Introduction

The electric scooter (e-scooter) market is booming in Europe, the United States, and other countries. In Japan, too, they are beginning to be seen as a convenient means of transportation that avoids the “Three-Cs” of COVID-19. E-scooter sharing services have been provided in Japan since April 2021, and in the future it is expected that the e-scooter market in Japan will be worth approximately \1 trillion in only the shared market. In addition, it is expected to become a popular method for resolving the “last one-mile” issue.

However, e-scooters are not as popular in Japan as they are in Europe and the United States, and one of the reasons for this is the current regulations under the Road Traffic Act (the "Road Traffic Act"), the Road Transport Vehicle Act (the "Vehicle Act"), and the Act on Securing Compensation for Automobile Accidents (the "Automobile Accident Compensation Act").

This blog introduces Japan's current laws and regulations, issues, and trends in the deregulation thereof.

Outline of Laws and Regulations Applicable to Electric Scooters

Since e-scooters typically have a rated output of 0.60 kW or less, they are generally classified as "Motorized Bicycles" under the Road Traffic Act. For this reason, the following regulations on "Motorized Bicycles" are applicable to the use of e-scooters.

Regulations	Base Law
Obligation to Drive/Ride on Roads	Article 17 of the Road Traffic Act
Two-Stage Right Turn Obligation	Article 34, Paragraph 5 of the Road Traffic Act
Obligation to Observe Maximum Speed (30 km/h)	Article 22, Paragraph 1 of the Road Traffic Act and Article 11 of the Enforcement Order of the Road Traffic Act
Obligation to Wear Helmets	Article 71-4, Paragraph 2 of the Road Traffic Act
Obligation to Obtain a Driver's License	Article 84, Paragraph 1 of the Road Traffic Act
Abandonment Penalty (Traffic Penalty Tickets)	Article 44 and Article 51-4, Paragraph 1 of the Road Traffic Act
Obligation to Drive/Ride Vehicles That Meet Safety Standards	Article 44 of the Vehicle Act, Article 62-2-33, Paragraph 3 of the Ordinance for Enforcement of the Vehicle Act, and the Safety Standards for Road Transport Vehicles
Light Vehicle Tax Payment Obligation	Article 463-15(1)(i)(a) of the Local Tax Act
Obligation to Register and Label Number Plates (Motorized Bicycle Number Marks)	Each local government tax ordinance
Obligation to Participate in Automobile Liability Insurance or Mutual Automobile Liability Insurance	Article 2, Paragraph 1 and Article 5 of the Automobile Accident Compensation Act

Page 2 of the "New Mobility" by Ministry of Land, Infrastructure, Transport and Tourism
https://www.mlit.go.jp/common/001352346.pdf

Trends in Deregulation in Recent Years

As described above, there are regulations such as helmet use, acquisition of a driver's license, and the obligation to drive/ride on roads with respect to the use of e-scooters, and it was pointed out that these regulations impede the spread of e-scooters.

Accordingly, in order to consider the traffic rules that should be put in place, in the event that a "New Business Activity Plan" has been approved as a "New Special Measure," regulations on the riding of e-scooters borrowed in accordance with such plan have been relaxed (Article 6, Paragraph 1 and Article 9, Paragraph 1 of the Act on Strengthening Industrial Competitiveness).

First, under the relaxation of regulations in October 2020, it became possible to pass through ordinary bicycle-only lanes when certain conditions were met, such as vehicle standards and a maximum speed of 20 km/h.

Next, in the deregulation of April 2021, e-scooters with a total exhaust volume of 0.020 liters and rated output of over 0.25 kw were regarded as "Special Small Motor Vehicles", and the following rules are newly applied if such electric scooters satisfy certain vehicle standards and have a maximum speed of 15 km/h.

National Police Agency's Webpage titled "Implementation of Verification Tests on Special Scooters"
https://www.keishicho.metro.tokyo.jp/kotsu/doro/dendosukuta.html

As a result of these special measures, several companies in Japan have been certified as having a "New Business Activity Plan", and have started providing e-scooter sharing services in certain regions, such as Shibuya Ward and Osaka City. In addition, there is an increasing number of companies that are newly certified, and, given such trend, it is reported that major foreign companies will also enter into the market in Japan.

Future Challenges and Developments in Creating New Rules

As described above, while deregulation is taking place, it is reported that there have been arrests of e-scooter riders who have been involved in hit and run incidents. Given this, discussions are accelerating toward the creation of optimal rules that balance the convenience of e-scooters with the safety of drivers/riders and pedestrians.

The National Police Agency, which has jurisdiction over the Road Traffic Act, established the "Panel of Experts on the Desirable Traffic Rules, etc. for Diverse Transportation Subjects" and released an interim report in April 2021 based on discussions with experts, manufacturers and others. In this report, the following opinions were expressed regarding future rules for electric scooters with maximum speeds of about 15 km/h. Accordingly, it is expected that rules for electric scooters will be formulated based on these opinions in the future.

Item	Content of Opinions
Method of Passage	It is appropriate to create traffic rules similar to bicycles.
Riding Qualification	A driver's license is not required, but it is appropriate that the driver/rider is at least 16 years of age.
Wearing Helmets	Review and examine the impact of easing the obligation to wear safety helmets, etc.
Riding Location	As a general rule, the correct riding locations are the roadside and road for bicycles; however, vehicles of the same size and maximum speed (6 km/h to 10 km/h) as pedestrian vehicles (electric wheelchairs, etc.) are exceptionally allowed to use the sidewalk under certain conditions.
Vehicle Standards	It is necessary to put in place certain mechanisms such as inspection and type approval to ensure the safety of the vehicle, such as installing rear lamps equipped with reflection plates and brake lamps.
Business Operators	Make efforts to educate users on traffic safety, and consider the specific details.

Summary

In light of the trends set forth above, it is anticipated that rules concerning driving/riding, such as where to drive/ride, the obligation to wear helmets, and driving/riding qualifications will be relaxed to a certain extent in the future. On the other hand, from a safety perspective, rules concerning vehicle standards and certain rules for traders and sharing operators will need to be established.

In the field of mobility, various regulatory reforms have been carried out in line with the emergence of new mobility. Further discussions will be held in the future, based on the expansion of the new market for mobility using new technologies such as e-scooters.

If you have any questions regarding the legal issues related to the introduction of new mobility businesses, such as those relating to e-scooters, please do not hesitate to contact us.