1. Opening Remarks
In today’s press conference, we will first review the import vehicle sales performance for the first half of 2025 and provide sales projections for the second half of 2025. Subsequently, we will explain the progress of JAIA’s five key activities: (1) market revitalization, (2) environmental and energy fields, (3) safety and harmonization of regulations, (4) fair trade and after-sales, and (5) motorcycles. Finally, we will elaborate on our efforts regarding ‘DX-related initiatives’ and ‘collaboration with supporting members,’ which are the new pillars of this fiscal year’s activity plan.
2. Review of Imported Vehicle Sales Performance in the first half of 2025
Regarding the domestic automobile market in the first half of 2025, the number of registered vehicles reached approximately 1.5 million units, surpassing the previous year’s first-half figures for the first time in two years. The number of registered foreign-brand vehicles also increased by 7.3% year-on-year to 122,165 units, surpassing the previous year’s figure for the first time in two years since the first half of 2023.
Regarding imported EVs, the trend has been robust, with continuous increases for eight consecutive months since November 2024. As a result, the number of registered imported EVs in the first half of 2025 approached 15,000 units, reaching 14,191 units, which represents a 31.6% increase compared to the previous year. This marks the sixth consecutive year of record-breaking numbers for the first half of the year since the first half of 2020. Furthermore, in June 2025, the share of EVs among foreign-brand vehicles reached a record high of 14.6% for a single month.
We believe that these achievements were made possible due to the government’s support measures, including uninterrupted and continuous subsidies, as well as the result of JAIA member companies actively expanding their EV lineups to meet customer needs.
The lineup of imported EVs, which consisted of 10 brands and 20 models in 2020, has expanded to 22 brands and 173 models as of the end of June 2025, including commercial vehicles. Over a four-year period, the number of models has increased approximately ninefold, and now one in ten foreign-brand vehicles is an EV. As the lineups expand to include more diversified models, from compact to large cars, SUVs, luxury and sports models, users’ choices are expanding. As imported cars have played an active role in the EV market, JAIA has also been making concrete efforts to address issues related to electrification, such as charging infrastructure. Those issues, we believe, are steadily headed to be solved.
3. Outlook for Imported Vehicle Sales in the second half of 2025
Regarding the outlook for the second half of 2025, we anticipate that the imported vehicle market will continue to demonstrate robust performance. While new vehicle models released in the first half of the year continue to drive the market, member companies will also introduce attractive new models in the second half, further stimulating market activity.
Additionally, the Japan Mobility Show is scheduled to be held in Tokyo and various regions across the country from autumn 2025 to early 2026. Furthermore, regional import car shows are scheduled to be held across the country, and with the announcement and introduction of various new models by foreign and domestic manufacturers, it is anticipated that the entire Japanese automotive market will experience a surge of excitement.
Particularly for imported EVs, we anticipate that sales volumes will continue to steadily increase, thanks to ongoing government support including tax incentives and subsidies, as well as expanding support from local governments, starting with Tokyo Metropolitan Government. Additionally, JAIA member companies are proactively introducing imported EVs to the Japanese market. As a result, we are hopeful that annual sales will exceed 30,000 units for the first time. Given these circumstances, we have high expectations that imported EVs will continue to perform steadily, surpassing the previous year’s results for the seventh consecutive year.
4. JAIA’s Main Activities
First, I would like to introduce our activities for xEVs, as activities that span across two areas: market revitalization and the environmental and energy fields. In order to further promote xEVs, JAIA is advancing its activities focusing on four main areas: (1) request activities to the government for subsidy programs, etc., (2) organizing events to promote the spread of xEV, (3) putting in place better conditions for charging infrastructure development, including considering deregulation of the charging voltage, etc., and (4) recycling of lithium-ion batteries.
First, we would like to express our gratitude to the government for continuously implementing the subsidy program for xEV purchases without interruption, and for securing a substantial budget of 110 billion yen in the supplementary budget for fiscal year 2024.
