Japan Inc. sees record capital spending in fiscal 2023, led by EV, AI

Nikkei survey finds strong demand, but companies less bullish than in spring

Demand for new car production capacity, particularly electric vehicles, is one of the factors pushing big Japanese companies to record levels of capital spending.

Nikkei staff writers

December 15, 2023 15:38 JST

TOKYO -- Capital investment by big Japanese companies is expected to hit a record 31.9 trillion yen ($213 billion) in fiscal 2023 ending next March, shattering the record for the second year running, a Nikkei survey finds.

Spending on plant and equipment is forecast to rise 17.3% from the previous year overall, driven by the demand for electric vehicle (EV) production and data centers as artificial intelligence (AI) becomes widespread.