A Best-Selling Imported Car in Japan
Honda Motor Co.'s WR-V, a sport utility vehicle built in India, has become one of the best-selling imported automobiles in Japan. Launched in March 2023, the WR-V was strategically priced under 3 million yen ($19,000) to attract young Japanese drivers. This strategy proved successful, with Honda selling approximately 18,000 units between April and September.
The WR-V comes in various front-wheel-drive gasoline models, with the most popular being the least expensive option priced under 2.1 million yen. Developed in Thailand, the WR-V was intended for export to Japan and other markets. It was first released in India in 2022 and is also available in South Africa and Nepal.
The increasing popularity of imported vehicles assembled overseas by domestic companies is evident in Japan. During the six months ending in September 2023, approximately 155,000 new vehicles were imported, according to the Japan Automobile Importers Association. Of these, nearly 30% (around 45,000 units) were produced overseas by Japanese companies.
Honda emerged as the leading importer among domestic companies, with approximately 25,000 imported vehicles. This represents a significant increase from the mere 81 imported during the same period in 2022. In addition to the WR-V, Honda imported the Accord sedan from Thailand and the Odyssey minivan from China.
The Accord, imported from Thailand since 2020, caters to the Southeast Asian market's preference for sedans, which are less popular in Japan. The Odyssey, discontinued in Japan after the closure of a domestic factory in 2021, was reintroduced in late 2022 due to its continued popularity. These imported versions are assembled in China.
Honda's overseas production significantly exceeds its domestic production. In fiscal year 2023, the company manufactured 3.41 million vehicles overseas, compared to 700,000 units assembled in Japan. This highlights Honda's strategic shift towards overseas production.
The WR-V's success marks a significant milestone for Honda, being the first Japanese automaker to achieve such success with an imported model. This achievement can be traced back to 1988 when the U.S.-made Accord Coupe was introduced in response to trade friction with the United States. This move encouraged Japan to import more U.S. goods and services.