Tesla is seeing robust sales in Japan. This was hinted at in data from the Japan Automobile Importers Association’s “others” category, which indicated a 56% yearly increase to 2,120 units in Q1 2025.
Tesla constitutes most of the vehicles in the Japan Automobile Importers Association’s “others” category, as noted in a Nikkei Asia report.
Japan’s Tesla Boom
Car sales by “others” in Japan soared 89% to 1,249 units in March, a monthly high, Nikkei noted. Fueling this surge in vehicle demand seemed to be the rollout of the new Model Y, as well as incentives like a five-year free Supercharging offer for previous-generation Model Y units.
Japan’s overall electric vehicle market, however, shrank 33% to 59,736 units in 2024, comprising under 2% of total auto sales, the lowest among major economies. Imports, which include Tesla and BYD, now claim about 75% of overall EV sales in the country.
Shibuya, Tokyo
渋谷駅徒歩1分、渋谷の中心にオープンしたポップアップストア「テスラ渋谷」
テスラ渋谷https://t.co/pl1ltUZEbz pic.twitter.com/vYOgu1kr0r
— Tesla Japan (@teslajapan) April 17, 2025
Weak Local Competition
One of the reasons behind Tesla’s surge in Japan could be the subpar EVs offered by Japanese automakers. So far, only eight models are available from homegrown automakers, and none could really hold a candle to vehicles like the new Model Y in terms of features and performance.
This was highlighted by the Nissan Leaf, which saw a 32% sales drop to 1,133 units, and the Toyota bZ4X, which saw a 76% drop in sales to just 85 units in the first quarter. Combined, Japanese brands sold a total of 2,063 EVs, less than Tesla’s estimated figures for the quarter.
Yoshiaki Kawano, an analyst at S&P Global, noted that the weak EVs from Japan’s homegrown automakers result in consumers opting for imported vehicles like Teslas. “There are few homegrown EV options, so in some cases people who want to buy EVs reluctantly choose imports,” Kawano stated.
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