Japan’s electric vehicle market is showing early signs of structural change after Toyota surpassed Nissan in quarterly EV sales for the first time, ending nearly a decade and a half of Nissan dominance.

Toyota’s fourth-quarter surge highlights how product timing and portfolio refreshes are beginning to matter more in a market long resistant to battery-electric vehicles. Nissan’s decline underscores the challenges legacy EV pioneers face as newer competitors introduce fresher platforms.

Honda’s expansion in electric kei cars and Tesla’s steady growth further fragment a market that remains small but increasingly competitive. Analysts note that aggressive government incentives and upcoming model launches in 2026 could accelerate adoption, though Japan still trails global peers by a wide margin.

Source: https://www.carscoops.com/2026/01/nissan-lost-its-ev-sales-lead-in-japan-for-the-first-time-in-q4/