The automotive industry in Japan is known for its competitiveness and demanding work environment, which can potentially impact employee engagement and organizational culture. Organizational culture refers to the shared values, beliefs, and behaviors that mould the overall working environment and atmosphere within a company. It plays an important role in employee engagement, which is the extent to which workers are emotionally committed to their work, the organization's goals, and its success. A positive organizational culture fosters employee engagement by providing a supportive and inclusive environment where employees feel valued, motivated, and empowered to contribute their best. This, hence, leads to increased productivity, higher job satisfaction, and lower turnover rates, ultimately benefiting the organization as a whole. Leadership plays a crucial role in driving employee engagement and shaping organizational culture. The study adopted the descriptive research design. The target population was 5 automotive firms in Japan. The study did sampling of 3 respondents that were selected from the target population of 5 automotive firms in Japan. Questionnaires were used to collect the data. The study concluded that factors such as long working hours, hierarchical structures, and traditional management practices impact employee engagement and the development of a positive culture. These challenges need to be addressed by automotive firms in Japan to create a work environment that promotes employee well-being, encourages open communication, supports work-life balance, and embraces innovative approaches. It was recommended that automotive firms in Japan should prioritize creating a work environment that encourages open communication and collaboration among employees at all levels. To enhance employee engagement and promote a positive organizational culture, automotive firms in Japan should invest in employee development and well-being programs.