Japan Electric Vehicle Market Assessment, By Component [Battery, Electric Motor, Controller, Power Inverter, Others], By Vehicle [Passenger Vehicles, Commercial Vehicles], By Charging Type [Trickle Charge, AC Charge, DC Charge], By Propulsion [Battery Electric Vehicles, Hybrid Electric Vehicles, Plug-in Hybrid Electric Vehicle, Fuel Cell Electric Vehicle], By Region, Opportunities and Forecast, FY2018-FY2032F

Japan Electric Vehicle Market is projected to observe a CAGR of 19.38% during the forecast period FY2025-FY2032, increasing from USD 32.19 billion in FY2024 to USD 132.79 billion in FY2032.

Japan Electric Vehicle Market Size, Growth, Report 2032

Japan electric vehicle market&nbsp;is projected to observe a&nbsp;CAGR of 19.38%&nbsp;during the forecast period FY2025-FY2032, increasing from&nbsp;USD 32.19 billion&nbsp;in FY2024 to&nbsp;USD 132.79 billion&nbsp;in FY2032. The market has witnessed significant growth in recent years and is expected to maintain an expansion in the forecast years due to growing advancements in electric vehicle batteries, favorable government policies to reduce carbon emissions, rising shifts toward sustainable transportation, and easy availability of electric vehicles. The Japan electric vehicle market demand is rising due to growing production and sales of electric vehicles and the rising number of charging stations. For instance, in 2022, the Japan Automobile Dealers Association and Japan Mini Vehicles Association (Zenkeijiko) stated that in Japan 58,813 battery electric vehicles were sold, which was over 2.7 times in 2021. It is estimated that by 2035, BEV sales across Japan further rise as Japan targets 100% eco-friendly vehicles, and consumers choose the sustainable and economic advantages of electric vehicles.
With growing environment sustainability awareness, significant advancements in battery technology, and supportive government rules and policies, thereby increasing requirement for electric vehicles in Japan in the forecast period. In addition, the Government of Japan (GOJ) plans to offer subsidies and relaxation in taxes to accelerate the electric vehicle demand. For instance, the GOJ is offering subsidies on the buying of clean energy vehicles, including plug-in hybrid electric vehicles, battery electric vehicles, and fuel cell electric vehicles. In 2021, the maximum amount of subsidies offered is USD 5,600 per vehicle, though hybrid electric vehicles are not entitled to this subsidy program, they are eco-friendly cars. Furthermore, key market players in Japan electric vehicles market are producing electric vehicles to address the rising demand for electric vehicles and register the domestic market.
For instance, in June 2024, BYD Company Ltd. announced the launch of its most expensive model, the Seal EV. It is presently priced at USD 49,118 ex-showroom and available in two variants, including all-wheel drive and rear-wheel drive.
<h2 style="text-align: justify;">Rising Production of Electric Vehicles Drive Japan Electric Vehicle Market Demand</h2>
The increase in per capita income, technological advancement in the range of electric vehicles, rapid trend of customizing electric cars, and the government&rsquo;s ambitious goals concerning zero carbon emission are driving the Japan electric vehicle demand. The government is implementing favorable policies on the production of electric vehicles and focus on all new cars to be sold in Japan to be electric or hybrid, by 2050. The Government of Japan implemented Well-to-Wheel Zero Emission policy to zero carbon emissions, driving the production of electric vehicles.&nbsp; Manufacturers in the Japan market are significantly investing in different research and development activities to address the growing demand for eco-friendly vehicles and meet government regulations.
For instance, in November 2023, Mitsubishi Motors Corporation announced the launch of the new Minicab EV, a kei-car class electric commercial vehicle with a monobox design in two variants, including two-seater and four-seater at USD 17,017 and USD 17,402, respectively. Mitsubishi significantly contributed to zero carbon emission in the last mile of commercial usage with the new Minicab EV.
<h2 style="text-align: justify;">Increasing Investment in Electric Vehicles Leads the Japan Electric Vehicle Market Growth</h2>
In Japan, the need for electric vehicles is rising, owing to different factors including increasing investment by the government and private companies in EV charging infrastructure. Manufacturers in market are funding different research and development activities to advance the performance of vehicles and offer safer rides to consumers. However, the government is investing in launching new programs and offering subsidies to encourage the production of electric vehicles and the usage of batteries in EVs. For instance, in June 2023, Japan announced to give Toyota Kirloskar Motor USD 841 million in subsidies for the automaker&rsquo;s investment in domestic production of batteries featured in EVs. In addition, key companies in the market are efficiently investing and collaborating in different markets to expand their share in the EV market.
