Smart pricing and charging network help Tesla dominate Japan with 87% growth

Tesla is having a breakout year in Japan, even as sales falter in other parts of the world.

While the American automaker has seen declining deliveries across Europe, the United States, and Australia, its fortunes in Japan have taken a dramatic turn.

From January through August 2025, Tesla sales have surged by 87 percent compared to last year, making the brand one of the hottest EV players in the market.

At this pace, the company is on track to overtake Nissan as Japan’s best-selling EV brand by the end of the year.

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Tesla is on the verge of dethroning Nissan in Japan

In 2023, the top-selling EV in Japan was a tiny kei car called the Nissan Sakura, cementing the carmaker’s spot on top.

These days, Nissan relies heavily on the affordable Leaf to maintain its lead.

However, with a new generation model not arriving until later this year, buyers appear hesitant to commit to the outgoing version.

This delay may be giving Tesla an opening to seize the crown.

Between January and August, the US carmaker sold approximately 6,590 vehicles in Japan.

That number not only marks an 87 percent leap from the prior year but also surpasses the company’s best-ever year in the country, which was 2022 with 5,900 sales.

Tesla delivered about 980 units in August alone, which is more than double the same month last year.

Year-to-date, it is now trailing Nissan by only around 100 EV sales, putting the long-standing leader at risk of losing its 15-year streak at the top.

Japan is a bright spot in Tesla’s fortunes

Aggressive pricing has played a major role in Tesla’s success.

In May, the company slashed the price of the Model 3 by 453,000 yen (around $3,000), bringing it down to 3.99 million yen ($26,800).

With government subsidies applied, Japanese buyers are getting an even better deal, helping Tesla expand its appeal beyond early adopters to more budget-conscious customers.

Beyond price, infrastructure is another pillar of growth.

The company operates 25 retail locations across the country and plans to nearly double that figure to 50 by 2026.

Its charging network is also expanding, with over 130 Supercharger sites already in operation and more planned.

Currently, Tesla holds about 30 percent of Japan’s EV market share, a remarkable achievement in a country historically resistant to foreign carmakers.

If sales momentum continues, the company could sell up to 10,000 EVs in Japan by year’s end.

Considering Tesla sales aren’t doing too well in markets like Europe, Japan is shaping up to be a bright spot for the carmaker.

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