Nissan Forfeited Its EV Sales Lead in Japan for the First Time in Q4 | Carscoops

      Japan's electric vehicle market is undergoing changes as traditional leaders decline, yet electrics still constitute less than 2 percent of new car sales nationwide.

      16 hours ago

      by Brad Anderson

      Sales of electric vehicles from Nissan's competitors surged significantly towards the end of last year.

      Currently, Japan provides EV subsidies of up to $8,300 for each buyer.

      BYD plans to introduce its all-electric Racco kei car this year.

      Electric vehicle sales in Japan have struggled to gain momentum, but shifts are happening. For almost 15 years, Nissan dominated the country's EV market, primarily due to the Leaf. However, this dominance is beginning to wane.

      A slowdown in demand for Nissan’s EVs combined with increasing interest in newer models from competitors has ushered in a new era for the market. For the first time, Nissan has been surpassed as the leading EV brand in quarterly sales, with Toyota taking the lead in Q4 2025.

      According to the latest figures from Japan's automotive industry association, Toyota sold 3,684 EVs domestically in the fourth quarter of 2025, bolstered by the October introduction of the bZ4X. Although this figure remains modest by global standards, it marks a thirteenfold rise compared to the same timeframe in 2024.

      On the other hand, Nissan's electric vehicle sales plummeted by 56 percent to 2,857 units, with both the Leaf and Sakura experiencing dwindling demand in the year's closing months.

      The upward trend was not exclusive to Toyota. As reported by Nikkei Asia, Honda also gained ground, aided by the launch of the N-One e:. With a range of up to 295 kilometers (183 miles) on a single charge, it now holds the record for the longest-range electric minicar available.

      Honda sold 2,732 units in Q4, allowing it to surpass Tesla, which also experienced an increase. Tesla's sales grew by 62 percent year over year, reaching 2,600 units in the quarter.

      EVs Remain a Niche in Japan

      While electric vehicle sales have accelerated globally in recent years, they still make up a small percentage of the Japanese market. Currently, electric vehicles account for merely 1.9 percent of all new car sales in the country, the lowest share among developed economies.

      Several new models expected to launch in 2026 may help improve this figure, and the government is also working to facilitate the transition. This year, eligible buyers can receive up to 1.3 million yen ($8,300) in subsidies to encourage more drivers to consider electric vehicles.

      BYD might soon emerge as a more significant player in the market. The Chinese manufacturer reported a 72 percent rise in Q4 sales, reaching 832 units, and intends to launch its new Racco electric kei car in Japan this year, positioning itself to make a stronger entry into this historically challenging segment.