Tesla expands its store and service network to capture the top spot in Japan's imported car market

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Tesla’s Japan business head said Friday that the company plans to expand to at least 60 stores in Japan, aiming to become the country’s largest importer of automobiles as early as next year.

Richi Hashimoto, Tesla’s manager for Japan, said that over the past two years, Tesla has expanded its coverage of stores and service centers and increased investment in training, which has helped drive sales growth for Tesla in Japan, despite the still-low adoption rate of electric vehicles in the country.

Tesla’s expansion in Japan is happening as sales of battery-powered electric vehicles have slowed sharply in the United States and other major global markets, increasing the importance of regions where EV adoption remains relatively low.

Speaking at an event marking the launch of the Model Y L in Japan, Hashimoto said, “Our goal is to become the No. 1 imported auto brand—possibly as early as next year,” laying out the company’s medium- to long-term goals in Japan.

The U.S. electric-vehicle maker sold just over 10,000 units in Japan last year. On Friday, it began taking orders for the Model Y L in Japan—a six-seat family car—as the company seeks to broaden its appeal to early adopters.

** An expanding store and service network**

Hashimoto said that Tesla currently has 35 stores and 14 service centers in Japan, and plans to expand its service network to more than double that, to about 30 locations.

Unlike traditional dealerships, Tesla’s stores are designed to provide test-drive services. The strategy is intended to ease drivers’ concerns about switching to electric vehicles—especially those who are used to driving gasoline-powered cars.

Hashimoto said, “Simply adding car sales outlets doesn’t make customers buy cars,” adding that drivers’ concerns are often addressed immediately after they drive the vehicle.

According to data from the Japan Automobile Importers Association, foreign cars have long been dominated in Japan’s sales by German luxury brands.

In 2025, Mercedes-Benz became the best-selling foreign brand with sales of nearly 51,000 vehicles. It was followed closely by BMW, VW, and Audi.

Even though automakers such as Toyota, Suzuki, Nissan, and BYD have rolled out electric vehicles, Japan remains one of the major markets that has been adopting all-electric vehicles the slowest, and consumers tend to prefer hybrid cars.

Hashimoto said Tesla Japan places a strong emphasis on improving employee quality, including training for sales consultants. About 70% of its sales consultants have been in their roles for less than six months.

He added that this helps shorten the time new employees take to complete their first sale.

He said that in the first quarter of this year, Tesla’s sales volume in Japan was about half of that of last year.

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