According to foreign media reports, Tesla plans to make it in Japan by the end of next yearElectric vehicleThe number of stores has doubled to 50, while its Chinese rival BYD plans to build a sales network of 100 stores in Japan.
Tesla aims to increase the number of stores in Japan from the current 23 to 30 this year, and then expand to 50 in 2026. The company is considering setting a target of 100 in the future.
In Japan, Tesla currently sells cars only online, and most promotions are also carried out online. The company will expand its business by managing more stores to increase customer engagement.
Image credit: Tesla
All new stores will be directly managed by Tesla, most of which will be located in large malls to be more noticeable to consumers. The new stores will focus on promoting the features of Tesla’s electric vehicles and showing consumers the convenience of purchasing a vehicle.
In March this year, Tesla stopped producing two luxury electric vehicles for the Japanese market and is now focusing on mainstream models Model 3 and Model Y.
With the opening of new stores, Tesla plans to further expand its capacity on top of the existing 130 fast charging stations in Japan.
Currently, Tesla’s charging network in Japan adopts its own standards. Since most EV chargers in Japan use the CHAdeMO standard and are not directly compatible with Tesla vehicles, customers who purchase new Tesla EVs will also receive an adapter to charge at CHAdeMO standard charging stations.
Due to poor sales in the Western and Chinese markets, Tesla is tilting its business focus to the Japanese market. The company’s global sales in the second quarter fell 13% year-on-year to 384,122 units, marking the second consecutive quarter of double-digit decline.
According to MarkLines, an automotive industry data provider, Tesla’s sales in the European market have declined most significantly, with sales falling sharply by 34% year-on-year from January to May this year.
While China remains one of Tesla’s most important markets, the rise of local Chinese brands is changing the competitive landscape. According to the data, from January to June this year, BYD’s pure electricCar salesFor the first time, it surpassed Tesla to take the top spot.
Despite Tesla’s global setbacks, sales in Japan are strong. Japanese officials have not yet released specific sales figures, but Tesla is expected to sell about 4,600 units in Japan in the first half of this year, a year-on-year increase of 70%.
Tesla sold about 5,600 vehicles in Japan last year. The company aims to become the top seller of imported cars in Japan by 2027, surpassing current leader Mercedes-Benz – which sold 53,195 vehicles in Japan in 2024.
Tesla’s plans to expand in the Japanese market come as Chinese electric vehicle maker BYD is also expanding its presence in Japan. As of June this year, BYD has 63 stores in Japan and plans to increase to 100 by the end of the year.
BYD offers four models in the Japanese market, including the pure electric SUV Hiace 7. The car was launched in April with a starting price of 4.95 million yen (about $33,500), which is more affordable than the Model Y, which costs around 5 million yen.
In the second half of 2026, BYD will also launch a lightweight micro electric vehicle in Japan. The Chinese automaker has developed a platform that meets Japan’s unique KEI CAR standard and conducted extensive market research to determine what models will sell.
Sales of electric vehicles in Japan continued to be sluggish, with sales falling 7% year-on-year to 27,321 units from January to June this year, marking the second consecutive year of decline in sales in the first half of the year.
Japan’s charging infrastructure is lagging behind, and the public and private sectors lack momentum to drive the transition to electric vehicles. In addition, Japanese manufacturers seem to be underinvesting in developing electric vehicles that are attractive to consumers. These factors have led to the slow electrification transition in Japan.
Toyota, Honda, and Nissan’s next-generation electric vehicles are not expected to be launched simultaneously until around 2026. At the same time, Tesla and BYD have been competing globally and constantly improving their technical strength.
Although global EV sales have plateaued, demand is expected to grow in the long run, and the wave of EV adoption may eventually sweep Japan. If Japanese automakers continue to make slow progress in the electric vehicle sector, they could be seized market share by US and Chinese competitors.