Automakers see untapped market as Japanese 'paper drivers' ease onto the roads

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Ryota Kawamata hadn't driven for more than a decade, but as Japan's COVID-19 crisis worsened in May, his employer near Tokyo rented him a car so he wouldn't have to use public transport.

Demand from lapsed drivers elsewhere, such as the United States, China and other countries where social distancing has become the norm, could also help soften the coronavirus blow for car makers.

Over the past three decades, car sales in Japan have fallen from a peak of 7.8 million vehicles in 1990 to 5.2 million last year. Demand for spaces more than doubled nationwide and jumped by five times in parts of Japan’s capital during the state of emergency declared in April compared with February, before the coronavirus crisis took hold, according to Akippa spokeswoman Ayako Ishikawa.

 

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