U.S.-brand car sales lag in Japan, highlighting lack of demand

Dear Japan, your letter of tariff trade is in the mail ready to be sent out. You should receive it soon. Thank you.

Tesla sales going up, but from a small sales base. Hard to imagine, but consumers in 'small' South Korea bought approx. 10x more Tesla vehicles than Japan in 2024.

Seems those in SK like the performance, tech, time and cost savings and safety value proposition of Tesla, maybe Japanese consumers should do the same and help reduce the trade deficit!

Tesla has the HIGHEST safety, fewest accidents per mile driven, of all automotive makers in the US, especially cars with FSD.

South Korean automotive consumers among the most sophisticated and demanding in the world, reason why Tesla sales in 2024 were 10x higher there than Japan

Japanese Tesla sales will easily grow 50% in 2025, even with the auto market shrinking, because VALUE sells, and thus helping a bit to reduce the trade deficit!

A big hurdle is the LH/RH configuration. As mentioned, Jeep imports RH drive models but other US makers don't because it's not cost effective.

And RH drive vehicles do not sell well in LH drive countries either.

Because US cars are junk!

Tesla sells right side steering configuration in Japan and other countries where its standard.

Japanese in my area of Tokyo if they own a home, love the convenience of overnight charging at home, as no more dirty gas stations or oil changes and the 'fueling' cost is about 75% cheaper on a per/km basis

Tesla doing its part to help reduce the US trade deficit!

Only the very few American obsessed Japanese drive the hideous, enormous, gas guzzling junk put out by Ford/GM/Chrysler. Everyone else wants something practical and economical.

You couldn’t pay me enough to want to drive an American car in Japan.

Tesla Inc of the United States does not disclose sales by country, but takes up almost all of the "others" category at 4,589 units, an association official said. The EV maker's imports were included in the U.S. figure

Tesla's unit sales for ALL of 2024 were about 5K, so clearly my 'grassroots' Tokyo research was spot on, sales increasing at least 90%, but not sure about seasonality!

Of course and by design.

It costs an and a leg to import a US automobile.

over 30% in of the vehicle's price.

1- Import Duty: 10% of the vehicle's price and shipping costs. ( And Shipping Cost!!! )

2- Consumption Tax (VAT): 20% of the vehicle's value plus any additional fees.

3- Automobile Acquisition Tax: Assessed by customs and must be paid before the vehicle is cleared.

Sourse: Google search

Makes trump 25% look like a reasonable demand!?

Have you seen the size of Yankee cars and compared that to Japanese side streets.

Wrong size may be an issue.

You knows, anti Trump, anti trade bullying etc may also be on Japanese consumer minds.

Jeeps are for men with "size inadequacies " anyway

"" Because US cars are junk! ""

And so are many Japanese cars too except for the expensive ones.

US and Japanese automakers supply autos based of consumers and market trend and demand, there is NO JUNK it's all about affordability $$ and styles.

One mor thing, US and Japanese drivers / consumers habits and driving styles are totally dif. so what you may consider JUNK is actually ART to others and entertainment to others if you get my point !???

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Toyota is still the # 1 Performer in terns of technology, quality control, servicing history.

Why fly baggage when you can go 1stClass for about the same price - with no hassle, ongoing vehicle problems, poor handling, among other drawbacks with American cars.

It's good to know that Japanese consumers, like their counterparts in South Korea, increasingly understand the excellent value proposition of Tesla, sales YTD up +90%!!

As everyone likes the performance, convenience, safety and cost and time savings, plus quiet and environmental!

Japanese cars are the No. 1 car in Japan and the US. Tesla cars in Japan are a very small percentage of the total cars sold. They are too expensive for most people. Repairs are a problem with the lack of dealerships. People prefer hybrids.

New data released in its Impact Report show that Tesla vehicles with Autopilot engaged (mostly highway miles) had just 0.18 accidents per million miles driven, compared to the US vehicle average of 1.53 accidents per million miles.

Better get your facts straight, Tesla has a hugely profitable insurance business because they have the most data. FSD works/see above, anyone serious knowns Tesla is super safe, best tech. etc.

Japan's Consumers figuring know too, sales up +90% YTD!

An exceedingly misleading article..... The biggest selling US "brand" was Stellantis? Fiat, Citroen, Alfa Romeo and Maserati are hardly US brands.

