
Japan
The State of Japan is a sovereign island nation in East Asia. The country is divided into 47 prefectures in 8 regions.
Chapter 1: Economic and business environment
Demographics | Around 127 million inhabitants |
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Capital | Tokyo |
Major cities | Osaka, Nagoya |
Languages | Japanese (ja) |
GDP | 32,477.22 USD (2015) |
Unemployment rate | 3% in 2016 |
Main industries | GDP Composition by Sector: Industrial Production Growth Rate: |
Currency | JPY Japanese yen |
Interest rate | 0,10% |
Political key info | Japan is a constitutional monarchy. The Emperor is a ceremonial figurehead. The executive power lies with the Prime Minister and his cabinet. |
Inflation | 0,40% in 2017 |
Chapter 2 : Automotive market, segments & sales
Total Car park | 591 cars per 1000 inhabitants | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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New vehicle registrations (Cars, LCV, Trucks) |
* Source: Jama (http://www.jama-english.jp): 2018 Figures Japanese new vehicle sales in December decline 1.7% y/y to 388K units, 2018CY figure is 0.7% up to 5,272K.
Source: Japan Automobile Dealers Association, Japan Mini Vehicles Association | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Top 5 brands (total market) | Best selling vehicle manufacturers in Japan in 2017 (Q1)
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Model preference top 5 (total market) | Best selling cars in Japan in 2017 (Q1)
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Chapter 3: Company car market
Total Fleet Park (company cars)/Fleet penetration in total fleet sales | Leasing cars are not identifiable in the Japanese registration system, but the total amount of leased/released cars is estimated at 1.2 million units |
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Top 5 fleet brands (fleet market) | Toyota, Honda, Suzuki, Daihatsu, Nissan |
Fleet Model preference top 5 (fleet market) | K-Car: ALTO(Suzki), Mira(Daihatsu), Every ( Daihatsu), HIJET (Daihatsu), CAROL (Matsuda) |
Chapter 4: Taxation & legislation
4.1 Car Taxation | There are 9 types of taxes related to automobiles and the system is complicated. It is a heavy burden for users because of the higher taxes compared to foreign countries. Taxes on cars are as follows. There are many types of taxes imposed on the car and it is complicated as each taxable object is different. Since each subject and timing to be taxed are different, we will explain in order of tax activation. In addition, we will also touch on "Eco car tax reduction".
【At refueling】 [every year] [vehicle inspection at the time 】 【tax cut】 greenization Tax object |
4.2 Income tax – Taxable persons | Tax is due by the car owner, the car buyer or the car user |
4.3 Company car | |
4.4 Income taxes – drivers’ personal taxation | The private use of a company car is treated as a benefit in kind and therefore as salary. If the employee pays a contribution, Consumption Tax is due on the contribution amount. If the emplolyee does not pay BIK, the employee and employer need to pay 50% each of a social insurance premium on the fair market value of the gasoline |
4.5 Electric vehicles | |
4.6 Future developments | Tax on CO2 emissions is imminent |
4.7 Legal background (import taxes) | Passenger cars and parts are in general not submitted to duties (some exceptions apply however). Import Consumption Tax is due in all cases. |
Chapter 5: Car policies
Company Car Entitlement
Most often based on job need.
Which sectors provide most fleet cars?
Pharma
IT
Automotive Industry
Which job functions often include a company car?
Sales
Reference cars
Entry level / Junior sales | Small sedan, only Japanese brands, preference for hybrid cars |
Senior sales / Management level | Mid sized sedan, Toyota Prius, only Japanese brand |
Executive level | Large sedan, SUV, Japanese and European brands |