Electric Vehicle Adoption in Japan Harvard Case Solution & Analysis


Japan is an ideal location for understanding and testing the behavior of the consumers towards the innovative technology of Electric Vehicles. The country presents the technology and the companies looking for opportunities in the industry of Electric Vehicles with a perfect test-bed for evaluating and understanding how consumers actually relate to electric vehicles.The country is a home to severalinnovations in the field of Electric Vehicle (EV) and Hybrid-Electric Vehicle (HEV).

The environment of such innovations in Electric Vehicles is being adequately supported by the government. The government of Japan is significantly supporting the use of Electric Vehicles (EVs) and heavily incentivizes it as well. Not only the support of government is enhancing the environment for the Electric Vehicles, however the consumers in the territory are knowledgeable and aware about the environmental benefits that can be sustained by the use of Electric Vehicles (Company, n.d).


Major Factors
Category 1: Technology

Battery Costs:
Electric Vehicles heavily depend on the batteries. The vehicles do not require fuels like gasoline or diesel like any other stereotype vehicle; Electric Vehicles mandatorily require an efficient battery placement in them. Batteries in the vehicles are of high costs and these batteries cannot be replaced in the product, as it will eliminate the core differentiating offering of the product. Batteries are the main reason for increasing the cost of these vehicles. The price tags of these vehicles are immensely affected by the battery costs. Currently, the batteries are of high costs due to their low volume supply and demands. Once the demand and supply for the batteries increases, a considerable decline in the prices of the Electric Vehicles (EVs) is expected. The price of Electric Vehicles (EVs) is heavily related to the cost of batteries (Nemet, 2015).

Performance Characteristics:

The performance of these cars has immensely improved since the origin of the technology. The Electric Vehicles (EVs) are much faster and fun to drive as compared to the past.In the past, the consumers were not satisfied with the speed of the electric cars and they perceived the suitability of these cars only for driving within the city. Pure-electric cars are now faster and more fun.
A significant observation regarding the EVs is that, as in the market of petrol and gasoline cars, EV’s performance standards are also being identified and developed to address the different needs of the customers. A number of companies are already supplying different types ofEVs to cater different desires of the customer with respect to the performance of the company. Huge potentials lie in the industry as this is only the beginning (Conway, 2011).


A major setback in the purchase process of the EVs is due to the prices of these cars, which are significantly increased by the high costs of batteries that are fitted in them. In the future, the prices of the batteries are expected to lower due to the increased supply and demands, which will positively affect the purchases to increase...................................

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