1.Opening remarks
“JAIA’s mission” is to support JAIA member companies in delivering a diverse range of imported vehicles from around the world, equipped with cutting-edge safety and environmental technologies, including electrified vehicles, to Japanese customers, and to contribute to the development of a sustainable mobility society in Japan. I will do my best to keep this mission in mind.
In addition, against the backdrop of technological advances aimed at meeting social demands such as carbon neutrality, along with the deepening needs of users, the trends towards GX and DX in the automobile industry have been accelerating recently. The automobile industry is facing numerous challenges. JAIA will work in partnership and cooperation with auto-related organizations to resolve broader challenges facing the industry as a whole.
2.Look back at imported vehicle sales in 2024
Regarding the domestic motor vehicle market in 2024, the number of vehicles registered decreased by 6% year-on-year to approximately 2.86 million units. The number of foreign-brand vehicles registered in the 2024 calendar year also decreased by 8.5% year-on-year to 227,202 units.
On the other hand, imported EVs are doing well. The number of registered imported EVs in 2024 was 24,198, exceeding 20,000 units for the second consecutive year and setting a new record for the sixth consecutive year. This represents an expansion of approximately 7.5 times in four years from approximately 3,200 units in 2020. In addition, the share of EVs in overall foreign-brand vehicles in 2024 was 10.7%, exceeding 10% for the first time on a calendar year basis, and accounting for 70% of all registered EV sales in Japan excluding kei cars.
We believe that we have been able to achieve these figures as a result of support measures such as continuous subsidies from the government, the qualitative and quantitative expansion of charging infrastructure, and JAIA member companies proactively expanding their EV lineup to meet customer needs.
The lineup of imported EVs consisted of 20 models from 10 brands in 2020, but expanded to 163 models of 19 brands, including commercial vehicles, as of the end of December 2024, an increase of approximately eight times in four years. Imported brands have played an active role in the EV market, and JAIA has been working concretely with relevant parties to address issues related to electrification, such as charging infrastructure, which has led to steady progress in the development of charging infrastructure. We will explain the current status of the charging infrastructure later.
3.Imported vehicle sales outlook for 2025
Next, I would like to explain our outlook for imported vehicle sales in 2025. JAIA member companies are planning to aggressively introduce new models, including EVs and SUVs, and vehicle supplies are also improving, so we hope that imported vehicle sales will remain strong and exceed the previous year’s results.
Speaking specifically of EVs, we expect that sales will increase thanks to tax incentives, continuous government support in the form of purchase subsidies, and member companies actively introducing EVs to the Japanese market. With one in ten foreign brands now being EVs, we hope that imported EVs will become even more of a driving force in the domestic EV market. In addition, we expect the popularity of SUVs to continue into 2025 with SUVs accounting for more than half of the imported vehicle sales by model in 2024.
For your information, a test ride event for media will be held jointly by JAIA members in Oiso, Kanagawa Prefecture, for three days starting on February 4. Each company will line up their latest models of EVs and SUVs at this event, so please come and join us.
4.JAIA’s Main Activities
Now, I would like to introduce JAIA’s five main activities and explain the progress.
First, I would like to explain our activities in the fields of market revitalization and the environment and energy. First, I would like to talk about JAIA’s xEV initiative, which spans both fields. To further spread xEVs, we are focusing our activities on four main areas: (1) making requests to the government for subsidy systems, etc., (2) hosting events to promote the spread of xEVs, (3) improving the charging infrastructure by considering deregulation of charging voltage, etc., and (4) recycling lithium-ion batteries.
First of all, I would like to thank the government for continuing to implement subsidies for purchasing xEVs without interruption, and for securing a large budget of 110 billion yen in the fiscal 2024 supplementary budget.
To take an example from overseas, subsidies implemented in Germany in 2016 for PHEVs were abolished at the end of 2022, and the number of PHEVs registered in 2023 fell to about half of the previous year. In addition, subsidies for EVs and FCEVs were abolished at the end of 2023, and EV sales in 2024 fell sharply by 27.4% compared to the previous year, highlighting the importance of support through subsidies. We would like to ask the government to continue providing uninterrupted subsidy measures.
Next is our efforts to raise awareness of imported xEVs. JAIA has been operating as a platform to promote the spread of imported xEVs since 2021. Last year, the “JAIA Carbon Neutral Promotion Event in Tokyo” was held on November 15 and 16, with the special location of Gyoko-dori Street as the main venue, and multiple venues in Marunouchi.
At this event, despite some voices saying that the spread of EVs has reached a plateau, JAIA member companies pooled their resources together to bring in a total of 46 vehicles from 12 companies, the largest number ever. Through the vehicle exhibition and test drive program, the public was able to experience the appeal of the world’s most advanced imported xEVs, and we strived to further invigorate the xEV market. The main venue, Gyoko-dori, displayed the world’s most cutting-edge imported xEVs, including Formula E prototypes, electric sports cars, and FCEVs. The Japan Association for the 2025 World Exposition, a supporter of the event, also set up an Osaka-Kansai Expo booth.