The reason US cars are not popular in Japan is a very simple one. Consumers can buy a better, cheaper and more reliable product that is fully backed by an established dealer network.

However, as Tesla's are often VERY high performance and drivers younger on average, when they do have an accident, it tends to be very severe.

Japanese consumers love safety, and so long as they follow the rules of the road, nothing is safer than a Tesla if you believe the actual 'data', which Japanese consumers do based on current sales trends

Tesla also doing its part to reduce the US trade deficit!

New data released in its Impact Report show that Tesla vehicles with Autopilot engaged (mostly highway miles) had just 0.18 accidents per million miles driven, compared to the US vehicle average of 1.53 accidents per million miles.

Japan's Consumers figuring know too, sales up +90% YTD!

…. to a massive 1,249 vehicles in March. Approximately 500,000 vehicles sold in the same period in Japan. Tesla market share 0.25%. Statistically insignificant.

Key number in article, sales YTD sales figures, as 121K of foreign sales at 7.8% market share means, total unit sales in Japan were just over 1.5M units or about 3.1M annual run rate, far below 2024 which was about 4.4M.

Yet Tesla sales up YTD +90%, clearly the consumer market is bifurcated, expensive/quality selling, but far fewer want to buy cheaper outdated ICE and hybrid cars

Seems the auto industry in a major recession in Japan is the only logical conclusion, about a 30% drop in sales YTD vs. 2024, assuming no seasonality

Numbers always tell the story, yet Tesla up +90% YTD!

Some Americans don't want to accept it (deluded national pride) but the fact is US-made autos and motorbikes are shoddy compared to Japanese and even EU made ones.

The after-service is sub-par for American brands, they are not as reliable as domestic autos, and most importantly, parts are much more expensive to source compared to generic Japanese parts. Quality and fit and finish are also sub-standard on American made autos.

7.8% foreign market share in Japan, which is actually far higher than China, India, EU, South Korea etc.

Any surprise Trump's anxious to 'equalize', as foreign car share of the US market was approx. 53% in 2024.

So, make your cars in Ameria and no tariffs, just like other major auto producing markets above = Logical, as Trump's top priority = US workers & Economic Growth

Japanese manufacturers 3.28 million cars in the US pa.

Japanese manufacturers 3.28 million cars in the US pa.

Add on play the people it employs as well.

why would someone living in Japan buy an American car? The best American car is worse than the worst Japanese car.

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@HopeSpringsEternal - Tesla has a poor performance record. Buyers shying away - especially due to high fatality rate caused by fires in accident where occupants cannot get out bc doors and windows lock.

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Japanese people don't want clunky Pontiacs or Oldsmobiles. They like sleek cars like BMW or Benz. They also want the real ones made in Germany (good quality). Not the garbagy ones made in the USA.

It’s not logical to spend more money on a lower quality product. Not to mention American cars are super ugly.

So long as Makers 'make' their car in important auto markets, including their many parts suppliers there will be no tariffs to worry about. US under Trump, simply 'equalizing', becoming just like EU, China, India, etc.

Expect US auto tariffs to double to 50% once trade deals finalized, plus increased tariffs on pharma and chips, as Trump's giving industries time to reshore as a result, US like other major markets, will soon have few auto imports

t's good to know that Japanese consumers, like their counterparts in South Korea, increasingly understand the excellent value proposition of Tesla, sales YTD up +90%!!

Doesn’t match the actual data. Tesla is down 60% year over year. He was about to be fired so he quit doge.

Tesla has a poor performance record. Buyers shying away - especially due to high fatality rate caused by fires in accident where occupants cannot get out bc doors and windows lock.

Telsa sales up YTD in Japan +90%, Tesla if you believe the data is by far the safest car maker on the planet, +8X safer according to the data just released below. Plus, the car requires almost zero maintenance, facts are facts.

New data released in its Impact Report show that Tesla vehicles with Autopilot engaged (mostly highway miles) had just 0.18 accidents per million miles driven, compared to the US vehicle average of 1.53 accidents per million miles.

Japanese consumers are becoming more like their savvy South Korean counterparts, where Tesla sales were +10X greater than in Japan for 2024

Teslas and all US-made cars are not built with 100% American parts. There is no such thing as an American-made car.

