Tesla is Outpacing Nissan in Electric Vehicle Sales in the Most Unexpected Place | Carscoops

      Price reductions and swift expansion are enabling Tesla to compete with a local leader in one of its most challenging markets.

      Tesla might soon overtake Nissan, which has dominated Japan’s electric vehicle market for 15 years.

      Recent price reductions have resulted in a notable increase in demand for the Model 3 throughout the country.

      The electric vehicle manufacturer is also planning to double its showroom presence across the nation.

      Throughout most of the year, Tesla's sales have experienced a decline in several key markets, including Europe, the United States, and Australia. In contrast, Japan presents a different scenario. In fact, during 2025, Tesla's sales have risen significantly, positioning the American brand to potentially surpass Nissan as the top-selling EV brand in the country.

      From January to August, around 6,590 new Teslas were sold in Japan. This marks an impressive 87 percent increase over the previous year, already exceeding the brand's best performance in Japan, which was 5,900 sales in 2022. Tesla vehicles were particularly well-received in August, with approximately 980 units sold, more than double the amount sold in August of last year.

      Closing in on Nissan, Tesla is currently trailing by about 100 electric vehicle sales. Nissan has been the leading EV seller in Japan for nearly 15 years, largely due to the success of the Leaf, according to Nikkei Asia.

      Tesla's growing popularity is largely attributed to aggressive price reductions. In May, the price of the Model 3 was cut by 453,000 yen (around $3,000), lowering the retail price to 3.99 million yen or $26,800. When accounting for government subsidies, the actual cost for buyers is even lower, further enhancing its attractiveness.

      Nissan's advantage could be the upcoming launch of the next-generation Leaf. While sales for the new model won’t start until later this year, this may create mixed outcomes: it could renew interest once it debuts, but could also deter buyers from opting for the current model that is still available.

      Expanding Locations

      Elon Musk’s company is also aiming to enhance its physical footprint across the country. According to Tesla Japan chief Richi Hashimoto, the company plans to open new dealerships in major shipping hubs to further increase brand visibility. Currently, Tesla operates 25 locations in Japan, which could increase to roughly 50 by 2026.

      At present, Tesla holds about a 30 percent share of Japan’s EV market. The network of Superchargers is also set to grow from the current 130 sites, allowing owners to conveniently and quickly charge their vehicles.

      By the end of this year, it’s possible that Tesla may reach sales of up to 10,000 EVs in Japan, an impressive feat for a company facing challenges in many other markets.