Key Moments
- Tesla plans to grow its footprint in Japan to at least 60 stores as it targets becoming the country’s largest imported car brand as early as next year.
- The company currently operates 35 stores and 14 service centers in Japan and intends to increase its service network to about 30 locations.
- During the first quarter of this year, Tesla sold roughly half of its total volume in Japan from last year, according to its Japan country manager.
Expansion Strategy in a Cautious EV Market
Tesla plans to ramp up its presence in Japan to at least 60 retail locations as it aims to become the country’s leading imported car brand as soon as next year, the head of its Japan operations said on Friday.
Country manager Richi Hashimoto said that broader store and service-center coverage, along with stepped-up investment in staff training over the past two years, has contributed to Tesla’s sales momentum in Japan, even though electric vehicle uptake in the market remains limited.
The company’s push in Japan comes at a time when demand for battery-powered vehicles has slowed sharply in the United States and other major markets, increasing the strategic significance of regions where EV penetration is still low.
Model Y L Launch Targets Broader Customer Base
Hashimoto outlined Tesla’s medium- and long-term ambitions in Japan during an event marking the introduction of the Model Y L in the country. “We want to aim to become the number one imported car brand, possibly as early as next year,” he said.
The U.S. EV manufacturer, which sold just over 10,000 vehicles in Japan last year, began accepting orders on Friday for the Model Y L, a six-seat model positioned for family use as the company works to expand beyond early adopters.
Retail and Service Network Buildout
At present, Tesla operates 35 stores and 14 service centers in Japan. Hashimoto said the company intends to more than double its service footprint to around 30 sites.
Tesla structures its stores to facilitate test drives, a key component of its strategy to address hesitancy among drivers – especially those accustomed to gasoline-powered vehicles – about switching to electric models.
“Simply increasing stores to sell cars doesn’t make customers buy,” Hashimoto said, noting that many concerns are resolved once customers have the opportunity to drive a vehicle.
| Metric | Current Status in Japan |
|---|---|
| Number of stores | 35 |
| Number of service centers (current) | 14 |
| Planned service locations | About 30 |
| Vehicles sold last year | Just over 10,000 |
Competitive Imported-Car Landscape
Foreign-brand sales in Japan have traditionally been led by German premium manufacturers, based on data from the Japan Automobile Importers Association. Mercedes-Benz was the top foreign marque in 2025 with nearly 51,000 vehicles sold, followed by BMW, Volkswagen and Audi.
Even with electric models introduced by automakers such as Toyota, Suzuki, Nissan and China’s BYD, Japan continues to be one of the slowest major markets to shift to fully electric vehicles, with many consumers favoring hybrid options.
Potential Catalysts and Operational Focus
Some analysts see higher fuel price concerns, intensified by the war in the Middle East, as a possible driver for more Japanese consumers to move from gasoline and diesel vehicles to EVs.
Within Japan, Tesla has put considerable emphasis on upgrading staff capabilities, including enhanced training for sales advisers. Hashimoto said around 70% of these advisers have been in their roles for fewer than six months, and the focus on training has shortened the time it takes new employees to complete their first sale.
Hashimoto added that in the first quarter of this year, Tesla’s sales in Japan reached roughly half of its total volume in the country from last year.
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