Japan is poised to fill an EV gap left by China

NOW is a good time for established Japanese car companies to seize the opportunity to expand in North America to meet electric vehicle (EV) demand. US protectionism and security fears are stymieing the overseas expansions of Chinese names such as BYD and SAIC Motor, leaving the door open to those that Western governments deem more friendly.

Honda Motor is a good example. The Japanese giant is on the verge of a deal with Canada to set up in the southern province of Ontario. The new facility would build electric vehicles and receive incentives from the federal government. This would be in addition to an existing plant that makes combustion-engine models in Alliston, Ontario.

Canada is eager to attract more EV production, adding to traditional-vehicle assembly plants already owned by Ford Motor, General Motors, and Toyota Motor. There are some key differences with the Honda deal and how the Canadian government is subsidising factories to be built by European automaker Stellantis and battery supplier Northvolt. But the bigger picture remains: More EVs are to be made in the country.