Electric vehicle manufacturer Tesla is aggressively expanding its retail footprint in Japan, setting its sights on becoming the nation’s leading foreign automotive brand within the next year, according to the company’s Japan division head.
Richi Hashimoto, Tesla’s country manager, announced Friday that the company plans to operate at least 60 retail locations as part of its ambitious growth strategy in Japan. This expansion comes as Tesla launched its Model Y L, a six-seat family-oriented vehicle designed to appeal beyond early technology adopters.
“We want to aim to become the number one imported car brand, possibly as early as next year,” Hashimoto stated during the Model Y L launch event, describing the company’s medium and long-term objectives for the Japanese market.
The American electric vehicle manufacturer currently operates 35 retail stores and 14 service facilities across Japan, with plans to more than double its service network to approximately 30 locations. Last year, Tesla delivered just over 10,000 vehicles in the country.
Hashimoto emphasized that Tesla’s retail strategy focuses on providing test drive opportunities to address consumer hesitations about transitioning from gasoline-powered vehicles to electric alternatives.
“Simply increasing stores to sell cars doesn’t make customers buy,” Hashimoto explained, noting that driver concerns typically disappear once they experience driving an electric vehicle.
Tesla’s expansion occurs as electric vehicle sales have significantly declined in the United States and other major global markets, making regions with lower electric vehicle adoption increasingly valuable for the company’s growth.
German luxury manufacturers have historically dominated Japan’s imported vehicle market, according to Japan Automobile Importers Association statistics. Mercedes-Benz led foreign brands in 2025 with nearly 51,000 units sold, followed by BMW, Volkswagen, and Audi.
Japan remains among the slowest major economies to embrace fully electric vehicles, with consumers showing strong preference for hybrid technology despite electric vehicle launches from Toyota, Suzuki, Nissan, and China’s BYD.
Industry analysts suggest that fuel price concerns, intensified by Middle Eastern conflicts, may encourage more Japanese consumers to consider switching from gasoline and diesel vehicles to electric alternatives.
Tesla Japan has prioritized staff development, including comprehensive training for sales advisors, approximately 70% of whom have been in their positions for less than six months, according to Hashimoto. This investment has reduced the time required for new employees to complete their first sale.
During the first quarter of this year, Tesla achieved roughly half of its total 2023 sales volume in Japan, Hashimoto reported.
