Chinese EV manufacturer BYD aims to expand its retail network in Japan to 100 outlets by 2025, increasing from over 60 locations. The company currently operates in 36 of Japan’s 47 prefectures.

On April 18, BYD opened a new showroom in Saitama City, featuring its latest models, including the Sealion 07, a sport utility vehicle launched on April 15. This expansion is part of BYD’s strategy to enhance its market presence in Japan.

Additionally, BYD plans to introduce its first plug-in hybrid vehicle (PHV) in Japan later this year. The company indicated that PHVs, which can be charged at home, may serve as a practical option for consumers due to the limited EV-specific charging infrastructure in the country.

Globally, BYD reported sales of 4.27 million vehicles in 2024, surpassing Honda and Nissan. The company’s annual revenue exceeded US$100 billion. Furthermore, BYD is expanding its manufacturing capabilities across Southeast Asia, including partnerships with local firms in Thailand.

🔗 Source: Kyodo News

🧠 Food for thought

1️⃣ BYD’s counter-cyclical expansion in Japan’s declining EV market

BYD’s bold retail expansion comes at a time when Japan’s overall EV market is actually shrinking, not growing.

Japan’s EV sales crashed by 33% in 2024, with only 59,736 units sold, representing less than 2% of total vehicle sales in the country 1.

While domestic manufacturers struggled—Nissan’s EV sales dropped 44%, Toyota’s fell 30%, and Mitsubishi’s plummeted 64%—BYD increased its sales by 54% in this same challenging market 1.

BYD’s introduction of plug-in hybrids specifically addresses Japan’s infrastructure limitations, where charging networks remain underdeveloped despite government plans to install chargers every 70km along highways 2.

This strategic approach of using plug-in hybrids as a bridge technology aligns with Japan’s current market realities while positioning BYD for future growth as the charging infrastructure matures.

2️⃣ Technological foundations supporting BYD’s international confidence

BYD’s expansion strategy is backed by proprietary technology across the entire EV value chain, giving the company unique advantages in foreign markets.

The company has complete expertise in all three core technologies of electric vehicles: batteries, electric motors, and electronic controls, making it less dependent on external suppliers 3.

BYD’s Dual-Mode technology, which allows vehicles to switch between electric and hybrid modes, provides the technical foundation for the plug-in hybrids it plans to introduce in Japan this year 3.

Recent BYD developments