Japan Mobility Show Highlights Shift Towards Electric Vehicles

The Tokyo Motor Show, rebranded as the Japan Mobility Show, has returned after a four-year hiatus, marking a crucial moment for the domestic automotive industry. This year's event features a significant focus on electric vehicles (EVs) and mobility solutions, reflecting the growing global trend towards sustainable transportation.

Toyota, the world's largest-selling automaker, has announced a strategic shift towards battery EVs, including plans to commercialize advanced batteries and adopt die-casting technology pioneered by Tesla. This move addresses criticism regarding Toyota's perceived slow adoption of battery EVs. However, smaller rivals such as Subaru, Mazda, and Mitsubishi Motors may face challenges in rolling out EVs, according to industry analysts.

Chinese automaker BYD will be the first from China to exhibit models at the show, joining German brands Mercedes and BMW as the only foreign automakers showcasing their EV offerings. In contrast, Japanese companies will display concept cars, highlighting the gap between stronger automakers like Toyota and Honda, which are producing record profits, and weaker players.

Japan's auto industry faces pressure from high input costs and declining sales in China. Toyota plans to showcase various battery-powered concept models at the event, including a sport utility vehicle, mid-size pickup truck, and sports car. The company continues to support a multi-pronged approach to reduce carbon emissions, involving other electrified and alternative energy options besides battery EVs.

Nissan intends to showcase the battery-powered Ariya, Leaf, and Sakura models, alongside new battery EV concept models such as a luxury minivan. The biennial event aims to attract a wider audience by featuring a range of mobility technologies, including autonomous vehicles, motorbikes, trucks, and "flying cars."

Despite these efforts, Japanese automakers face growing pressure from a rapidly aging and declining population, leading to fewer young people inclined to buy cars. Auto sales are under stress, with new registrations for passenger cars reaching their lowest level in 2021 since 1993. In contrast, the auto market in Southeast Asia has been expanding, with passenger vehicle sales in seven Southeast Asian countries rising by 24% year-on-year to 2.2 million in 2022. Japanese automakers must confront Chinese EV upstarts to maintain their share in key markets such as Thailand.