25-04-2025
American cars still a tough sell in Japan
The auto sector has been a focal point in tariff negotiations between the US and its trading partners. President Trump has been critical of how few American cars are sold in Japan, blaming what he called "non-tariff cheating" like differing vehicle standards. Some say that's not the only issue.
A company north of Tokyo specializes in imported cars. It sells around 100 American vehicles every year.
It gets many repeat customers who like the styling of American cars and the power of their engines. Imported cars sold in Saitama Prefecture
But since vehicle standards are different in the two countries, the cars need to be retrofitted before they're sold. For example, the turn signals need to be orange. A salesperson says preparing US imports takes both time and money. Passing safety checks
Cars in Japan also undergo safety checks based on standards carried out in 61 countries and regions, including European nations, South Korea, Thailand and Australia. No new certification is required in Japan if cars are imported from such places.
One test evaluates the impact an accident could have on a pedestrian, specifically their head. But the test isn't required in the US. As a result, American cars need to run tests to meet the standards in Japan. Mismatch with needs of Japanese market
But some say that's not the only reason American cars aren't popular. Fukao Sanshiro, an analyst with expertise in the car industry, says US automakers have failed to meet the needs of the Japanese market. Fukao Sanshiro, Executive Fellow, Itochu Research Institute
Fukao says many US cars are bulky, and are not fit for Japanese roads. Poor fuel efficiency is also a major factor. It makes the vehicles unappealing to drivers who want to be able to navigate the narrow streets of their own neighborhoods. US brands only 0.3% of car sales in Japan
The Japan Automobile Importers Association says about 230,000 foreign cars were imported and sold last year, accounting for around five percent of all new auto sales. American cars only accounted for over 16,000 units.
The majority of imported cars are German brands. Mercedes-Benz sold the most, topping 53,000 units. It was followed by BMW and Volkswagen.
German automakers were quick to meet the market's needs.
For example, in Japan, the driver's side is normally on the right. But many American brands have it on the left. That puts people off. German brands, though, were quick to export right-side vehicles.
Among US carmakers, Jeep is the top seller. As for other US brands like Chevrolet, Cadillac, and Ford, they each sold a few hundred units each. Overall, they're a tiny segment of the Japanese market. Jeep makes inroads in Japan A Jeep dealership in Tokyo
Jeep ranks 7th overall among foreign automakers, with over 9,000 vehicles sold last year.
Its dealers have made efforts to fit into the local market. One focuses on Jeep's more compact models as these are better suited to narrow streets and have smaller engine displacements that will be taxed at a lower rate. The vehicles meet Japanese standards when imported, so they don't need retrofitting.
Haruta Koji, manager at the dealership says, "We are selling cars that are safe to drive in Japan to customers who love American cars."
