Half of New-Vehicle Shoppers Also Consider EVs and Other Powertrains; Just 4% Consider EVs Only,
J.D. Power Finds
Attracting Male Shoppers in Age Groups 30s-40s is Key to Expanding the EV Market
TOKYO: 7 Dec. 2023 — A new study conducted by J.D. Power surveyed shoppers who are consideringbuying a new vehicle in the next year about battery electric vehicles (referred to as EVs in the study) andexamines their considerations and perceptions about those vehicles. Although the share of EV sales inJapan lags that of other major countries, 50% of vehicle shoppers in Japan consider EVs, according to
the inaugural J.D. Power Japan Electric Vehicle Consideration (EVC) Study,SM released today. This is
the first study focused on the EV market in Japan.
“Although the study notably indicates 50% of vehicle shoppers consider an EV for their next purchase,just 4% consider EVs only,” said Maiko Hara, senior manager of research division at J.D. Power. “Thestudy reveals that shoppers who own electrified vehicles tend to consider more advanced such vehicles
for their next purchase, which indicates that domestic policy to achieve 100% electrified vehicles in
new-vehicle sales by 2035 is not out of the realm of possibility. The study also confirms that potential
demand exists among city dwellers who drive less mileage than rural dwellers. Additionally, charging
EVs is a major consideration. While a majority of shoppers indicate they expect to use chargers in theirneighborhood, as the fast chargers have not been available everywhere, being able to charge at home isstill critical and therefore it is essential to take measures to increase installation at individuals’ homesas well as providing public chargers. Whether more public chargers can be installed or not would be
literally a most important agenda for EV market growth in this country.”
Following are some of the key findings of the 2023 study:•While 50% of shoppers are likely to consider purchasing an EV, just 4% consider an EV only:
Among shoppers who are considering purchasing a new vehicle within the next year, 50% say they
are overall likely to consider purchasing an EV. This ratio is slightly lower than findings in the J.D.
Power 2023 U.S. Electric Vehicle Consideration (EVC) Study,SM which indicates that 61% ofshoppers will consider an EV in the next year. Given the fact that EV market share in Japan is onethird the size of the U.S. market (1.7% vs. 5.6%, respectively1), there are more prospective EV
purchasers and more potential growth in the Japan EV market. However, the Japan study findsthat 46% of those shoppers also consider non-EVs and just 4% consider EVs only.

•Owners of electrified vehicles2 are more likely to consider EVs: More than three-fourths (77%) ofcurrent EV owners say they will consider purchasing an EV for their next new vehicle, followed by
72% of PHEV (plug-in hybrid vehicle) owners, 54% of HEV owners and 47% of ICE (internalcombustion engine) vehicle owners. This suggests that those who own a more advanced level ofelectrified vehicle are more likely to consider purchasing an EV for their next vehicle.

•Urban dwellers and upper income groups are more likely to consider EVs: Among eightgeographical regions, 56% of shoppers who live in Kanto most frequently consider purchasing anEV while 66% of shoppers who live in the 23 wards of Tokyo do so. This indicates that urban
dwellers are more likely to consider an EV. Also, shoppers in the upper income groups are more
likely to consider purchasing an EV. Those with six million yen or more in household income perjapan.jdpower.com

year are more likely to consider purchasing an EV than those with less than six million annual
household income. The ratio of shoppers with six million yen or more in household income ishigher in both Kanto and the 23 wards of Tokyo than in other regions of Japan. This is one of thereasons why those who live in these more urban regions are more likely to consider purchasing anEV than those in other regions.

•The driving range/ mileage of their current vehicle is the division point between EV considerers
and non-EV considerers: Driving range/ mileage also has an impact on EV consideration. Those
who consider purchasing an EV drive 880 km on average per month while those who do notconsider an EV drive 973 km per month. Those who live in Kanto drive 811 km per month onaverage, which is the shortest among dwellers in all regions. Conversely, those living in Shikoku
drive 943 km on average per month and only 39% of them consider an EV, the lowest consideration
rate among dwellers in all eight regions. In summary, the current EV mileage per charge would
satisfy the driving needs of city dwellers who drive less mileage than rural dwellers.

•Expecting to charge an EV outside the home: By age, males who are in the 30s and 40s groups aremost likely to consider purchasing an EV: 63% of 30s and 54% of 40s. This ratio drops gradually asage increases. Interestingly, nearly 70% of shoppers say they expect to charge their EV mainly
outside of the home, and the ratio rises as shopper age decreases. Given that charging station
availability is one of the top reasons to consider purchasing an EV, it is evident that the younger
shoppers perceive they would be able to own an EV without charging it at home or in theirneighborhood as long as they can charge it in another location.

•EV shoppers’ assumed charging environment: Other than charging their EV at home, 15% ofshoppers strongly expect gas stations as a main charging location. This ratio is almost twice ashigh as for shopping malls (8%) and vehicle dealers (7%). However, the number of gas stations has
decreased while oil distributors are working out measures for the advent of the era of EVs byleveraging their excellent station locations. Moreover, because fast chargers prevail much lessthan standard chargers, it is expected that the government, as a proponent, will develop ideas forbuilding EV charging infrastructures by making good use of existing ones.

The Japan Electric Vehicle Consideration (EVC) Study is an industry benchmark focusing on gauging
battery electric vehicle shopper considerations to explore the challenges and key factors for theexpansion of the electric vehicle market. The 2023 study is based on responses from 6,000 general
consumers between 18 and 74 years old who are considering purchasing a new vehicle within the nextyear. The online survey was fielded in September 2023.

1 Source: Passenger EV market share in Japan—Data from Japan Automobile Dealers Association and Japan Light Motor

Vehicle and Motorcycle Association; EV market share in the U.S.—Calculated by J.D. Power based on sales data from LMC
Automotive.
2 Electrified vehicles include FCVs (fuel cell vehicles), BEVs (battery electric vehicles), PHEVs (plug-in hybrid electric vehicles)

and HEVs (hybrid electric vehicles).

About J.D. Power
J.D. Power is a global leader in consumer insights, advisory services and data and analytics. A pioneerin the use of big data, artificial intelligence (AI) and algorithmic modeling capabilities to understandconsumer behavior, J.D. Power has been delivering incisive industry intelligence on customer

interactions with brands and products for more than 50 years. The world's leading businesses acrossmajor industries rely on J.D. Power to guide their customer-facing strategies.
J.D. Power has offices in North America, Europe and Asia Pacific. To learn more about the company’sbusiness offerings, visit https://japan.jdpower.com/.
Media Relations Contacts
Kumi Kitami, J.D. Power; Japan; 81-3-6809-2996; release@jdpa.com
Geno Effler, J.D. Power; USA; 714-621-6224; media.relations@jdpa.com
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