Tesla eyes Japan's top imported-car spot as it expands store, service network

TOKYO, April 3 (Reuters) - Tesla TSLA.O plans to expand in Japan to at least 60 stores as it seeks to become the country's biggest imported car brand by as early as next year, the head of its Japan business said on Friday.

Expanded store and service centre coverage and investment in training over the past two years have helped drive Tesla's sales growth in Japan, said country manager Richi Hashimoto, even as electric-vehicle adoption in the country remains modest.

Tesla's expansion in Japan comes as battery-powered car sales have slowed heavily in the U.S. and other key markets globally, increasing the importance of regions where electric vehicle penetration remains low.

"We want to aim to become the number one imported car brand, possibly as early as next year," Hashimoto said at an event to mark the launch of Model Y L in Japan, outlining the company's mid- to long-term goals in the country.

The U.S. EV maker, which sold just over 10,000 vehicles in the country last year, began taking orders on Friday in Japan for the Model Y L, a six-seater geared toward families, as it seeks to broaden its appeal beyond early adopters.

GROWING STORE AND SERVICE NETWORK

At present, Tesla has 35 stores and 14 service centres in the country and plans to more than double its service network to about 30 locations, Hashimoto said.

Unlike traditional dealerships, Tesla's stores are designed to offer test drives, a strategy aimed at easing driver concerns - particularly among those used to driving petrol-powered cars - about switching to EVs.

"Simply increasing stores to sell cars doesn't make customers buy," Hashimoto said, adding that drivers' concerns are often resolved immediately once they drive a vehicle.

Foreign car sales in Japan have long been dominated by German luxury brands, according to data from the Japan Automobile Importers Association.

Mercedes-Benz MBGn.DE was the top-selling foreign brand in 2025 with nearly 51,000 vehicles sold, followed by BMW BMWG.DE, Volkswagen VOWG.DE and Audi.

Despite EV launches by automakers including Toyota 7203.T, Suzuki 7269.T, Nissan 7201.T and China's BYD 002594.SZ, Japan remains one of the slowest major markets to adopt fully electric cars, with consumers preferring hybrids.

Tesla Japan has focused heavily on improving staff quality, including training for sales advisers, around 70% of whom have been in their roles for fewer than six months, Hashimoto said.

That has helped cut the time it takes new hires to make their first sale, he added.

During the first quarter of this year, Tesla sold roughly half of last year's total volume in Japan, he said.