For instance, in June 2023, Musashi Seimitsu Industry Co., Ltd., a Japanese auto parts manufacturer announced an investment of USD 8.4 million into India electric vehicle market. Musashi Auto announced a collaboration with Bharat New-Energy Company for expansion into the EV market.
<h2 style="text-align: justify;">Government Policies and Regulations Pushes the Japan Electric Vehicle Market Growth</h2>
The government of Japan is announcing a rise in government incentives, an increase in financial support, a surge in objectives about zero carbon emissions, and policies to promote sustainable transportation, driving the Japan electric vehicle market demand. The Japanese government offers subsidies on the demand and supply of electric vehicles, surging the market growth in Japan. The government is planning to start campaigning to encourage consumers to buy electric vehicles and spread awareness concerning the negative environmental impact of conventional vehicles. In addition, government policies compel manufacturers to intensify their efforts to improve and innovate electrified versions of prevailing conventional vehicles coupled with increasing investment in enhancing the capabilities of batteries and charging tech.
For instance, in October 2023, the Government of Japan announced goals for 2035, all the sales of new passenger vehicles will be electrified vehicles such as fuel cell electric vehicles, electric vehicles, hybrid electric vehicles, and plug-in hybrid vehicles.
<h2 style="text-align: justify;">Passenger Vehicles Dominate the Largest Japan Electric Vehicle Market Share</h2>
Passenger vehicles dominate the largest share of the Japan market due to an increase in disposable income, growing demand for electric vehicles, easy availability of passenger cars in Japan, and rapid development of EV charging infrastructure. The production of electric vehicles in Japan is rising due to the presence of giant market players in the Japanese market, and implementation of favorable policies of the government. Market players are investing in advancing the functioning of electric vehicles and developing innovative and advanced EV batteries. In addition, companies are collaborating to expand their presence and address the rising demand for electric vehicles in Japan, strengthening the Japan passenger vehicle market growth in the forecast period.
For instance, in November 2023, Honda Motor Co., Ltd. and Nissan Group, two of Japan&rsquo;s largest automakers announced a collaboration to scale back their EV expansion plans amongst rising costs and slowing requirements. This strategic partnership will help companies to cut costs and accomplish economies of scale.
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<h2 style="text-align: justify;">Battery is Estimated to Hold the Largest Share in the Japan Market</h2>
The growth of the battery segment is attributed to an increase in demand for battery-powered electric vehicles as batteries are portable and offer a better high-temperature performance, coupled with long life. The batteries for electric vehicles are designed to be inexpensive, high-power, recyclable, safe, compatible, and reliable, propelling the battery demand in the Japan market in the forecast period. Key participants in the market are significantly planning to do research and development to decrease their relatively high cost, use less cobalt, extend their useful life, and address safety concerns about different fault conditions. It is projected that Lithium-ion batteries will be prevalently utilized in electric vehicles as they have high energy effectiveness, long life, high power-to-weight ratio, and low self-discharge. Companies for batteries are planning to invest in lithium-ion battery recycling to address the growing demand for batteries in electric vehicles.
For instance, in May 2024, Mitsui &amp; Co., Ltd. announced the investment in a lithium-ion battery recycling plant in Japan by forming a new joint venture with VOLTA INC. and Miracle Eternal PTE LTD. This collaboration results in J-Cycle Inc., commencing operations of a battery recycling plant in Ibaraki Prefecture, Japan
Future Market Scenario (FY2025 &ndash; FY2032F)
<ol>
<li style="text-align: justify;">Consumers shift towards sustainable transportation, drives the Japan electric vehicle market growth.</li>
<li style="text-align: justify;">Supportive government policies promote the adoption rate of electric vehicles in Japan.</li>
<li style="text-align: justify;">Technological innovation in electric vehicles is expected to foster the electric vehicle demand in Japan.</li>
<li style="text-align: justify;">An expansion of EV charging infrastructure is projected to propel the Japan electric vehicle market demand.</li>
</ol>
Report Scope
&ldquo;Japan Electric Vehicle Market Assessment, Opportunities and Forecast, FY2018-FY2032F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of Japan electric vehicle market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between FY2025 and FY2032. Additionally, the report profiles the leading players in the industry, mentioning their respective market share, business models, competitive intelligence, etc.
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Report Attribute
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Details
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Base Year of the Analysis
