Japan automakers face U.S. supply chain challenge in EV shift

Laggards Toyota, Honda must find new local suppliers to compete in electrics

20230408N EV assembly

An assembly line at startup Rivian Automotive's electric vehicle factory in Normal, Illinois. © Reuters

Nikkei staff writers

TOKYO -- The U.S. program that subsidizes purchases of electric vehicle built in North America has triggered an investment rush by global automakers, but Japanese companies, which now account for less that 1% of EV production in that market, face an urgent need to create local supply chains to prevent being shut out of the bonanza.

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