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Japan's top-selling EV isn't a Tesla, but a budget-friendly compact car

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【Summary】Nissan's Sakura, a small electric vehicle developed in collaboration with Mitsubishi Motors, has become the best-selling EV in Japan, outselling Tesla. The Sakura's compact size and affordable price of ¥2 million ($13,300) make it popular among Japanese drivers, especially those living outside major cities. However, the success of the Sakura and similar kei cars is unique to the Japanese market and may not translate to global sales due to safety and regulatory constraints.

FutureCar Staff    Oct 25, 2023 6:24 AM PT
Japan's top-selling EV isn't a Tesla, but a budget-friendly compact car

Japanese car makers and customers have gained a reputation for being slow to adopt electric vehicles (EVs), but there is evidence of progress in this area. Nissan Motor's Sakura, developed in collaboration with Mitsubishi Motors and sold as the eK X, has emerged as the best-selling EV in Japan this year. The Sakura and eK X models, which jointly won Japan's Car of the Year award in 2022, account for approximately half of all EV sales in the country, with 35,099 units sold so far this year.

The Sakura and eK X are considered kei cars, which are small and boxy vehicles that are well-suited for navigating Japan's narrow roads. These EVs offer better fuel economy and lower taxes, making them popular among workers and families living outside major cities where public transportation is limited. Despite having a more limited range of about 180km, the Sakura can be fully charged overnight using a household outlet.

Many customers purchase the Sakura as an additional car for running errands around town. The affordability and convenience of the Sakura have attracted buyers like Takatoshi Ehara, who replaced his family's hybrid vehicle with the Sakura because their children had grown older and they no longer needed a larger car. The price of the Sakura, around ¥2 million ($13,300) after government subsidies, makes it an accessible EV for all.

The success of the Sakura and eK X in Japan's EV market contrasts with the overall subdued demand for EVs in the country. Fully electric cars accounted for just 1.5% of new-car sales in Japan last year. However, other domestic manufacturers like Suzuki Motor, Toyota Motor, Daihatsu, and Honda Motor are also planning to introduce kei EVs in the coming years.

While the Sakura and eK X have found success in Japan, they face challenges in the global market due to collision standards, engine displacement regulations, and top speeds. Additionally, kei cars are not suitable for US roads. Despite these limitations, Nissan remains optimistic about its EV sales, leveraging its dealership network and experience in selling EVs, particularly with the Leaf model. Nissan plans to launch 19 EV models by 2030 and adopt solid-state batteries by 2028.

However, the transition to EVs in Japan still faces obstacles. High prices, inadequate charging infrastructure, and the availability of hybrid options have hindered the widespread adoption of fully electric cars. Hybrids accounted for about half of the cars sold in Japan in September. While battery EVs may see significant demand in China and some European nations, the US market is expected to lag behind. In Japan, EVs are unlikely to capture 50% of the market share in the near future.

Despite these challenges, EV owners like Yoshinori Suwa appreciate the cost savings and convenience of EV ownership. The subsidy and assistance from Nissan in installing a charging system at Suwa's home in Fukushima have made the Sakura's cost comparable to that of a second-hand car. Suwa highlights the cheap running cost of the Sakura and the freedom from refueling petrol and changing oil as the most satisfying aspects of owning an EV.

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