Key areas of current market trends include environmental technologies (including electric, hybrid systems and fuel cells), and safety. U.S. auto parts manufacturers with state of-the-art technologies in the areas of “next-generation” transportation systems, transportation safety, traffic accident reduction, theft-resistance, and electronic components should consider entering this market. In particular, the autonomous vehicle technology is the sector that the Japanese government is keen on developing. Japan aims to launch a functional autonomous transportation system on public roads by the 2020 Tokyo Olympics, using the Games as an opportunity to showcase Japanese technology.
Japanese auto parts manufacturers are required as never before to compete on cost, develop differentiating products (including modularizing and designing capabilities), and upgrade the operating efficiency of their domestic production base. Intelligent Transport Safety (ITS) uses cutting-edge information and communications technologies to network data between people, roads, and vehicles to reduce road congestion, accidents and to improve traffic flow. The Japanese government has been promoting ITS development and announced ITS development guidelines to achieve progress in three basic areas: safety and security, fuel efficiency and environmental protection, and comfort and convenience. Current R&D is focused on fuel conservation driving control technology, autonomous driving control technology, driving situational recognition, position recognition technology, and inter-vehicle communication technology. The development of EV and ITS, combined with emerging safety and environmental requirements, is forecast to further accelerate the computerization of automobiles.
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Market Trends & Demand
Best Prospects for U.S. Exports
Aftermarket Summary
The Japanese used car market stands at 5.8 million units in 2017 which is 3.4% increase from the previous year. This statistic includes used cars exported abroad, ownership registration changes, leasing contract and the wholesale/ dealership base used car sales. Consumers keep their cars for a shorter period with lower mileage and therefore Japanese used cars have significantly more appeal to international buyers particularly in Africa, Middle-East and South East Asia. Significant numbers of used vehicles are exported to those regions.
Electric Vehicles Market Summary
Japanese auto manufacturers continue to research and develop Next Generation Vehicles (NGV) such as Electric Vehicles (EV), Plug-in Hybrid Vehicles (pHV), Hybrid Vehicles (HV), Hydrogen Vehicles, Fuel Cell (FC) Vehicles, and Clean Diesel Vehicles. NGVs account for about 36% of entire new passenger car sales in 2017. Widespread adoption of NGV will largely depend on auto manufacturers’ resolution of a number of technological issues (for FC and Hydrogen Vehicle, for example) and on the
Market trends