Japan’s carmakers are maintaining their commitment to electric vehicles (EVs) despite a recent slowdown in EV sales growth. While the rest of the world rushes to electrify, Japanese automakers have been pragmatic, recognizing that consumers weren't ready for rapid EV adoption until batteries became more affordable and charging infrastructure improved. 

Executives from these companies acknowledge the current deceleration in EV adoption but remain steadfast in their long-term vision. Stephen Ma, Nissan Motor Co’s chief financial officer, aptly stated, "The customer decides the speed of electrification. Electrification is not linear growth; it will go up and down. But long term, it will grow." 

Toyota Motor Corp, known for its hybrid vehicles, has been resetting expectations as the pace of EV expansion slows. High inflation and interest rates have made electric cars less accessible for many consumers, leading to record hybrid sales for Toyota. The weaker yen has also boosted profits for Japan's auto sector, allowing companies to take a more deliberate approach to EV development.

Honda Motor Co and Subaru Corp are similarly pragmatic. Honda's CFO Eiji Fujimura acknowledges the possibility of an EV slowdown but emphasizes that "electrification must go forward" to achieve carbon neutrality. Subaru, in its investment plan for electrification, has factored in the likelihood of the EV market reaching a growth plateau.

Nissan, on the other hand, has committed ¥2 trillion in 2021 to accelerate electrification over a five-year period. According to Stephen Ma, the company will continue making necessary investments to offer the right EV products to its customers.

While some critics have questioned Toyota's deliberative approach, it seems that the current slowdown in consumer enthusiasm for EVs validates their strategy. As Nathan Furr, a professor of strategy, puts it, "Perhaps it is a wise strategy" to balance hybrid and alternative fuel technologies alongside battery EVs.