Electric Vehicles - Japan

Japan

In 2024, the Electric Vehicles market in Japan is projected to reach a revenue of ¥€6.8bn.
It is expected to experience an annual growth rate (CAGR 2024-2029) of 1.49%, resulting in a projected market volume of ¥€7.3bn by 2029.
The unit sales of Electric Vehicles market in Japan are expected to reach 160.20k vehicles in 2029.
The volume weighted average price of Electric Vehicles market in Japan in 2024 is projected to be ¥€48.9k.
From an international perspective, it is evident that China will generate the highest revenue in the Electric Vehicles market, amounting to ¥€349,100m in 2024.
Japan's strong commitment to innovation and technological advancements has propelled it to the forefront of the electric vehicle market, with a focus on creating cutting-edge and efficient transportation solutions.

Key regions: United States, Germany, Netherlands, China, United Kingdom

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Analyst Opinion

The Electric Vehicles market in Japan has been experiencing significant growth in recent years, driven by customer preferences for more sustainable and environmentally-friendly transportation options.

Customer preferences: Japanese consumers have shown a growing interest in electric vehicles due to their lower environmental impact compared to traditional gasoline-powered cars. With concerns about air pollution and climate change becoming more prominent, customers are increasingly looking for ways to reduce their carbon footprint. Electric vehicles offer a cleaner alternative, as they produce zero tailpipe emissions and can be powered by renewable energy sources. Additionally, the government has implemented various incentives and subsidies to encourage the adoption of electric vehicles, further incentivizing customers to make the switch.

Trends in the market: One of the key trends in the Electric Vehicles market in Japan is the increasing availability and variety of electric vehicle models. Major automakers are expanding their electric vehicle offerings to cater to the growing demand. This includes both fully electric vehicles and hybrid models, which combine electric and gasoline power. The wider range of options allows customers to choose a vehicle that best suits their needs and preferences, further driving the market growth. Another trend in the market is the development of charging infrastructure. As electric vehicles require charging stations to recharge their batteries, the availability and accessibility of charging infrastructure play a crucial role in the adoption of electric vehicles. In Japan, there has been a significant investment in expanding the charging network, with both public and private entities setting up charging stations across the country. This infrastructure development is expected to further boost the adoption of electric vehicles by addressing the range anxiety concerns of potential customers.

Local special circumstances: Japan has a unique set of circumstances that contribute to the growth of the Electric Vehicles market. The country has a high population density, particularly in urban areas, which makes electric vehicles a practical and sustainable transportation solution. The shorter average driving distances in Japan also make electric vehicles a viable option for many customers, as the limited range of electric vehicles is less of a concern compared to countries with larger geographical areas.

Underlying macroeconomic factors: The Japanese government has been actively promoting the adoption of electric vehicles as part of its efforts to reduce greenhouse gas emissions and combat climate change. This includes providing subsidies and tax incentives for electric vehicle purchases, as well as investing in charging infrastructure. These government initiatives have created a favorable environment for the Electric Vehicles market to thrive in Japan. In conclusion, the Electric Vehicles market in Japan is experiencing significant growth due to customer preferences for sustainable transportation options, the increasing availability of electric vehicle models, the development of charging infrastructure, and the government's support through incentives and subsidies. These factors combined have created a favorable market environment for electric vehicles in Japan, driving their adoption and market growth.

Methodology

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).