This was a historical day for BYD, China’s largest and fastest-growing automaker in the EV space, after overtaking Japanese manufacturer Toyota’s market share for 2024 electric vehicles in the market. For many years, Toyota had ruled this market without an alternative brand taking the leadership seat.
According to recent data from the Japan Automobile Dealer Association, BYD sold 2,223 electric vehicles in Japan throughout 2024, representing a remarkable 54% increase compared to the previous year. Toyota’s EV sales fell sharply by 30%, totaling just 2,038 units. This decline is particularly noteworthy given that total EV sales across Japan experienced a downturn of 33%, marking the first year-over-year decrease in four years.
Key Models That Are Helping BYD
BYD started its journey in the Japanese market early in 2023 with the launch of its first model, the Atto 3 SUV, priced at around $30,000. This strategic move was followed by the introduction of other models, such as the Dolphin hatchback and the Seal sedan. It seems that the Dolphin, starting from around 2.99 million yen ($19,000), is becoming the new challenger of established models, like the Toyota Prius and Nissan LEAF. Meanwhile, Seal, which hit the market in June 2023, and positions against Tesla’s Model 3, is the new leader as the top imported EV sold in Japan.
Future Plans: Expansion of BYD Footprint
Looking forward, BYD will expand its stronghold in Japan by launching the new upcoming model of the Sealion 07, a smart mid-size electric SUV, later this year. This will be BYD’s fourth product in Japan, although it aims at taking advantage of the massive demand for more flexible and modern electric vehicles.
Industry Response: New Balance of Powers
BYD has been successful in Japan at a time when traditional automakers face more severe challenges than ever. Even Toyota, which once stood behind over a third of Japan’s auto market last year, is experiencing increased stiffening lately due to the changed preferences of consumers towards cheaper and diversified options of electricity offered by BYD and other similar companies. Given this declining sales trend of the legacy car manufacturers and their rising competition, the rapid upward trajectory of BYD is sure to reshape the very face of automotive.
ELCTRIK Speaks
The rise of BYD to surpass Toyota on EV sales within Japan reveals important changes happening to the car manufacturers. While market demand evolves progressively towards more environmental and electrifying solutions, such success points more to an aggressive market approach at BYD rather than being adaptative to that change. With further plans for expansion and innovation on the horizon, BYD is well-poised to lead the future of electric mobility in Japan and, by extension, around the world.
