In Japan, loyalty to local automakers keeps sales ticking up. Over 80 per cent of the market is dominated by domestic companies. But that stronghold is about to be undone by the electric revolution. Japanese carmakers have been late to switch. That leaves a gap wide enough for Chinese rivals to drive through. On Wednesday, BYD launched its second model for the Japanese market. The Dolphin, a compact electric car priced at Y3.6mn ($24,000), follows the flagship midsize SUV Atto 3 released earlier this year.
The Dolphin is priced in line with small gasoline-powered cars. It is eligible for local subsidies, bringing the price down further. Price is an increasingly important factor for Japanese consumers. Real wages fell for the 16th straight month in July and have remained largely unchanged for almost three decades. That erodes purchasing power.
Chinese carmakers have also been quick to adapt to local needs. Japan’s ageing population has resulted in an increase in accidents that involve seniors and so-called pedal misapplication. BYD’s Japanese version has been tweaked to add a safety system that suppresses unintentional acceleration.