Will China continue to dominate the EV market in the next 5 years
That is beginning to change, though, with more options debuting on the market this year: Toyota launched its first mass-produced EV model which is the bZ4X and the Nissan-Mitsubishi alliance rolled out electric mini cars which have been selling well.
Meanwhile, Nissan continues to lead the Japanese EV charge with the LEAF and also Note AURA which has decent sales success in Japan and United Kingdom.
More mainstream EV models from Japan are expected to hit the market over the next few years from Honda and also Mazda.
While Japanese carmakers have mostly been taking a wait-and-see approach, foreign firms are taking advantage of the EV transition to challenge the dominance of domestic automakers in the Japanese market.
China’s BYD, which topped Tesla to become the No. 1 EV seller globally this year, announced earlier has already debuted its popular BYD EVs in Japan for a 2024 big push.
Meanwhile, South Korea’s Hyundai Motor re-entered the Japanese market earlier last year for the first time since 2009 with the introduction of its Ionic EV model.
Japan’s status as an automobile powerhouse may even have been holding back its EV shift, some experts say. But now that change is finally in the offing, the very structure underpinning the sector is under threat.
The Japanese auto industry is known for its pyramid structure, in which major carmakers sit at the top above several tiers of suppliers. Since this structure was established in the era of engine-powered vehicles, a hasty transition to EVs would be problematic for many firms that supply parts for such cars.
But with carmakers needing to give up on petrol-powered engines sooner or later, that landscape is set to experience sweeping change. For some firms, the transition could be particularly tough or even impossible.
