Driving Japan’s comeback: Can its carmakers reignite a nation’s lost innovation?

Toyota, Honda and Mazda race to rediscover inventive spark that once defined the country

Akio Toyoda, chairman of Toyota, addresses the Japan Mobility Show in Tokyo in October. Photograph: Kiyoshi Ota/EPA
Akio Toyoda, chairman of Toyota, addresses the Japan Mobility Show in Tokyo in October. Photograph: Kiyoshi Ota/EPA

There is a chain of electronic stores in Japan called Bic Camera. Two decades ago, these were the go-to places for consumer tech. Visitors paid pilgrimages to wow at cutting-edge gadgets and games at these multistorey symbols of Japan’s global tech leadership.

Today you see little in the stores that you wouldn’t see in any large electronic store in Ireland. They’re even selling cosmetics and bottles of spirits to tourists. The quiet transformation of stores such as Bic Camera reflects how Japan’s leadership in invention and design, once visible on every shelf, has gradually slipped away.

Japan has lost its innovative edge. And it has been missing for years now.

Toyota chairman Akio Toyoda took to the stage at the Japan Mobility Show to launch the car giant’s new ultra-luxury brand, Century. But his speech was laden with references to the innovative spirit that drove Japan’s revival from the ruins of the second World War. And he lamented the lack of that spirit now.

“The ‘Japan as No 1′ era is behind us, and we are now in what has come to be known as ‘the lost 30 years’,” Toyoda said. “Japan as a nation seems to have lost some of its energy and dynamism, along with our presence in the world.”

Toyoda’s views carry a lot of weight, given that the auto industry is one where Japan still wields huge clout. The night before, he had sat next to visiting US president Donald Trump at a dinner with the newly appointed Japanese prime minister Sanae Takaichi.

Yet, even in an industry redefined by Japanese manufacturing techniques and reliability, it is facing monumental challenges.

First, the Koreans caught up, then a wave of Chinese brands arrived. Others raced ahead in the move to electric, while attempts to pioneer alternatives such as hydrogen have swallowed billions of dollars in R&D spending, but delivered little or no commercial return as yet. And Japanese excellence in hardware isn’t equating to a leading role in a world where software is the key battleground.

At the mobility show, the Japanese brands showcased their visions of the future, aiming to address the concerns of citizens such as Akio Toyoda.

New Corolla, Century and beyond: Toyota’s bold new world ]

There were fanciful innovations in personal mobility, such as four-legged robotic chairs that can climb stairs and scurry around like hip-high spiders. There were lso autonomous baby buggies, a squadron of small helicopters and Honda’s reusable rocket fresh from its suborbital test flight in June.

Lexus LS concept
The Lexus LS concept offers more room and a smoother ride, but will consumers baulk at a six-wheeler?

It’s easy to get distracted with these visions of an elusive robotised future. But focusing on what we will more likely see on our roads, Lexus teased with its plans for a radical new format for the LS, Honda showcased more models from its upcoming 0 Series and Mazda unveiled its Vision-X coupe.

First impressions suggest Lexus is daydreaming with its six-wheeled people carrier, but engineers made clear they have built prototype test vehicles with the six-wheel format.

Small rear wheels dramatically increase the rear space, particularly in the third row, while initial reports from testing indicate major improvements in ride quality as well. Add in all-wheel steering, where the four rear wheels turn as well and, from an engineering standpoint, this could be not only viable but also hugely beneficial.

But from a commercial standpoint is it a step too far? Will car buyers baulk at buying a car with four rear wheels of a similar size to a wheelbarrow, even if the format delivers all those comfort and driving benefits?

Honda CEO Toshihiro Mibe with the latest models for the 0 Series of EVs.
Honda chief executive Toshihiro Mibe with the latest models of its 0 series of electric vehicles

Honda’s 0 Series initially seems like a styling homage to Polestar, but it signals a long-awaited model revival for the brand. Coming to the US next year and Europe in 2027, the all-electric SUV will be followed by other formats such as a saloon and small crossover.

