Tesla, the world’s leading electric vehicle (EV) manufacturer, is boldly venturing into uncharted territory overseas. For the first time last year, a team secured a historic win on its home turf.
For the first time ever, BYD’s electric vehicle (EV) sales in Japan exceeded those of Toyota in 2024.
After forcing legacy automakers to reevaluate their strategy in the Chinese market with its affordable and increasingly popular electric vehicles, BYD is poised to make significant inroads into foreign markets.
BYD introduced its inaugural electric vehicle (EV), the Atto 3, to the Japanese market in early 2023. Starting around $30,000, this sport utility vehicle rivals conventional family cars such as the Toyota RAV4 and Honda CR-V. The Hyundai Kona Electric also competes directly with other electric vehicles (EVs) in the marketplace, including the Toyota bZ4X and Nissan Ariya.
In its inaugural year of full-scale sales, BYD has surprisingly surpassed Toyota’s electric vehicle (EV) sales in Japan during the same period. Given Toyota’s stronghold on Japan’s automotive market, this achievement takes on even greater significance.
According to the Japan Vehicle Vendor Association, BYD supplied 2,223 electric vehicles in 2024. Compared, Toyota sold just 2,038 electric vehicles in its domestic market last year.
By the end of 2022, BYD’s electric vehicle (EV) gross sales jumped a remarkable 54% year-over-year (YoY), while Toyota’s EV sales declined by 30% in the same period. Since its inception in 2023, Chinese automaker BYD has successfully introduced several best-selling models, including the popular Dolphin hatchback and Seal sedan.
Priced competitively at approximately $19,000 or 2.99 million yen, the Dolphin enters a crowded market alongside bestsellers such as the Toyota Prius and Nissan LEAF.
Following the launch of the Seal in June, widely regarded as BYD’s response to the Tesla Model 3, the Chinese automaker’s electric sedan had already become the best-selling imported electric vehicle (EV) in Japan by August. The BYD Seal starts at approximately ¥5.28 million, equivalent to around $38,000.
BYD is poised to make a splash in 2025 with the upcoming launch of the Sealion 07, a cutting-edge, practical mid-size electric SUV set to hit Japanese markets.
Japan’s electric vehicle (EV) market experienced a significant downturn, with total gross sales plummeting 33% to approximately 59,500 units in 2024, marking the first annual decline in four years. Despite a significant decline in LEAF sales, roughly 50% down to 30,749 units in 2023, Nissan maintained its market lead with a substantial share. Despite a 10% increase in Toyota’s bZ4X sales, only 1,012 units were sold in 2024. Toyota’s new electric SUV starts at 5.5 million yen, equivalent to approximately $35,000.
Electrek’s Take
Following a decline in Chinese market share, a crucial market for Japanese automotive companies, BYD is surging ahead with significant gains in its home market.
Despite its modest size, BYD’s entry into the Japanese market is a remarkable development. Japanese consumers have traditionally proven challenging for foreign companies to crack, presenting a formidable obstacle to overcome. Luxurious car brands such as Mercedes-Benz, Porsche, and BMW have long been eclipsed by domestic automotive giants in terms of Japanese auto sales.
Toyota dominated nearly one-third of the market share in the last year alone. Following its historic achievement of surpassing Nissan and Honda as the world’s top-selling automaker last year, BYD is now poised to accelerate growth in 2025 with strategic planning in place.
As China’s electric vehicle (EV) sector continues to gain momentum, the influx of innovative models is expected to expand globally, with key markets including Europe, Southeast Asia, Central, and South America experiencing a surge in new fashion launches. Will BYD overtake Toyota as the world’s top-selling automaker? As the automotive industry transitions towards electric vehicles (EVs), BYD is accelerating its growth trajectory while Toyota struggles to gain traction in crucial markets.
