Innovation of Japanese Vehicle Makers in the Alternative Fuel Vehicle (AFV) Business

Since early 2000s most of Japanese vehicle makers have concentrated on hybrid electric vehicle (HEV) and fuel cell vehicle (FCV) as the mainstream of alternative fuel vehicle (AFV) in future. However two core variables, TESLA and Chinese market make the pure electric vehicle (EV) as the innovation icon of global automobile industry. The TESLA became the biggest premium EV maker and China emerged as a critical growth engine of EV business with recording the largest EV sales volume in 2016. As for Japanese automobile industry, more and more vehicle makers actively get involved in the EV business to cover such a global trend. This study tried to access the EV business strategy of Japanese makers from the innovation type perspective. Firstly, the main features for Japanese automobile industry as well as AFV business development condition of Japan were reviewed. Secondly, this study analyzed the AFV business focus and key technologies of eight Japanese makers including Toyota, Honda, Nissan, Suzuki, Mitsubishi, Subaru, Mazda and Isuzu. Thirdly, the AFV business strategy of those makers was reviewed through the innovation type approach. In result Japanese makers were able to create the AFV business ecosystem through the unique coopetition structure even though any AFV model did not significantly change yet the existing automobile industry structure.