TOKYO: There are also cases in which the rules surrounding products have a significant influence on business. How do Japanese companies approach the type of rule-making at which Western firms so excel? This has become a major challenge. The automotive industry is approaching a significant turning point. The shift in the main type of vehicle drivetrain continues to progress, and in the 2030s, electric cars will become the most common eco-friendly vehicles (see chart 1).
Behind the scenes of the shift to electric vehicles led by the West and China, the hybrids pioneered by Toyota Motor Corp. are under siege.
Ultimately, the tax reforms brought into effect by the Thai government in January 2016 diminished the advantage held by hybrid vehicles.
In the United States, California has excluded hybrids from the category of eco-friendly vehicles starting with 2018 models. Japanese manufacturers that do not meet the standards requiring a certain percentage of their sales to be eco-friendly vehicles are buying emissions allowances from U.S. electric vehicle manufacturer Tesla Inc.
Tesla is also engaged in lobbying in Canada. In 2016, they succeeded in having similar environmental regulations introduced in some provinces. The assessment of relative merit in terms of environmental friendliness varies depending on the criteria used. For example, when one takes into account the sources from which electricity is generated, electric vehicles are not necessarily superior.
