Why US cars can't crack Japan's market - despite Trump's trade push

In the land of vending machines that serve hot meals and toilets that talk, spotting an American car is like finding a needle in a high-tech haystack. Home to auto giants like Toyota and Honda, Japan has long had a one-sided relationship with American carmakers. While millions of Japanese cars dominate US roads, American vehicles barely register on Japan’s traffic radar.

 

US President Donald Trump has repeatedly taken aim at Japan’s car market, calling it “closed” and riddled with invisible barriers — from cultural preferences and urban design to mismatched models and regulatory hurdles.

 

How big is the gap between Japanese and American car sales?

 

While Japanese brands dominate American highways, with Toyota alone selling more than 2.3 million vehicles in the US last year, American carmakers barely register in Japan’s auto market.

   

Despite decades of trade talks and tariff threats, American carmakers have yet to make a dent in Japan’s automotive market. In 2024, US car sales in Japan remained a statistical footnote, with Jeep selling 9,633 vehicles — the only American brand to crack the top 20 — while General Motors sold just 587 Chevrolets and 449 Cadillacs. Ford, once a global symbol of US auto muscle, exited the Japanese market nearly a decade ago and has shown no sign of return.

 

Meanwhile, Japan’s Toyota alone sold more than 1.35 million vehicles at home, dominating a market that sees over 4.4 million new vehicle registrations each year. Other domestic giants like Suzuki, Honda, Nissan, and Daihatsu round out a fiercely loyal consumer base that leaves little room for foreign competitors. Even European luxury brands fare better, with Mercedes-Benz moving over 53,000 units and BMW over 52,000, including Minis.

 

Japanese carmakers thrive in the US while US brands falter in Japan

 

The disparity is particularly striking when viewed from across the Pacific. Japanese brands are not just thriving in their home country — they’re conquering the US market. In 2024, Toyota sold more than 2.3 million vehicles in the United States, making it the second-highest selling carmaker in the country. By contrast, the flow of US cars into Japan has remained stagnant.

 

Trump has long accused Japan of shutting out American cars through non-tariff barriers and “cheating” technical standards. One claim that has become infamous is that Japan drops bowling balls on car bonnets to test safety, even though the Japanese transport ministry clarified that no such test exists. In reality, the regulatory framework requires bonnets to dent on impact to meet pedestrian safety standards — a hurdle for some imported models but hardly a targeted barrier.

 

Are American car designs a bad fit for Japanese lifestyles?

 

Beyond regulations, Japanese consumer preferences are a critical factor. Shoppers in Japan value compact, fuel-efficient vehicles with practical features suited to the country’s narrow roads and crowded cities. US-made cars, especially larger SUVs, often don’t fit that profile. Even among enthusiasts who admire classic American models, concerns persist about service accessibility, parts availability, and perceptions of poor reliability — whether justified or not.

 

Why Japanese buyers don’t choose American cars

 

Cultural and infrastructural mismatches also play a role. Japan drives on the left, but most American cars are left-hand drive, making them less convenient. European brands have adapted by offering right-hand drive models, a step US automakers have only recently begun to take. For example, General Motors’ 8th-generation Chevrolet Corvette now offers a right-hand drive version in Japan, signalling a possible pivot toward better market alignment.

 

The Jeep brand’s 0.2 per cent market share — the highest for any US brand — highlights how limited American influence is. No American model appears in Japan’s top 50 best-selling vehicles. In contrast, Japanese models like the Toyota Corolla and Honda N-Box each sold over 160,000 units last year, dwarfing US brands by a factor of more than 100 to 1.

 

While classic Cadillacs and vintage Chevrolets may continue to find homes in niche garages in Japan, but modern American cars will likely remain rare sightings on Japanese streets.  (with agency inputs)