the home of some most technological and advanced producers of motor vehicles, machine tools, processed food, steel, etc. In 2000, Japan became the largest car producing country in the world.
Japanese automotive company Nissan introduced the first ever mass produced car in the market introduced in 2009 to the global market. It has been sold in markets in Europe, USA and Japan.
This shows that Japan has entered the market way before other countries. More than 5, 00,000 units are sold till now the next generation segment is already introduced in the market.
The automotive sector looks like the most promising in terms of economic growth and countryâs GDP. The country always came up with new technological advancement.
The Japanese government provides a very attractive subsidy for plug-in hybrid vehicles (limited) and Battery electric vehicles (unlimited), for manufacturers as well in battery manufacturing and EV manufacturing.
Japan ranked 3rd after the US and China in terms of light duty plug-in electric vehicle market. First Electric vehicle in Japan was the Mitsubishi I MieV launched in July 2009.
There were ups and downs in the sale of electric vehicles in Japan after 2013 because Japanese government and automobile manufacturers were trying to adopt and promote Hydrogen fueled vehicles. As of 2012, Japan has the highest ratio of quick charging points in the world.
Japan will have more than 29000 charging points in its territory by 2020.
Subaru Corporation plans to develop a specialised electric vehicle (EV) factory in Japan to meet rising demand for battery cars in its primary North American market.
Subaru, which is best known for its Outback crossover, has long had a strong presence in the United States and recently warned that its US dealers have a record low stockpile of vehicles, indicating a supply-chain bottleneck.
Before constructing an EV-only production line in the new factory, it wants to launch a mixed-production line of gasoline and electric vehicles. Subaru would be making a first with this move.
Other Japanese manufacturers have yet to make an official announcement about their ambitions to develop an EV factory.
Japan's automakers are ramping up their electric vehicle manufacturing in an attempt to catch up to Tesla Inc, which is currently the market leader in the fastest-growing section of the industry. Over the last year, the electric vehicle market has changed dramatically.
The new virus came as a pandemic for the world and has affected the world economy and Japanese economy as well.The regular operation of the automotive industry from supply chain to inventory, from raw material to finished goods, from labor to automation maintenance, sales to distribution, everything was disturbed.
The sales graphs of many companies have hindered and led to huge losses. The startup especially got damaged a lot due to the sudden closure of the market.
Since Japan is one of the largest automotive hubs and manufacturing plants in the world, the economy had a huge impact due to the lockdown as the production and export of the country has stopped.
The Japanese economy shrank by 5.1% in the first quarter. The export fell by more than 22% which is one of the biggest hits to the economy. In a report Toyota and Mitsubishi said that they expect to drop their annual profit by more than 80%.
The largest gasoline distributor in Japan is entering the electric vehicle charging market as it prepares to begin constructing a massive charging network around the nation.
Eneos Holdings Inc. declared that it had obtained the rights to manage around 4,600 EV chargers at commercial locations from electronics company NEC Corp.
Because it thinks there will be a market for gasoline and other petroleum products, Eneos is changing its business strategy. The company bought NEC's EV charging operations in stores, malls, and other locations. The majority of the EV chargers Eneos purchased are typical in that a car must be fully charged for several hours.
Those chargers, excluding those for domestic use, make up 20% of all chargers of such type in the nation.Additionally, the business purchased 30 rapid chargers with the intention of growing the charging infrastructure while anticipating future needs.
The rapid chargers have mostly been installed by Eneos at fueling stations. However, the company only has 17 rapid chargers at the moment. The company intends to deploy up to 10,000 rapid chargers by the end of the current fiscal year.
All new passenger cars sold in the nation, including hybrid vehicles, are to be electric vehicles, according to the government.The number of quick chargers will be increased by almost four times to 30,000, while the number of normal chargers will be increased by around six times to 120,000, according to the government.
Building a charging infrastructure is necessary to increase EV sales, which is a challenge for Japan.The remaining 1,500 of the approximately 6,100 chargers that NEC operated will be purchased by Eneos.
