BYD Outsells Toyota In Japan In 2024: A Turning Point In Japan’s EV Industry

BYD has accomplished what many thought unimaginable: outselling Toyota in electric vehicle (EV) sales on its home turf. This historic achievement in 2024 marks a momentous turning point in Japan’s automotive landscape and signals the growing competitive pressure from Chinese EV automakers.

The numbers tell a compelling story. BYD delivered 2,223 EVs in Japan during 2024, representing a 54% increase from the previous year. In contrast, Toyota’s EV sales in its domestic market declined by 30%, with just 2,038 units sold according to the Japan Automobile Dealer Association. This achievement becomes even more noteworthy considering that BYD only entered the Japanese market in early 2023.

BYD’s success can be attributed to its strategic approach to the Japanese market, beginning with the introduction of the ATTO 3 (known as the Yuan Plus in China) in January 2023. The company quickly expanded its lineup with the Dolphin hatchback and Seal sedan, positioning each model to compete directly with established domestic offerings.

The Dolphin, priced competitively at 2.99 million yen (around $19,000), challenges popular models like the Toyota Prius and Nissan LEAF, while the Seal, introduced in June 2024, has already become Japan’s top-selling imported EV.

The broader context of Japan’s EV market makes BYD’s achievement particularly significant. Overall EV sales in Japan actually declined by 33% in 2024 to just below 60,000 units, marking the first year-over-year decrease in four years. This decline highlights Japan’s notably low EV adoption rate, with EVs representing less than 2% of total vehicle sales—the lowest among developed markets.

Nissan remains the overall market leader in Japan’s EV sector, controlling about 50% of the market despite experiencing significant sales declines. The company’s LEAF model saw sales drop by 48%, while its electric kei car, the Sakura, experienced a 38% decrease in sales to 22,926 units.

Toyota’s struggle in the EV segment is evident in the sales performance of its bZ4X crossover. Despite a 10% increase in sales, only 1,012 units were sold in 2024. Priced at 5.5 million yen ($35,000), the bZ4X faces stiff competition from more affordable alternatives.

Furthermore, BYD is preparing to strengthen its position further with the planned launch of the Sealion 07 EV in Japan later this year. This new model, which has already been introduced in several European markets and Thailand, will be BYD’s fourth offering in Japan. The company has also announced plans to expand its retail presence significantly, aiming to operate 100 stores in Japan by 2025.

The success of BYD in Japan represents more than just impressive sales figures; it symbolizes a broader shift in the global automotive industry. A Chinese manufacturer achieving such success in Japan, long considered a fortress for domestic automakers, indicates the rapidly evolving nature of the EV market and the increasing competitiveness of Chinese EV automakers.

Read More: BYD Soars To New Heights: 4.27 Million NEVs Sold In 2024

While Tesla remains the leading imported EV brand in Japan, with BYD’s sales representing about 40% of Tesla’s volume, BYD’s rapid growth and expanding presence suggest that the competition in Japan’s EV market is far from over. As traditional automotive powerhouses like Toyota face increasing pressure to accelerate their EV programs, the success of companies like BYD may serve as a catalyst for faster innovation and more competitive pricing in the Japanese market.

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