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Car Ownership in Japan Hits 18-Year Low

Car ownership in Japan dipped to an 18-year low of 1.06 vehicles per household this spring, according to the country’s Automobile Inspection and Registration Information Assn. (AIRIA). 

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Car ownership in Japan dipped to an 18-year low of 1.06 vehicles per household this spring, according to the country’s Automobile Inspection and Registration Information Assn. (AIRIA).

Japan’s car ownership peaked in 2006 at 1.12 per household, AIRIA says. The group attributes the recent decline to a combination of efficient public-transit systems in large cities, less interest in vehicles by millennials and emerging ride-hailing services.

This year Tokyo had the lowest ownership rate (0.45 vehicles) of Japan’s 47 prefectures. In addition to a good rail network, Tokyo also has a larger population of millennials than other cities and rural areas. Regulations requiring potential buyers to have a place to park before purchasing also has curbed ownership in congested cities.

A previous study showed that the percentage of young men (aged 20 to 24) in Japan with a driver’s license fell about eight percentage points from 2001 to just under 80% in 2015. The level of young women with a driver’s license dipped from about 77% to 72% during the period.

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