{"id":27770,"date":"2026-05-24T04:08:06","date_gmt":"2026-05-24T04:08:06","guid":{"rendered":"https:\/\/www.europesays.com\/japan\/27770\/"},"modified":"2026-05-24T04:08:06","modified_gmt":"2026-05-24T04:08:06","slug":"japans-automotive-industry-is-driving-slowly-toward-a-greener-future","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/japan\/27770\/","title":{"rendered":"Japan\u2019s automotive industry is driving \u2014 slowly \u2014 toward a greener future"},"content":{"rendered":"

As the closure of the Strait of Hormuz continues, the Japanese government is spending up to \u00a5500 billion per month to keep gasoline and other fuel prices artificially low. According to estimates as of April, the subsidy could run out by June and Prime Minister Sanae Takaichi is now considering<\/a> an extra outlay, in part to cushion consumers from rising energy prices.<\/p>\n

This would be a convenient time for there to be more electric cars in Japan, which account for barely 1% of the total number of passenger cars on the road \u2014 leaving consumers vulnerable to potential pain at the pump as the war drags on.<\/p>\n

\u201cWe\u2019re already seeing a change in buying habits due to war in the Middle East,\u201d says Hans Greimel, Asia editor at Automotive News. \u201cThere\u2019s been some increased consideration for electric vehicles and smaller vehicles as people look for more fuel-efficient cars in the Japanese market.\u201d<\/p>\n

At 10% of Japan\u2019s economy, the automotive industry is a pillar of the nation. But this core industry generates a tremendous amount of greenhouse gases: some 16% of Japan\u2019s total carbon dioxide emissions, and a volume of greenhouse gases that exceeds the entire sum of carbon emitted by countries like Nigeria, Ukraine, and Colombia, fueling economic, social, and cultural risks in a rapidly warming Japanese archipelago.<\/p>\n

While major automakers have committed to reducing emissions, the industry\u2019s slow shift to electric vehicles means that the industry faces a tall hurdle ahead if it wants to achieve carbon neutrality by 2050.<\/p>\n

EVs in Japan<\/p>\n

In 2024, electrified and alternate fuel vehicles accounted for a record 60.4% of new passenger car registrations in Japan. But the vast majority of this figure comes from hybrid vehicles: battery-powered electric vehicles (BEVs) made up under 2% of total cars registered.<\/p>\n

\u201cAlthough battery production is energy-intensive, this impact is offset by the higher energy efficiency of electric powertrain operation,\u201d explains Anna Dzienis, a professor at SGH Warsaw School of Economics who researches green transitions in Asia.<\/p>\n

Some studies show that BEVs can have 77% fewer greenhouse gas emissions compared to traditional vehicles, even taking into consideration emissions from the manufacturing stage. According to the nonprofit The Climate Group, the biggest barrier to EV proliferation in Japan is the high upfront cost. In 2025, nearly 80% of combustion engine vehicles in Japan sold for under \u00a54 million, whereas only a handful of EV models were available for under \u00a54.1 million. \u00a0\u00a0<\/p>\n

After cost, the biggest barriers for consumers are concerns about charging time, driving range and charging infrastructure.<\/p>\n

<\/p>\n

\"Fully<\/p>\n

<\/a><\/p>\n

\n Fully electric Toyota Hilux Revo pickup trucks in Pattaya, Thailand, in April 2024
\n | REUTERS\n <\/p>\n

That last issue leads to a classic chicken and egg scenario.<\/p>\n

\u201cAutomakers are reluctant to introduce BEVs in markets where demand remains limited and charging operators are unwilling to install chargers where such vehicles are not yet widely used,\u201d says Yoichiro Takeda, policy and engagement manager at The Climate Group.<\/p>\n

Many Japanese automakers have gravitated toward an approach similar to what Toyota calls a \u201cmultipathway strategy.\u201d Rather than going all in on BEVs, this approach focuses on a long-term transition away from fossil fuels without indexing heavily on a \u201cone-size fits-all\u201d solution, relying on a variety of powertrains for vehicles tailored to the circumstances of various markets. In fiscal 2025, Toyota\u2019s global BEV sales increased by 30% to 188,000, while electrified vehicle sales, which includes hybrids, as a whole reached around 4.7 million.<\/p>\n

