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| Nissan’s Sakura |
Declining Demand for Domestic Brands Offsets Growth in Foreign EV Sales
Japan’s domestic electric vehicle (EV) sales saw a sharp decline in 2024, falling by 33% due to weakening 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) indicate that total EV sales amounted to 59,736 units from January to December 2024, a significant drop compared to 2023.
Decline in Market Share and Domestic Brand Sales
The share of EVs in Japan’s total passenger vehicle market also shrank, dropping 0.7 percentage points to 1.5%. Domestic EV sales struggled throughout 2024, posting year-on-year declines every month. The downturn is primarily due to reduced demand for domestic EV models, which saw a steep 46% decrease in sales, totaling 35,679 units for the year. Notably, Nissan’s Sakura, a leading domestic EV, suffered a 38% sales drop, reaching only 22,926 units.
Foreign EV Sales Continue to Grow
In contrast to domestic brands, foreign automakers experienced a continued rise in EV sales. Foreign brand EVs increased by 5.3% year-on-year to approximately 24,000 units in 2024, marking the sixth consecutive year of annual growth. This segment now represents roughly 40% of Japan’s total passenger EV market, indicating shifting consumer preferences towards international EV offerings.
The declining domestic EV sales raise concerns over Japan’s competitiveness in the rapidly evolving EV industry. With global automakers advancing in battery technology and affordability, Japanese manufacturers may need to accelerate innovation and strategic shifts to regain market share.