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FY2024
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Historical Period
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FY2018-FY2023
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Forecast Period
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FY2025-FY2032
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Projected Growth Rate
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CAGR of 19.38% between FY2025 and FY2032
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Revenue Forecast in FY2032
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USD 132.79 billion
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Segments Covered
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Component, Vehicle, Charging Type, Propulsion
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Regions Covered
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North - Hokkaido and Tohoku, Central - Kanto and Chubu, South - Kansai, Chugoku, Shikoku and Kyushu and Okinawa
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Key Companies Profile
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Toyota Motor Corporation, Mazda Motor Corporation, Mitsubishi Motors Corporation, Nissan Motor Co., Ltd., Tesla Inc., Daihatsu Motor Co., Ltd., Volkswagen AG,&nbsp;BYD Company Limited, Suzuki Motor Corporation, Hino Motors, Ltd.
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Customization Scope
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15% free report customization with purchase
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Pricing and Purchase Options
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Avail the customized purchase options to fulfill your precise research needs
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Delivery Format
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PDF and Excel through email (subject to the license purchased)
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In the report,&nbsp;Japan electric vehicle market&nbsp;has been segmented into the following categories:&nbsp;
<ul style="text-align: justify;">
<li>By Component
<ul>
<li>Battery</li>
<li>Electric Motor</li>
<li>Controller</li>
<li>Power Inverter</li>
<li>Others</li>
</ul>
</li>
<li>By Vehicle
<ul>
<li>Passenger Vehicles</li>
<li>Commercial Vehicles</li>
</ul>
</li>
<li>By Charging Type
<ul>
<li>Trickle Charge</li>
<li>AC Charge</li>
<li>DC Charge</li>
</ul>
</li>
<li>By Propulsion
<ul>
<li>Battery Electric Vehicles</li>
<li>Hybrid Electric Vehicles</li>
<li>Plug-in Hybrid Electric Vehicle</li>
<li>Fuel Cell Electric Vehicle</li>
</ul>
</li>
<li>By Region
<ul>
<li>North</li>
<li>Central</li>
<li>South</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
Companies in the Japan electric vehicles are efficiently investing in different research and development to advance the functioning and performance of electric vehicles coupled with integrating advanced software to offer better safety. Key participants in the Japanese market are innovating manufacturing practices to advance the design and reliability of electric vehicles. In addition, companies are adopting different strategies including joint venture, new product launch, amalgamation, mergers and acquisitions, and others to expand the product portfolio and footprint.
In May 2023, Daihatsu Motor Co., Ltd., Toyota Motor Corporation, and Suzuki Motor Corporation announced collaboration to unveil prototype mini-commercial van electric vehicles featured with a jointly developed battery electric vehicle system.
In October 2023, Toyota Motor Corporation presents the future of electrified vehicles and mobility experiences at the 2023 JAPAN MOBILITY SHOW, to transform into a battery EV brand, Lexus.&nbsp;
Key Players Operating in Japan Electric Vehicle Market are:
<ul style="text-align: justify;">
<li>Toyota Motor Corporation</li>
<li>Mazda Motor Corporation</li>
<li>Mitsubishi Motors Corporation</li>
<li>Nissan Motor Co., Ltd.</li>
<li>Tesla Inc.</li>
<li>Daihatsu Motor Co., Ltd.</li>
<li>Volkswagen AG</li>
<li>BYD Company Limited</li>
<li>Suzuki Motor Corporation</li>
<li>Hino Motors, Ltd.</li>
</ul>
Markets and Data&rsquo;s reports answer the following questions:
<ul style="text-align: justify;">
<li>What is the current and future market size of the product/service in question globally or specific to different countries?</li>
<li>How are the markets divided into different product/service segments and the market size and growth of each segment?</li>
<li>What is the market potential of different product segments and their investment case?</li>
<li>How are the markets predicted to develop in the future and what factors will drive or inhibit growth?</li>
<li>What is the business environment and regulatory landscape specific to the product/service?</li>
</ul>
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Japan Electric Vehicle Market Assessment, Opportunities and Forecast, FY2018-FY2032F

Japan electric vehicle market is expected to experience growth due to increasing demand for electric vehicles, supportive government rules and regulations, innovation in electric vehicles, and expansion in EV charging infrastructure.

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