\u201cAlthough Japan\u2019s makers are leaders in electrification, they are not leaders in BEVs,\u201d Greimel evaluates. \u201cBut the more balanced approach they are taking seems to be prudent and practical, given the drastic changes in regulatory and political support,\u201d particularly for their U.S. operations under the administration of U.S. President Donald Trump.<\/p>\n

Although combustion-engine and hybrid vehicles continue to dominate Japan\u2019s auto market, BEVs are still a developmental focus. Subaru has four BEV models in development and Mazda is working to produce their own internally developed BEVs. On the other hand, Honda announced in March that it was canceling certain EV models and shifting back toward a focus on hybrid, after the company sustained a\u00a0\u00a5424 billion ($2.7 billion) new loss in 2025 caused primarily by the EV sector<\/a>.<\/p>\n

<\/p>\n

\"A<\/p>\n

<\/a><\/p>\n

\n A Honda vehicle assembly line in Canada. Japan faces a high hurdle if it wants to achieve carbon neutrality by 2050, given the automotive industry\u2019s slow shift to electric vehicles.
\n | AFP \/ Getty images \/ via bloomberg\n <\/p>\n

Dzienis postulates that new tech could help to spread BEVs in Japan, as software-based vehicles \u2014 or cars that run core components on software and operating systems, including autonomous vehicles \u2014 tend to be electric as they require fewer mechanical parts.<\/p>\n

Software-based vehicles \u201chave the potential to address pressing social challenges facing Japan, thereby providing an additional, socially justified rationale for the expansion of BEVs,\u201d she says.<\/p>\n

The Japanese government set a goal in 2021 for electrified vehicles to consist of 100% of new vehicle sales by 2035. Since this goal was established, traditional combustion engine vehicles dropped from 59.3% in 2021 of new vehicle sales to 44.7% last year.<\/p>\n

The dirty elephant in the room<\/p>\n

Some experts are skeptical that electrification efforts alone adequately address the climate crisis. A team of researchers at Kyushu University calculated that even banning new gas vehicles won\u2019t get Japan close to achieving its decarbonization goals.<\/p>\n

\u201cIf car manufacturers increase their production of EVs without decarbonizing the supply chain, then emissions reduction will stagnate,\u201d explains Shigemi Kagawa, an economics professor at Kyushu University, in a blog post on the university\u2019s website.<\/p>\n

In 2024, Japan\u2019s energy mix consisted of 83.5% fossil fuels, with over a quarter of its energy coming from coal, one of the most carbon-intensive sources of electricity. Per Kagawa, even if Japan meets its 2030 energy mix goal of 50% fossil fuels and 28% renewable energy, halting the production of new gas vehicles would only contribute a 10% net reduction in CO2 emissions.<\/p>\n

\u201cThis reduction level falls far short of achieving a carbon-neutral vehicle society,\u201d Kagawa comments.<\/p>\n

<\/p>\n

\"A<\/p>\n

<\/a><\/p>\n

\n A Sony-Honda Afeela 1 Signature electric vehicle is displayed during CES 2025 in Las Vegas in January 2025. The company recently canceled plans to release the model in the U.S. market.
\n | REUTERS\n <\/p>\n

As of 2024, Japan\u2019s major automotive companies had a roughly similar energy mix to the nation as a whole. Toyota consumed 18% renewable energy, Nissan 9%, and Subaru 10%. (Renewable energy figures were not available in Honda\u2019s ESG report). Mazda currently generates around 80% of its electricity using a coal-fired plant, which the company plans to completely phase out by 2030 in favor of natural gas, another fossil fuel.<\/p>\n

Shinji Utamura, from Mazda\u2019s corporate communications division, says this will put the company on track to reach the government target of 46% emissions reduction by 2030.<\/p>\n

\u201cOver the medium to long term, renewable energy is expected to become more widespread,\u201d says Jean-Yves Jault from Toyota\u2019s public affairs division. \u201cHowever, it is critical to acknowledge the global situation and implement practical changes while ensuring energy availability,\u201d he adds, referring to diverse energy conditions and customer needs.<\/p>\n

Most companies have made electricity transitions components of their climate strategies: Toyota set a target to match 100% of electricity consumption with renewables by 2031, and Toyota and a number of other makers, including Subaru and Nissan, have recently built CO2-neutral or renewable-dominant manufacturing plants. A Subaru spokesperson says that the firm purchases exclusively carbon-neutral electricity at six of its major domestic sites.<\/p>\n