The Japan Electric Vehicle Market size is estimated to be US $ XX Billion in 2022 and the growth rate of XX% by the year 2030. Japan is planning that by 2035 the vehicles brought by the customer would come out to Electric vehicles or hybrid vehicles only.
Although the sales of EV are affected by COVID, it is again expected to rise in the coming future. Attractive plans, infrastructure and incentive by the government to please the customers to buy EVs.
Automotive giants like Honda, Suzuki, Mitsubishi, Mazda, Isuzu Kawasaki, etc had started their research and development program way before others have thought about it and started their testing as well. Honda introduced the Honda EV plus in 1997 which was limited manufacturing and approved for lease in California only.
Daihatsu was working in EV from the 1970s only and began the production of Pavilion cars and produced the vehicles for institutional use only. In 1973 they had also showcased their Motorcycle in the Tokyo Motor Show. Mazda had its first mass produced electric vehicle named MX-30 in 2020 which comes under hybrid compact SUV Segment.
Mitsubishi entered this segment in 2009 with its I MieV. They are also encouraging the customer to buy electric vehicles by dropping their price by some percent. Subaru had launched the electric vehicle in 2006.
Some startups in Japan also came forward to promote sustainable initiatives. COGICOGI is a startup which provides electric bicycle rental services in a few locations.
NExT-e solution has taken another path towards the development by providing the battery management services for long life batteries. Nakashima Propeller is developing the electric propulsion system for marine vehicles.
The brand-new Sakura electric minicar was introduced by Nissan in Japan. The Sakura EV raises the bar for the mini vehicle class. With its 4.8 meter turning radius and nimble handling, drivers can easily perform sharp turns.
The Sakura is the ideal vehicle for daily driving requirements like commuting and shopping because it is large enough but yet has a roomy cabin and a large driving range.
ProPILOT Park, an automatic system created to make parking simpler and driving more enjoyable, is another characteristic of the vehicle. The Sakura has the quick, smooth power and quietness that are distinguishing characteristics of EVs.
The Sakura's rapid and steady acceleration, along with superior control technology and a motor delivering 47 kW and 195 Nm of torque, make merging on motorways simple.
Chinese auto giant BYD will begin selling electric cars in Japan in the hopes that demand will increase in a market where the transition to more environmentally friendly vehicles has been gradual. BYD Japan announced the creation of a new company to manage the selling of EVs.
The company already sells electric buses throughout the nation. There will be a simultaneous release of three EV models. The Atto 3, Dolphin hatchback, Seal sedan, and Atto 3 mid-size sport utility vehicles are the models.
Japan's automotive industry has long been at the forefront of innovation, constantly seeking to push the boundaries of technology and sustainability. In recent years, the industry has witnessed a surge in partnerships aimed at developing next-generation vehicles that are environmentally friendly, technologically advanced, and capable of transforming the transportation landscape.
Toyota, a global leader in automotive manufacturing, and Subaru, known for its expertise in all-wheel-drive technology, have formed a strategic alliance to jointly develop electric vehicles (EVs).
This partnership capitalizes on Toyota's experience in hybrid technology and Subaru's prowess in all-wheel-drive systems, aiming to create a new line of battery-electric vehicles.
By sharing resources and expertise, the two companies aim to accelerate the development of affordable, high-performance electric cars that cater to a broad range of customers. This collaboration highlights the importance of leveraging each partner's strengths to achieve a common goal in the rapidly evolving EV market.
Nissan and Honda, two major players in the Japanese automotive industry, have joined forces to tackle one of the key challenges in electric mobility: charging infrastructure.
The companies have embarked on a partnership to develop a standardized system for next-generation electric vehicle batteries that can be easily swapped and recharged.
This approach aims to address range anxiety and long charging times by enabling EV owners to quickly exchange depleted batteries for fully charged ones at specially designed stations. By collaborating on battery technology and charging solutions, Nissan and Honda are striving to make electric vehicles more practical and convenient for consumers, thereby promoting their widespread adoption.
