Executive Cars - Japan

Japan

Highlights

Revenue in the Executive Cars market is projected to reach US$2bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.40%, resulting in a projected market volume of US$2bn by 2029.
Executive Cars market unit sales are expected to reach 45.8k vehicles in 2029.
The volume weighted average price of Executive Cars market in 2024 is expected to amount to US$34k.
From an international perspective it is shown that the most revenue will be generated China (US$63bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Executive Cars market in Japan is experiencing significant growth and development.

Customer preferences: Japanese consumers have always had a strong affinity for luxury and high-quality products, and this is reflected in their preferences for executive cars. These consumers value comfort, advanced technology, and superior performance in their vehicles. They also prioritize safety features and fuel efficiency. Additionally, Japanese consumers have a preference for locally manufactured cars, which has led to the dominance of domestic brands in the executive car market.

Trends in the market: One of the key trends in the Executive Cars market in Japan is the increasing demand for hybrid and electric vehicles. As the government continues to promote environmental sustainability and incentivize the adoption of eco-friendly vehicles, Japanese consumers are increasingly opting for hybrid and electric executive cars. This trend is driven by a combination of factors, including rising fuel prices, concerns about air pollution, and the availability of government subsidies for purchasing eco-friendly vehicles. Another trend in the market is the growing popularity of luxury SUVs. Japanese consumers are increasingly drawn to the versatility and spaciousness offered by SUVs, while still expecting the luxury and comfort associated with executive cars. This trend is in line with the global shift towards SUVs as the preferred vehicle type, and it is also driven by the unique needs and preferences of Japanese consumers.

Local special circumstances: The Executive Cars market in Japan is influenced by several unique local circumstances. One such circumstance is the aging population. With a rapidly aging population, there is a growing demand for executive cars that cater to the needs of older consumers. This includes features such as easy access and comfortable seating, as well as advanced safety technologies to assist with driving. Another local circumstance is the high population density and limited parking space in urban areas. This has led to a preference for compact executive cars that are easier to maneuver and park in tight spaces. Japanese consumers also value fuel efficiency due to the high cost of fuel and the desire to reduce environmental impact.

Underlying macroeconomic factors: The Executive Cars market in Japan is influenced by various macroeconomic factors. One such factor is the overall economic stability and high disposable income levels in the country. This enables Japanese consumers to afford luxury vehicles and fuels the demand for executive cars. Government policies and regulations also play a role in shaping the market. The Japanese government has implemented measures to promote the adoption of eco-friendly vehicles, such as tax incentives and subsidies. These policies have contributed to the growth of the hybrid and electric executive car segment. In conclusion, the Executive Cars market in Japan is experiencing growth and development driven by customer preferences for comfort, advanced technology, and locally manufactured vehicles. The market is also influenced by trends such as the increasing demand for hybrid and electric vehicles and the popularity of luxury SUVs. Local circumstances, such as the aging population and limited parking space, further shape the market. Additionally, macroeconomic factors, including economic stability and government policies, contribute to the growth of the market.

Data coverage:

The data encompasses B2C enterprises. Figures are based on the sales of new passenger cars. Data on the specifications of the sold vehicles is based on the base models of the respective makes.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use company reports and websites, vehicle registries, car dealers, and environment agencies among other sources. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP and car stock per capita. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, we use the ARIMA model for the Passenger Cars market. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:

The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the data is updated on an ad hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development).