Japanese automotive industry is facing a crisis just as the rest of the world is seeing automotive industry fall apart. This crisis comes in the wake of transition from fossils to renewable energy. The automotive industry has not been able to keep up with the change in trends of the world and has not gone through any major reform in the past few decades. Now with climatic concerns rising the demand to reduce carbon emissions is increasing more than ever and the major cause of these emissions are the automobiles. Japanese automotive sector also has been thrashed due to this trend and is facing issues. But the as the Japanese tech industry is strong it is helping the auto industry with the transition to the electric vehicles market. The Japanese automotive are now gearing towards the electric vehicles development which is the only alternative for the industry to thrive. With dropping sales all over the world Nissan has announced major cuts in the industry along with many other Japanese automotive giants. Japan is eyeing the automotive IC market now to retain its name in top manufacturers. Toyota is expected to launch all new electric vehicle range soon. The transition of the automotive industry is something that the Japanese market desperately needs as the industry is a huge part of the Japanese economy. Japanese government is also urging the investors to invest in the automotive sector and new alliances with other research organizations are also paving the way for new reforms in the industry.