BY COMFORT OGBONNA
Tesla is planning a significant expansion in Japan as it seeks to strengthen its presence in one of Asia’s most challenging auto markets and become the country’s top imported car brand as early as next year.
The U.S. electric vehicle maker intends to increase its retail footprint across Japan to at least 60 stores, a move aimed at boosting brand visibility and improving customer access to its vehicles. The company’s Japan head, Richi Hashimoto, announced the plan on Friday while outlining Tesla’s long-term growth strategy in the country.
Tesla has been steadily investing in Japan over the past two years by expanding both its sales network and its service infrastructure. The company has also focused heavily on training staff and improving customer engagement, steps that Hashimoto says have helped accelerate sales growth despite the country’s relatively slow adoption of fully electric vehicles.
Japan remains one of the world’s largest automobile markets, but it has been slower than many other advanced economies to embrace battery-powered vehicles. While EV adoption has surged in parts of Europe, China, and the United States, Japanese consumers have traditionally favored hybrid vehicles.
Tesla’s renewed focus on Japan also comes at a time when global EV sales growth has slowed in some key markets. Demand for electric cars has cooled in the United States and parts of Europe, making markets with lower EV penetration increasingly important for automakers seeking future growth.
The expansion strategy was highlighted during an event marking the launch of the new Tesla Model Y L in Japan. The model, designed with families in mind, features six seats and is intended to appeal to a broader range of buyers beyond early EV adopters.
Tesla began accepting orders for the new Model Y L in Japan on Friday, positioning the vehicle as a practical option for households looking to transition from gasoline-powered cars to electric models.
Currently, Tesla operates 35 stores and 14 service centers across the country. Under the new expansion plan, the company intends to grow its service network to around 30 locations while also increasing the number of retail outlets nationwide.
The strategy goes beyond simply increasing the number of showrooms. Tesla’s stores are designed to provide visitors with the opportunity to experience the vehicles firsthand through test drives, a tactic the company believes is essential for persuading traditional drivers to switch to electric cars.
Hashimoto said many potential customers remain hesitant about electric vehicles because they are unfamiliar with the technology. However, those concerns often disappear once drivers experience an EV themselves.
According to him, allowing customers to test drive the cars helps address common worries about range, performance, and overall usability. He noted that expanding stores purely for sales purposes would not necessarily lead to higher demand, emphasizing that the hands-on experience is what ultimately convinces many buyers.
Japan’s market for imported vehicles has long been dominated by European luxury brands. According to the Japan Automobile Importers Association, German manufacturers continue to lead the segment.
In 2025, Mercedes-Benz was the best-selling foreign brand in Japan with nearly 51,000 vehicles sold. It was followed by BMW, Volkswagen, and Audi.
Tesla’s goal of becoming the country’s leading imported car brand would therefore require the company to dramatically increase its sales volume in the coming years.
At the same time, competition in the electric vehicle segment is increasing as major automakers expand their EV lineups. Japanese manufacturers such as Toyota, Suzuki, and Nissan have all introduced electric models, while Chinese EV giant BYD has also entered the Japanese market.
Despite these developments, Japan remains one of the slowest major economies to fully embrace electric vehicles. Hybrid models remain far more popular among Japanese drivers, partly because of concerns about charging infrastructure and driving range.
However, some industry analysts believe changing economic conditions could accelerate the shift toward electric vehicles. Rising fuel prices, which have been affected by geopolitical tensions and the ongoing war in the Middle East, may encourage more consumers to consider EVs as a cost-saving alternative to petrol and diesel cars.
Tesla’s local operations have also been working to improve the quality of customer service and sales support. Hashimoto said the company has invested heavily in staff development and training programs to help new employees better understand Tesla’s technology and sales approach.
Currently, about 70% of Tesla’s sales advisers in Japan have been in their roles for less than six months, reflecting the company’s rapid expansion. Improved training programs have helped shorten the time it takes for new staff members to make their first vehicle sale.
The company’s growth momentum in Japan appears to be accelerating. During the first quarter of this year alone, Tesla sold roughly half the total number of vehicles it delivered in the country throughout all of last year.
With expanded retail locations, a growing service network, and new models tailored to local consumers, Tesla hopes to significantly increase its footprint in Japan and challenge long-established foreign automakers in one of the world’s most competitive car markets.
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