The US economy is 90% service industries. 10% manufacturing.

Teslas have exploded into flames, and in some cases, burned down the house of the owner.

Tesla vehicles sold in America have BY FAR highest US content in 2024, +80% and % going up daily. Just like Tesla's sold in EU or China, VERY high local content

Houses catch on fire, cars inside garages burn too, but Tesla has by far fewest accidents per mile/km driven, data is much more reliable than biased posters, why Telsa sales up +90% YTD while overall sales down (30%)

New data released in its Impact Report show that Tesla vehicles with Autopilot engaged (mostly highway miles) had just 0.18 accidents per million miles driven, compared to the US vehicle average of 1.53 accidents per million miles.

Tesla vehicles...

Don't have LIDAR (Elon Musk's bad idea) and they don't work as well and are more expensive than BYD. BYD will put Tesla out of business. But what might happen with Tesla is another Chinese maker will buy them (maybe BYD to enter the US market) and just use the Tesla name brand as a shell (Without Musk). Kind of what happened with the AT&T name brand. Tesla is dead last in important markets like Thailand and China. BYD number one!

The recharging of EVs, Teslas, e-scooters, and e-bikes has caused a considerable number of major fires, with some people losing their homes. Something that needs looking into by the authorities.

I'd quite like a Tesla, because not many electric cars have 4wd and Teslas are high performance. The main reason though is that I buy used cars only, and Tesla depreciate like crazy. Buying one like taking a big wad of your money and setting fire to it in front of your house in full view of the neighbours.

It means I can buy a Tesla that was 11 million yen five years ago for two and a half million with under 50,000km on the clock/battery. By contrast, a ten year old Toyota Alphard that is 10 years old and was 5 million yen will still cost you 2.5 million yen or so with 100,000 km on the clock. I normally don't spend over a million yen on a used car, but would make an exception and stretch to 2.5 million for one if if did 0-60 in under 4 seconds (kind of bucket list thing) and I wouldn't have to pay for fuel.

 one if if did 0-60 in under 4 seconds (kind of bucket list thing) and I wouldn't have to pay for fuel.

Many E-cars (NOT Tesla) do this and better and for a much cheaper price. It would not be a bucket list.

The BYD Seal's 0-60 mph acceleration time varies depending on the drivetrain. The single-motor, rear-wheel-drive (RWD) version accelerates from 0-60 mph in 5.9 seconds, while the dual-motor, all-wheel-drive (AWD) version achieves it in 3.8 seconds. The AWD model also boasts 530 horsepower.  The 530 horsepower BYD Seal with all-wheel drive (AWD) has a starting price of around $31,200 in China

(Sourced information)

BYE BYE Tesla. Can't wait for BYD to enter the US market and make a foot out of ELON.

BYD SEAL also has LiDAR. Tesla doesn't it seems.

GuruMick

Have you seen the size of Yankee cars and compared that to Japanese side streets.

Wrong size may be an issue.

I see plenty of Alphards/Vellfires, HiAces, and Land Cruisers. So, size is not as much of an issue with US vehicles as many here seem to imply. It's mostly because of lack of available models with RHD.

I see Jeeps all the time. Some Teslas, as well. Although, not nearly as many as Jeeps. So, the market for US brand vehicles is there, as long as they're RHD. Once Cadillac starts selling RHD models here, which they recently announced, I guarantee we'll be seeing them more often on the streets. (LHD models have been available. )

Fighto!

Some Americans don't want to accept it (deluded national pride) but the fact is US-made autos and motorbikes are shoddy compared to Japanese and even EU made ones.

That's just incorrect, at least for autos. A number of US brands rank just below Lexus in the JD Power 2025 dependability survey, well above any of the German brands.

Mercedes, BMW, and especially VW/Audi are certainly not known for reliability. (Hence the origin of BMW=Burn My Wallet.) Yet, they sell incredibly well in Japan. At least in Kansai, where they're all over the roads. Same for Alfa, Renault, Peugeot, also not considered the most reliable automobiles.

nishikat

Japanese people don't want clunky Pontiacs or Oldsmobiles. They like sleek cars like BMW or Benz. They also want the real ones made in Germany (good quality). Not the garbagy ones made in the USA.