This year’s event was supported by relevant ministries and a wide range of organizations both inside and outside the automotive industry. Thanks to their cooperation in exhibiting at booths and speaking at talk events, we believe we were able to demonstrate our willingness to work together across organization and industry boundaries to address the various challenges facing the automotive industry.
Additionally, as a first attempt for a JAIA event, a talk event was held on recent important issues surrounding the automotive industry. Government officials and representatives from leading companies in each industry took to the stage to discuss the following themes: 1) the current situation, challenges and future trends of the EV market, 2) improving the charging infrastructure conditions, 3) the Car, Society and Partnership Award and regional collaboration, and 4) challenges and efforts regarding auto mechanic human resources. The event provided an opportunity for in-depth discussion on future prospects and efforts, and was widely streamed on YouTube. If you are interested, please check out the archived video on JAIA’s YouTube channel.
Because the venue was in the center of Japan’s business district, where foreign tourists also gather, the event was scheduled to end at 7 p.m., later than usual, to promote the event to more people, including office workers on their way home from work and foreign tourists.
On the second day of the event, JAIA held its first test ride program for the public. We provided an opportunity for visitors to experience the appeal of xEVs by riding along in popular imported xEVs driven by well-known automotive commentators while listening to professional commentary. Among the general participants, there were some who had begun to consider switching to xEVs but were having difficulty coming to a decision. One automotive critic commented that JAIA’s test ride program provided an opportunity to experience the superior performance of imported xEVs, reaffirming the importance of moving participants’ hearts.
With all of the above-mentioned efforts, we were able to successfully hold an event that fully promoted the appeal of imported xEVs.
In conjunction with this event, JAIA conducted a user survey on imported EVs and found that awareness of imported xEVs among drivers of domestic gasoline vehicles has increased by about 1.5 times compared to the result of a survey four years ago.
Also, when comparing the average monthly driving distances by category (EV, PHEV, HEV, ICE), the longest was actually the imported EV, at 472km. Some people may still be concerned about the driving range, but in user surveys, we had feedback that “from a practical standpoint, it’s hardly an issue”. It is necessary to provide customers with a detailed explanation of the driving range of imported EVs.
The survey also found that around 80% of EV users highly rate their vehicle’s acceleration and quietness, as well as its driving performance, appearance and style, and are highly satisfied with the vehicle itself. We believe that it is not the case that “it’s an xEV, but it has good performance,” but rather that “the car I like is an xEV,” and that customers are satisfied with the xEV after experiencing its driving performance and quietness.
Going forward, we believe it is important for us to continue to listen carefully to the needs of each individual user, provide a lineup of vehicles that meet those needs, and ensure that they fully understand the benefits of xEVs.
For xEVs to be widespread, vehicles and charging infrastructure are the two wheels of a car. We have worked together with the government to realize system reforms, including removing previous restrictions. For example, subsidies for installing quick chargers were only applicable to dealerships 90kW or less. Additionally, subsidies were not applicable for the installation of new quick chargers within 15km of existing quick chargers. There were also restrictions due to Japan’s unique DC450V voltage regulation. In 2024, the conditions surrounding charging infrastructure changed significantly, with system reforms to accommodate high-voltage and progress being made, such as the installation of two 150kW quick chargers by the Tokyo Metropolitan Government on the public road at the Marunouchi South Exit of Tokyo station.
The year 2025 marks the 60th anniversary of the establishment of JAIA, and is expected to continue to be an important year in which major changes will occur in Japan’s charging infrastructure. For example, e-Mobility Power and TAKAOKA TOKO, both JAIA supporting members, have jointly developed a 400kW-class quick charger, which will be installed on expressways from fiscal 2025. We believe that customers will be amazed at the charging performance, which is on par with Germany’s, as vehicles that are compatible with a 400kW class charger can be fully charged in less than 15 minutes. JAIA will continue to cooperate with related businesses, including supporting members, to improve the charging environment.
We hope that in 2025, a system will be established for temporary exit from expressways that places minimal burden on both charging providers and users, in order to make effective use of charging infrastructure near expressways. In addition, as further development of high-voltage chargers is expected, the costs of installing high-voltage, high-capacity chargers will increase, so we would like to ask for support in the form of government subsidies. In order to improve the charging environment in apartment complexes, including mechanical parking systems where it is difficult to install chargers, we would like to request the installation of quick chargers on public roads and further development of charging infrastructure at service stations. In addition to installing charging infrastructure on public roads, I think it is important that the trend of making it mandatory to install chargers in newly built homes be expanded not only to Tokyo but also to other regions. JAIA will also actively promote cooperation with local governments.
