The automaker is betting that its cars will appeal to younger Japanese buyers who are also more open to trying South Korean imports, thanks to the local success of electronics brands and hip Korean culture.

The number of EV charging stations in Japan fell to around 29,200, down from more than 30,300 the previous year.

BYD, in targeting a major market, already sells EVs and plug-in electric hybrids in many smaller countries and regions, including Norway, New Zealand, Singapore, Brazil, Costa Rica and Colombia.

To crack the code of building low-cost electric vehicles, Japan's automakers intend to leverage their skills at tried-and-true lean manufacturing and kaizen.

Auto suppliers in Japan are confronting a dilemma as the industry pivots away from the combustion engine: Either make the shift too, or find new business.

Toyota said it will work with minivehicle specialists Daihatsu and Suzuki to develop small electric commercial vans.

A key innovation is a new powertrain assembly technique called SUMO, short for simultaneous underfloor mounting operation. It foreshadows Nissan’s approach to next-gen EV production.

The Japan Automobile Manufacturers Association says traditional automakers expect new entrants from other industries and that the Sony represents Japan’s turn at floating a hopeful new industry player.

The 50-50 company will be established this year with the goal of starting EV sales and providing mobility services in 2025. The deal is still subject to regulatory approval.

In early 2024, Lexus will open a world head office in a secretive mountain complex shrouded in cedar forests. Executives say the facility will not only revolutionize the way Lexus develops cars but speed the brand's shift into the EV era.