BTW, my "German" Mercedes is made in Mexico. My previous Mercedes was made in Hungary. Some of my VWs back in the US were also made in Mexico. Some were actually made in Germany. I had an "American" Chevy that was made in Canada, and an Acura made in Ohio. At least my Jaguar was made in the UK. But, it was the worst quality of all of them. OTOH, it was the most beautiful.

FYI, Pontiac and Oldsmobile haven't existed for 15 years. We've been over this before.

I love Jeeps.

Do they include foreign built Japanese cars imported into Japan in these numbers?

Nissans from the UK and every Honda Fit in Japan was made in Thailand.

American cars wouldn't sell very well even with 0% tariffs.

In other words, they are far removed from consumer needs.

Tesla's brand image is better than China's but still low, and if you were to buy a car, Mercedes, BMW, Audi, etc. would likely be the top choices.

American cars that ignore Japanese consumers are unlikely to sell in the future.

wallaceToday  10:22 am JST

The recharging of EVs, Teslas, e-scooters, and e-bikes has caused a considerable number of major fires, with some people losing their homes. Something that needs looking into by the authorities.

The old 'authorities' argument, impressive!

Meanwhile, batteries becoming safer daily, as tech. improves. But houses do burn down, and cars get destroyed in the process and if people have old homes, as aging and faulty electrical wiring fires often occur

There have been no Tesla 'car' fires ever reported in Japan, but plenty of homes burn down every day. Tesla is the world's safest automobile, why Telsa sales up +90% YTD in Japan, while overall sales down (30%)

New data released in its Impact Report show that Tesla vehicles with Autopilot engaged (mostly highway miles) had just 0.18 accidents per million miles driven, compared to the US vehicle average of 1.53 accidents per million miles.

There have been no Tesla 'car' fires ever reported in Japan, but plenty of homes burn down every day. Tesla is the world's safest automobile, why Telsa sales up +90% YTD in Japan, while overall sales down (30%)

There are fewer than 12,000 Teslas in Japan. Many owners do not have home charging because they live in apartment blocks.

Tesla vehicles have been involved in some fires in Japan, these incidents are not unique to Tesla and do not necessarily indicate a higher risk compared to other vehicles.

https://www.tiktok.com/@fleurbelle4949/video/7220460766019865862

American cars can't be forced on Japanese consumers.

Obviously nobody on this board has been watch the streaming drama "Duster."

Japan, which does not impose tariffs on imported cars

This is a very fake statement and a lie. Not sure what is the purpose for this misinformation.

The tarrifs are actually hidden in various taxes, such as Import Duty tax 10%, Consumption Tax +10%, Automobile Aquisition tax + various Customs taxes with go up or more than another 10%.

I see plenty of Alphards/Vellfires, HiAces, and Land Cruisers. So, size is not as much of an issue with US vehicles as many here seem to imply. It's mostly because of lack of available models with RHD.

I used to live next door to a bloke with an awesome Vellfire. He kept it in a monthly car park two blocks away because that's the closest he could get to the apartment building.

BTW, my "German" Mercedes is made in Mexico. My previous Mercedes was made in Hungary. 

Yeah, the cheap ones are.

Not only are American car brands unwilling or unable to make the compact, efficient and reliable cars that most of the non-US world wants, but even when they do export, they invariably fail to invest in dealer networks, service networks and parts provision. Cadillac is trying to relaunch in Australia, but plans to have no dealers, and only one "experience centre," in the whole of Melbourne- a city of 5 million. I give them 5 years max.

i'd be quite happy to buy a us made van here---something very different from a hiace, where i am the crumple zone.

Market choices should be available, and then consumer will decide their preferences based on their tastes.

https://www.forbes.com/sites/bradtempleton/2023/04/26/tesla-again-paints-a-very-misleading-story-with-their-crash-data/

lack of demand

There is no lack of demand, there's only lack of money. They can immediately buy me a parking lot and a U.S. brand car at any price they like. So is the very easy deal, I bring what I have, my demand, and they bring, what they have, big money and the car. lol

The tarrifs are actually hidden in various taxes, such as Import Duty tax 10%, Consumption Tax +10%, Automobile Aquisition tax + various Customs taxes with go up or more than another 10%

Wrong... There is NO import duty (tax ) on cars into Japan. So no, there are no customs taxes.

