BYD’s EV sales surpassed those of Toyota in Japan, signaling a shift in the energy balance in one of the world’s largest auto markets.
BYD is widely regarded as the new kid in the segment, but is making a big splash in overseas markets normally dominated by domestic automakers. According to Electrek, BYD went on Toyota’s turf and sold more EVs in Japan than any other Japanese automaker, albeit by a small margin. Regardless of the numbers, beating Toyota in a market they barely dominate is a milestone not to be overlooked.
BYD passed Toyota in EV sales in its first year
BYD is gaining popularity worldwide and is now available in more than 70 countries. Cheaper EVs from Chinese automakers have put pressure on leading domestic automakers, and as a result, many older car manufacturers are closing and searching for plants more ways to reduce costs.
The story continues in Japan, where BYD outsold Toyotas in the EV segment in its first year. According to the Japan Automobile Dealers Association via CarNewsChina, BYD sold 2,223 EVs to Toyota’s 2,038. That’s not a huge number nor a difference, but it does indicate that BYD is gaining traction in Japan.
BYD added more EVs to its Japanese offerings, including the Dolphin and Seal, the following year. The Dolphin is an electric hatchback aimed at taking on the Toyota Prius, which blazed the trail for hybrids to become what they are today and the Dolphin also competes with one of the industry’s leading electric cars, the Nissan Leaf.
The BYD Seal, an electric mid-size fastback sedan, was launched in June 2024, and just two months later it was the top-selling imported EV in Japan This year, BYD plans to launch the Sealion 7,000. there will be a midsize electric SUV.
Maybe Toyota is changing its tune on hydrogen
While most other automakers have moved to electrification, Toyota continues to push hydrogen. Fortunately, perhaps – perhaps – the Japanese automaker is changing its tune at least a little. At the very least, it looks like Toyota may be hedging its bet on hydrogen.
Launched in 2014, the Mirai has sold just 27,500 units in the decade since. With that data in hand, Toyota seems willing to admit defeat, at least when it comes to passenger cars. However, commercial vehicles should still be on the table.
“Hydrogen at all levels has been a failure for passenger vehicles,” James Hong, head of Asia energy transformation and commodities at Macquarie Capita, told the Financial Times, telling the Financial Times “Where we haven’t got answers every day with commercial vehicles or energy storage that stops asking.”
Rather than build more hydrogen-powered passenger cars, Toyota is turning to its trucking subsidiary Hino Motors, which together with other competitors helps cover the costs of potential allies Hyundai, BMW and Mitsubishi Fuso Truck and Bus Corporation There are, in all invested in hydrogen powered vehicles.
Interestingly, Toyota may not abandon some of its premium hydrogen passenger cars altogether. Insiders say the Japanese automaker was considering a partnership with Hyundai to develop more advanced hydrogen fueled vehicles a few months ago.
Final Thoughts
It’s a story we hear over and over again: Toyota is another legacy automaker taking a slower approach to electrification. Chinese automakers are putting more pressure on established automakers in China, and their influence is now expanding into new territories.
Considering that Toyota tends to dominate in its home country, beating BYD in the EV segment could be a sign of what is yet to come. Toyota made a bad bet on hydrogen, but with hard data now undeniable, we may see more EVs from Japanese automakers.
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