2023-06-23 13:40:52
The importance of electric cars is increasing day by day, in light of the great competition that this industry is witnessing, among most of the large, medium and even emerging car companies. 2022 was a historic year for the industry, with annual production of electric vehicles exceeding 10 million units for the first time ever, up from 6.7 million in 2021.
As electric vehicles become a more attractive option for consumers, the size of this market is expected to increase more than fourfold, to reach regarding $1.4 trillion by 2027, according to research firm Statista.
A transformation in the automotive industry
This shift in the market requires automakers in the world to move from the stage of manufacturing traditional cars to the stage of manufacturing electric cars, which is what the Chinese, American and even European companies have done, while Japan, which is considered an “empire” in the automotive industry, recorded timid steps in adopting Moving into the world of electric cars.
Japan, through its various companies, is the third largest seller of conventional cars in the world following China and America, while it has a secondary presence in the electric car industry, and this is confirmed by the figures that show the country is ranked tenth, in the list of the 15 best-selling electric cars in 2022. , according to visual capitalist, as it was able to achieve this rank through the Renault-Nissan-Mitsubishi alliance of companies, which means that the tenth rank achieved by Japan came through the alliance with France and not alone.
Stability for China, America and Europe
At this time, China, America and Europe were able to maintain their advanced positions in the auto industry, achieving a smooth transition to the world of electric cars, which raised questions regarding the reasons that prevented the “empire” of the auto industry in the world from keeping up with the change that occurred just as its competitors did. .
Why was Japan late?
Automotive writer Zuhair Karaki says in an interview with Sky News Arabia that while it is considered that electric cars are the future of the transportation industry in the world, we find that Japanese companies have been slow to adopt the rush towards electric cars, to the point where it has become Some question its ability to catch up and compete in this industry, pointing out that the backwardness of Japanese companies in the electric car race is the result of several factors.
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Bet on hybrid cars
According to Karaki, the first reason for the Japanese decline is the responsibility of the companies in the country, which did not try to keep pace with the shift towards electric vehicles, due to a strategic error in their calculations in this regard, as
Japanese manufacturers bet that “hybrid” cars, that is, those that run with two engines, one on fuel and the other on electricity, is a more effective strategy than electric cars, due to the high cost of the batteries that power this type of car, known as lithium, in addition to the idea Charging the electric car battery from time to time.
For fear of the fading network of spare parts suppliers
Karaki believes that the second reason for the reluctance of Japanese car producers to switch to electric cars is due to fears of the disappearance of the network of spare parts suppliers in the country, and the repercussions of this on labor and trade, as electric cars do not require components and spare parts in the quantities required by conventional cars, noting. He pointed out that the Japanese auto industry constitutes regarding a fifth of the manufacturing sector in the country and employs regarding 8 percent of employment, and therefore the shift to electric cars will reduce the size of the labor market in the country, and will limit Japan’s role in the spare parts trade.
Japan makes up 5% of the global value
For his part, car dealer Muhammad Musa said, in an interview with the “Sky News Arabia Economy” website, that electric cars represent regarding 10 percent of global car sales, as Chinese, American, European and Korean car companies control 90 percent of sales in this market, while the share of Japanese electric cars fell to less than 5 percent, which is a huge decline in the country’s role in this industry.
Moussa explains that the third reason for Japan’s delay in the electric car industry is due to the association of many resources and minerals that this industry needs with China. Which restricts China’s access to some technological technologies, and this has slowed its progress in this field, pointing out that China controls, for example, 56 percent of the global production of electric car batteries, as this share will rise to 70 percent in 2027.
Japan’s delay is losing an opportunity
According to Moussa, Japan has recently signed an agreement with the United States, facilitating its access to “important minerals” related to the production of electric cars, in preparation for it to be a larger player in this field, indicating that there is concern that Japanese companies will not be able to keep pace with the growth of electric vehicles. The demand for electric vehicles, as it was late, lost the opportunity to gain sufficient experience and learn more regarding the market, while its competitors were able to do so.
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