Auto market group ABI Research is reporting that the Japanese auto market is poised to make a big comeback in 2017.
The company, which is based in Tokyo, said in its 2017 auto market report that the market was expected to grow by 4.7 percent from a year ago.
ABI Research says the market is expected to reach USD 9.2 trillion by 2025, with the top six players accounting for over half of that.
That would put the top five companies, Audi, BMW, Volvo, and Ford, in the lead.
“The next step is for Japanese automakers to be able to make big investments in their fleets, and that will help them compete with the likes of Mercedes-Benz, Volvo and others in the region,” ABI analyst Takashi Ishikawa said in a press release.
As the market gains steam, auto dealerships will have to get smarter to be more competitive.
Auto dealerships are already trying to be smarter by offering incentives to lure consumers back into their stores, with some even offering discounts for returning customers.
More competition is coming to the Japanese market.
Last year, the government of Japan introduced a pilot program to test new technology and reduce costs for manufacturers and retailers, as part of its efforts to combat rising costs and the impact of ailing auto manufacturers.
With a healthy market, ABI expects the auto industry will continue to grow.