April 15, 2008
Passenger Car Market Trends
-Results of JAMA’s Fiscal 2007 Survey-
The Japan Automobile Manufacturers Association (JAMA) has published the results of its passenger car market survey conducted in fiscal 2007 (ending March 31, 2008). Targeting households nationwide, JAMA passenger car surveys are conducted in odd-numbered years to determine ownership and user trends as well as future demand structure.
Based on 3,666 responses, survey results indicated that:
- Household passenger car ownership stood at 79.2%, roughly equal to the 78.8% recorded in the previous passenger car survey (fiscal 2005).
- Multiple passenger car ownership stood at 33.5%, down from 38.3% in 2005.
- The average period of ownership of a passenger car was 7.1 years, an increase of 0.3 years from 2005, underlining the continuing trend of longer periods of individual car ownership.
- A growing trend in favoring smaller cars and greater fuel efficiency is doubtless attributable to increased environmental awareness.
- Recognition of environmentally friendly passenger cars was strongest for hybrid and electric cars.
The survey also revealed or confirmed the following trends.
(1) Regarding longer periods of individual car ownership:
- The main reasons behind the continuing trend of longer ownership of individual cars were that the cars remained in good condition and continued to perform well.
- The principal factor identified as motivating any eventual vehicle replacement purchase was the replacement vehicle’s superior fuel efficiency performance.
(2) Regarding vehicle preferences of respondents aged 50 years or older:
- A large number of respondents in this category said they wanted to curb car-purchasing and other car-related expenditures. However, among goods and services they wished to purchase with their retirement benefits, “automobiles” ranked fourth among a total of 19 items.
- As for anticipated uses of the replacement vehicle they planned to purchase, large numbers of both male and female respondents cited “casual outings,” “in response to an emergency,” and “pleasure-driving with my partner.” Many women also cited “for greater interaction with friends and acquaintances.”
- For both male and female respondents, the most important criteria for a future vehicle purchase were “user-friendliness and easy driving,” “economy and practicality,” and “eco-friendliness, with low exhaust emissions.” For men at the lower end of the age spectrum, the pleasure of driving was greater and vehicle preferences had much to do with self-expression, with “lifestyle compatibility” and “sporty image and high-performance engine” ranking high as factors of appeal.
Reference: JAMA’s Fiscal 2007 Passenger Car Market Trends Survey ~ Summary of Results
1. Survey Target and Frequency
JAMA’s questionnaire-format survey on passenger car market trends is conducted in odd-numbered years, targeting households throughout Japan.
2. Basic Description of the Fiscal 2007 Survey
| Survey target | Households (including single-person households) |
| Survey area | Nationwide |
| Valid responses | 3,666 (40.0% response rate) |
| Survey period | August 28-September 18, 2007 |
3. Survey Results
General Passenger Car Market Trends:
- Household ownership stood at 79.2%, roughly equal to the 78.8% recorded in the previous passenger car survey conducted in fiscal 2005.
- Multiple passenger car ownership decreased from 38.3% in 2005 to 33.5%.
- Principal drivers aged 60 or older constituted 30% of survey respondents, up from 23% in 2005.
- The average period of ownership of a passenger car was 7.1 years, up 0.3% from 2005, underlying the continuing trend of longer periods of individual car ownership.
Shifting Trends in Consumer Awareness of Vehicle Features/Characteristics:
- With respect to environmental performance awareness, survey responses indicated a steady increase in consumer preferences for smaller-sized cars with greater fuel efficiency.
- Among environmentally friendly passenger cars, recognition was strongest for hybrid and electric cars.
- With respect to vehicle safety, the safety features that drew the greatest consumer interest at vehicle purchasing time were “airbags and other safety equipment,” with anti-lock brake systems, “car size and body rigidity” and increased safety resulting from body configuration also drawing much interest.
- With respect to Advanced Vehicle Safety (ASV) features, the technologies that drew the greatest consumer interest were nighttime pedestrian monitoring systems, blind-spot collision prevention systems, and drunk-driving prevention systems.
Trends in Ownership:
- Survey responses indicated, on average, longer periods of individual car ownership, with over 50% of car owners keeping their cars on the road for “7 years or more.” The longer car ownership trend was particularly strong among women in their 50s.
- The main reasons behind this continuing trend of longer ownership of individual cars were that vehicles showed “limited wear and damage” and “continued to perform well.” Looking to the future, 45% of respondents confirmed that the interval between their latest vehicle purchase and their next replacement purchase “will be longer than previously.”
- The leading factors identified as motivating any eventual replacement vehicle purchase were the replacement vehicle’s superior fuel efficiency performance as well as reductions in auto-related taxes and other cost-related factors.
Demand Trends Among Vehicle Users Aged 50 or Older:
- Respondents in this category indicated their desire to cut their automobile-purchasing expenditures and auto-related spending. However, among goods and services they wished to purchase with their retirement benefits, automobiles ranked fourth among a total of 19 items.
- Principal vehicle uses were “commuting to work or school” for people in the lower spectrum of this age group and, more and more with increasing user age, “shopping and errands.” In multiple answers for most common vehicle uses, “shopping and errands” was the single most frequent response combined with, for a large percentage of men, “leisure” and, for many women, “chauffeuring family members around.”
- The desire to purchase a replacement vehicle was shown to decline in proportion to increased user age, with no more than 50% of men aged 70 or older and women aged 65 or older expressing such a desire.
- The leading factors that would motivate a replacement vehicle purchase were “economy,” “environmental performance” and “safety.” In terms of passenger car engine preferences, “hybrids” scored 20% and ranked particularly high among men of all age groups, standing at 30% or higher for men in their late 50s.
- For anticipated uses of a replacement vehicle whose purchase was upcoming, the most common responses for both men and women were “casual outings,” “in response to an emergency” and “pleasure-driving with my partner.” Many women also cited “for greater interaction with friends and acquaintances.” The responses also made clear that increasing age marked a declining interest in vehicle-derived pleasures such as “the satisfaction of personal car ownership” and “the thrill of high-speed driving.”
- For both male and female survey respondents, the most important criteria for a future vehicle purchase were “user-friendliness and easy driving,” “economy and practicality,” and “eco-friendliness, with low exhaust emissions.” Male respondents were additionally drawn to the “reduced fatigue during long-distance drives” factor. For men at the lower end of the age spectrum, the pleasure of driving was greater and vehicle preferences had much to do with self-expression, with “lifestyle compatibility” and “sporty image and high-performance engine” ranking high as factors of appeal. The “practicality” factor, meanwhile, was shown to be increasingly important for men of increasing age.
