How the EU is blocking Japanese sports cars (2024)

View all Toyota Yaris Reviews

►Red tape throttles JDM supply into Europe
► Emissions and safety regs are the cause…
► Meaning they’re getting rarer, more expensive or being culled

We are living in a new halcyon era of the Japanese sports car. Toyota has the petrolhead by the scruff of the neck with its GR86 and GR Yaris in Europe, as well as the GR Corolla in North America. Honda’s new Civic Type R is the instant classic we all hoped it would be. Hell, even Nissan has resurrected the Z car.

But for the European and UK enthusiast this surge of immensely tasty metal from the other side of the world comes at a significant cost. Safety and emissions regulations, combined with some huge price rises, are restricting sales so much that they could end up being seen on the road about as often as unicorns. Few cars illustrate this point more than the heavily-updated Toyota GR Yaris that’s just gone on sale in the UK in March 2024, as well as the new FL5-generation Honda Civic Type R.

With the Yaris, some will notice the astronomical price rise between the original car and the base-spec facelift; we noted a £33,495 price tag during our 2020 Hot Hatch of the Year test for a top-end Circuit Pack model with all of the goodies needed to get the best out of the car. Now? A base model GR Yaris clocks in at £44,250 – albeit that model does come with a lot of the tech from the pre-facelift Circuit Pack (and even more power) included. The new model already feels a fundamentally better car after driving an engineering prototype, but that’s still a huge cost addition.

It’s the same with the Honda. When the previous-generation FK8 launched it cost around £31k. Now, Honda’s asking for a mighty £49,995 in 2024. And where Honda UK would shift thousands of Civic Type Rs per year just a couple of generations ago, its 2023 allocation was in the hundreds.

Why? Fleet CO2 limits. Exceeding those means utterly enormous fines, even if you miss that target by a tiny amount. At the beginning of 2021, Reuters reported that Volkswagen faced a €100m fine for missing the target fleet CO2 average by just 0.5g/km.

How the EU is blocking Japanese sports cars (1)

It’s the reason why the likes of Honda have re-worked the economics around its tearaway Civic Type R. If it’s forced to shrink volume, why not crank up the price, in turn paying for more high-performance engineering, and reward the hardcore enthusiast with a truly special car? The same logic applies to that new-generation GR Yaris; sell fewer cars with fatter margins so the brand still makes money, but doesn’t fall quite so foul of fleet CO2 averages.

New Euro 7 emissions regulations have blindsided the automotive industry, adding significant financial and time costs as manufacturers – already flat-out racing to electrify – have to rework powertrains. ‘If a car is in production and regulation changes, normally you’d get a two-year grace period,’ a senior European engineer tells CAR. ‘But with Euro 7, it doesn’t look like that’s happening.’

And the legislation will require car makers to make some profound engineering changes to keep cars in production. ‘Euro 7 covers emissions, tyres and brakes. For brakes, do we have to change the size of the discs? The brake’s system performance? Is it a full change? Then what does that mean for stopping distances?’

All models must either be adapted in double-quick time or face early retirement. And new models naturally need to comply; not straightforward considering the short lead time for implementing Euro 7.

How the EU is blocking Japanese sports cars (2)

And that’s not all. The latest General Safety Regulation (or GSR2) kicked in from July 2022, and although the UK is no longer in the EU, it still applies in the UK. It specifies that new cars need intelligent speed assistance, some sort of reversing aid, driver attention warnings and additional cybersecurity measures. All things that will add cost, making a big difference on more affordable cars.

Cars already in the line-up have an additional two years to comply; if the manufacturer wants that model to remain on sale, it must find a way of adding those features.

‘Every new registration needs a speed limiter, cameras have to be a higher spec and accurate to around 90 per cent across the whole of Europe,’ says our engineer. ‘There even needs to be a [docking station] for an alcohol breathalyser.’

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GSR2 is the reason the GR86 has such a small sales window, for example. According to our sources, fitting the new camera needed for the speed and lane-keeping tech would involve redesigning the roof and windscreen – a prohibitively expensive refit for a low-volume sports car. That’s a move Toyota’s not prepared to make, meaning the GR86 will go off sale in 2024 in the UK and EU, before it falls foul of the new rules.

So, if you’re one of the few who succeeds in getting the keys to one of these endangered species, count your blessings and drive it. The rest of us will look on with envy but, perhaps, with fatter wallets.

How the EU is blocking Japanese sports cars (2024)

FAQs

Do Japanese cars sell well in Europe? ›

In Norway the Japanese brands are often as popular as German cars, and Toyota is the best selling brand, despite this it's very hard to convince BMW and Mercedes people to buy Toyota's. In general Japanese cars here are favoured due to their reliability.

Why is Toyota less popular in Europe? ›

Further, in countries like Ireland and Italy, approximately 40% of cars with engines are diesel-powered. The brand Toyota has a successful petrol engine, so they have chosen petrol over a diesel engine. People prefer diesel engines over petrol, so Toyota is not so popular in Europe.

Are Japanese cars still better than American cars? ›

While American made cars are certainly crafted with quality in mind, nothing can beat the level of engineering that can be found in a Japanese car. Japanese cars are built to last for years, whereas in American cars, you're likely to experience more issues with breaking down and stalling after 100,000 miles.

Are German cars better than Japanese cars? ›

A long automotive history and a powerful racing heritage give German cars the edge when it comes to build quality. However, in recent years Japanese cars have quickly moved away from a rather underwhelming reputation for quality in the 1960s and '70s and are now easily a match for styling and quality.

Why are American cars not popular in Europe? ›

This is down to several reasons, including the types of roads both are driven on, different fuel prices and local requirements for safety and emission standards. Cars sold in Europe will be set-up with European roads in mind, but chances are these roads are very different to the ones you find in America.

Are Japanese cars better than European? ›

Asian and European cars and the many brands within them are known for their main characteristics. In general Asian cars are more reliable, cheaper to repair and have a longer lifespan. European cars often perform better on the road, are more expensive to repair and are considered more luxurious.

Why are sedans not popular in Europe? ›

As a result, the American car industry became focused on producing large sedans, and this trend has continued to some extent. On the other hand, in Europe, smaller hatchbacks were more popular due to a combination of factors such as smaller roads, higher fuel prices, and higher taxes on larger vehicles.

Which country buys the most Japanese cars? ›

Major Countries that Import the Most Cars from Japan
  • United States: 1,302,124 cars (29.8% of all Japanese imports cars)
  • Australia: 322,506 cars (7.4%)
  • Russia: 220,992 cars (5.1%)
  • China: 218,862 cars (5%)
  • United Arab Emirates: 193,864 cars (4.4%)
  • Canada: 146,856 cars (3.4%)
  • New Zealand: 130,080 cars (3%)
Dec 9, 2023

Are there Japanese cars in Europe? ›

In 2023, Japan's automakers manufactured approximately 1.29 million vehicles at production facilities in Europe.

Are European cars better than Japanese? ›

Asian and European cars and the many brands within them are known for their main characteristics. In general Asian cars are more reliable, cheaper to repair and have a longer lifespan. European cars often perform better on the road, are more expensive to repair and are considered more luxurious.

Is it OK to buy an imported car from Japan? ›

”The majority of the parts are the same as their UK variant unless they have an engine which is specific to, for example, Japan. Only then do the issues occur and supply and demand rule comes in, plus a repair will take longer and cost more. “The main issues around imported vehicles is usually identifying them.

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