Passenger Cars - Japan

Japan

Revenue in the Passenger Cars market is projected to reach US$109.9bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.33%, resulting in a projected market volume of US$108.1bn by 2029.
The market's largest segment is SUVs with a projected market volume of US$37.0bn in 2024.
Passenger Cars market unit sales are expected to reach 4,202.00k vehicles in 2029.
The volume weighted average price of Passenger Cars market is expected to amount to US$25.67k in 2024.
With a vehicle unit sales share of 31.8% in 2024, Toyota is expected to have one of the highest market share in the selected region.
The value market share of the make Toyota in the selected region is expected to stand at 33.9% in 2024.
From an international perspective it is shown that the most revenue will be generated in the United States (US$605bn in 2024).

Key regions: United States, Germany, Europe, China, India

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Analyst Opinion

The Passenger Cars market in Japan has been experiencing significant growth in recent years. Customer preferences have shifted towards more fuel-efficient and environmentally friendly vehicles, leading to an increase in the demand for hybrid and electric cars. Additionally, the Japanese government has implemented policies and incentives to promote the adoption of these vehicles, further driving the market growth.

Customer preferences: Japanese customers have shown a strong preference for fuel-efficient vehicles due to the country's high fuel prices and environmental consciousness. As a result, hybrid and electric cars have gained popularity in the market. These vehicles offer better fuel economy and lower emissions, aligning with the customers' desire for eco-friendly transportation options. Additionally, Japanese customers value reliability and safety features in their cars, which has led to an increase in the demand for vehicles from reputable brands known for their quality and advanced safety technologies.

Trends in the market: One of the key trends in the Passenger Cars market in Japan is the increasing adoption of hybrid and electric vehicles. The government has implemented various measures to encourage the purchase of these vehicles, such as tax incentives, subsidies, and infrastructure development. This has led to a surge in the number of hybrid and electric car models available in the market, offering customers a wider range of options to choose from. As a result, sales of these vehicles have been steadily increasing, and it is expected that this trend will continue in the coming years. Another trend in the market is the growing popularity of compact cars. Due to limited parking space and higher fuel prices, many Japanese customers prefer smaller, more fuel-efficient vehicles. Compact cars offer the advantages of lower fuel consumption and easier maneuverability in crowded urban areas. This trend has prompted automakers to introduce more compact car models tailored to the Japanese market, further driving the growth of this segment.

Local special circumstances: Japan has a unique set of circumstances that contribute to the development of the Passenger Cars market. The country has a well-developed public transportation system, including an extensive train network, which reduces the need for personal vehicles in urban areas. However, in rural areas where public transportation is less accessible, owning a car becomes more essential. This has created a demand for cars in these regions, leading to a more balanced market distribution between urban and rural areas.

Underlying macroeconomic factors: The Japanese economy has been recovering from a period of stagnation, which has positively impacted the Passenger Cars market. As consumer confidence improves and disposable incomes rise, more people are able to afford cars, leading to increased sales. Additionally, low interest rates and favorable financing options have made it easier for customers to purchase vehicles, further stimulating the market growth. In conclusion, the Passenger Cars market in Japan is experiencing growth driven by customer preferences for fuel-efficient and environmentally friendly vehicles, as well as government policies and incentives. The increasing adoption of hybrid and electric cars, along with the popularity of compact cars, are key trends in the market. The unique circumstances of Japan, including a well-developed public transportation system and a recovering economy, also contribute to the market development.

Methodology

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).