April 8, 2010
Passenger Car Market Trends in Japan:
Results of JAMA’s Fiscal 2009 Survey
The Japan Automobile Manufacturers Association (JAMA) is pleased to release the results of the survey it conducted on passenger car use in Japan in fiscal year 2009 (ending March 31, 2010). Targeting households nationwide, JAMA conducts this survey in odd-numbered years in order to determine ownership and use trends and to forecast future demand structure.
Based on 3,926 responses, survey results are summarized as follows, with more detailed information provided below for reference.
- Passenger car ownership among responding households stood at 75.8%, a decline—from the roughly 79% registered from 1999 through 2007—that is believed to reflect economic factors on a nationwide basis and demographic factors on a regional basis.
- Multiple passenger car ownership among the households stood at 36.1%, down from the rates closer to 40% seen through the first half of this decade.
- Whereas standard-sized passenger cars (including mid-sized and large models) and small-sized passenger cars saw decreases in their market shares, some of the lower-end cars performed well, presumably as a result of the tax reductions and other measures in effect for the highly fuel-efficient and low-emission models among them. Meanwhile, survey responses indicated a continued rise in the appeal of mini-sized passenger cars.
- Passenger car ownership periods are expected to continue to lengthen, based on survey responses confirming longer periods of ownership of vehicles owned prior to current ones.
- Hybrid cars showed a strong appeal—even amid a recession and resulting stagnant vehicle market—for their excellent fuel efficiency and outstanding environmental performance overall. The growing presence of these and other eco-friendly cars suggests that the passenger car market may be poised for a recovery.
- With 78% of survey respondents claiming ownership of an in-vehicle electronic toll collection (ETC) auxiliary unit, 36% confirmed having used their cars on Japan’s expressways on days when road toll discounts were in effect (weekends and national holidays).
(Reference)
JAMA’s Fiscal 2009 Passenger Car Market Trends Survey
1. Survey Format and Frequency
JAMA’s household survey on passenger car market trends, carried out on the basis of the distribution of questionnaires, is conducted biennially in odd-numbered years.
2. Basic Description of the Fiscal 2009 Survey
| Survey target | Households (including single-person households) |
| Survey area | Nationwide |
| Valid responses | 3,926 (37.5% response rate) |
| Survey period | September 10-October 5, 2009 |
3. Survey Results
(1) Trends in Passenger Car Ownership
- Household Single and Multiple Passenger Car Ownership Rates in Decline Owing to Economic and Demographic Factors
- Passenger car ownership among responding households stood at 75.8%, down from the 79%, more or less, registered from 1999 through 2007. This decline is believed to reflect economic factors on a nationwide scale, and demographic factors on a regional basis.
- Multiple passenger car ownership among respondents decreased from the rates closer to 40% registered in the first half of the decade.
- Whereas drops in single passenger car and multiple vehicle ownership rates had been registered in 2005 and later among households in Tokyo and other major as well as provincial cities (where public transport availability is extensive), declines in these rates were also registered among suburban and rural households in the 2009 survey.
- Demographic factors believed to account for the declines in passenger car ownership rates are i) the increase in single-person households notably within the greater Tokyo region (owing to, among other trends, the growing number of unmarried adults) and ii) the increase in two-person households in Japan’s non-urban areas (owing to the high longevity of the Japanese population and the disappearance of multi-generation households).
- Economic factors contributing to the drops in car ownership rates include declining household incomes and decreased confidence among consumers nationwide.
- The Shift to Smaller Cars
- Whereas standard-sized passenger cars (including mid-sized and large models) and small-sized passenger cars saw decreases in their market shares, some of the lower-end cars performed well, presumably as a result of the tax reductions and other measures in effect for the highly fuel-efficient and low-emission models among them. Meanwhile, survey responses indicated a continued rise in the appeal of mini-sized passenger cars.
- Survey responses also showed an increase in the multiple ownership of minicars, indicating a sustained shift to smaller cars.
- Lengthening Periods of Car Ownership
- Passenger car ownership periods are expected to continue to lengthen, based on survey responses confirming longer periods of ownership of vehicles owned prior to current ones.
- Among the reasons respondents cited for their longer ownership of a passenger car, “less frequent vehicle use and shorter driving distances than before” gained in prominence.
- Among the reasons cited for postponing a replacement car purchase, more respondents than in the previous survey indicated “income growth expectations not met” and “poor economic climate,” underscoring a decline in consumer confidence.
(2) Trends in Passenger Car Demand
- Factors Likely to Boost a Recovery in Demand
- Survey responses indicated that factors likely to accelerate replacement purchases included “the marketing of highly fuel-efficient new passenger cars” by vehicle manufacturers and “reductions in automobile-related taxes.” Accordingly, respondents expressed their hope that progress in this area will continue to be supported by government policy, which has evidently had a significant influence on consumers, in that a frequently-cited reason in survey responses for an actual or projected new model purchase in or after 2009 was “the implementation of tax cuts and purchasing subsidies for eco-friendly vehicles.”
- Respondents who were not currently car owners cited the same factors as those cited by current car owners in terms of what would motivate them to purchase a new car—namely, “cuts in auto-related taxes,” “good fuel efficiency performance,” and “advanced onboard safety equipment,” in that order.
- Environmental Performance Criteria
- Reflecting society’s heightened environmental awareness, three leading criteria for new car purchases by survey respondents were “good fuel efficiency,” “low emissions,” and “high recyclability.”
- In terms of consumers’ awareness of environmentally responsible vehicle use, over 90% of the respondents who were car owners said they have adopted one or more ecodriving practices, including “accelerating gently when starting off,” “maintaining steady speeds,” “making use of the engine’s braking function,” “avoiding engine idling,” and “limiting air-conditioner use.”
- Hybrid passenger cars showed an increasing appeal among potential new-car purchasers of all ages and in all income brackets, nationwide, having gained the favor of 16% of survey respondents in 2005, 22% in 2007, and 32% in 2009 (compared to 5% for electric cars, which also reflected a growing appeal).
- Respondents thereby indicated that, because of their excellent fuel efficiency and outstanding environmental performance overall, hybrid passenger cars have a strong appeal, even amid a recession and resulting stagnant vehicle market. This growing trend suggests that the passenger car market may be poised for a recovery.
- Safety Criteria
- Ranking high among respondents’ concerns regarding road safety were the risks of “collisions occurring at intersections” and “collisions with a suddenly-emerging pedestrian or other vehicle”—in other words, risks that appropriate driver attention and control alone cannot entirely avoid. A strong demand was registered for measures to address these concerns, including the implementation of appropriate improvements in road infrastructure and traffic management.
- For respondents who were not currently car owners or who had never been car owners, the primary factor behind their non-ownership was economic, but the issue of road safety registered as an increasingly common concern.
- It can therefore be assumed that equipping more models with advanced safety features would favorably impact both first-time and replacement passenger car purchases.
- The Impact of ETC Discounts on Demand
- With 78% of survey respondents claiming ownership of an in-vehicle electronic toll collection (ETC) auxiliary unit, 36% confirmed having used their cars on Japan’s expressways on days when road toll discounts were in effect (weekends and national holidays).
- A high percentage of ETC users during the periods when toll discounts were in effect were driving their cars for personal leisure-related purposes. ETC use during these periods was particularly high in the greater Tokyo region, and leisure-related ETC use in that region showed an increase since the last survey.
- With 44% of survey respondents confirming their increased use of expressways and 24% their desire to purchase a car with excellent fuel efficiency, it can be concluded that the weekend and holiday road toll discounts for ETC users have contributed to drivers’ increased use of expressways and helped stimulate potential demand for passenger cars.