Consumption Tax +10% is paid on the purchase of all imported cars but ALSO on all domestic cars too.

It is really simple, better cars are available here for the same or usually cheaper cost. The end.

With better marketing, demand can be created. It's still very early for JT highlighting and declaring lack of demand.

Amazing, Japan's domestic auto sales are down approx. 30% YTD thru June, vs. 2024 and yet Tesla sales YTD are up over 90%!

Consumers love the cost savings, performance, time savings, environmental, tech capabilities and style! Plus, the per the data, +8X fewer accidents than average on US roads, per 1 million miles driven!

Any surprise South Korea bought +10x as many Tesla cars as Japan for the year 2024, seems consumers here finally figuring out the great value proposition!

Teslas are the smallest car market in Japan with less than 12,000 models sold. Lack of dealerships and at ¥12 million plus, too expensive for most.

nishikatJuly 5  09:20 am JST

Japanese people don't want clunky Pontiacs or Oldsmobiles. They like sleek cars like BMW or Benz. 

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Umm, Pontiac and Oldsmobiles are no longer made. Oldsmobile shut down in 2004 and Pontiac in 2010

wallaceToday  01:07 pm JST

Teslas are the smallest car market in Japan with less than 12,000 models sold.

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Porsche sells fewer, as does Jeep. I am sure there are others (Rolls Royce, Lamborghini, etc)

In the first quarter of 2025, Tesla sales in Japan saw a 56% increase, reaching 2,120 units.

The price of a new Rolls-Royce in Japan can vary significantly based on the model and specific options chosen, but generally ranges from ¥30 million to over ¥100 million.

 Lamborghini, are ¥40million to ¥1 billion.

Most American cars are assembled but not made in America, and require replacement parts that are not made in America. Japan (and many other countries) will eventually just pull out of all trade with the US because the rules and costs of trade are changing too rapidly for any normal business.

The fact that the dollar is falling and the US deficit is rising may make US models cheap enough and US vendors desperate enough for Japan some day to try again, but now is not the time.

Tesla enjoying great sales % success, +90% YTD vs. 2024, in Japan's rapidly shrinking auto market, because of the merits of ownership. Plenty of Tesla models can be purchased for 5M Yen or less.

Telsa's save owners time and money, especially if they can charge overnight at home and require very little maintenance, plus considered the world's safest car with the most advanced safety systems.

Good time to buy now FYI, as Japan may increase tariffs on Tesla's soon, depending upon trade negotiations!

It's worth repeating, why should Japan have only 7.8% imports YTD, even with Tesla's impressive +90% sales increase YTD, while US had 53% for all of 2024?

Japanese auto and parts makers will need to build in the US, as importing will be too cost prohibitive, especially as Trump will raise auto tariffs to 50% very soon, as the industry is rapidly increasing US domestic production

It worth repeating, that Tesla does not break out car sales by country, but clever analysts can 'plug' their sales. For 2024 their Japan unit sales were about 5K, while little South Korea about 53K if memory serves

Tesla Inc of United States does not disclose sales by country, but takes up almost all of the "others" category at 4,589 units, an association official said. EV maker's imports were included in the U.S. figure.

Tesla YTD thru June sales of 4.6K if annualized, would be 92% increase, at 9.2K. Likely their sales strongly trending up, so expect +100% increase for FY 2025, regarding Tesla unit sales in Japan, maybe even higher

As wealthier people, including in Japan, like to save time, money, value their safety, prefer high performance, quiet, environmental etc., thus Tesla's well positioned!

In the first quarter of 2025, Tesla in Japan sold 2,120 units,

first quarter of 2025, Tesla in Japan sold 2,120 units,

Tesla Inc of United States does not disclose sales by country, but takes up almost all of the "others" category at 4,589 units, an association official said. EV maker's imports were included in the U.S. figure

One can then deduct if the above figure correct, that Tesla sold 2,469 units in 2Q of this year, or 349 more than 1Q, for +15% growth in just one quarter.

Impressive and again, Tesla's YTD thru June sales of 4.6K units, 92% more than prior year, meanwhile Japan's auto market SHRINKING approx. (30%) YTD thru June

Tesla on a roll in Japan, makes sense, as the value proposition of time and cost savings is serious, plus considered safest car in the world, high performance, environmental and very quiet, South Koreans love Tesla!