Toyota Motor (TM) reached a new milestone by being the leading battery electric vehicle seller in a quarter. Notably, it was the first time in the auto giant’s history that it led the Japanese auto sector in BEV sales.
The EV sales strength was led by demand for the upgraded bZ4X SUV model and aggressive incentives. Toyota’s quarterly EV sales surged to 3,684 units, which was a quarterly record for the company. Nissan (NSANY), which had dominated Japanese EV sales for roughly 15 years, fell to second place as Leaf and Sakura volumes dropped 56% to 2,857 units, while Honda reached a new high of 2,732 units on strong demand for the N‑ONE e: minicar. Tesla (TSLA) lost market share during the quarter and was outpaced for the first time by all three major domestic automakers in a single quarter.
Despite the gains, all-electric vehicles make up less than 2% of all new vehicle sales in Japan in 2025, reflecting persistent concerns about charging infrastructure, model availability, and pricing. In 2026, electric vehicle demand in Japan is expected to grind higher slowly, rather than bounce sharply, supported by a deeper lineup of domestic and Chinese models, including Suzuki’s (SZKMY) first EV (e Vitara) and BYD’s (BYDDF) upcoming low‑cost minicar, as well as a national subsidy cap lifted to up to 1.3 million yen per vehicle.