Does switching from petrol cars to EVs make financial sense?
Japan relies on imports from Middle Eastern countries for the majority of its oil supply. Until now, the transition to electric vehicles (EVs) has not progressed sufficiently in Japan, and the country has remained heavily dependent on petrol-powered vehicles.
Currently, due to changes in the situation in the Middle East, the Japanese economy is facing a period of stagnation. Because of the high level of dependence on petrol cars, there are growing calls among the public for government subsidies and the release of national reserves. However, as the funding for such measures ultimately comes from taxes, it has been pointed out that this highlights a structural issue in Japan whereby specific political parties can easily gain a political advantage.
Meanwhile, Nissan Motor is pursuing a strategy of introducing facelifts to its EVs for the Japanese market whilst lowering their base prices. This strategy can be seen as taking into account the shifting consumer sentiment in Japan, influenced by the situation in the Middle East. Nissan Motor and Mitsubishi Motors share the view that EVs are advantageous in the long term, and there is a possibility they will achieve success in the market over the coming year.
For Japanese consumers, whether to proceed with the transition from petrol cars to EVs is a crucial choice that will also affect long-term wealth accumulation.
