Japan Electric Vehicle Market Research Report, 2030

The Japan electric vehicle (EV) market is one of the most dynamic and rapidly growing markets in the world, driven by the country's commitment to reducing greenhouse gas emissions and promoting sustainable transportation. Despite being a global leader in automotive manufacturing, Japan has been relatively slow to adopt zero-emission vehicles (ZEVs) compared to other Asian nations. However, recent years have seen a significant shift, with the government setting ambitious targets to increase the share of EVs and plug-in hybrid electric vehicles (PHEVs) in new car sales to 20-30% by 2030 and fuel cell electric vehicles (FCEVs) to 3%. In 2022, Japan achieved a record high in ZEV sales, with 92,000 units sold, representing a 109% year-over-year increase. The market is supported by major players such as Toyota, Nissan, and Honda, which are investing heavily in EV technology and infrastructure. The government has also introduced subsidies and tax incentives to encourage EV adoption, including up to 850,000 yen for BEVs capable of utilizing power from in-vehicle outlets or Vehicle-to-Home (V2H) bidirectional chargers. As a result, the EV market in Japan is expected to continue its upward trajectory, with a projected market size of 111.3 billion USD by 2030. The history of Japan's electric vehicle (EV) market began with the launch of the Toyota Prius in 1997, marking the first widely available hybrid electric vehicle (HEV) in Japan. This set the stage for the country's gradual shift towards electrified vehicles 1. Initially, Japan focused on hybrid and hydrogen fuel cell technologies, but recent years have seen a stronger emphasis on battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). The government has introduced several regulatory policies to support this transition, including subsidies, tax incentives, and targets for EV adoption. For instance, the Basic Policy for Economic and Fiscal Management and Reform 2023 aims for 100% of new passenger vehicle sales to be electrically driven by 2035. Additionally, the government has been developing EV charging infrastructure to ensure convenience and sustainability. According to the research report, "Japan electric vehicle Market Research Report, 2030," published by Actual Market Research, the Japan electric vehicle Market is anticipated to add to more than USD 97.54 Billion by 2025–30. Japan's electric vehicle (EV) market has been advancing for several decades, motivated by a mix of governmental policies, technological advancements, and the global drive for sustainability. The promotion and marketing of the market have been influenced by both ecological concerns and the nation’s prominence in automotive manufacturing. Japan has a substantial history with electric vehicles, originating in the early 20th century; however, it wasn’t until the 1990s that electric vehicles started to receive mainstream recognition. In 1997, Toyota introduced the Prius, which was the world’s first mass-produced hybrid vehicle, helping to set the stage for electric mobility in Japan. The serious development of fully electric vehicles commenced in the 2000s, with Nissan’s Leaf, released in 2010, emerging as one of the most favoured electric cars globally. Japan’s major automakers, such as Nissan, Toyota, and Honda, initially concentrated on hybrids and plug-in hybrid vehicles, slowly increasing their investments in fully electric models. The Japanese government has been a firm advocate for EV adoption through incentives like subsidies, tax reductions, and policies that support the creation of EV infrastructure. These initiatives have rendered EVs more accessible for consumers and prompted manufacturers to produce a greater number of electric models. Japan has led in battery technology, especially lithium-ion batteries, which are vital for EV performance. Firms like Panasonic have been significant battery suppliers for electric vehicles, providing Japanese car manufacturers with a competitive advantage in the EV sector. Japan’s ambition to lower carbon emissions and adhere to international climate agreements has also driven the demand for EVs. The government’s target for all new cars sold by 2035 to be zero-emission vehicles has expedited the progress.

