SOMPO’s EV Test Drive Events Aim to Ease Consumer Anxiety and Accelerate Adoption

Introduction: Reducing Range Anxiety, One Test Drive at a Time

In Japan, the electric vehicle (EV) transition faces a series of hurdles — from limited charging infrastructure to skepticism about battery longevity. SOMPO Direct, an insurance arm of SOMPO Holdings, is stepping in to change that narrative. Hosting its third EV test drive event at the popular Futako-Tamagawa Rise shopping complex in Tokyo, the company is looking to do more than just promote car insurance. By letting curious consumers get behind the wheel of the latest EVs from brands like Volkswagen, BYD, and Hyundai, SOMPO hopes to demystify electric driving, reduce psychological barriers, and ultimately boost both EV purchases and EV-specific insurance policies.

the Original

SOMPO Direct Insurance, under the umbrella of SOMPO Holdings, organized its third EV test drive event on July 11 at the Futako-Tamagawa Rise commercial facility in Tokyo. The initiative was designed to provide hands-on experience for potential EV buyers, aiming to reduce their anxieties and encourage them to make the switch from gasoline-powered vehicles. This event was exclusive to 30 winners among the current policyholders of SOMPO’s “Otona no Jidousha Hoken” (Adult Auto Insurance).

Participants test drove vehicles from five major EV manufacturers including Germany’s Volkswagen, China’s BYD, and South Korea’s Hyundai. Feedback was largely positive. One man in his 50s noted that EVs drive just like gasoline cars, although he expressed concern over the lack of charging stations at his condominium.

To address this kind of concern, SOMPO featured insurance booths at the event, offering information on EV-specific services — such as emergency towing to charging stations or rapid on-site charging if a vehicle runs out of battery. These added services are part of their tailored insurance packages.

SOMPO plans to continue hosting such events, with Executive Director Masaya Hirao emphasizing the importance of “seeing, touching, and riding” to ease consumer concerns.

Despite such efforts, EV sales in Japan remain sluggish. For the first half of 2025, EV sales, including kei cars (mini vehicles), fell 7% year-over-year to 27,321 units — marking the second consecutive annual decline for that period. EVs now account for just 1.4% of all new cars sold in Japan, down 0.2 percentage points. The ongoing challenges include insufficient charging infrastructure and a lack of exciting new EV models entering the market.

What Undercode Say:

SOMPO’s latest move represents more than just an insurance marketing gimmick — it’s a pragmatic step toward accelerating EV adoption in Japan, where cultural conservatism and infrastructure limitations have slowed progress.

Japan’s EV penetration rate significantly lags behind countries like China and Norway, where proactive government incentives and charging infrastructure are abundant. The decline in EV sales in the first half of 2025 signals a plateau that could turn into regression without stronger consumer engagement and policy support.

SOMPO’s initiative addresses one of the most underestimated roadblocks: consumer psychology. By making EVs tangible — letting people sit inside, drive, and compare across brands — SOMPO leverages experiential marketing to dissolve myths around EV performance, comfort, and usability. The concern voiced by one participant about charging at home is emblematic of broader logistical issues. Without sufficient urban charging solutions, even a positive test drive won’t convert skeptics.

Importantly, SOMPO’s decision to bundle practical insurance services like emergency charging reflects a forward-thinking, customer-first mindset. It turns insurance from a reactive product into a proactive support system — a shift that may define the next generation of mobility insurance.

However, the long-term success of such initiatives depends on ecosystem coordination. Automakers must continue to release appealing new EV models. Municipalities need to fast-track public charging installations. And insurers like SOMPO must stay ahead of evolving EV user needs, including battery coverage, resale value protection, and subscription-based insurance models.

In this light, SOMPO’s events should be seen as a necessary catalyst, not a silver bullet. They may not solve infrastructure issues, but they shift the mindset — and in Japan’s cautious market, that shift is monumental.

🔍 Fact Checker Results:

✅ Verified: EV sales in Japan declined 7% in the first half of 2025 — accurate per industry data.
✅ Verified: The share of EVs in total new car sales dropped to 1.4% — confirmed by auto industry statistics.
✅ Verified: SOMPO’s insurance includes emergency battery support — confirmed by official SOMPO documentation.

📊 Prediction:

Expect an uptick in hybrid and EV insurance policyholders within SOMPO’s customer base over the next 12 months, particularly among urban dwellers who frequent these events. If SOMPO scales this initiative nationwide, it could pressure competitors to create similar EV-centric insurance experiences. That said, unless Japan dramatically scales up its EV charging network, EV growth will remain incremental — driven by curiosity, not necessity.