In the recycling field, regarding the reuse and recycling of lithium-ion batteries, which are essential for the promotion of electrification, the number of JAIA members, who are participating in the joint recovery system including domestic manufacturers for lithium-ion batteries, is steadily increasing.
JAIA will continue to exchange opinions with battery recycling-related businesses, and provide support to ensure that member companies stay up to date on the latest industry information and respond appropriately to the recovery of automotive batteries.
A fundamental review of auto-related taxes will be carried out by the end of fiscal 2025, which is the deadline for the current Eco-car Tax Incentives. Specifically, in response to JAIA’s request to abolish the environmental performance levy at the time of vehicle acquisition, the ruling party’s tax reform outline compiled at the end of last year clearly stated that it would “review the nature of taxation, such as reducing the burden at the time of acquisition, and reach a conclusion on the nature of fair, neutral and simple tax burdens at the time of ownership that are based on the weight and environmental performance of the vehicle.” JAIA will continue to request further reduction in the burden of excessive automobile-related taxes and simplification and fairness of the tax system. In particular, as we need to accelerate the spread of xEVs, which will contribute to achieving carbon neutrality, we must avoid system reforms that increase the burden on users. We will ask the government to consider tax reforms to accelerate the spread of xEVs, such as BEVs, PHEVs, and FCEVs. In addition, in order to achieve carbon neutrality, we believe that it is important not only to focus on electric passenger cars, but also on electrifying commercial vehicles such as buses and trucks and using hydrogen. Last year, for the first time, JAIA included requests for commercial vehicles.
In the field of environment and energy, the 2030 fuel efficiency standards for passenger cars will require a significant improvement of 44.3% on an average fuel efficiency basis compared to the 2020 standards.
JAIA is requesting the introduction of flexible measures such as off-cycle credits to evaluate energy-saving technologies that improve actual fuel efficiency and promote their widespread use. We will continue to closely monitor the results of discussions at the Joint Meeting on Fuel Efficiency, which has been held by METI, MLIT and the Agency for Natural Resources and Energy since March, 2024.
Next, I would like to explain the activities related to safety and regulatory harmonization that JAIA is implementing to enable the smooth introduction of cutting-edge automobiles that keep up with ever-advancing technology, into the Japanese market.
First, in order to provide imported vehicles that ensure safety and environmental performance to Japanese consumers without incurring additional costs, we have been working for many years with the relevant authorities to harmonize international regulations and to utilize the mutual recognition system based on the 1958 United Nations Agreement on Vehicle Certification. As a result, UN-R has been adopted for many devices and parts installed in vehicles, and the IWVTA system, an international type approval system for the complete vehicle, has also been established.
Since then, the IWVTA has been expanded year by year. It is now possible to obtain IWVTA that includes type approval of major safety and environment-related equipment for passenger cars. JAIA will continue to work through JASIC activities and others to further promote international harmonization of vehicle regulations and to expedite the realization of a more complete and highly useful IWVTA.
In addition, the acceleration suppression device in the event of pedal misapplication is being discussed internationally, and is scheduled to be enacted as new regulation UN-R175 around June this year. International harmonization of vehicle regulations is progressing steadily year by year. JAIA welcomes this move. JAIA will continue to work to eliminate the remaining unique Japanese requirements through international harmonization, etc.
Furthermore, for the certification procedures for vehicle compliance checks, two years ago, JAIA requested MLIT to further streamline and improve the efficiency of the vehicle certification application procedures based on the IWVTA application procedures. Due to issues such as responding to domestic certification fraud, it took some time for the Ministry to consider JAIA’s request, but things started moving at the end of last year, and we are hopeful that the authorities’ work will progress this year. JAIA will continue to hold discussions with the Ministry and work to achieve the necessary rationalization and efficiency while ensuring the safety and environmental protection performance of imported vehicles.
In addition, to ensure safety in the recent trend of connected cars, we will work with OEMs and MLIT to ensure that our members respond appropriately to new regulations related to cybersecurity and software updates for in-vehicle systems.
In addition, JAIA has established a specialized working group to advance discussions in the field of wireless and tele-communications technology, which is essential for DX, and will continue to discuss with relevant authorities on frequency and communication method. In particular, we will work with relevant organizations to ensure that communications platforms and infrastructure for software-defined vehicles, automated driving, and data utilization are established as soon as possible through international cooperation.
We believe that technological trends toward further advances in automated driving are extremely important. JAIA will continue to collect information through Mobility DX Study Group and other forums. Last year, the government announced its Mobility DX Strategy. We will also be keeping an eye on developments such as the Mobility DX Platform that was launched last fall. By promoting these initiatives, JAIA will continue to contribute to help member companies provide customers with greater safety and convenience through their products.