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The propulsion segment of the Japan electric vehicle (EV) market is characterized by a diverse range of technologies aimed at enhancing vehicle performance, efficiency, and sustainability. The market is dominated by battery electric vehicles (BEVs), which rely solely on electric power stored in batteries for propulsion. BEVs are favoured for their zero emission capabilities and are supported by extensive government incentives and tax credits. Plug-in hybrid electric vehicles (PHEVs) combine an internal combustion engine with an electric motor, offering the flexibility of both electric driving and traditional fuel use. PHEVs are popular among consumers who seek the benefits of electric driving without range anxiety. Hybrid electric vehicles (HEVs), which also combine an internal combustion engine with an electric motor but cannot be plugged in for charging, provide improved fuel efficiency compared to conventional vehicles. The market is also witnessing the emergence of fuel cell electric vehicles (FCEVs), which generate electricity through a chemical reaction between hydrogen and oxygen, emitting only water vapor as a byproduct. FCEVs are gaining traction due to their potential for long-range travel and quick refuelling times. Key players in the propulsion segment include Toyota, Nissan, and Honda, each investing heavily in research and development to advance their respective technologies. The expansion of charging infrastructure, including high-speed DC fast chargers and home charging solutions, is further driving the adoption of EVs across the country. As consumer awareness of environmental impact grows, the propulsion segment is expected to continue evolving, with a focus on improving energy density, reducing charging times, and enhancing overall vehicle performance. The vehicle type segment of the Japan electric vehicle (EV) market is diverse, encompassing a wide range of vehicle categories designed to cater to different consumer needs and preferences. The market includes passenger cars, which are the most popular segment, offering various models such as sedans, hatchbacks, and SUVs. Passenger cars are favoured for their versatility and suitability for daily commuting and family use. Commercial vehicles, including electric buses, trucks, and vans, are also a significant part of the market, driven by the growing demand for sustainable transportation solutions in urban areas and logistics. Luxury electric vehicles (EVs) are gaining traction, with high-end brands offering premium features, advanced technology, and superior performance. These luxury EVs cater to affluent consumers who seek both sustainability and luxury. Additionally, the market includes special-purpose EVs, such as electric taxis and ride-sharing vehicles, which are becoming increasingly common in major cities. Key players in the vehicle type segment include Toyota, Nissan, and Honda, each offering a wide range of models across different vehicle types. The expansion of charging infrastructure, including high-speed DC fast chargers and home charging solutions, is further driving the adoption of EVs across the country. As consumer awareness of environmental impact grows, the vehicle type segment is expected to continue evolving, with a focus on improving energy density, reducing charging times, and enhancing overall vehicle performance. Japan's electric vehicle (EV) market is experiencing rapid growth, and the establishment of charging infrastructure is essential in facilitating the shift to electric mobility. Charging infrastructure in Japan is divided into two primary categories: fast charging and normal (or standard) charging, with each catering to different consumer requirements and fostering wider EV acceptance. Fast charging, or DC fast charging, is vital for alleviating range anxiety and enhancing the practicality of electric vehicles for long journeys. In Japan, fast chargers can replenish an EV to approximately 80% in just 30 minutes, allowing for a swift turnaround for drivers. The growth of fast-charging networks along highways and in urban regions has been a significant priority for both the Japanese government and private companies. Japan’s fast charger network is among the largest globally, with over 20,000 stations accessible. Automakers like Nissan and Toyota, in conjunction with utility firms and third-party operators, have significantly invested in creating fast-charging infrastructure. This form of charging is especially crucial in rural or less populated areas where EV acceptance is still progressing, ensuring that drivers can travel long distances without concerns about charging availability. Normal charging, or Level 2 charging, is more prevalent in-home environments and locations where vehicles remain parked for longer durations, like offices or shopping centres. These chargers’ function at 220V power and often require several hours to fully charge a vehicle. Normal charging is economical to install and satisfies the daily requirements of most EV owners who charge overnight or during work hours. In Japan, an increasing number of residential buildings, public parking areas, and commercial establishments are outfitted with Level 2 charging stations. As EV adoption keeps rising, normal charging stays an integral element of the infrastructure, particularly for routine commuting.

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Nikita Jabrela

Business Development Manager

Considered in this report • Geography: Japan • Historic Year: 2019 • Base year: 2024 • Estimated year: 2025 • Forecast year: 2030 Aspects covered in this report • Electric vehicle Market with its value and forecast along with its segments • Region & country wise electric vehicle Market analysis • Application wise electric vehicle marker distribution • Various drivers and challenges • On-going trends and developments • Top profiled companies • Strategic recommendation By Propulsion • Battery Electric Vehicle (BEV) • Fuel Cell Electric Vehicle (FCEV) • Plug-In Hybrid Electric Vehicle (PHEV) • Hybrid Electric Vehicle (HEV)

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By Vehicle Type • Passenger • Commercial • Two Wheelers By charging type • Fast • Normals The approach of the report: This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources. Intended audience This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to agriculture industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.