Cars in Japan

Tokyo - I always wonder why many Japanese do not drive and car sales are declining in affluent Japan. It is also surprising that Japanese car markers sales are rapidly expanding in the US and overseas markets, but sales back home continue to slide every year. Since the peak in 1990, Japanese car makers' domestic sales have dropped 31% to nearly 3 million automobiles in 2007, even as their exports rose 30% to 5.8 million vehicles.

One of the reasons is the higher petrol prices.

Secondly, Japan's graying population. Unlike their parent's generation which viewed cars as the passport to freedom and higher social status, the Internet connected Japanese youth today look to cars with indifference (accordingly to Japanese Automobile Manufacturers Association). Having grown up with the Internet, they no longer depend on the car for shopping, entertainment and socializing and prefer to spend their money in other ways. The feelings among youths in Japan felt that cars were unnecessary and even uncool because they pollute and cause congestion, also mass transit is inexpensive and reliable.

It has been found that young men don't require a car for commuting but may want one for hanging out with friends.


Reference: WSJ, Feb 29, 2008