As for overseas examples, in Europe, the BEV market share was 13.6% in 2024. Additionally, there are forecasts suggesting that globally, one in four vehicles sold will be either an EV or a PHEV in 2025. In this context, given that Japan’s EV market share in 2024 was 1.6%, or 2.8% when combined with PHEVs, which is still significantly lower compared to global figures, subsidies remain crucial. We will continue to request the government to implement continuous and uninterrupted subsidy measures. JAIA members will continue to actively introduce EVs, with the support of the government, in order to contribute to the promotion of carbon neutrality in Japan. To effectively utilize subsidies, we kindly request comprehensive and flexible consideration in formulating subsidy systems, including ensuring sufficient notification periods for any changes to the system.
Next, I will introduce our efforts to increase awareness of imported xEVs.
This year, JAIA marks its 60th anniversary milestone. Thanks to your support, the ‘JAIA Carbon Neutral Promotion Event in Tokyo’ held last November was successfully conducted. This year, we are planning and considering organizing JAIA’s unique event, taking into account potential collaborations with automobile-related events such as the Japan Mobility Show in November and the Osaka Motor Show in December. We aim to incorporate further innovations and position it as an anniversary event.
Specifically, JAIA is considering organizing a B2B event in the Kansai area from mid to late November this year to further enhance understanding of the appeal of imported xEVs. In the events planned for this fiscal year, building on its previous efforts to promote imported xEVs as part of the drive toward carbon neutrality, JAIA will now shift its focus to organizing events that emphasize key themes such as DX—including autonomous driving technologies aimed at enhancing road safety—and other related initiatives, thereby further contributing to the realization of GX and DX.
We will inform you of the details once they have been finalized.
For the spread of xEVs, the vehicles themselves and the charging infrastructure are like two wheels of a car; success cannot be achieved if either is missing. JAIA has been advancing efforts to achieve high-voltage charging standards comparable to those in Germany, and last October, system reforms to accommodate high-voltage charging were implemented.
In May of this year, a 400kW-class quick charger jointly developed by e-Mobility Power and TAKAOKA TOKO, both supporting members of JAIA, was unveiled for the first time. The charging infrastructure is set to undergo significant changes as these chargers are deployed on expressways within this fiscal year. Charging infrastructure on par with Germany is being deployed, where vehicles compatible with 400kW class chargers can complete charging in less than 15 minutes approximately. The cooperation of relevant businesses is essential for resolving the challenges surrounding the development of charging infrastructure, and we will continue to strengthen our collaboration with supporting members in the future.
As part of JAIA’s initiatives, we continue to hope for the institutionalization of temporary exits from expressways in a way that minimizes the burden on both charging operators and users, in order to effectively utilize the charging infrastructure located near expressways. Furthermore, as we anticipate further development in the installation of high-voltage quick charging stations, we will continue to request government support through subsidies to address the increasing costs associated with their installation. Regarding charging infrastructure for apartment residential buildings, including mechanical parking facilities where installation of ordinary chargers is challenging, we will continue to request the installation of quick chargers on public roads and further development of charging infrastructure at service stations. Additionally, it is crucial that the trend of mandating charging station installations in newly constructed detached houses and apartment residential buildings extend beyond Tokyo to other regions nationwide. JAIA will actively promote collaboration with local governments.
Additionally, among imported EV users, there are concerns that parking spaces in urban areas are narrow and difficult to use. Particularly in commercial and public facilities, there is a demand for parking spaces designed with vehicle sizes in mind. We believe that by expanding parking spaces in such locations and simultaneously developing state-of-the-art charging infrastructure, the convenience for imported EV users will be further enhanced.
In the recycling sector, the number of JAIA members participating in the joint collection system for drive batteries, which includes domestic automobile manufacturers, is steadily increasing. This system focuses on the reuse and recycling of lithium-ion batteries, which are essential for advancing vehicle electrification.
JAIA will continue to facilitate discussions with battery recycling-related businesses and support its members in keeping informed about the latest industry developments, ensuring that they can appropriately respond to the collection of automotive batteries.
