By Daisuke Narahashi and Yuiko Sakashita / Yomiuri Shimbun Staff Writers
17:06 JST, November 1, 2025
Foreign companies are increasing their presence in Japan's electric vehicle market.
From April to September, foreign makers' combined market share exceeded 50%, owing to their wide range of products offered at reasonable prices. It is the first time ever for the figure to cross that threshold over a six-month period.
From 2026, however, Japanese automakers are scheduled to release one new EV model after another, and competition in the market is likely to change at dizzying speed.
BYD Co.'s booth is attracting the most attention at the Japan Mobility Show 2025, which opened to the public on Friday at the international exhibition center Tokyo Big Sight in Koto Ward, Tokyo.
The Racco minicar model, which will be released in the summer of 2026, is the Chinese EV maker's first model designed exclusively for overseas markets.
"I'm interested in the price and the interior," said a 48-year-old company employee visting the exhibition. "I want to test-drive the model as soon as possible."
Though the price of the Racco model has not been disclosed, experts assume that it could cost around ¥2 million, depending on how much will be covered by a subsidy for purchasing eco-friendly vehicles.
In Japan, minicars account for about 40% of new car sales.
Officials of the Japanese auto industry are paying close attention to the Chinese model.
An executive of a major Japanese automaker said it "is the most curious model at the Japan Mobility Show this year."
The number of EVs sold in Japan from April to September was 28,501, up 3% from a year ago. Of them, about 16,000, or 58%, were imported.
When gasoline-powered cars are factored in, the total market share of imported vehicles falls to 8%, demonstrating a commanding presence of foreign makers in the EV market.
U.S. maker Tesla Inc. is the main driver of the increased presence. The company does not disclose specific sales data for Japan. However, statistics from an industry association show that for the same six-month period there were 5,946 sales of vehicles in a category labeled "others," of which Tesla accounts for the bulk. That is more than double the same period last year.
Foreign makers have been expanding their lineups.
As of this June, foreign makers had 173 models on offer, a more-than-eight-fold increase from 20 models in 2020. Japanese makers, on the other hand, had only about 10 models on offer as of the same month.
EVs account for only 1% of new car sales in Japan. However, foreign makers have been lowering their prices in an attempt to lure in more customers and solidify their business footholds before Japanese makers begin to compete fully for sales.
On the other hand, the market share of Nissan Motor Co., which had been a forerunner in the domestic EV market, was about 30% over the same six-month period, marking a significant drop from about 50% a year ago.
Experts believe that a decline in the company's brand power and a business slump is behind the loss of market share.
Suzuki Motor Corp. debuted a prototype minicar EV model at the exhibition that will be released on the market in fiscal 2026.
Suzuki Motor President Toshihiro Suzuki on Wednesday welcomed BYD's entrance into the minicar market, saying, "What's important is that [minicars] attract attention and the market expands."
"We will keep our distance from merely engaging in price competition," he added.
Sharp Corp., meanwhile, exhibited a minivan-type EV model that will be released in Japan in fiscal 2027. The bodies for the model will be manufactured by a Taiwan business group led by Hon Hai Precision Industry Co. (Foxconn), Sharp's parent company.
"Japanese automakers shouldn't engage in price competition with foreign makers," said Kohei Suzuki of business research firm Fourin Inc. "Instead, they should differentiate themselves with thorough after-sales services that utilize their sales channels."