The rocky road to carbon neutrality<\/p>\n

When former Prime Minister Yoshihide Suga announced Japan\u2019s goal to reduce emissions by 46% compared to 2013 levels by 2030, and go carbon neutral by 2050, major automotive companies declared they would follow suit.<\/p>\n

\u201cJapanese automakers are very serious about carbon neutrality, reducing emissions, and focusing on fuel efficient cars,\u201d says Greimel. \u201cThat\u2019s their strength, going all the way back to the 1970s.\u201d Beyond electrification, carmakers are looking to other sources of fuel: hydrogen, biofuels, and carbon-neutral fuels.<\/p>\n

\u201cIt\u2019s crucial to promote decarbonization by leveraging Japan\u2019s strength in internal combustion engine technologies,\u201d Utamura says. \u201cIt may be possible to advance decarbonization without drastically altering social or industrial infrastructure using carbon-neutral fuels.\u201d<\/p>\n

<\/p>\n

\"Workers<\/p>\n

<\/a><\/p>\n

\n Workers inspect a Nissan Leaf electric car as it comes off the production line at a factory in Sunderland, England, in December.
\n | REUTERS\n <\/p>\n

Mazda has a history of researching micro-algae derived fuel that produces 90% less emissions than fossil fuels; while Toyota and Honda have been the main industry leaders in hydrogen fuel-cell vehicles, a segment that has been slow to take off, even in the domestic market.<\/p>\n

But from the perspective of climate advocates, a seeming hesitancy to embrace BEVs holds back progress. The think tank InfluenceMap has taken note of the Japan Automobile Manufacturers Association\u2019s (JAMA) repeated actions lobbying against climate policies: calling for the repeal of the environmental tax, lobbying to weaken European CO2 regulations and promoting biofuels over electrification in Brazil.\u00a0\u00a0<\/p>\n

\u201cMany drivers of battery-electric cars report higher satisfaction levels than drivers of petrol, diesel or hybrid cars,\u201d Takeda says. \u201cIf the benefits of EVs were communicated more clearly to Japanese consumers, their current concerns might stop being such a barrier.\u201d\u00a0<\/p>\n

In an emailed response, the JAMA stressed that it is taking a multipath approach toward carbon neutrality that focuses on vehicle fuel efficiency and promoting next-generation vehicles.\u00a0<\/p>\n

Kagawa adds that cars in Japan have a relatively short average lifespan of 13 years, which drives carbon emissions through production and consumption. \u201cI think we need a value shift,\u201d he says, \u201cfrom the old ideal of \u2018one car per family\u2019 to a new ideal of \u2018one car per lifetime.\u2019 \u2026 Producers need to design and manufacture products with repair and longevity in mind.\u201d\u00a0\u00a0<\/p>\n

Whether Japan\u2019s automakers manage to achieve their stated goals of carbon neutrality remains to be seen. As of now, major firms have seen, at best, only modest reductions in emissions.<\/p>\n

Takeda and Greimel both point to EV leadership not only from China, but also Vietnam, Turkey and Thailand \u2014 all of which are far ahead of Japan in the EV game.\u00a0<\/p>\n

\u201cJapan\u2019s reluctance to embrace the EV future,\u201d warns Takeda, \u201crisks both the country\u2019s climate targets and the global competitiveness of its automotive sector.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"As the closure of the Strait of Hormuz continues, the Japanese government is spending up to \u00a5500 billion…\n","protected":false},"author":2,"featured_media":27771,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[7045,7044,2574,7043,4849,2568,8,17,8204,6329,35,7899,1273],"class_list":["post-27770","post","type-post","status-publish","format-standard","has-post-thumbnail","category-japan","tag-carmakers","tag-cars","tag-climate-change","tag-electric-vehicles","tag-emissions","tag-honda","tag-japan","tag-japanese","tag-mazda","tag-nissan","tag-oil","tag-subaru","tag-toyota"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/27770","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/comments?post=27770"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/posts\/27770\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media\/27771"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/media?parent=27770"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/categories?post=27770"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/japan\/wp-json\/wp\/v2\/tags?post=27770"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}