Regarding the request for tax system reforms, a fundamental review of automobile-related taxes is scheduled to take place by the end of fiscal year 2025, which is the current deadline for the Eco-Car Tax Incentives. This fiscal year is considered a ‘front year’ for these discussions. In response to JAIA’s request for the abolition of the environmental performance tax at the time of vehicle acquisition, the ruling party’s tax reform outline, compiled at the end of last year, explicitly stated that a conclusion would be reached on ‘reviewing the taxation system, including reducing the burden at the time of acquisition, as well as establishing a fair, neutral, and simple tax burden system during ownership based on the weight and environmental performance of vehicles’. As JAIA, we will further advance our request activities towards the realization of this goal. In particular, as we need to accelerate the adoption of electric vehicles that will contribute to achieving carbon neutrality, we should avoid institutional reforms that lead to increased burdens on users. We should also avoid excessive tax burdens on heavy vehicles, including electric vehicles, which can deliver significant low-carbon effects. We will continue to request the government for tax reforms to accelerate the widespread adoption of electric vehicles such as BEVs, PHEVs, and FCEVs. Furthermore, we believe that in order to achieve carbon neutrality, it is crucial not only to electrify passenger vehicles but also to promote the electrification of commercial vehicles such as buses and trucks, as well as the utilization of hydrogen. Consequently, JAIA will once again incorporate these requests into its proposals, as it did last year.
In the environmental and energy field, the fuel efficiency standard for passenger vehicles in 2030 will require a significant improvement of 44.3% on average compared to the 2020 standard.
Regarding the introduction of flexible measures such as off-cycle credits, which JAIA has been requesting, to evaluate and promote the widespread adoption of energy-saving technologies that improve actual fuel efficiency, the general framework was compiled in March of this year at the joint fuel efficiency meeting held by the Ministry of Economy, Trade and Industry, the Ministry of Land, Infrastructure, Transport and Tourism, and the Agency for Natural Resources and Energy. The details will be discussed in the upcoming Off-Cycle study group. JAIA expresses gratitude for the establishment of the broad framework of the system and will closely monitor the developments of the Off-Cycle study group to ensure that a more effective system is considered.
Furthermore, regarding the development of a conversion formula from WLTC fuel efficiency to JC08 fuel efficiency, which was mentioned by a committee member during the joint fuel efficiency meeting in March of last year, JAIA also considers this desirable and will cooperate with the examination by providing data and other means.
Next, I will explain the Activities for Safety, and Harmonization of Regulations that JAIA member companies are implementing to ensure the smooth introduction of advanced vehicles incorporating rapidly evolving technologies into the Japanese market.
First and foremost, in order to provide imported vehicles with assured safety and environmental performance to Japanese consumers without incurring additional costs, JAIA has been working for many years with the relevant authorities to harmonize international regulations and to enable the utilization of the mutual recognition system based on the 1958 Agreement of the United Nations for certification processes. As a result, UN-R has been adopted for many devices and components installed in vehicles, and the International Whole Vehicle Type Approval (IWVTA) system, which is an international type approval system for entire vehicles, has also been established.
Subsequently, the IWVTA was expanded year by year, enabling the acquisition of IWVTA that includes type approval for major safety and environmental-related devices for passenger vehicles. JAIA will continue to work through activities such as JASIC to further promote the international harmonization of vehicle regulations and to achieve a more comprehensive and valuable IWVTA at an early stage.
Furthermore, in September of this year, the United Nations regulation UN-R171 concerning the Driver-Control Assistance Systems (DCAS) is scheduled to be revised. This revision is expected to enable hands-free driving on expressways at speeds of up to 130 km/h, as well as system-initiated lane changes under certain conditions. Furthermore, discussions on acceleration suppression devices for pedal misapplication have been taking place in international forums, with the new regulation UN-R175 was established in June of this year. The international harmonization of vehicle regulations, including more advanced equipment, is steadily progressing year by year, and JAIA welcomes these developments. JAIA will continue to work towards resolving the remaining Japan-unique requirements through international harmonization and other means.
Furthermore, regarding the certification procedures for vehicle’s compliance with regulations, JAIA requested the Ministry of Land, Infrastructure, Transport and Tourism to streamline and enhance the efficiency of vehicle certification procedures in 2023. As a result, the implementation notice of a revised procedure that largely reflects JAIA’s requests was issued in March of this year.
