Tesla’s success in Japan offers a clear lesson for struggling electric car makers

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  • Tesla sales in Japan nearly doubled last year.
  • The automaker has significantly increased the number of its showrooms and invested heavily in employee training to achieve this.
  • The Japanese electric vehicle market is still nascent and has plenty of room to grow.

Tesla global deliveries It fell sharply Last year across several major markets, including the US and China, which together account for the bulk of its sales. Still, the automaker nearly doubled its sales in Japan, and the way it achieved that provides a useful lesson for automakers struggling to sell electric cars.

Japan is still a very small market for electric vehicles compared to the United States, China, or even Europe. Of the nearly 3.8 million cars sold in Japan last year, only about 60,677 were battery-electric cars. According to several local news reports. However, Tesla delivered a record 10,600 vehicles in the country, nearly double its 2024 sales.

Tesla has succeeded in increasing its sales in Japan through its intelligence and commitment to the basics of its retail sales strategy. The company began to rely less on online-only orders and more on in-person experiences that closely resembled the traditional selling model. Nikki reported Friday.



2026 Tesla Model Y 7-seat version

Photo by: Tesla

The automaker does not operate franchised dealerships because it sells directly to customers. However, it relies on actual company-owned showrooms that simulate the selling experience, without the markups and bargains.

Things changed for the better in September 2024, Nikki Reports, when Tesla appointed Richie Hashimoto, former head of marketing for Red Bull, as its director in Japan. Under Hashimoto, Tesla opened 16 permanent showrooms in Japan last year, all located inside high-traffic malls, with test drives in parking lots.

This alone was not enough. Tesla has also invested heavily in employee training and education. Japan is still far behind in the EV race, which means most consumers are still probably unfamiliar with EV terminology. In many ways, it’s like learning a new language, which takes time and effort.

“With low brand awareness, only a few people will want to come to a Tesla dealer,” Hashimoto said. Nikki. “We first had to introduce people to Tesla,” he added. At the time, only 10% of Tesla’s sales staff in Japan met his standard for electric vehicle knowledge, even though they were responsible for selling cars.



Tesla store

This problem is not unique to Japan. In the United States, Traditional car dealers are often lukewarm toward EVs Because it disrupts the economy that makes it profitable in the first place. EVs require much less maintenance – no oil changes and fewer moving parts – which means losing key aftermarket revenue.

They also require more advance training for employees and carry higher prices than similar gas vehicles, making them more difficult to move. However, it is objectively better for consumers, with further improvement, cost savings of thousands of dollars over time and More advanced software and technology.

With more Twenty electric cars are scheduled to be launched in the United States in 2026automakers and dealers would be better off investing in training their sales staff and enhancing the presentation of their models in smart ways. If they do not adapt, they risk being left behind. The market will continue to evolve regardless.



2025 Tesla Model 3 Performance (European Specifications)

Photography: Andrei Nedelya

It’s also worth noting that Tesla’s global sales decline has nothing to do with retail execution alone. The company is grappling with an aging vehicle lineup, a pivot toward artificial intelligence and robotics, and, in some markets, a consumer backlash tied to the policies of Chief Executive Elon Musk.

In larger, more mature electric vehicle markets, Tesla also faces stiffer competition than it did before. By contrast, Japan is still an emerging market for electric vehicles, where options are limited and the novelty factor around Tesla has likely not worn off yet.

Other countries where Tesla sales grew in 2025 include Norway, where nearly one in five electric vehicles sold last year were a Tesla, with a total 34,285 units For the year. The automaker reportedly sold 31,549 Model Ys In Türkiyewhich adds significant size to his global stock.

Contact the author: suvrat.kothari@insideevs.com



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