PSPINC CEO Kenichi Uchikura's Blog

Challenges for U.S. Automakers in Japan

Size Mismatch
Japanese roads and parking spaces are significantly smaller than those in the U.S. Most American vehicles are too large for daily use in Japan, making them impractical for many consumers.

 

Right-Hand Drive
Japan drives on the left side of the road, requiring vehicles with right-hand drive. Many U.S. automakers do not manufacture right-hand drive versions of their vehicles, limiting their appeal.

 

Fuel Efficiency
Japanese consumers place a high value on fuel efficiency due to high fuel prices and environmental awareness. Many American cars fall short when compared to fuel-efficient Japanese models.

 

Brand Perception
Japanese brands are widely viewed as more reliable, affordable, and well-suited to local needs. In contrast, U.S. brands are often seen as niche or luxury, rather than practical choices.

 

Lack of Dealer Network
There are few dealerships and service centers for American brands in Japan, which makes purchasing and maintaining a U.S. vehicle less convenient.

 

Importance of Market Adaptation
If U.S. automakers are concerned about poor sales in Japan, they should ask themselves: Are we adapting to the market?
For example, look at the UK—a country that also drives on the left. U.S. cars like the Ford Mustang, Tesla Model Y, and Jeep Wrangler have found success there because they offer right-hand drive, fit consumer expectations, and have dedicated local support.

 

To succeed in Japan, American automakers must do more than just export vehicles—they must engineer for the environment, build trust, and invest in localization.