Japanese oil refiner Idemitsu Kosan Co Ltd has announced that its plans to enter into the car market to launch an electric vehicle next year at its 6,400 petrol stations via a joint venture with automaker Tajima Motor Corp.
The move demonstrates how the oil refiner is stepping up its transformation into a supplier of low-carbon energy and materials as local oil demand drops due to a dwindling and aging population that consumes less fuel.
Idemitsu and Tajima will form a new company, called Idemitsu Tajima EV, in April, and aim to unveil their first vehicle in October this year and start retailing the product next year.
The establishments hope the new model, an ultra-compact four-seater electric vehicle with a driving range of up to 120 km and a maximum speed of 60 km per hour, will draw demand from individuals and businesses using cars for short distances for shopping and deliveries.
The car, 2.5 meters long and 1.3 meters wide, is smaller than that of conventional mini-vehicles in Japan.
“We believe there is about 1 million potential demand for ultra-compact EVs as it is safer than a bicycle or small motorbike and easier to drive than conventional mini-vehicle,” Idemitsu President Shunichi Kito stated.
“We plan to offer various services including sharing and subscription of the EV at our 6,400 petrol stations,” he said.