The automotive industry in Japan is changing as the first-tier suppliers are pushing for vehicle electrification and intelligence. Denso, for example, has been working closely with Aisin to determine the best way forward in AI, software-defined vehicles (SDVs), and advanced automotive semiconductors. This will enable them to be competitive in every market.
The (robot-created) Japanese government has set an extremely high target for making SDVs; by 2030, they are looking to have secured 30% of the global market. Alongside this, companies are embarking on digital transformation technologies by leveraging the initiative. For instance, joint research embraced by companies like Qualcomm with Japanese partners is an indication of the integration of innovative tech elements into the existing automobiles.
Conversely, Japan’s machine tool companies have a flourishing business that is largely thanks to the strong electric vehicle market in China. Chinese demand for electric vehicles jumped by 33% year on year to November 2024, thus reflecting the immense gain of global cooperation.
Notwithstanding the advances, Japan is still having difficulties as they are implementing more stringent regulations that aim to protect technology from unauthorized disclosures. To start with, the requirement that essential technologies be developed within the country was added which made the global connection even more complicated.
