Japan’s Domestic EV Sales Decline for 12th Consecutive Month in October

Japan’s EV

The electric vehicle (EV) market in Japan continued to face challenges in October, with domestic passenger EV sales falling for the 12th straight month. Data from the Automobile Dealers Association, Japan Light Motor Vehicle and Motorcycle Association, and Japan Automobile Importers Association (JAIA) revealed a significant 35.1% year-on-year drop, totaling just 4,325 units sold. Month-on-month, sales decreased by 32.7%.

Declining Market Share for Domestic Brands

Domestic EVs accounted for only 1.3% of Japan’s total passenger car sales in October, down from 2.0% in the same period last year. A key contributor to this decline was the sharp drop in sales of Nissan’s Sakura, one of the best-selling models among Japanese brands. Sakura sales plummeted by 51.6%, recording just 1,448 units.

Imported EVs Remain Resilient Amid Supply Constraints

While foreign-brand EV sales also declined, the drop was less pronounced at 4% year-on-year, with 1,900 units sold in October. Volkswagen, one of the leading foreign brands, faced supply shortages that contributed to the downturn. However, imported EVs accounted for approximately 44% of Japan’s total EV sales, reflecting sustained demand for international models in the domestic market.

Toyota Revises Global EV Sales Outlook

Amid this downward trend, Toyota, Japan’s largest automaker, revised its global EV sales forecast on November 6. The company now expects to sell 160,000 EV units by the fiscal year ending March 31, 2025—a reduction of 11,000 units from its initial projection in May. This revision reflects broader challenges faced by Japanese automakers in the increasingly competitive EV market.

As Japan grapples with declining EV sales and shifting consumer preferences, the automotive industry faces mounting pressure to adapt and innovate.