Toyota's Electric Vehicle Sales Plummet to Just 18 Units in Japan

Toyota sold just 18 electric vehicles in Japan last month, while the rest of its global sales came from overseas markets. The company's hybrid sales are up 10% in Japan, with over 603,600 hybrids sold. Despite a lack of government support and limited options, several automakers, including Honda and BYD, are launching more affordable EVs.

Toyota Motor Corp. reported a significant decline in electric vehicle (EV) sales in its home market of Japan, selling just 18 units last month. This marked a stark contrast to its robust global EV sales, with 17,038 units sold overseas Toyota sold a mere 18 EVs in its home market last month^[1]. The company's hybrid sales, however, surged by nearly 10% in Japan, with over 603,600 models sold Toyota sold a mere 18 EVs in its home market last month^[1].

The downturn in Japan's EV market is not limited to Toyota. Bloomberg reports that the country has lagged behind other major markets in EV adoption due to limited government support and fewer EV options compared to gas-powered hybrids Toyota sold a mere 18 EVs in its home market last month^[1]. This trend is reflected in the overall market, where EVs are expected to account for only about 3.4% of new car sales in Japan this year Toyota sold a mere 18 EVs in its home market last month^[1].

Despite the challenges, several automakers are launching more affordable EVs to capture the Japanese market. For instance, BYD, which has seen explosive growth in other markets, has struggled to gain traction in Japan. The company has offered discounts of up to ¥1 million ($6,700) on its vehicles to boost sales Toyota sold a mere 18 EVs in its home market last month^[1]. Honda and BYD are also planning to launch more affordable EVs that will compete with existing models like the Nissan Sakura and Honda N-ONE e Toyota sold a mere 18 EVs in its home market last month^[1].

Toyota's global sales in August rose just over 1% from a year earlier, with a record monthly high in overseas markets. However, sales in Japan fell by more than 10% Toyota Buoyed by China, North America as Japan Sales Slump^[2]. The company's annual profit guidance was also revised downward due to trade turmoil, including President Donald Trump's tariffs on cars and car parts imported to the US Toyota Buoyed by China, North America as Japan Sales Slump^[2].

These developments underscore the complexities of the EV market in Japan, where hybrid vehicles continue to dominate, and government support remains crucial for broader EV adoption. As automakers like Toyota, Honda, and BYD introduce more affordable EV options, the market dynamics are likely to evolve, presenting both opportunities and challenges.