Japan Electric Two-Wheeler Vehicle Market Assessment, By Vehicle Type, By Battery Type, By Distribution Channel, By Battery Voltage, By Application By Region, Opportunities and Forecast, FY2018-FY2032F

Japan electric two-wheeler vehicle market is projected to observe a CAGR of 12.39% during the forecast period FY2025-FY2032, growing from USD 431.12 million in FY2024 to USD 1097.54 million in FY2032. The market has witnessed significant growth in recent years and is projected to maintain an expansion in the forecast years as the government is introducing a favorable environment for promoting the adoption of electric vehicles, raising awareness concerning environmental sustainability, advancement in battery technology, and changing consumer preferences towards sustainability. In Japan, the government plans to offer subsidies and incentives for purchasing and selling electric two-wheeler vehicles and spreading awareness concerning the benefits of electric vehicles on the environment. The Government of Japan promotes adopting electric and hybrid vehicles through amendments in vehicle weight and tax regulations. Beginning in January 2024, vehicles that accomplish 80% of Japan's energy-saving goal will get the benefit of a 50% tax reduction, while those accomplishing 70% will get the benefit of a 25% tax reduction. In May 2025, these rules will alter, requiring vehicles to address 80% and 90% of the energy-saving goal to receive tax reductions of 25% and 50%, respectively.

Companies in Japan electric two-wheeler vehicle market are efficiently planning to invest in different research and development programs to advance the performance of vehicles and accomplish sustainable development goals. In addition, key participants in the market are collaborating to design electric two-wheelers featuring advanced functions.

For instance, in December 2023, Emobi Manufactury Private Limited announced the collaboration with Japan's Musashi Seimitsu CO Ltd. to develop an electric two-wheeler.

Advancement in Electric Two-Wheeler Vehicle Technology Drives Market Demand

Companies in the Japan electric two-wheeler vehicle market are making significant changes in manufacturing electric two-wheeler vehicles and attracting customers with cutting-edge features coupled with exceptional performance. In Japan, e-bikes are becoming considerably prevalent as this is an environmentally responsible method of transportation, boosting the innovations in the electric two-wheeler vehicle market, which further propels Japan electric two-wheeler vehicle market. The government of Japan has framed different policies, promoted the integration of lightweight components, and zero carbon emission regulations, compelling automakers to advance electric two-wheeler vehicles. Companies in the market are introducing advanced electric two-wheeler vehicles to offer better overall driving experience.

For instance, in March 2022, Yamaha Motor Co., Ltd announced the introduction of E01, an 8.1 kW class electric scooter featuring a fixed battery design and a model-specific frame with a design reflecting the technology garnered through sportbike development in Indonesia, Japan, Europe, Thailand, Taiwan, and Malaysia.

Electric Charging Infrastructure Pushes Japan Electric Two-Wheeler Vehicles Market Growth

The rapid expansion of electric charging infrastructure drives the demand for electric two-wheeler vehicles and increases the adoption of electric vehicles. The government in Japan is planning to establish and expand EV charging infrastructure to promote the adoption of electric two-wheelers and accomplish the goal of zero carbon emissions. Companies in the Japan electric two-wheeler vehicles market are planning to invest in expanding their EV charging network across different cities and focus to tap into empowering fleet owners coupled with last-mile delivery network partners to switch to EVs with more localized solutions. Japanese Government making policies to support the production of electric vehicles and the development of lightweight components, introducing different market growth opportunities for key market players. These opportunities will enable companies to extend reliable and efficient charging services across different regions and countries.

For instance, in November 2023, Terra Motors, one of the leading companies in Japan, announced an expansion of its electric vehicle charging infrastructure venture, with new offices across different states in India to reliable charging services across India.

Government Regulations and Carbon Emissions Policies Drives the Japan Market Growth

In Japan, the government is planning to set up different campaigning programs to spread awareness concerning zero carbon emissions and promote the purchase and production of electric vehicles. The government compels companies to launch electric vehicles with advanced safety features, driving the Japan electric two-wheeler vehicle market growth in the forecast period. In addition, the growing awareness concerning environmental sustainability, coupled with different government incentives and subsidies, is propelling the Japan electric two-wheeler vehicles market demand. Furthermore, the Japanese government banned the sale of gas vehicles, driving the Japan electric two-wheeler vehicle market growth in the forecast period.

For instance, in February 2024, Japan is planning to ban the sales of new gas vehicles by 2035 and shift towards electric, fuel-cell, and hybrid vehicles.

Electric Scooter Dominates Japan Electric Two-Wheeler Vehicles Market Share

Electric scooter registers the largest market share in Japan, owing to an increase in per capita income, rising production of electric scooters, advancement in technological advancement, and favorable government policies. In addition, the Japan electric scooter market demand is propelling due to expansion in EV charging infrastructure, rapid introduction of electric scooters, and development of removable battery pack features. In addition, companies are planning to launch new electric scooters equipped with features and technologies to expand their product portfolio.

For instance, in June 2023, Honda Motor Co., Ltd. announced the launch of EM 1 e: the first personal-use electric scooter commuter model in Japan with the feature of a swappable battery.

Lithium-ion Battery is Estimated to Register the Largest Japan Electric Two-Wheeler Market Share

The lithium-ion battery is projected to hold the largest market share due to an increase in the production of electric vehicles and advancement in battery life. The demand for lithium-ion batteries is growing, owing to an increase in durability, advancement in reliability, and revolutionizing the manufacturing process of lithium-ion batteries. The Japanese government is making policies for automakers to reduce the carbon footprint and integrate lightweight components in batteries. In addition, technological advancements in lithium-ion batteries have been propelled by the rapid development of artificial intelligence (AI) to predict failures, effectiveness, and longevity of vehicles. Companies in the market are driving impactful advancements to revolutionize energy storage and power in the forecast period. Also, they are planning to establish a new production facility to address the rising demand for lithium-ion batteries.

For instance, in February 2022, Panasonic Corporation announced the establishment of a production facility for new lithium-ion batteries for electric vehicles at Wakayama Factory in Japan.

Future Market Scenario (FY2025 - FY2032F)

Advancement in battery technology and integration of lightweight components in electric vehicles is driving the demand for electric two-wheeler vehicles.

Supportive government policies and the rising popularity of e-bikes are projected to drive the Japan electric two-wheeler vehicle market growth.

Shift in consumer demand towards electric two-wheelers and rising investment by government and private companies in e-bike infrastructure are anticipated to propel the market growth in the forecast period.

The Japanese government is promoting eco-friendly transportation, and advancement in fast charging technology, coupled with efficient battery systems, fostering the market growth.

Key Players Landscape and Outlook

Companies in the Japan electric two-wheeler vehicle market are efficiently advancing the performance of E2W by investing in different research and development activities. Key participants in the market are integrating different advanced technologies and features in electric two-wheeler vehicles to ensure the safety of vehicles and passengers. In addition, companies are planning to improve the performance of EV battery technology to improve the functioning and life of two-wheelers. Also, key participants are adopting different growth strategies including joint ventures, new product launches, funding manufacturing facilities, partnerships, collaborations, and others.

In November 2022, Hero Electric Vehicles Pvt. Ltd. announced a partnership with Nippon Densan Corporation in Japan, over two years ago and began co-developing e-bike motors for its entire range, starting with its city speed products.