Another likely concern are the vehicle electrification requirements.

Takahiro Hachigo, CEO of Honda, has said that Honda will withdraw from F1 in the 2021 season. This is so that the company can focus its technology on the electrification of its mass production models, in line with the aim of reaching carbon neutrality by 2050.

Carbon neutral means that the net weight of carbon dioxide (CO2) emitted from manufacturing is exactly canceled out by CO2 absorbed by forestry and nature. In other words there will be no net emission of greenhouse gases.

In his October 2020 keynote address, Prime Minister Yoshihide Suga declared the goal of attaining carbon neutrality (i.e. no net emission of greenhouse gas) by 2050. Accompanying the speech, the Ministry of Economy, Trade and Industry announced the "Green Growth Strategy Through Achieving Carbon Neutrality" in 2020 December. The ministry set the goal of the complete electrification of automobiles—including kei cars—by 2035. In addition, Prime Minister Suga expressed strong desire to electrify domestic cars during his general statement of public policy to the ordinary diet, reiterating that 2035 is the expected year of completion.

In response to the turn of events, automobile manufacturers emphasize that the Japan Automobile Manufacturers Association defines 'vehicle electrification' as the installation of electrification technologies in all cars, including hybrid cars, plug-in hybrid, EV (electric vehicles), and fuel cell vehicles. In part, they concerned about biased articles claiming that 'electrification equals EV'.