Number of motor vehicles in use in Japan 2012-2021

In 2021, there were approximately 82.08 million motor vehicles in use in Japan, continuing the series of record registration numbers. The main driver for this growth was the number of passenger cars registered.

Shrinking population, growing vehicle numbers?

It is widely known that Japan’s population is rapidly aging as well as shrinking year by year. Nonetheless, the number of vehicles in use is growing. One reason for this can be found on the demand side of the market. While the average household size has decreased, the number of households has continued to grow. Additionally, supply has adjusted to the Japanese market with affordable small and light-weight vehicles. When looking for a cheap deal, used automobiles are an option as well. However, the demographic development is likely to push down vehicle numbers sooner or later when registrations canceled outnumber registrations issued. This process could be accelerated by the fact that households are less likely to invest in a private car, especially in urban areas. Instead, the market for shared vehicle use is expected to increase.

What happens to motor vehicles that are of no use?

Correspondingly, the average age of passenger cars, like that of their owners, is increasing in Japan. But when people can no longer maintain their vehicles, they enter the final phase of their life cycles. This process is regulated by the Automobile Recycling Law (enacted in 2005). New vehicle owners pay a recycling fee to the Japan Automobile Recycling Promotion Center (JARC). When used automobiles get handed over to ELV collectors (end of life vehicles), they enter a successive recycling process from the collectors to fluorocarbon recovery operators, to dismantlers and wreckers, and finally to shredder residue processors. Automobile manufacturers, importers, and designated recycling agencies get subsidized by the fees paid to the JARC for buying the reclaimed materials and metals. More than three million vehicles enter this process every year.