The price of an SUV has plunged over the past year as the country struggles with the effects of a decades-long recession.
With the U.S. and European economies expanding, Japan is now one of the world’s fastest-growing markets for SUV sales.
In April, the country added 1,500 vehicles to its fleet, more than doubling the amount of SUVs sold last year.
Japan has also been making strides in electric vehicle production, with Nissan announcing plans in April to add 500 more EVs in 2020.
Meanwhile, the government has been increasing incentives for consumers to buy EVs and has also announced a new tax credit program for EV owners.
A new report from Japan’s auto research institute found that sales of electric vehicles are expected to rise to 8.8 million vehicles by 2025, up from 5.6 million last year and 6.8 percent of all new vehicles sold in the country.
But automakers are struggling to bring new models to the market.
The industry has been struggling to make a dent in the market amid the cost of developing batteries for EVs.