• Japan’s connected car sales surged 34% YoY in Q1 2025, driven by domestic OEMs accelerating the rollout of connected vehicles.
• Growth was fuelled by rising consumer demand for in-car digital features and increased investments in connectivity across automaker portfolios.
• Toyota Group led the market with a 43% share, supported by a strong rebound in sales and the widespread adoption of its T-Connect platform.
• Connected car services platforms like Toyota’s T-Connect, NissanConnect and Suzuki Connect offer Japanese drivers advanced safety, convenience and proactive maintenance features.
• The market is set to transform further as domestic OEMs begin rolling out 5G connectivity, enabling deeper integration with smart city systems and real-time cloud-based services.

Tokyo, Beijing, Buenos Aires, Fort Collins, Hong Kong, London, New Delhi, Seoul, Taipei – July 2, 2025

Japan’s connected car sales grew 34% YoY in Q1 2025, driven by the accelerated rollout of connected vehicles by domestic automakers, according to Counterpoint’s latest Global Connected Car Tracker. This growth was fuelled by rising consumer demand for in-car digital features and continued investments by automakers to embed cellular connectivity across their vehicle portfolios.

“Japan’s connected car ecosystem is maturing rapidly, with OEMs embedding cellular connectivity as a core value proposition rather than a luxury feature. This is a strategic response to both domestic consumer expectations and global competitive pressures,” observed Research Analyst Abhilash Gupta.

Japan’s Connected Car Sales Share by Auto Group, Q1 2025 vs Q1 2024

Source: Counterpoint Research Global Connected Car Tracker
Note: Percentages may not total 100% due to rounding

Toyota Group led the Japanese connected car market in Q1 2025 with a share of 43%, driven by its large sales volume and steady rollout of connected services across mainstream and premium segments. Toyota was followed by Renault-Nissan-Mitsubishi, Suzuki and Honda Group, all of which have been expanding connected service offerings in the Japanese market.

Connected Car Sales Share, Toyota vs Next 3 Auto Groups

Source: Counterpoint Research Global Connected Car Tracker
*Combined market share of Renault-Nissan Alliance, Suzuki Group and Honda Group

Toyota Group saw the biggest YoY jump of 58% among all the automakers, driven by a strong rebound in car sales in 2025 after a sharp decline in 2024, which was caused by production stoppages and certification scandals, particularly at its subsidiary Daihatsu. Production has now stabilized, and Toyota is building on its connected car strategy in Japan, anchored by its T-Connect platform, which has become available across popular models like the Crown series, Corolla Sport and the newly launched RAV4 and Crown Estate.

T-Connect offers Japanese drivers a blend of safety, convenience and peace of mind – features include real-time emergency operator support, always-updated navigation, remote vehicle control (including climate pre-conditioning and door locking) and proactive maintenance alerts. The integration of in-car Wi-Fi and compatibility with popular Japanese apps further elevates the in-cabin experience, making connectivity a natural extension of daily life.

“Toyota has offered connectivity in its vehicles sold in Japan for several years. The automaker continues to incorporate connectivity into its broader strategy, like in the planned development of its Mobility AI Platform in partnership with NTT Docomo. Toyota’s goal is to achieve a zero-accident society and it is leveraging communications infrastructure, AI and embedded vehicle connectivity to do so,” said Associate Director Greg Basich.

The Renault-Nissan-Mitsubishi Alliance continues to be a significant player in Japan's connected car market, leveraging a collaborative and evolving technology strategy to deliver advanced digital mobility solutions. Nissan’s NissanConnect remains its flagship connected service, available on popular models such as the Nissan Leaf, Ariya, X-Trail and Serena. The service is particularly strong in EV-specific functionalities like charging management, range prediction and locating nearby chargers, aligning with Japan’s growing, although small, EV market. The Alliance’s connected car strategy in Japan is about democratizing access to digital mobility, leveraging global partnerships for rapid innovation, and ensuring that connected services deliver tangible value for everyday Japanese drivers.

Suzuki Group, through its Suzuki Connect platform, which is available on popular models and expanding rapidly, delivers features such as remote vehicle status checks, real-time maintenance alerts, driving history and emergency support. Suzuki’s connected car strategy is about making advanced connectivity mainstream by delivering safety, convenience, and sustainability at scale, and positioning itself as the leader in Japan’s compact mobility market.

Looking ahead, Japan’s connected car market is poised for a transformation as 5G connectivity will roll out gradually in the coming months by most domestic manufacturers. As 5G infrastructure matures, we can expect Japanese vehicles to offer even more seamless integration with smart city systems, real-time traffic management, and cloud-based services.

Collaborations between automakers, technology firms, and government agencies are fostering the development of AI-powered mobility solutions, predictive maintenance, and tailored in-car services. Together, these advancements will address Japan’s unique societal needs, such as supporting an aging population and reducing urban congestion, and ensure that the Japanese market remains at the forefront of global connected car innovation.

* Sales here refer to wholesale figures, i.e. deliveries out of factories by brands, and consider only passenger cars with embedded connectivity.

The comprehensive and in-depth ‘Global Connected Car Tracker, Q1 2025’ is now available for purchase at report.counterpointresearch.com.

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