A UK-based think tank has issued a warning about Japan's economic transformation, raising questions whether the era of its industrial dominance is finally drawing to a close.

UK Think Tank: Japan’s Auto Industry Risks Ceding Its Largest Sector to China Without Transformation

A report published by the UK-based energy think tank Ember on November 11, cited in a piece by Japanese media outlet ALTERNA, projects that as Asian nations shift toward electric mobility, exports of fossil fuel-dependent vehicles from Japan—such as gasoline-powered cars, hybrid vehicles, engines, and components—will decline by half by 2035.

According to the report titled “Japan and the Electric Industrial Revolution,” Japan’s exports of fossil fuel-related equipment, including internal combustion engine vehicles, reached $16.1 billion in 2024. Of this total, engine-powered vehicles accounted for $64 billion, hybrid vehicles $30 billion, and engines and parts $24 billion—collectively making up more than 70% of the total. Ember notes that Japan currently holds about one-quarter of global fossil fuel vehicle exports, yet its share in electric vehicle exports stands at just around 7%.

Ember further observes that Japanese automakers have long held a dominant position in Southeast Asia, but Chinese electric vehicle market share is expanding rapidly in the region. Sam Butler-Sloss of Ember warned: “If Japan fails to transform quickly, it will hand over its largest industry to China.”

Original article: toutiao.com/article/1881539828508672/

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