In 2022, Japanese automakers produced approximately 16.96 million vehicles at overseas production facilities, up from 16.46 million vehicles the previous year. This was more than double the domestic production. The main region is Asia, and almost 3 out of 2 cars were produced overseas.
Trends in overseas production
Japanese automakers that produce more than 1 million cars a year overseas are Toyota, Honda, Nissan, and Suzuki, and more cars are produced overseas than domestically. Most of the production is divided between China, Southeast Asia and North America, which are also the main markets (excluding Japan). As environmental regulations make supply increasingly difficult in Europe, production may shift further to less regulated markets in the future. Few Japanese manufacturers, like Toyota, are likely counting on plug-in hybrids and battery electric vehicles to help the continent meet its emissions targets.
Emissions targets and vehicle electrification in Japan
Japan had planned to raise its emissions reduction target by up to 46% (compared to 2013) by 2030, in order to get on track for carbon neutrality by 2050. The government made the announcement after consulting with the domestic automobile industry, as automobiles account for about 16% of Japan’s carbon emissions. All new passenger cars sold in Japan should be electric by 2035. Electric vehicles, especially hybrid vehicles (HV), already account for the majority of new car sales today.