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By the end of March 2025, there were approximately **** million motor vehicles in use in Japan. The figure continued its growth from the preceding decade.

Shrinking population, growing vehicle numbers?

Japan’s population is rapidly aging as well as shrinking year by year. Nonetheless, the number of vehicles in use is growing. One explanation for this could be that while the average household size has decreased, the number of households has continued to grow, as more and more Japanese remain single. Additionally, small and light-weight vehicles that are affordable might facilitate vehicle ownership. When looking for a cheap deal, used automobiles are an option as well. However, the demographic development is likely to push down vehicle numbers eventually when registrations canceled outnumber registrations issued. This process could be accelerated by the fact that households are less likely to invest in a private car, especially in urban areas. Instead, the market for shared vehicle use is expected to increase.

What happens to motor vehicles that are of no use?

The average age of passenger cars, like that of their owners, is increasing in Japan. But when people can no longer maintain their vehicles, they enter the final phase of a vehicle's life cycle. This process is regulated by the Automobile Recycling Law (enacted in 2005). New vehicle owners pay a recycling fee to the Japan Automobile Recycling Promotion Center (JARC). When used automobiles get handed over to ELV collectors (end of life vehicles), they enter a successive recycling process from the collectors to fluorocarbon recovery operators, to dismantlers and wreckers, and finally to shredder residue processors. Automobile manufacturers, importers, and designated recycling agencies get subsidized by the fees paid to the JARC for buying the reclaimed materials and metals. Around ****million vehicles enter this process every year.