While big players like China, Europe, and the USA have already stepped into the EV market, Japan is nowhere in sight. Is the leader in EV lagging behind in this battle?
As the world’s leading player in automotive products, Japan has actually been around for many years. Toyota was once a leader in BEV (Battery Electric Vehicles) in the 1990s when the RAV4 EV was launched in the USA. Moreover, the first model of Nissan’s LEAF, launched in 2009, was the 7th bestselling EV car in the world in 2020.
However, consumers like us have only recently seen Japan’s emergence in EVs. In late 2021, ‘Big Brother’ Toyota finally announced its production of EVs with plans to introduce about 30 models during this decade. The goal is to reach sales of 3.5 million cars by 2030, spearheaded by the bZ4X model which already received 1,064 bookings within the first 60 minutes of launch, and 3,356 bookings within 24 hours.
This overwhelming response led to the company’s decision to close reservations in November last year. It wasn’t a bad start at all, compared to the 4,424 bookings for Tesla’s Model 3 and Model Y in the first 24 hours following their launch.
The lag in Japan is possibly due to the social structure and the vision of car manufacturers. Obviously, the basic infrastructure to support EV cars is limited. For example, the number of charging stations is insufficient, especially in highly populated big city areas. Installation of home-based chargers is also burdensome, despite the government’s support of EVs.
When it comes to climate change, the Japanese government has announced plans to reach the targeted reduction of CO2 emissions in 2030, by shifting to investment in green energy. However, it’s a still a long way to go for Japan as the business sector has remained reluctant to move in the same direction. With combustion/ hybrid technology still profitable for an extended period of time, the higher cost of EVs and the government’s lack of support are discouraging the progress of transition.
Then again, you can’t go wrong with ‘going green’; carmakers will have to jump on the bandwagon eventually. What Japan is doing is first making a big impact abroad. Toyota, for example, has recently debuted other impressive technologies, like a hydrogen-powered car. This could be the next ‘big thing’, given its potential to rise above the issues of EV charging stations and charging time.
How does this translate to the Thai automotive market? What does it mean to Thai consumers? Let’s discuss it in the next issue of 5000s.
