The Japanese auto industry is facing a potential demise due to its slow adoption of electric cars. In recent years, the demand for electric vehicles has been on the rise, as consumers are becoming more environmentally conscious and governments are implementing stricter emissions regulations. The disruptive S curve is now obvious and the uptake of electric vehicles is accelerating. However, the Japanese auto industry has been slow to adopt this technology, and has not been able to keep up with the competition from other countries. A lack of vision by Japan’s leading automakers and pursuing the pipedream of hydrogen for cars and light commercials has blinded them to reality.

The implications of this slow adoption for the Japanese workforce and GDP are significant. The auto industry is one of the largest employers in Japan, and a decline in the industry could result in mass layoffs and unemployment. Additionally, the auto industry is a major contributor to the Japanese economy, and a decline in the industry could result in a negative impact on GDP.

One of the potential problems caused by the slow adoption of electric cars by the Japanese auto industry is that it could lead to a loss of market share to other countries. Countries such as China and the United States are investing heavily in the development of electric cars, and are quickly becoming major players in the industry. If the Japanese auto industry does not adapt quickly enough, it could lose market share to these countries and become less competitive in the global market. Legacy automakers are finding it difficult to make the transition to profitable EVs while maintaining their ICE platforms and already there are worrying signs of sales declines in some of Japan’s leading automakers major markets. Future trends will be an acceleration of EV over ICE as government mandates kick in.

Another potential problem is that the Japanese government’s revenues may be affected. The government heavily relies on the taxes generated by the auto industry and thus a decline in the industry could also lead to a decline in government revenues. This could have a knock-on effect on public services and infrastructure, as well as on the country’s ability to fund research and development in other industries. Add to that the huge debt burden already carried by the likes of Toyota.

The Japanese auto industry’s slow adoption of electric cars could have significant implications for the Japanese workforce, GDP, and government revenues. It may already be too late even for urgent action to adapt to this disruption in order to remain competitive in the global market. The reluctance to embrace the upheaval that is sweeping the world permeates the industry. Head in the sand comes to mind as the industry faces a steep decline over the next ten years. It’s doubtful the Japanese auto industry can survive the technological tsunami that’s on the horizon and about to overwhelm it.