Alexandru Arba
Research expert covering Japan
Electric vehicles in Japan - statistics & facts
The first electrified vehicle available on the Japanese car market was a hybrid electric vehicle, the Toyota Prius. Launched in 1997, it enjoyed remarkable success, marking the beginning of the commercial involvement of Japan's automotive industry with electrified vehicles. In 2024, hybrid electric vehicles (HEVs) were the most-bought passenger car type in Japan, after gasoline-only automobiles were dethroned for the first time in 2023.
While the success of HEVs is a cause for celebration, this vehicle type is not emission-free as it also utilizes a conventional combustion engine. Other electric vehicle types have zero tailpipe emissions but currently comprise a negligible portion of Japan’s vehicle market. Moreover, even vehicle types with zero tailpipe emissions, such as BEVs and FCEVs, are often not entirely green. For instance, hydrogen refueling stations used by FCEVs typically provide “blue” or “gray” hydrogen created in industrial processes that emit CO₂. Similarly, charging stations for BEVs and PHEVs use energy from Japan’s energy supply grid, which still largely relies on fossil fuel resources.
Despite substantial government subsidies for vehicle types such as BEVs and FCEVs, Japanese consumers still seem reluctant to choose fossil-fuel-free propulsion vehicle options. The high price of cars, apprehensions regarding vehicle performance, and the perceived lack of infrastructure are consumers’ leading concerns. Further government investment in infrastructure and increasing incentives for the private sector might be required to break new ground, particularly with the hitherto less successful electric vehicle types.
Hybrid electric vehicles dominate the Japanese market
There are four common electrified vehicle types, all of which use, partly or entirely, electricity as a source of energy. Vehicle types that combine classic combustion engines with electric propulsion include hybrid electric vehicles (HEVs) and plug-in hybrid electric vehicles (PHEVs). Battery electric vehicles (BEVs) solely rely on the onboard battery for propulsion. Lastly, fuel cell electric vehicles (FCEVs) utilize hydrogen as fuel. BEVs, FCEVs, and PHEVs require an infrastructure of dedicated charging or fueling stations, while HEVs use the existing petroleum-based infrastructure to refuel. In 2024, over 60 percent of new vehicle registrations among regular-sized cars in Japan were HEVs, continuing the upward trajectory in the domestic market. Contrary to the success story of HEVs, other “next-generation vehicle” types continued to struggle, with the total share of new car registrations of BEVs, PHEVs, and FCEVs amounting to roughly three percent.The long, winding road to carbon neutrality in Japan's transportation sector
The transportation sector in Japan emits significant amounts of CO₂, most of which is caused by private and commercial road vehicles. In 2022, about 16 percent of Japan’s CO₂ emissions came from automobiles. Since Japan aims to become carbon-neutral by 2050, the transportation sector has to undergo drastic changes to achieve this goal. One of the automobile industry’s stated targets is for all sales in the domestic market to be electrified vehicles by 2035.While the success of HEVs is a cause for celebration, this vehicle type is not emission-free as it also utilizes a conventional combustion engine. Other electric vehicle types have zero tailpipe emissions but currently comprise a negligible portion of Japan’s vehicle market. Moreover, even vehicle types with zero tailpipe emissions, such as BEVs and FCEVs, are often not entirely green. For instance, hydrogen refueling stations used by FCEVs typically provide “blue” or “gray” hydrogen created in industrial processes that emit CO₂. Similarly, charging stations for BEVs and PHEVs use energy from Japan’s energy supply grid, which still largely relies on fossil fuel resources.
The way forward
The Japanese automotive industry is pursuing a multi-directional approach to reach its emission reduction targets by further developing and deploying next-generation vehicles. This categorization includes the entire range of electrified vehicles, as well as gasoline and diesel vehicles that employ technologies to mitigate emissions.Despite substantial government subsidies for vehicle types such as BEVs and FCEVs, Japanese consumers still seem reluctant to choose fossil-fuel-free propulsion vehicle options. The high price of cars, apprehensions regarding vehicle performance, and the perceived lack of infrastructure are consumers’ leading concerns. Further government investment in infrastructure and increasing incentives for the private sector might be required to break new ground, particularly with the hitherto less successful electric vehicle types.
