BYD has officially outsold Toyota in Japan’s all-electric vehicle (EV) market for the first time. This marks a significant milestone for the Shenzhen-based automaker, which continues to expand its footprint beyond China.
According to the Japan Automobile Dealer Association (via CarNewsChina), BYD sold 2,223 electric vehicles in 2024, a remarkable 54% increase from the previous year. Meanwhile, Toyota’s EV sales fell by 30%, totalling just 2,038 units. This shift is a stark indication of changing consumer preferences and the growing presence of BYD in a market historically dominated by Toyota.
BYD made its debut in Japan’s EV market in 2023 with the Atto 3 crossover, also known internationally as Yuan Plus. Priced at approximately $30,000, the Atto 3 was strategically positioned to compete with popular domestic vehicles such as the Toyota RAV4 and Honda CR-V.
Following the Atto 3, BYD introduced the Dolphin hatchback and the Seal EV sedan. The Dolphin, with a starting price of 2.99 million yen ($19,000), has become a competitive alternative to Japan’s top-selling cars like the Toyota Prius and Nissan Leaf.
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The Seal sedan, launched in mid-2024, quickly gained popularity, rivaling Tesla’s Model 3 with its premium features and a competitive price tag of 5.28 million yen ($33,500).
BYD also plans to introduce its fourth model, the Sealion 07 electric SUV, in 2025. This smart mid-size SUV is expected to further solidify BYD’s position in the Japanese EV market.
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Despite BYD’s success, Japan’s overall EV market faced challenges in 2024. Total EV sales dropped by 33% to 59,736 units, marking the first decline in four years. The EV share in Japan remains under 2%, the lowest among developed markets, signaling a reluctance among Japanese consumers to transition from traditional combustion engines to electric vehicles.
Nissan, the market leader with a 50% share, experienced a significant 44% drop in EV sales, recording 30,749 units sold. Sales of the Sakura, an electric kei car, declined by 38%, while the Nissan Leaf saw an even steeper drop of 48%.
Toyota’s first EV, the bZ4X crossover, saw a modest 10% increase in sales, but with only 1,012 units sold in 2024, its performance was underwhelming. Priced at 5.5 million yen ($34,800), the bZ4X faces stiff competition from BYD’s more affordable options.
Among imported EV brands, Tesla continues to dominate, with BYD trailing at approximately 40% of Tesla’s sales volume in Japan. BYD’s rapid growth can be attributed to its competitive pricing and strategic market positioning. The company has also announced plans to open 100 stores in Japan by 2025, signaling its commitment to expanding its presence in the region.
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BYD’s success in Japan represents a shift in the global automotive landscape. After establishing dominance in China by offering affordable and efficient EVs, BYD is now leveraging its strengths to challenge legacy automakers in international markets.
Japan, known for its conservative approach to new technology adoption, is beginning to feel the pressure from emerging players like BYD. With an expanding lineup of affordable, high-quality electric vehicles, BYD is well-positioned to accelerate Japan’s transition to EVs.