Japan's Unique Car Policies: A Deep Dive

Japan’s Unique Car Policies: A Deep Dive

28/02/2025
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Japan is renowned for its thriving automotive industry, but few know about its unique car policies. Instead of focusing on cheap car production, the Japanese government encourages its citizens to own the newest, safest, and most eco-friendly vehicles.

One of Japan’s most distinctive policies is the mandatory periodic vehicle inspection system known as Shaken. Every car in Japan must undergo a rigorous inspection every two years (for passenger cars) or three years (for trucks). This process involves checking over 50 items, ranging from the engine and brake system to the lighting system. If a vehicle fails to meet the standards, the owner must make repairs and undergo re-inspection.

The Shaken system is considered a key factor in maintaining the high quality of vehicles on Japanese roads and minimizing traffic accidents. However, it also contributes to the higher cost of car ownership in Japan compared to many other countries.

Besides Shaken, Japan implements several other policies to encourage new car purchases, such as:

  • High Car Ownership Taxes: Car ownership taxes in Japan are based on engine displacement and vehicle age. Older cars with larger engines incur higher taxes. This encourages many people to buy new cars after a few years of use.
  • Incentives for Eco-Friendly Vehicles: Japan is a pioneer in developing hybrid and electric vehicles. The government offers attractive incentives for buyers of eco-friendly cars, including tax reductions, financial assistance, and free use of certain roads.
  • Efficient Public Transportation: Japan boasts a modern and efficient public transportation system, particularly its railway network. This reduces the need for private car use, contributing to less traffic congestion and pollution.

These “unusual” car policies in Japan have yielded positive results, contributing to a safe, modern, and environmentally friendly transportation system. However, they also pose challenges for citizens, especially those with lower incomes.

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