Electric car sales share in Japan 2011-2020

As of 2020, approximately 0.6 percent of sold passenger cars in Japan were electric vehicles, decreasing by 0.1 percent. Therefore, the market share declined to its level back in 2016. Surveys suggest as well battery electric vehicles (BEV) and plug-in hybrid electric vehicles (PHEV) remain for Japanese customers – despite their subsidization – less attractive than hybrids or gasoline cars.

The Government wants new cars to be electrified

Since Japan has vowed to become carbon neutral by 2050, electric vehicles have become more of a necessity for the country to meet these targets. Japan is a leading emitter of greenhouse gas emissions and automobiles account for a significant share of them. Against the backdrop of the overall target, the Government announced that by 2035 all new passenger cars sold domestically should be electrified, creating expectations for the growth of electric vehicles in Japan. However, the policy outline gives the automotive industry and consumers leverage, for example, including standard hybrids in this definition.

What is the Japanese industry’s stance?

After focusing primarily on hydrogen-powered fuel cell electric vehicles (FCEV) in the past, manufacturers in Japan have been increasingly branching out in EV technologies to BEVs and PHEVs. Although their production is comparatively modest in Japan, mirroring domestic demand for these vehicles, Japanese manufacturers consider the wide range of propulsion systems one of their strengths. Understanding carbon emission reduction throughout the whole vehicle life cycle as the superior goal, vehicle electrification plays an important but hardly exclusive role for Japanese automotive-related industries.