Toyota’s refreshed bZ4X pushes it past Nissan to lead Japan’s EV sales in Q4 2025, as the market stays under 2% of new cars. Learn more now.
For the first time, Toyota has slipped past Nissan to become the leading seller of pure‑electric vehicles in Japan for the fourth quarter of 2025. The surge was driven primarily by the newly refreshed Toyota bZ4X, marking a pivotal shift in a market that has traditionally lagged in EV adoption.
Toyota’s Breakthrough
Toyota delivered 3,684 electric cars in Q4 2025, a staggering 13‑fold increase compared with the same period last year and the highest quarterly total in the company’s history. The uptick was sparked by the launch of the mid‑cycle facelift of the bZ4X in October, complemented by a promotional offer that gave buyers one year of free charging.
Nissan’s Decline
After more than 15 consecutive years at the top, Nissan fell to second place, moving 2,857 EVs – a 56 % drop from the previous year. Its flagship models, the Leaf and the recently introduced Sakura, failed to meet expectations, delivering Nissan its first quarterly loss of the top spot.
Honda’s Surge
Honda posted a breakout quarter with 2,732 electric vehicles sold, up 195 times YoY. The momentum came from the N‑ONE e, launched in September 2025, which offers a 295 km range – the longest among mini‑EVs – and has outshone Nissan’s Sakura in consumer appeal.
Tesla Falls Behind Domestic Giants
Tesla recorded a 62 % growth, moving about 2,600 units, yet for the first time all three Japanese manufacturers (Toyota, Nissan, Honda) outpaced the American EV leader in the same quarter. Tesla is now expanding its sales network in Japan to regain ground.
Market Context
Despite the headline‑making sales, EVs accounted for only 1.9 % of all new car registrations in Japan, the lowest share among developed economies. The current year is seen as a crucial test of market readiness as a wave of new domestic EV models prepares to launch.
Government Incentives
In a bid to accelerate adoption, the Japanese government raised its EV subsidy to a maximum of ¥1.3 million (≈ $8,300) per vehicle earlier this month.
New Models on the Horizon
- Suzuki’s e‑Vitara will debut on 16 January with a starting price of ¥3.99 million (≈ $25,500). After subsidies, the out‑of‑pocket cost drops to just over ¥2.7 million (≈ $17,200).
- Chinese EV maker BYD plans to launch a pure‑electric kei‑car this summer, inspired by Honda’s best‑selling N‑Box. BYD’s EV sales in Japan rose 72 % in Q4 to 832 units, indicating ample room for growth.
- Toyota continues to rely on its Daihatsu subsidiary for kei‑car production rather than developing its own models.
The intense competition among Toyota, Nissan, Honda, and emerging players like BYD signals a rapidly evolving landscape for electric mobility in Japan.