In addition, battery safety has become a hot topic in recent years, and we will tackle this issue as a new aftermarket challenge, including the safety of workers who handle high-voltage, so we would appreciate related organizations’ support.
Next are our activities in the areas of fair trade and after-sales.
For automobile fair trade, JAIA will actively participate in the working group of the Automobile Fair Trade Council and will continue to promote activities aimed at thoroughly informing JAIA members of the Automobile Fair Competition Code and ensuring fair trade.
In the after-sales field, we will take measures to ensure that member companies can respond appropriately, including the implementation of recall-related procedures in compliance with laws and regulations.
As I have said before, a shortage of mechanic personnel is a common and urgent issue across the automotive industry. JAIA has also set up an information liaison committee on automobile maintenance human resources, and continues to share various information and engage in concrete activities with member companies to overcome challenges.
As mentioned at the beginning, the November event also had the theme of “Challenges and Initiatives in Automobile Maintenance,” and in addition to members of the JAIA Liaison Meeting representatives from automobile maintenance schools, domestic dealerships, and people involved with foreign human resources took to the stage to discuss the topic. The conclusions drawn were: 1) it is important to continue to cooperate with vocational schools; 2) the internationalization of the workforce is an unavoidable process, and the acceptance of foreign talent, including in the educational field, must be fully recognized as a major trend and preparations must be made to address it; 3) amid concerns about the declining birthrate and young people turning away from cars, an all-Japan effort must be undertaken in collaboration with the national government, relevant organizations, and businesses. Based on this overall direction, JAIA will carry out activities as desired by its member companies and, through its members, support their dealerships in addressing the issue of a shortage of mechanic personnel.
Finally, I would like to introduce our fifth main activity, which is motorcycle-related activities.
The number of new registrations of imported small motorcycles in 2024 decreased 2.1% to 26,447 units compared to 27,008 units in the previous year, marking the first decrease in six years. Meanwhile, the share of imported vehicles in the domestic small motorcycle market reached 30.1%, up from last year’s figure of 29.7%.
The reason for this is that the introduction of entry-level models under 400cc, a segment that did not previously exist, and the creation of a new purchasing group, led to gaining a certain market share. We believe that by continuing to introduce a wide variety of unique imported motorcycles, we can expect further growth.
Now, one of the major pillars of our motorcycle activities is “activities to revitalize the market.” Last year, for two days on September 28th and 29th, we held a vehicle exhibition event in the Sakae Station area of Nagoya, together with leading local media outlets, Chubu Keizai Shimbun and Tokai Radio, as a measure to revitalize the market for general visitors.
This year, the Nagoya Motorcycle Show, which has been supported by JAIA in all past events, will be held for the fourth time from April 4 to 6 at the Aichi International Exhibition Center. Admission to this show will be free for high school students, younger individuals, and women, in an effort to broaden the base of motorcycling fans. In addition, JAIA will organize Imported Motorcycle Test Ride Event at Oiso Long Beach on April 9th and 10th, marking its 10th anniversary this year, so please come and join us.
JAIA will continue to actively participate in similar projects in major cities and work toward becoming carbon neutral.
Next, regarding the policy on motorcycles, on September 27, 2024, eight motorcycle-related organizations including JAIA and METI held the 12th BIKE LOVE FORUM in Nangoku Miyazaki in Miyazaki City, Miyazaki Prefecture, which celebrated its 100th anniversary as a city. On the day, various discussions were held regarding the utilization of tourism resources and regional development through motorcycle tourism, with the theme of “Motorcycles x Tourism/Regional Development.” This year’s event, the 13th, is scheduled to be held in Ogano Town, Saitama Prefecture on September 19.
JAIA continues to request that highway tolls be separated for motorcycles, that motorcycle parking lots be expanded, and that the motorcycle license system be reviewed. In cooperation with other organizations, centering on the Bike Love Forum, we have been calling for the independence of highway toll classifications and the rationalization of toll fees at government and political party motorcycle-related meetings.
As a result, road operators such as NEXCO East Japan implemented a “fixed rate motorcycle discount” last year, as they had done in 2023, which offers a fixed rate discount on tolls to motorcycles equipped with ETC that use expressways on weekends and holidays.
With regard to activities to promote international harmonization of regulations, which is another pillar of our motorcycle activities, we will continue to support our member importers.
This year too, we will continue to work to further popularize imported motorcycles and revitalize the domestic motorcycle market by promoting a wide variety of unique and attractive imported motorcycles through events such as the JAIA Motorcycle Test Ride.
5.Conclusion
JAIA member companies will continue to provide attractive imported vehicles with excellent environmental and safety performance, and JAIA will cooperate with the Japanese government, the automobile industry, and all organizations involved in the sales market to reduce the burden on users and contribute to the realization of a carbon-neutral society.
