BYD breaks into Toyota-dominated Japan as EV sales climb

Can BYD compete with Toyota on its home turf? According to the latest sales data, BYD accounted for nearly 3% of Japan’s EV market in the first half of 2024. And that’s after launching its first EV in the region just last year.

BYD launched its first EV, the Atto 3, in Japan in January 2023. A year and a half later, the Chinese automaker is already making a big statement as it cuts into Japan’s hard-to-crack auto market.

According to the Japan Automobile Importers Association (JAIA), Japan’s imports fell 7% YOY (113,887) in the first half of 2024. As always, luxury automakers like Mercedes, BMW, and Audi held the biggest share of imports.

However, imports of electric vehicles are on the rise. The data shows EV imports were up 17% and accounted for nearly 10% (10,785) of car imports in the first half of the year.

BYD led the charge in Japan as EV sales continued climbing. BYD passenger car imports rose 184% (980) compared to 1H 2023.

BYD breaks into Japan with EV sales climbing

Following the Atto 3, BYD has launched other top-selling EVs, including its Dolphin and Seal models. BYD introduced the Seal EV in Japan last month, starting at ¥5.28 million, or around $33,100.

BYD continues gaining ground in Japan with a wide range of affordable electric cars. The Seal is BYD’s answer to the Tesla Model 3, while the Atto 3 is a low-cost electric SUV.

The Atto 3 starts at just under $30,000 (¥4.4 million). Meanwhile, the Dolphin, which competes with Toyota’s Prius and the Nissan LEAF, starts at just $24,500 (¥3.63 million).

BYD’s sales fell last month, but the automaker still moved up from No. 19 to No. 14 on Japan’s auto importer list.

Lower government subsidies have led to slower growth, but BYD’s Japan president, Atsuki Tofukuji, says new EV models will help boost sales. BYD plans to launch at least one car every year in Japan.

By the end of 2024, BYD plans to nearly double the number of sales outlets in Japan. It wants 90 showrooms in the region, up from around 55. By 2025, BYD aims to sell 30,000 vehicles in Japan to cut into Toyota’s home market.

Update 7/30/24: Toyota’s global sales fell over 5% in the first half of 2024 partly driven by BYD’s EV price cuts in key auto markets like China, Thailand, and even Japan.

Electrek’s Take

Japanese automakers like Toyota, Honda, and Nissan dominate Japan’s auto market. Toyota alone accounts for over a third of car sales.

Although most imports are still luxury cars, EVs are starting to gain market share in Japan’s (seemingly) impenetrable auto market.

BYD is best known for its affordable EVs. Meanwhile, the company is building its lineup to include pickups, luxury vehicles, and electric supercars as it looks to break into new markets.

Japan isn’t the only market in which BYD is gaining ground. The automaker is launching new EVs in South Korea, Mexico, Europe, Thailand, Brazil, and many others. It’s also building EV plants in Europe, Thailand, Mexico, and other regions as it expands outside China.

Will BYD continue gaining market share in Japan? Or will Toyota (and other Japanese automakers) finally step up and challenge BYD at its own game? Let us know your thoughts in the comments.

Source: CarNewsChina, JAIA