Electric vehicle (EV) sales in Japan declined by 33% in 2024, marking the first drop in four years, as hybrid vehicles continued to dominate the market. The decline comes in stark contrast to the global EV market, which recorded a 25% increase in sales during the same period.
Data showed that EV sales in Japan totaled 59,736 units, representing less than 2% of all vehicle sales in the country. Leading domestic automakers, including Nissan Motor, Toyota, and Mitsubishi Motors, saw significant declines, underscoring challenges in shifting consumer preferences away from hybrid models.
Nissan, holding a substantial share of Japan’s EV market, experienced a 44% decline in sales, while Toyota recorded a 30% drop despite a modest rise in demand for its bZ4X electric SUV. Mitsubishi Motors faced the steepest fall, with sales plummeting 64%, and Honda discontinued its only EV model in Japan.
Amid the downturn, foreign automakers saw growth opportunities in Japan’s underperforming EV market. Chinese manufacturer BYD reported strong gains, driven by affordable models such as the Dolphin EV and Seal sedan. South Korea’s Hyundai also achieved notable growth, supported by updates to its Ioniq 5 lineup and plans to introduce a budget-friendly EV by 2025.
While these brands remain behind local leaders in terms of sales volume, their increasing market share highlights the potential for international players to compete in Japan by offering competitively priced and technologically advanced models.
Japan’s strong reliance on hybrid technology and limited EV charging infrastructure remain significant barriers to widespread adoption of fully electric vehicles. Hybrid models, known for their fuel efficiency and lower upfront costs, continue to dominate the country’s roads.
As global EV sales are forecast to grow by 30% in 2025, Japanese automakers face mounting pressure to accelerate their transition to electric models. With international competitors gaining traction, the country’s auto industry may need to reassess its strategies to keep pace with the evolving global market.
Source: Nikkei Asia