Report Overview

Japan electric vehicle market is flourishing at a high rate due to the rising fuel prices in the country. Additionally, the presence of leading electric vehicle manufacturers in Japan, along with rapid technological advancements, such as the introduction of AI and IoT into EVs are also driving market growth.

Japan Electric Vehicle Market- Industry Trends & Forecast Report 2028

Japan electric vehicle market is booming and expected to grow at the CAGR of 16.2% during the forecast period (2022-2028). Increasing fuel prices in Japan and the presence of leading manufacturers of electric vehicles are the major factors propelling the growth of Japan electric vehicle market. Additionally, rapid technological advancements, such as the introduction of AI and IoT into EVs, are expected to provide lucrative growth opportunities to the market over the next few years.

Electric Vehicles – A Brief Overview

An electric vehicle (EV) is one that runs on an electric motor, instead of an internal-combustion engine. They are powered by batteries that are recharged by common household electricity. These types of vehicles can be fully or partially powered by batteries. Due to the limited components used in their production, and the relatively low maintenance required, EVs are considered to have low running costs. Additionally, electric vehicles are considered environmentally friendly since they produce little or no carbon dioxide due to using little or no fossil fuels.

Japan Electric Vehicle Market Forecast and Trends

Growth Drivers

High Concentration of Electric Vehicle Manufacturers

Japan is among the leading automobile manufacturers in the world and therefore, has a high concentration of major electric vehicle manufacturers. Japanese EV manufacturers, such as Mitsubishi Motors, Terra Motors, Carprice, Suzuki Motors, ElecTrike Japan, are among the top EV manufacturers globally. Along with these multinational corporations, several electric vehicle startups, such as SkyDrive, COGICOGI, Luup, etc., are also emerging with great potential. These startups are anticipated to present lucrative growth opportunities to the Japan electric vehicle market during the forecast period.

Increasing Consciousness Towards Environment and Carbon Emission

Vehicles powered by electricity are extremely environmentally friendly since they cause almost no pollution, including air and noise pollution. Electric vehicles run on electricity that emits zero direct emissions. Furthermore, it also does not release suspended particulate matter into the environment. EVs are also generally quiet, resulting in less noise pollution. With consumers becoming more aware of their carbon footprint and the environment, the demand for electric vehicles is likely to surge in the near future.

Restraints

Lack of EV Charging Stations

The lack of sufficient EV charging stations in Japan to support the increasing number of electric vehicles is significantly restricting the growth of the market. Japan has around 18,000 EV charging stations, however, they are strictly concentrated in urban regions, such as Tokyo and Osaka. As a result, people are reluctant to use electric vehicles, especially for longer journeys. Another major hindrance to the market is the high time required to charge the battery.

Impact of COVID-19 on Japan Electric Vehicle Market

The unprecedented COVID-19 pandemic outbreak halted the growth of the Japan electric vehicle market. The production and sales of EVs witnessed a sharp drop as the government had to impose strict lockdown restrictions to control the virus spread. Furthermore, even after the restrictions were eased in Japan, the EV manufacturers faced a shortage of components that are imported from other countries, mainly China. Thus, the electric vehicle market in Japan faced severe challenges due to all of these factors. Nevertheless, the market is expected to gain traction in the post-COVID-19 period.

Japan Electric Vehicle Market - By Vehicle Type

Based on vehicle types, Japan electric vehicle market is grouped into passenger cars, commercial vehicles, and two-wheelers segments. The passenger cars vehicle segment accounts for the largest market share owing to the presence of leading EV manufacturers targeting the private ownership of vehicles and increasing consciousness towards the environment and carbon emission. The commercial vehicles segment, on the other hand, is projected to witness the highest growth rate during the forecast period owing to increasing battery efficiency and improving load capacities of EVs.

Japan Electric Vehicle Market - By Propulsion Technology

Based on propulsion types, Japan electric vehicle market is segmented into battery electric vehicle, fuel cell electric vehicle, and hybrid electric vehicle. The battery-electric vehicle segment holds the largest share in the Japan electric vehicle market, primarily due to rising fuel prices and growing charging stations. However, hybrid electric vehicles also cover a substantial market share as the dependency on fuel is still prevalent, especially for longer journeys.

Japan Electric Vehicle Market - By Battery Type

Based on battery types, Japan electric vehicle market is segmented into NiMH, Li-Ion, and others. The lithium-ion battery segment accounts for the largest market share since these battery types have high energy density and longer cycle life, due to which they are prominently used in EVs. Additionally, he introduction of lithium-ion batteries that can resist fires, are eco-friendly, can be recharged rapidly, and have longer life spans will also present lucrative growth opportunities to the Japan electric vehicle market in the forecast period.

Japan Electric Vehicle Market - Competitive Landscape

The leading players in the Japan electric vehicle market are BMW AG, General Motors Co., Hero Electric, Honda Motor Co., Ltd., Kia Motors Corp., Hyundai Motor Co., Nissan Motor Co., Toyota Motor Corp., Volkswagen AG, and other prominent players.

Japan electric vehicle market is highly concentrated due to the presence of leading automobile manufacturers, such as Honda, Toyota, Kia, etc. The industry players compete based on technological advancements, battery efficiency, and the range of their EVs. They are also constantly introducing technologies, such as IoT sensors, etc., to gain a competitive edge over the market. Furthermore, the adoption of competitive strategies, such as mergers, acquisitions, joint ventures, collaborations, etc., is also prominent in this market.

Recent Development

• In November 2021, Subaru Corporation unveiled the Solterra, its first all-electric car, following a two-year joint development project with Toyota Motor Corporation.

Scope of the Report:

By Vehicle Type

• Passenger Cars
• Commercial Vehicles
• Two-Wheeler

By Propulsion Technology

• Battery Electric Vehicle
• Fuel Cell Electric Vehicle
• Hybrid Electric Vehicle

By Battery Type

Ø NiMH

Ø Li-Ion