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In 2024, Japanese automakers manufactured around million vehicles at production facilities outside of Japan, decreasing from million in the previous year. This was more than double the domestic production. The leading region was Asia, assembling more than half of the vehicles produced abroad. 

Trends in overseas production

Japanese carmakers whose overseas production exceeds a million vehicles per year are Toyota, Honda, Nissan, and Suzuki, manufacturing more automobiles overseas than domestically. A large share of production divides itself among China, South-East Asia, and North America, which are at the same time the primary markets (apart from Japan). In the future, production might shift further towards less-regulated markets, as Europe becomes more and more difficult to supply due to environmental restrictions.

Emission targets and automotive electrification in Japan

Japan had increased its reduction target of emissions up to ** percent by 2030 (compared to 2013) to remain on track for carbon neutrality by 2050. As automobiles account for roughly ** percent of Japan’s carbon emissions, the Japanese government announced that all new passenger cars sold domestically should be electrified by 2035. Electrified cars, particularly hybrid vehicles (HV), already account for a large share of new sales today.