Japan's Domestic EV Sales Plummet in 2024

Japan EV

Sales of domestic passenger electric vehicles (EVs) in Japan experienced a sharp decline in 2024, primarily driven by weaker demand for domestic EV brands. Preliminary data from the Automobile Dealers Association, the Japan Light Motor Vehicle and Motorcycle Association, and the Japan Automobile Importers Association (JAIA) show total EV sales of 59,736 units in January-December 2024, a significant 33% drop from 2023.

Decline in Market Share and Domestic Brand Sales

The share of EVs in total passenger vehicle sales also decreased, falling by 0.7 percentage points to 1.5%. The Japanese domestic EV market has been sluggish throughout 2024, with year-on-year sales declines every month. This downturn is largely attributed to lower demand for domestic EV brands, with sales falling by approximately 46% to 35,679 units in 2024.  Sales of Nissan's Sakura, a top-selling domestic EV, dropped by 38% to 22,926 units.

Growth in Foreign EV Sales

In contrast to the declining domestic sales, foreign brand passenger EVs maintained strong demand in 2024. Sales increased by 5.3% year-on-year to around 24,000 units, marking the sixth consecutive year of annual growth. Foreign brand EVs now account for approximately 40% of total passenger EV sales in Japan.