Medium Cars - Japan

Japan

Highlights

Revenue in the Medium Cars market is projected to reach US$21bn in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of -0.20%, resulting in a projected market volume of US$20bn by 2029.
Medium Cars market unit sales are expected to reach 775.1k vehicles in 2029.
The volume weighted average price of Medium Cars market in 2024 is expected to amount to US$26k.
From an international perspective it is shown that the most revenue will be generated China (US$89bn in 2024).

Key regions:

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Medium Cars market in Japan has been experiencing significant growth in recent years.

Customer preferences: Japanese consumers have shown a strong preference for medium-sized cars due to their practicality and fuel efficiency. With the increasing urbanization and congestion in major cities, medium-sized cars provide a good balance between size and maneuverability. Additionally, Japanese consumers value reliability and durability, which are often associated with medium-sized cars from reputable brands.

Trends in the market: One of the key trends in the Medium Cars market in Japan is the growing popularity of hybrid and electric vehicles. As the government and consumers become more conscious of environmental issues, there has been a shift towards more sustainable transportation options. Medium-sized cars offer a good platform for hybrid and electric technology, providing a balance between range and size. Another trend in the market is the increasing demand for advanced safety features. Japanese consumers prioritize safety when choosing a car, and medium-sized cars often come equipped with the latest safety technologies. Features such as collision avoidance systems, lane departure warning, and adaptive cruise control are becoming standard in medium-sized cars, attracting safety-conscious buyers.

Local special circumstances: Japan has a unique automotive culture with a strong emphasis on domestic brands. Japanese automakers have a long-standing reputation for producing high-quality vehicles, and this reputation has influenced customer preferences. Domestic brands such as Toyota, Honda, and Nissan have a strong presence in the Medium Cars market in Japan, offering a wide range of models to cater to different customer needs.

Underlying macroeconomic factors: The Japanese economy has been relatively stable in recent years, with moderate economic growth and low unemployment rates. This has contributed to the overall positive consumer sentiment and increased purchasing power. As a result, more consumers are able to afford medium-sized cars, driving the growth in the market. Government policies and incentives have also played a role in the development of the Medium Cars market in Japan. The government has implemented various measures to promote the use of hybrid and electric vehicles, including tax incentives and subsidies. These initiatives have made hybrid and electric medium-sized cars more affordable and attractive to consumers. In conclusion, the Medium Cars market in Japan is growing due to customer preferences for practical and fuel-efficient vehicles, the increasing popularity of hybrid and electric cars, the demand for advanced safety features, the strong presence of domestic brands, and the stable macroeconomic conditions.

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).