Universal Asset Management Tokyo Review of the Japanese Automotive Industry
There are currently a lot of cars in production. Ever since Henry Ford started to industrialize automotive manufacturing, it opened new opportunities. The automotive sector can acknowledge and manage the challenges that come along the way, and every country has a different car culture.
But what does the Japanese automotive industry has to face and offer this year? Investment firms like Universal Asset Management Tokyo review the significance of cars in Japan for 2020. Read on to know more about this trend.
Drastic Change in Consumer Behavior
In a report of Japan Times, it shows that the young generation in the country, most notably those who reside in the city, choose to commute and give up their car ownership. Because young Japanese are not as keen as the older generation and many people are rapidly aging, young Japanese find car ownership as an added expense instead of a status symbol.
The pragmatic nature behind it caused many people to shift from owning a car to sharing cars. For young Japanese, commuting is more cost-efficient or practical. As a result, they don’t give too much attention to the features and benefits of car ownership, as what you can read at Universal Asset Management Tokyo Review.
Economic Liability
Car ownership is perceived as a financial liability in Japan because it involves many expenses, and its value declines over time, unlike real estate. The incurred costs eventually outweigh the benefits, which is why they aren’t as popular in Japan as they are in other countries.
Here are some of the expenses that the Japanese consider before buying their car:
- Compulsory inspections every two to three years
- Optional and mandatory insurances
- Annual automobile taxes
- High parking fees
- Expensive gasoline, and toll expressways costs
Owning a car is considered a significant challenge to a person’s finances. Because of the behavior changes and perception about car ownership in Japan, it results in drastic impacts in Japan’s automotive industry.
Effects on Automotive Industry
Because of decreased car consumption domestically, the sales of car dealerships decline from 7.8 million cars sold in 1990 to almost 70 percent of its peak today. There’s little hope for Japan’s automotive sector. Reports show that the sales of vehicles in the country will continue to decline as the consumption tax continuously increases.
However, with the global digital demands, Japan’s connected-car market is expected to expand to one trillion yen by 2022. The digital connected-car market includes enhancing car experiences such as creating cars with safety applications, driver assistance, traffic information services, and a wide range of infotainment features. With these new technical features, Japanese cars aim to deliver safety, connectivity, comfort, and autonomous driving sometime in the future.
Conclusion
Firms like Universal Asset Management Tokyo review the best ways to grow the automotive industry. To effectively face the challenges and attract future growth, the major Japanese automotive players should consider and adjust strategic priorities. Also, deployment of the appropriate resources and investments should be prioritized. Partnering from businesses outside the automotive sector is one ideal way to achieve their goals.