Japan is the fourth largest car market, and Tesla Ing (NASDAQ: TSLA) has had historical problems selling vehicles in the country.
The Model S and X are too large for many of the parking structures in Japan, which require cars of a certain size to fit in movable parking spaces that help with the limited space in the country. Model 3 solved this by having just the right size, but the prices were high due to shipping from California.
But things are starting to change: in a story shared by Teslarati, Tesla sold 1,300% more vehicles in March 2021 compared to the same month last year: 44 units sold in March 2020 versus 588 in 2021.
See also: How to invest in Tesla shares
This was due to several factors, but the most important trigger was Gigafactory Shanghai. It is the factory of Tesla in China that produces the Model 3 and Y. These vehicles are mainly sold in China, but some are exported for delivery to Europe, Australia and Japan.
Earlier in March, Tesla lowered Model 3 prices in Japan due to lower shipping costs. The standard range Model 3 price was reduced by 17%, while the long-range variant decreased by 25%. There is currently a backlog in Japan for the Model 3.
Another factor is Japan’s EV subsidies. The subsidies have increased this year, which means buyers can buy even more electric vehicles.
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Photo courtesy of Tesla.
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