Mazda, Toyota, and automotive supplier Denso have established a joint venture focused on developing essential technologies for electric vehicles. This partnership aims to pool the strengths of each company to create a wide range of components, including efficient power control units and advanced semiconductor solutions.
By sharing research and development efforts, Mazda and Toyota intend to drive down costs and accelerate the adoption of electric vehicles, fostering innovation in the automotive sector. The collaboration exemplifies how competitors can come together to address common challenges and drive industry-wide progress.
Panasonic, a global leader in electronics, and Toyota have formed a partnership to explore new possibilities in vehicle batteries. The collaboration focuses on prismatic batteries, which have the potential to significantly improve the performance and range of electric vehicles.
By combining Panasonic's battery expertise with Toyota's automotive engineering capabilities, the companies aim to create high-capacity, high-efficiency batteries that can be used in a variety of electric vehicles, from compact cars to larger models. This partnership underscores the critical role of advanced battery technology in unlocking the full potential of electric mobility.
Old player in Japan already has a deep root in technological advancement for electric vehicles. Now some startups are also coming forward with new concepts, type, application, and out of the box ideas for designing, manufacturing and application of electric vehicles.
| S.No | Company | Founded | Importance |
| 1 | Toyota | 1937 | Latest development of electric crossover SUV |
| 2 | Daihatsu | 1909 | Introduced first electric vehicle in 1973 |
| 3 | Skydrive | 2018 | Electric aerial vehicle |
| 4 | COGICOGI | 2011 | Electric bike rental service |
| 5 | NExT-e Solution | 2008 | Battery Management |
| 6 | Luup | 2018 | Electric kick scooter |
| 7 | WeCharge | 2004 | Provide charging station location |
| 8 | Aspark | 2005 | Electric car manufacturer |
| 9 | Nissan | 1933 | Launched new Leaf generation and celebrated 10 year of first leaf launch |
| 10 | Honda | 1946 | Decides to electrify 2/3rd of its sales by 2030 |
| 11 | Suzuki | 1909 | Plans to enter EV market by 2025 |
| 12 | Yamaha | 1955 | developed an electric motor reaching the industry's highest class in output density |
| 13 | Kawasaki | 1896 | Developing high class electric car and battery |
| Sl no | Topic |
| 1 | Market Segmentation |
| 2 | Scope of the report |
| 3 | Abbreviations |
| 4 | Research Methodology |
| 5 | Executive Summary |
| 6 | Introduction |
| 7 | Insights from Industry stakeholders |
| 8 | Cost breakdown of Product by sub-components and average profit margin |
| 9 | Disruptive innovation in the Industry |
| 10 | Technology trends in the Industry |
| 11 | Consumer trends in the industry |
| 12 | Recent Production Milestones |
| 13 | Component Manufacturing in US, EU and China |
| 14 | COVID-19 impact on overall market |
| 15 | COVID-19 impact on Production of components |
| 16 | COVID-19 impact on Point of sale |
| 17 | Market Segmentation, Dynamics and Forecast by Geography, 2024-2030 |
| 18 | Market Segmentation, Dynamics and Forecast by Product Type, 2024-2030 |
| 19 | Market Segmentation, Dynamics and Forecast by Application, 2024-2030 |
| 20 | Market Segmentation, Dynamics and Forecast by End use, 2024-2030 |
| 21 | Product installation rate by OEM, 2023 |
| 22 | Incline/Decline in Average B-2-B selling price in past 5 years |
| 23 | Competition from substitute products |
| 24 | Gross margin and average profitability of suppliers |
| 25 | New product development in past 12 months |
| 26 | M&A in past 12 months |
| 27 | Growth strategy of leading players |
| 28 | Market share of vendors, 2023 |
| 29 | Company Profiles |
| 30 | Unmet needs and opportunity for new suppliers |
| 31 | Conclusion |
| 32 | Appendix |
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