While Tesla sales are sluggish in major markets around the world, sales in Japan are on the rise, an unusual phenomenon.
According to data from the Japan Automobile Importers Association (JAIA), Tesla sales in Japan from January to March 2025 reached a record high of 2,120 units, up 56% year-on-year. In particular, sales of 1,249 units in March alone surged 89% year-on-year, setting a new monthly record.
This stands in stark contrast to Tesla sales sluggishness in the US and Europe. During the same period, Tesla’s global sales fell 13%, the lowest in three years. According to market research firm Marklines, Tesla sales in China and the US fell 30% and 10%, respectively, in January and February, while sales in Europe plummeted by a whopping 40%. The industry points to CEO Musk’s political remarks, consumer backlash following successive workforce cuts, and the spread of boycotts as the main causes.
On the other hand, in Japan, the electric vehicle market itself is relatively immature, and the lack of electric vehicle lineups by Japanese automakers is having a positive effect on Tesla’s sales growth. Currently, Japanese brands are selling only eight models, including the Nissan Leaf and Toyota bZ4X, as electric vehicles, and sales of these models are decreasing by 32% and 76%, respectively, and are not able to avoid sluggish sales. The total electric vehicle sales of Japanese automakers from January to March were 2,063 units, which is less than Tesla’s sales.
S&P Global Mobility analyzed that 75% of general electric vehicle sales in Japan are imported vehicles, and Tesla and BYD account for about 30% of these.
Meanwhile, imported vehicle companies such as BYD and Hyundai are accelerating their conquest of the Japanese market by leading the way with low-priced electric vehicles in the 2 million JPY (about 14,000 USD) range, and Tesla is also implementing aggressive sales strategies such as improved versions of the Model Y and free charger usage benefits to clear out inventory of older models.
