Japanese Anxious About Electric Cars

Even with Japanese electric cars, some in Japan are anxious about the new breed of automobiles

I read the other day in the New York Times that the Japanese are anxious about electric cars.

Why would that be, I wondered?

Turns out that Japan is one of the world’s largest auto parts suppliers.  And, with the advent of electric cars, many vehicle components that would be in demand with gasoline cars (engines, exhaust pipes, spark plugs, etc.) could be  – forgive the pun – going up in smoke.

According to Hisashi Nakajima, senior managing director, Shizuoka Economic Research Institute:

“Japan has always prided itself in developing the best engines, the best auto technology.  If we don’t do something now, Japan’s strength could turn out to be its weakness.”

The Japanese auto parts market is huge.  Of the 34.6 trillion yen ($430 billion) market, nearly 1/3 of that figure could be rendered obsolete by electric cars.  In some areas of Japan, the statistic increases to nearly 48%.

If Japan’s economy is largely fueled by gasoline auto parts, then why can’t it re-tool for the electric vehicle industry?

With electric cars, what does the future hold for Japan?

Perhaps it can.  Osamu Suzuki spoke on October 7, 2010 at a rally to spark interest among auto parts manufacturers in electric cars:

“Our suppliers need to start studying how they can transform their businesses.”

In fact, with Japan as a leader in the electronics industry, many are looking at the country to be a leader in producing the complex batteries required for EVs.

How will the new auto technology impact how things are done in Japan and elsewhere?  Stay tuned!