Japan is an interesting place. It’s also a heavily urbanized place; unless you live out in the boonies, and there are some places like that in Japan, you really don’t need a car. In the cities, between the trains, the subways, and the bus systems, you can get around very well. For some time now, electric vehicles have been gaining ground in the Land of the Rising Sun; your typical trip in Japan is shorter, and to obtain a permit for a vehicle, one has to have off-street parking, which is where one can plug in.
Here’s the remarkable bit: Japan’s own automobile industry produces a variety of electric vehicles, but they are facing some serious competition – from Tesla.
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.
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.
Tesla even has what they call a “pop-up store” un Shibuya, which is one of Tokyo’s most famous districts; it’s well known for the famous Shibuya crossing.
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
That’s an interesting piece of video; in fact, that overhead of Shibuya Crossing reminds me that just at the top of the screen to the right, there is a really great ramen joint just around the corner.
Tesla’s not the only EV manufacturer that is breaking into the Japanese market.
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.
This is an interesting phenomenon for several reasons.
See Also: Whoops: CNN Panelist Triggered by Trump’s White House Tesla Event Walks Into Trap of Her Own Making
First, the Japanese market tends to look skeptically at technology from other parts of the world, especially the West. It may be unjustified, but that’s how it is. But the Japanese EVs mentioned, like the Nissan Leaf and the Toyota bZ4X, lack the flash and “cool” factor of the Tesla. The Leafs I’ve seen have been rather plain, unlike the sleek Teslas. That counts for a lot as well, certainly with younger customers.
Second, While the Japanese market may be cautious about foreign tech, there are certainly exceptions. One big status symbol among Japanese bikers – and, yes, there are Japanese bikers – is an actual Harley-Davidson, and there are several big Harley-Davidson dealerships scattered around the Tokyo area. Maybe Tesla is another such example.
And the best thing? You can drive your Tesla around Tokyo, Kyoto, or Osaka without it being keyed, spray-painted, or having your windows smashed.
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