JAIA submitted further requests for simplification and rationalization of vehicle certification procedures to the Ministry of Land, Infrastructure, Transport and Tourism in June of this year, including remaining requests. JAIA will continue to engage in discussions with the Ministry and other relevant bodies, working towards achieving necessary rationalization and efficiency while ensuring the safety and environmental protection performance of imported vehicles.
Furthermore, to ensure the safety of connected vehicles and other recent automotive trends, JAIA will continue to work on simplifying and streamlining procedural requirements. This effort aims to facilitate JAIA members’ compliance with new regulations concerning cybersecurity and software updates for in-vehicle systems. JAIA will coordinate with OEMs in home countries and the Ministry of Land, Infrastructure, Transport and Tourism as appropriate in this endeavor.
Furthermore, in the field of wireless and communication technologies, which are indispensable for digital transformation (DX), JAIA has established a specialized working group to advance discussions and will proceed with consultations with relevant organizations regarding frequencies, communication methods, and other related matters. JAIA will collaborate with relevant agencies to ensure that communication platforms and infrastructure for Software Defined Vehicles, automated driving, and data utilization are established promptly through international cooperation.
Furthermore, while battery safety has been a topic of discussion recently, JAIA will address this as a new aftermarket challenge, including the safety of workers handling high voltages. We kindly request your support in these endeavors.
Next, I will explain the activities in the areas of fair trade and after-sales.
Regarding fair trade practices in the automotive industry, JAIA actively participates in the working groups of the Automobile Fair Trade Council. JAIA will continue to promote activities aimed at ensuring thorough awareness of the Fair Competition Code among JAIA members and securing fair trade practices.
In the after-sales field, JAIA will take appropriate measures to ensure that each member company can properly respond to vehicle inspections and maintenance in compliance with laws and regulations, as well as implement recall-related procedures.
As we have mentioned before, the shortage of maintenance personnel is a common challenge in the automotive-related industry, and urgent measures are required to address this issue. As JAIA, we established the Auto Mechanic Human Resources Information Liaison Meeting in 2022 and continue to engage in activities with our member companies, including sharing various information, to overcome challenges.
This fiscal year, JAIA is conducting activities with collaboration between four-wheelers and two-wheelers, keeping in mind three key points: (1) partnership with automotive technical schools, (2) global talent development, and (3) an all-Japan approach. From an All-Japan perspective, at last November’s JAIA event, Japan Automobile Dealers Association (JADA) participated in a panel discussion on human resources. Furthermore, last month, JAIA co-hosted an information session on automotive maintenance personnel with the same Association.
Lastly, I will introduce the Activities for Motorcycles, which constitute the fifth pillar of our main activities. The number of newly registered imported small motorcycles in the first half of 2025 was 12,469 units, a decrease of 10.5% compared to 13,930 units in the same period of the previous year, marking the first decline in six periods.
As for the second half of the fiscal year, we anticipate observing market trends while hoping for steady progress in sales performance.
Now, one of the major pillars of motorcycle activities is “initiatives for market revitalization”. Regarding the Nagoya Motorcycle Show, which has been endorsed by JAIA in all its past events, this year’s 4th edition was held from April 4th to 6th at the Aichi International Exhibition Center. Efforts were made to expand the base of motorcycle enthusiasts by offering free admission to high school students and younger, as well as women.
Additionally, as an event organized by JAIA, we held the imported motorcycle test ride event at Oiso Long Beach, which reached its 10th milestone this year, on April 9th and 10th. With thorough safety measures in place, the event concluded successfully without any major incidents, attracting 134 media representatives from 45 different outlets.
JAIA will continue to actively participate in similar initiatives in major cities, as well as advance its efforts towards carbon neutrality.
The ’13th BIKE LOVE FORUM in Saitama-Ogano,’ which the JAIA Secretariat plans to attend, will be held on September 19 in Ogano Town, Saitama Prefecture. At this forum, discussions on the future of motorcycles are scheduled to take place among government officials, industry representatives, and other stakeholders. It is expected to serve as a meaningful platform for exchanging opinions aimed at further advancing the environmental improvement.
