Digital and Green Transitions and Automotive Industry Reconfiguration: Evidence From Japan and China

Figures & data

Figure 1. Analytical framework

Source: Authors’ own elaboration.

Table 1. Main policies in Japan regarding green and digital transformation

Policy document	Objectives for DX and GX	Socio-economic challenges
Comprehensive Economic Measures to Secure People’s Lives and Livelihoods towards Relief and Hope (2020)	Stimulating post-pandemic economic growth; Support for business; Accelerating DX; Fostering sustainability	Positive relationship between environmental measures and economic growth; Regional revitalisation; Social and political resistance; Long-term sustainability and adaptation
Green Growth Strategy Through Achieving Carbon Neutrality in 2050 (2021)	Carbon neutrality; Green innovation and technology development, support for 14 growth sectors (including automobiles, storage batteries, semiconductors); International collaboration	Technology development; Energy dependency; Infrastructure; Industrial transformation; International collaboration and climate diplomacy; Private–public collaboration
National Budget 2021 – Electric vehicles and fuel cell vehicles	Subsidies for the purchase of NEVs, if the buyer’s home or office is supplied with 100% renewable electricity, storage batteries, infrastructure	De-carbonisation of lifestyles
The 6th Strategic Energy Plan (2022)	46% greenhouse gas reduction target by 2030; S + 3E	Energy efficiency and conservation; Rise in renewable energy sources utilisation
Basic Policy on Economic and Fiscal Management and Reform (2022) under the “New Capitalism” vision (2021)	Investment in batteries, support for vehicle purchase and infrastructure, hydrogen and ammonia, carbon capture, utilisation and storage (CCUS)/carbon recycling, nuclear power, nuclear fusion, etc.; Standardisation for DX in transport and logistics: self-driving cars, flying cars, mobility as a service (MaaS), etc.	Increasing prices of resources; Sustainability and environmental protection; Declining and ageing population, stagnant economic growth; Regional disparities, depopulation; Public participation

Notes: DX = Digital transformation; GX = Green transformation.

Source: Various press releases by Japan’s governmental agencies.

Table 2. Main policies in China regarding green and digital transformation

Policy document	Objectives for DX and GX	Socio-economic challenges
Energy-saving and New Energy Vehicle Industry Development Plan (2012–2020)	Reaching technical level and production scale of key components that meet domestic demand; Construction of charging facilities; Developing core technologies; Support for domestic firms producing: batteries, key materials, drive motors, high-efficiency transmissions, automotive electronics, cascade utilisation and recycling of batteries; Creation of independent intellectual property rights; International co-operation.	Driver of economic growth; Easing air pollution in the cities; Reduction of reliance on imports of fossil fuels; Technological independence.
New Energy Vehicle Industry Development Plan (2021–2035)	Development of NEV types: pure electric, plug-in hybrid, FCVs; Digitalisation of vehicles; Development of core technologies and components, incl. automotive electronics, cascade utilisation, recycling of batteries; Active participation in the establishment of international rules and standards related to the NEV market; Development of hydrogen supply system; Deep integration into the GVC; International co-operation and competition; Developing specialised talents in core technology fields.	Driver of economic growth; Easing air pollution in the cities; Energy security, less dependence on fossil fuels; Reduction of carbon dioxide emissions as stipulated by the Paris Agreement.

Notes: DX = Digital transformation; GX = Green transformation.

Source: Various press releases by Gov.cn (2012; 2020).

Table 3. Toyota Motor Corporation – Examples of NEV partnerships

Partner company	Date of partnership	Name of a new entity (if available)	Goal of partnership
Didi	Announced in July 2019		Mobility services in China; vehicle-related services for ride-sharing drivers
Pony.ai	Announced in August 2019		Integration of Toyota’s vehicles and Pony’s autonomous driving system; robotaxis in China
BYD	Announced in 2019		Development of EV batteries
CATL	Announced in July 2019		Battery supply; new technology development; reuse/recycling
Momenta	2020		Camera-based automated mapping
Panasonic	April 2020	Prime Planet Energy & Solutions (PPES)	Battery joint venture; NMC811 as a next-generation product around 2025
Denso	April 2020	Mirise Technologies	Development of the in-vehicle semiconductors SoC (system-on-a-chip); reorganisation/consolidation of semiconductors and electronics research
Softbank	February 2019	Monet Technologies	MaaS (mobility as a service); mobility; solving various social issues, creating new value
Other battery supply chain companies	April 2022	Battery Association for Supply Chain (BASC)

Source: Various press articles by Nikkei Asia, Nikkei, xTECH Nikkei, and companies’ websites.

Table 4. Honda Motor Company – Examples of NEV partnerships

Partner company	Date of partnership	Name of a new entity (if available)	Goal of partnership
MONET Technologies (Toyota, Mazda, Suzuki, Subaru, Daihatsu, Isuzu, Honda, Hino)	Announced in 2019		Supply MONET with vehicles used for mobile services
Hitachi Automotive Systems combined with: Hitachi, Keihin, Showa, and Nissin Kogyo	October 2019	Hitachi Automotive Systems	Manufacturing of motors, electrified vehicle drivetrains, electronic control units and chassis parts, electrical systems, engine components, shock absorbers, brakes and steering systems
Hitachi Automotive	2020	Hitachi Astemo (Hitachi 66.6%, Honda 33.4%)	Strengthening global competitiveness in the field of connected, autonomous, shared and electrified (CASE); competing with mega suppliers Bosch, Continental, and Denso
CATL	Announced in July 2020		Battery procurement and EV development, mainly for China
General Motors	Announced April 2022		Development of EV for mass-market price and worldwide sales; promotion of the standardisation of EV platforms; production of several million units by both companies after 2027
Sony	Announced in March 2022		Joint development and sales of high-value-added EVs; commercialisation with the provision of mobility services
Dongfeng Honda	Further expansion		e: NS1 EV model development and release in 2022; EV-only factory in China in 2024; exports
Guangqi Honda	Further expansion		e: NP1 EV model development and release in 2022; EV-only factory in China in 2024; exports

Source: Various press articles by Nikkei Asia, Nikkei, xTECH Nikkei, and companies’ websites.

Figure 2. Conceptual model of state/institutions influence on society through industry and firms under the paradigm shift in the automotive industry

Source: Authors’ own elaboration.

Gov.cn. 2012. “国务院关于印发节能与新能源汽车产业发展规划(2012—2020年)的通知” [Notice of the State Council on Issuing the Development Plan for Energy-Saving and New Energy Automobile Industry (2012–2020)]. July 9. Accessed July 18, 2024. http://www.gov.cn/zwgk/2012-07/09/content_2179032.htm.

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Gov.cn. 2020. “国务院办公厅关于印发新能源汽车产业发展规划(2021—2035年)的通知” [Notice of the General Office of the State Council on Printing and Distributing the New Energy Vehicle Industry Development Plan (2021–2035)]. October 20. Accessed July 18, 2024. http://www.gov.cn/zhengce/content/2020-11/02/content_5556716.htm.

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