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Japan's EV sales fall on lower demand in January

  • Market: Battery materials, Metals
  • 06/02/24

Japan's sales of domestic passenger electric vehicle (EVs) in January fell from a year earlier, mostly because of lower consumption. But imported EV sales are growing and remain a key growth driver.

Japan's domestic passenger EV sales totalled 4,658 units in January, down by 45pc, according to preliminary data from industry group the Automobile Dealers Association, the Japan Light Motor Vehicle and Motorcycle Association, and Japan Automobile Importers Association (JAIA).

Sales of light passenger EVs fell to 2,625 units, down by 49pc on the year, falling from higher consumption during January 2023 when sales exceeded 5,000 units. Light cars are defined as vehicles with a length, height and width of less than 3.4m, 2m and 1.48m respectively and an engine capacity below 0.66 litres, which is the Japanese standard.

Ordinary passenger EV sales also declined to 2,033 units, down by 40pc from a year earlier. But imported EV sales continued growing with 1,186 units sold during January, up by 11pc on the year, according to JAIA, remaining the main driver of growth in the ordinary-sized passenger vehicle market.

China's BYD passenger EV sales grew by almost 10 times to 198 units from a year earlier, when the Chinese maker first started selling in the Japanese market. The firm introduced its new model Dolphin in last September, which accelerated BYD's sales, a JAIA representative told Argus. "Tesla may be a well-known EV producer but other brands including BYD, Mercedes, BMW, Audi are also increasing their sales in the Japanese market."

Japan's largest car producer Toyota doubled its EV sales from the previous year to 28,000 units globally during October-December, according to its latest financial statements released on 6 February. But its EV share in total sales remained low at around 1pc.


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