They’ll also feature Honda’s new operating system, inspired by the firm’s Asimo robot. Alongside the usual safety systems, Honda says it will deliver personalised experiences and continuously improve features and functionality, all delivered via over-the-air updates.

The Mazda Vision X Coupe concept
The Mazda Vision X Coupe concept

Mazda went one step further with its software promise, saying it is working on using emotion-reading AI to turn your car into your best friend.

Designer Kaisei Takahashi said the car would read the driver’s mood and suggest a playlist or stay silent if it sensed the driver did not want company. It will be akin to having a friend in the passenger seat during a long drive, suggesting a detour to a cafe you would like, complimenting you on your driving or warning you of a car in the blind spot.

In terms of hardware, the Vision X Coupe is a plug-in hybrid using a two-rotor rotary turbocharged engine with a motor and a battery, putting out 510hp. It’s the latest concept with a rotary engine, a format that Mazda still believes has a future.

Alongside others, Mazda is also exploring carbon-neutral fuel options. With 97 per cent of the world’s fleet still petrol or diesel, engineers argue that changing to carbon-neutral fuel for use in regular engines will have a more dramatic and immediate effect on sustainability than changing the fleet to electric through the sales of new EVs.

But the focus on Mazda right now is its first bespoke EV, due for market in 2027. To date, Mazda EVs have either been based on converted combustion-engined platforms or those supplied by partners like the Chinese firm Changan, whose underpinnings run the new 6e saloon.

At Nissan, alongside new models destined for its home market, the car firm was focusing on its holistic approach to the electric world, where EV batteries serve as part of a local energy ecosystem linked to your home and renewable energy supply.

Yet, amid all these wider engineering advances, the star turn of the mobility show was undoubtedly the Corolla concept.

Its styling is a revolution compared to what we have at present. Its underpinnings are an evolution.

Will Toyota be brave enough to take this concept’s styling into production? Lately, they’ve done just that with cars such as the C-HR and new Prius. If the next Corolla keeps this look, it will reaffirm a move upmarket for the Toyota brand and rattle many rivals.

The new Corolla will be built on a platform developed primarily for EVs, with the ability to be adapted for hybrid formats as well. That’s the reverse of the firm’s current TNGA platform, which prioritised hybrid and permitted EV adaptation.

The flexibility of the new platform means it will accommodate an all-electric Corolla, hybrid and plug-in hybrid versions, pure petrol versions and even a future hydrogen-powered one. It may even be able to house Toyota’s new solid-state batteries, which chief technology officer Hiroki Nakajima says is still on track for market launch in 2027.

New Toyota Corolla concept
New Toyota Corolla concept could rattle rivals if it goes into production
Interior of new Corolla concept car is miminalistic
Interior of new Corolla concept car is miminalistic

Toyota promises that solid-state batteries will solve the major issues with EVs in a single stroke. By moving from liquid-based battery packs to solid state, Toyota’s Keiji Kaita said the batteries would be twice as powerful as the current generation of EV batteries the firm used in its EVs, while delivering three times the range and four times the lifespan.

Delivering such game-changing tech is a major engineering feat, but doing so while also advancing hydrogen, new petrol engines, carbon-neutral fuels and advanced software systems shows the stretch on engineering resources at play within the car giants these days.

Yet this adaptability is a cornerstone of Toyota’s “multi-pathway strategy”. As a global player, it needs to cater for customers in rural Africa as well as urban America, Australia and Athlone.

It’s clearly a costly approach in terms of research spend, but one that, of the Japanese car giants, only Toyota has the financial clout to pursue. It also means a lot is riding on Toyota’s success and on Toyoda’s leadership.

Its success will also help determine the fortunes of Japan, perhaps fulfilling his wish to end the lost years and revive the nation’s fortunes.

If history is any guide, Japan’s talent for reinvention is never truly lost – only waiting for its next spark. The question now is whether Akio Toyoda’s call will ignite it once again.

Michael McAleer

Michael McAleer

Michael McAleer is Motoring Editor, Innovation Editor and an Assistant Business Editor at The Irish Times