Atsushi Ikeda loves his car so much that he founded a club for Tesla owners, but his embrace of an electric vehicle makes him something of an outlier in Japan.
The Current State of EVs in Japan
As markets from China to the United States race to put more EVs on their roads, the pedal is nowhere near the metal yet in Japan, where the hybrid still reigns supreme. Last year, 59,000 new EVs were sold in Japan, a record and a three-fold annual increase, but still less than two percent of sales of all cars in the country in 2022.
Pioneers of Hybrid and Electric Cars
It’s a situation that might seem counterintuitive, given Japan’s auto industry, which employs eight percent of the country’s workforce and accounts for a quarter of all its exports, pioneered hybrid and electric cars. But experts say the popularity of hybrids has actually hindered the uptake of EVs, with Japanese automakers in no hurry to abandon existing line-ups.
The Scepticism Surrounding EVs
The scepticism is no secret, and the former chief of Toyota, the world’s top-selling carmaker, regularly questioned the growing focus on electric. “I think Toyota didn’t want the trend to tilt towards plug-in hybrids and electric vehicles because of their focus on hybrids and also their significant investment,” said Kenichiro Wada, president of the Japan Electrification Research Institute, who helped develop early EVs at Mitsubishi Motors in the 2000s.
Challenges Faced by EV Enthusiasts
When Ikeda went looking for a car that was “affordable, safe, with no pollutants,” he quickly turned to Tesla. There are now government incentives for people to go electric, but Ikeda says “charging infrastructure is too weak in Japan,” blaming “heavy regulations.”
Zero-Emission Targets and International Comparisons
The situation in Japan is increasingly inconsistent with priorities elsewhere. EVs made up 20 percent of new cars sold in China last year, around 15 percent in Western Europe, and 5.3 percent in the United States, according to a PwC study.
Efforts Diversified into Hydrogen Vehicles
Government and industry efforts have also been sidetracked by a drive to develop hydrogen-powered vehicles, a sector that has grown much slower than electric.
Changing Tides and the Future of Japanese Carmakers
Despite the obstacles, there are some signs of change, spurred in part by more demanding EV targets in overseas markets. Japanese firms have begun rolling out more ambitious EV targets, even as foreign automakers try to establish a foothold for their EVs in the country.
The Rise of Compact EVs in Japan
Last year, Nissan launched its “Sakura” model, a fully electric car in the mini-sized “kei” category that is popular in Japan. It accounted for a third of the country’s EV sales in 2022.
Government Initiatives and the Road Ahead
Japan’s government plans to increase the number of charging stations from 30,000 to 150,000 by 2030. Its embrace remains qualified though, with an official from Japan’s trade ministry warning electric vehicles “are expensive, and resources are limited.”
Balancing Hybrids and EVs
Japan’s caution is not entirely unwarranted, particularly given potential shortages of raw materials like lithium. “If you are all EV, you could be putting your franchise at great risk. That said, it still has to be EV first,” he told AFP. “Climate change is real, the effects are going to get worse with time, so at some point there will be a demand to have zero emissions.”
In conclusion, Japan’s journey toward widespread EV adoption may be slower than in other parts of the world, but it’s steadily progressing. As the global automotive landscape evolves, Japanese carmakers are adapting to meet the changing demands for electric vehicles.
