Japan ranks among the biggest two-wheeler markets in the world. Consequently, the domestic motorcycle industry is largely led by the four major Japanese motorcycle manufacturers: Honda, Yamaha, Suzuki and Kawasaki. In 2018, domestic production of two-wheelers surpassed 600 thousand units per year, focusing on large engines with a cylinder capacity of 250 and above. In the same year, key markets for two-wheeler exports were Europe and North America, splitting almost 80 percent of total motorcycle exports from Japan between them.
In recent years, environmental awareness is spreading among consumers in Japan. Following the trend of the automotive sector to increasingly invest into eco-friendly alternatives, the country’s four leading motorcycle manufacturers were reported to collaborate on unified standards for electric two-wheelers in early 2019, setting up the domestic industry for international competition on green technology.