Japan Electric Car Market is projected to be worth USD 177.89 billion by 2033 and is anticipated to surge at a CAGR of 17.13%.
An electric vehicle (EV), also referred to as an electric car, is a kind of vehicle that is propelled by one or more electric motors. Electric automobiles run on electricity stored in rechargeable batteries as opposed to conventional internal combustion (IC) engines, which burn gasoline or diesel fuel. The environmental friendliness and efficiency of electric cars are well recognized. Compared to conventional vehicles, their overall carbon impact is greatly reduced because they are powered entirely by electricity and have zero exhaust emissions. Because of this characteristic, they play a crucial role in the fight against climate change and the reduction of greenhouse gas (GHG) emissions. In comparison to conventional cars, they also provide a quieter and more comfortable ride.
Japan Electric Car Market Driving Factors and Challenges
Drivers: One of the main reasons propelling the market's expansion throughout Japan is the notable developments in technology. Some of the top automakers and tech firms in the world are based in Japan, and they are revolutionizing the electric car industry by bringing forth major technological improvements. As a result, advancements in battery technology are crucial since they enable electric vehicles to travel farther between charges and require less time to charge. Another factor propelling the industry is the government's increased emphasis on EV adoption as part of its larger environmental and climatic aims. To promote the usage of electric vehicles, the government wants to offer substantial incentives to producers and consumers alike, such as tax reductions and subsidies.
Challenges: The Japanese electric vehicle market is up against a number of challenges as it tries to make headway in the fiercely competitive automotive sector. The infrastructure for electric vehicle (EV) charging stations is one major obstacle and is still underdeveloped when compared to other nations. The lack of charging sites discourages prospective customers who are worried about range anxiety, which prevents electric cars from being widely adopted. Furthermore, consumers find electric cars (EVs) less enticing due to their high starting costs and limited diversity, especially when compared to the wide range of conventional gasoline-powered automobiles. Furthermore, despite initiatives to support environmentally preferable substitutes, ingrained consumer habits and cultural preferences in favor of internal combustion engines present a significant obstacle.
Impact of COVID-19 on Japan Electric Car Market
The COVID-19 pandemic has had a major effect on the Japanese market for electric cars. Like many other countries, Japan experienced production and supply chain interruptions as a result of lockdowns and other steps implemented to impede the virus's spread. The manufacture and distribution of electric vehicles, both domestic and imported, were impacted by these delays. Furthermore, the economic impact of the pandemic has altered consumer behavior when it comes to purchasing purchases. Since many potential buyers are become more reluctant to make major commitments, like purchasing new cars, sales of electric cars have slowed.
Japan Electric Car Market Key Players:
In-depth analyses of the major market participants, including Tesla Inc., Tritium Charging, NEC Telecommunication and Information Technology Ltd., BMW AG, Daihatsu Motor Co., Ltd., General Motors Company, Hino Motors, Ltd., Honda Motor Company, Ltd., Isuzu Motors Ltd., Mazda Motor Corporation, Mitsubishi Fuso Truck and Bus Corporation, Mitsubishi Motors Corporation, Nissan Motor Co., Ltd., Suzuki Motor Corporation, Tesla Inc.
Japan Electric Car Market Segmentation:
By Body Type: Based on the Body Type, Japan Electric Car Market is segmented as; Passenger Cars, Hatchback, Multi-purpose Vehicle, Sedan, Sports Utility Vehicle.
By Fuel Type: Based on the Charging Station Type, Japan Electric Car Market is segmented as; BEV, FCEV, HEV, PHEV.
By Region: This research also includes data for Body Type, By Fuel Type.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.