Passenger car production in Japan 2014-2023
In 2023, approximately 7.77 million passenger cars were produced in Japan, up from about 6.57 million units in the previous year. The total domestic production volume reached approximately nine million units, which includes buses and trucks next to passenger cars.
Toyota vows to scale up BEV sales
In December 2022, Toyota announced raising its global sales targets for battery electric vehicles (BEV) to 3.5 million units by 2030, representing roughly 35 percent of sales today. For its premium segment brand Lexus, Toyota aims to exclusively sell BEV in Europe, North America, and China by 2030 — worldwide by 2035. The Toyota Group is a leader in the automobile industry in Japan, and as such it beacons the general direction of development of the industry. For example, the electrification of Subaru's lineup depends on the efforts of joint developer Toyota. The company's announcement provoked questions about its commitment to hydrogen fuel cell electric vehicles (FCEV) since earlier targets explicitly included them.
Will FCEV catch on eventually?
Japanese manufacturers had high hopes for hydrogen technology in the automotive sector to reduce carbon emissions. From a technical point of view, hydrogen fuel cells — although energy-intensive — work for powering passenger cars. However, this vision presupposes low-carbon hydrogen production and adequate infrastructure. For commercial success, the latter is integral, as BEVs have proven despite their unfavorable vehicle mass, range, and charging time. Currently, they hardly charge carbon-neutral electricity, but the grid is ubiquitous. Unsurprisingly, the United States Environmental Protection Agency (EPA) recorded in 2021 only three commercially available FCEVs (Honda Clarity, Toyota Mirai, Hyundai Nexo), while BEVs listed in hundreds. Still, hydrogen technology remains inevitable in transitioning to a carbon-neutral economy. What is more: hydrogen fuel cells may catch on in other applications like trucks, vans, or aircraft.
