JPY1000 unlimited motorway toll started

In Japan, as a part of measures to boost the economy, a new system has started on motorways in rural areas. Cars with an ETC (electronic toll collection) system can go on these toll roads for unlimited mileage with JPY1000 on weekends and public holidays. I would like to tell you about this government’s policy.

As the effect, we can definitely expect more people will go for a long distance drive.

If it is only JPY1000 wherever you go, why not go on a long trip? It will surely contribute to an increase in visitor numbers at tourist sites. It will also be a great opportunity for the automotive industry to renew people’s awareness of how to enjoy their car.

After paying a large amount of money to the country’s road maintenance and improvement fund for a long time, this is an exciting offer for people who always thought toll roads “very expensive” and decided not to use them. Some people might use their cars instead of using bullet trains to visit their parents and some might want to plan a trip to a hot spring they have been wanting to visit for a while; more people are expected to use their cars.

Ministry of Land, Infrastructure and Transport are expecting the economic effect of this JPY1000 motorway toll would be 700 to 800 billion yen in the next 2 years. The result of the questionnaire to users shows that day trips (average personal spending of JPY6000) would increase from 7.7 times a year to 10.6 times a year and overnight trips (average personal spending of JPY23000) would increase from 2.2 times a year to 3.5 times a year. Although it is impossible to estimate the extent of the effect exactly because we will have to take the loss in the demand of public transport such as trains into consideration, people from tourist spots within easy access from the main motorways are placing great expectations on this new policy.

On the other hand, there are some drawbacks. Increased volume of traffic also means more risk of accidents and heavier traffic jams. The other day, TV showed a queue of women waiting to use the toilet for more than 20 minutes. Also there would be more concern of the environmental burden from gas emissions. It is going to cost the government 500 billion yen per year and is going to be done when the nation’s finances are deep in debt.
However, if there is a possibility of an economic boost more than the budget, it is surely worth trying. I am going to make up a plan myself to fully enjoy driving which I almost forgot about.

If we have more people like myself, then we can expect that it might boost the demand of cars by renewing their views towards them. These days, more people use rental cars without owning their own cars or share their cars and their concept of cars is changing from “hobby” to “tool”; but car dealers are taking it as a good chance to activate the chilled market with this economic boost measure. We think this is a chance that does not come twice, to strengthen the connection with the users through various events and suggested plans for long distance travel using this “JPY1000 motorway”.

At JPC, when Japanese people buy their cars through us, more people add an ETC system when they order a car. At the moment, so many people have ordered the system, the manufacturers cannot keep up with production and shops cannot tell when they are going to get them. Although this system has just started, we can feel consumers’ excitement by seeing so many of them wanting the ETC system on their cars. There was a Nobel Prize winning American economist who said that the economy is psychology but I really hope this is going to shake consumers’ feelings and they become increasingly interested in cars.


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(Editor)
JPC TRADE CO.,LTD.
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