JAIA continues to request that highway tolls be separated for motorcycles, that motorcycle parking lots be expanded, and that the motorcycle license system be reviewed. JAIA has been conducting request activities for the independence and optimization of expressway toll classifications for motorcycles, collaborating with other organizations through initiatives such as the Bike Love Forum, and presenting our requests at discussion meetings of government and political party project teams related to motorcycles.
As a result, road operators such as NEXCO East Japan implemented the ‘Motorcycle Fixed Rate Discount’ in 2023 and again last year, offering a fixed percentage discount on tolls for ETC-equipped motorcycles using expressways on weekends and holidays.
Regarding the other pillar of motorcycle activities, ‘activities to promote international harmonization of regulations,’ JAIA will continue to provide support to member importers.
This year, through its motorcycle test ride event and other activities, JAIA will continue to promote a wide variety of unique and appealing imported motorcycles, aiming to further expand the popularity of imported motorcycles and revitalize the domestic motorcycle market.
5. Other new initiatives for this fiscal year (DX-related, supporting membership)
JAIA has been closely monitoring the trends of government study groups and working groups related to DX, including autonomous driving, such as the ‘Mobility DX Study Group’ by the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism. JAIA has been gathering information, including details on demonstration experiments being conducted in various regions. From this fiscal year, JAIA has positioned these initiatives as its activities based on the basic policy of the activity plan. In addition to the DX team within the JAIA secretariat, JAIA is considering establishing a ‘DX Task Force’ with the participation of our members. This task force is planned to not only gather information but also examine strategies for identifying and resolving issues.
In Japan as well, there is a view that SDV (Software-Defined Vehicles) will be key to the widespread adoption of BEVs (Battery Electric Vehicles). It is expected that the combination of these two will enhance the value of software, leading to the realization of ‘affordable, convenient, and enjoyable BEVs’. BEVs and SDVs have high compatibilities and are considered to have an important relationship in the future evolution of mobility.
Furthermore, at the Shanghai Motor Show held from April to May this year, numerous innovative technologies and concepts centered on SDVs were announced, further clarifying the direction of future mobility through digital transformation (DX).
As part of JAIA’s event activities and continuing our traditional GX initiatives, JAIA held an event last November to promote the spread of imported xEVs with the theme of achieving carbon neutrality. This year, in addition to GX initiatives, JAIA plans to organize an event that incorporates DX-related aspects, including perspectives of autonomous driving. In particular, JAIA will organize an event aimed at raising awareness and identifying challenges related to vehicles equipped with DX functions that have high compatibility with EVs, including advanced and convenient technologies that are already incorporated in imported xEVs and will be implemented in the future.
Furthermore, regarding safety related to autonomous driving, as it is necessary to address this from the perspective of vehicle certification, JAIA intends to engage in discussions with relevant authorities in accordance with the progress of technological development.
As JAIA, we expect that the advancement of digital technology will not only ensure the safety of Japanese users but also lead to improved safety for the entire transportation society.
The purpose of the supporting membership is to share challenges and issues that cannot be resolved among JAIA members with related companies, aiming to foster cooperation towards solving these challenges. The supporting membership, which initially encompassed three areas—charging, battery recycling, and maintenance personnel—has now expanded to include hydrogen refueling as a new field this fiscal year. At the recent Board of Directors Meeting, membership of Iwatani Corporation was approved. Thanks to everyone’s support, approximately one year has passed since the establishment of the supporting membership, and we currently have 19 companies that have joined.
At the JAIA-sponsored event in November last year, our supporting members also cooperated with the exhibition of charging infrastructure and participation in talk sessions. Furthermore, exchanges of opinions with JAIA members and the secretariat are regularly held, and we believe it is crucial to leverage these initiatives to address the challenges faced by JAIA. If there are any business operators interested in our supporting membership, we warmly welcome your participation.
6. Conclusion
JAIA member companies will continue to provide attractive imported vehicles with excellent environmental and safety performance, while JAIA will collaborate with the Japanese government and all organizations involved in the automotive industry and sales market to contribute to reducing user burdens and realizing a carbon-neutral society.
