Tesla Model 3 Sales in Japan Surge 1,300% Year-Over-Year

Following Tesla Model 3 price cuts in Japan, the country saw a major increase in demand for Tesla’s cars, and particularly, for the company’s Model 3 sedan.

In March, the Tesla Model 3 increased sales by 1,300% year-over-year, going from just 44 units in March 2020 to 588 units in 2021, as reported by Yahoo News Japan (via Teslarati). The increase in sales bumped Tesla up to compete with some of Japan’s most popular foreign brands like Fiat and Land Rover, which sold a total of 739 and 689 units, respectively.

According to Tesla officials speaking to Yahoo News, they said the following, as per Google Translate of the article: “Sales are extremely strong. The delivery period has been extended to 24 weeks. The long range is the most popular. Young people who buy a car for the first time as if they were buying a smartphone. There are many purchases.”

The Model 3’s prices decreased in March by 17% for the Standard Range+ and by 24% for the Long Range Dual Motor Rear Wheel Drive, both contributing to the increase in demand. Japan also increased government subsidies for electric vehicles (EVs) from 400,000 yen to 800,000 yen, or from 300,000 yen to 450,000 yen, for those that qualify for the lower incentive.

Like many countries and other municipalities, Japan has considered banning new gas car sales by the mid-2030s, though it has yet to make any firm decisions on the matter.

Alongside the race to popularize EVs, the race for the first and best autonomous vehicle is well underway, with Tesla’s Full Self-Driving (FSD) already released in a limited beta format, and with Japanese automaker Honda releasing the world’s first Level 3 autonomous EV. Tesla’s FSD, despite being so widely used, is still only at a Level 2 autonomy.