by Tesla’s Success in the Japanese Electric Vehicle Market
Although for most of the year Tesla’s sales have significantly declined in many key markets such as Europe, the USA, and Australia, the situation in Japan is radically different. In 2025, sales of the American brand have sharply increased, and it may soon overtake Nissan as the most popular electric vehicle manufacturer in the country.
Sales Dynamics
From January to August 2025, approximately 6,590 new Tesla cars were sold in Japan. This represents significant growth of 87% compared to the previous year and already exceeds the brand’s most successful year in the country—2022, when 5,900 vehicles were sold. Tesla models were particularly popular in August, with around 980 sales, which is more than double the figure for August of last year.
Currently, Tesla is behind Nissan by only about 100 electric vehicle sales since the start of the year. Nissan has held the title of the most popular electric vehicle manufacturer in Japan for nearly 15 years thanks to the Leaf model.
Impact of Pricing Policy
Aggressive price reductions have contributed to Tesla’s rapid rise in popularity. In May, the company lowered the price of the Model 3 by 453,000 yen (approximately $3,000), reducing its cost to 3.99 million yen or $26,800. Thanks to government subsidies, a new Model 3 can be purchased even cheaper.
Network Expansion
Elon Musk’s company also aims to expand its physical presence in various regions of the country. According to Tesla Japan manager Richie Hashimoto, the company will open new dealerships in large shopping centers to increase brand recognition. Currently, it has 25 locations in the country, and by 2026 their number could double to approximately 50.
Currently, Tesla holds about 30% of Japan’s electric vehicle market. The Supercharger network will also be expanded from the current 130 stations, providing convenient and fast charging for electric vehicle owners.
By the end of this year, Tesla could sell up to 10,000 electric vehicles in Japan. This is a good result for a company facing difficulties in many other markets.
These achievements highlight how important local strategies are for global brands. Adapting to market conditions, such as price affordability and network infrastructure, can radically change positions even in traditionally conservative markets like Japan. Tesla’s growth here may also stimulate other manufacturers to take more active actions in this region.
