Ministry aims for all new car sales to be electrified vehicles by mid-2030s

The Economy, Trade and Industry Ministry is eyeing a goal of making all new cars sold domestically to be electrified vehicles, including electric and hybrid vehicles, by the mid2030s.

Aimed at taking the lead in the global trend away from gasoline- powered vehicles, the move will support manufacturers in their efforts to achieve the government’s goal of net- zero greenhouse gas emissions by 2050.

The ministry will soon bring together a panel of experts, which will include automakers, to address the issue. It will also seek to use it as a target in the government’s action plan for achieving net- zero emissions that will be drawn up within the year.

Up to now, the government has set a target in which electrified vehicles would account for 50-70% of new car sales by 2030, but this move raises the bar higher.

By making a clear shift to electrified vehicles, the government also aims at encouraging the auto industry, a key domestic industry, to make the switch.

The automobile industry covers a wide area, employing more than 5 million people including the parts manufacturers that make the about 30,000 parts needed in car production. If there is a delay in responding to accelerated international efforts for carbon- free emissions, it could hurt Japanese automakers’ competitiveness.

According to the ministry, about 60% of the 4.3 million new automobiles sold in Japan in 2019 were gasoline- or diesel-powered, while about 40% were electrified vehicles.

The majority of electrified vehicles were hybrids, while the more environmentally friendly plug-in hybrids, electric vehicles and fuel cell vehicles each made up less than 1% of the total.

The development of storage batteries, which are the heart of electrified vehicles, has been recently led by Chinese and South Korean companies, leading to calls for a review of domestic development infrastructure and other areas.

By setting a clear target, the government will also provide a push for technological development and the setting up of supply chains.

Globally, there is a growing movement to impose bans on the sale of new gasoline-powered cars that emit carbon dioxide, a greenhouse gas.

Britain changed the year when its ban will take effect from 2040 to 2030, and the U.S. state of California announced a ban on the sale of gasoline-powered cars by 2035.

The battle over the form of the next generation of cars could also intensify. In Japan, hybrid vehicles are the mainstream, led by Toyota Motor Corp., the nation’s largest company.

But there is a global movement not to recognize hybrids as environmentally friendly vehicles because of their gas emissions, and the government’s response to this matter will also be an issue.

Referring to the government’s setting of a target, a Mitsubishi Motors Corp. executive called it “the right move, as environmental regulations are being strengthened worldwide.”

With an eye toward expanding electrified vehicles, the executive added, “The government should support building more charging facilities and the development of batteries.”

On the other hand, the benefits of the electrification of mini- cars, for which Japan is the main market, are said to be few.

“It would be difficult to include mini- cars, which can be regarded as ‘the legs of the common folk,’ within the scope of this initiative,” a source at one manufacturer said. (Dec. 4)