Japanese firms fast becoming leader in green car production

Japan is leading in the production of eco-friendly cars as evidenced by the increasing appearance of Toyota Motor Corp.’s Prius hybrid and Nissan Motor Co.’s Leaf electric cars on local roads. Cumulative sales of Toyota Prius have reached 1 million units. Meanwhile, Honda Motor Co. has sold some 250,000 units of its Insight hybrid cars.
Production of green car components and materials in Japan is expected to grow in value to roughly ¥15 trillion (US$194 billion) by 2025 and Japanese companies are rapidly expanding to meet increasing demands. Already, Tamagawa Seiki Co. commands 90% of the global market for the angle sensors used in traction motors. These are core components for motors in electric and hybrid cars. Mitsubishi Chemical Holdings Corp. produces electrolyte solution and negative electrodes which are the main elements used in lithium ion batteries. The company projects that battery-related sales will more than quadruple to ¥80 billion (US$1.0 billion) in fiscal 2015. Japanese companies have also overwhelmed foreign rivals with their technological expertise and knowhow in the development and production of components that are key elements in the performance of green cars. However, Chinese and South Korean firms are fast gaining ground in the battery segment. (August 25, 2011)