Uchikura & Co., LLC

When in Rome, Do as the Romans Do: Why Tesla Struggles in Japan

There is a Japanese saying: “When you are in a village, follow the village rules.” In English, we say, “When in Rome, do as the Romans do.”

 

This may explain why Tesla has not become a major player in Japan.

 

Tesla makes excellent electric vehicles. But Japan is not America. Roads are narrower, parking spaces are smaller, and many people live in apartments or condominiums where home charging is not available. Without the ability to charge at home, owning an EV becomes inconvenient.

 

Japan may have many public charging stations, but they are still not as convenient as gas stations. For many drivers, especially outside major cities, charging remains a concern.

 

There is also the issue of sales and service. Tesla does not have the same kind of dealer network that Japanese consumers are used to. When repairs are needed, parts may have to come from overseas, which can mean long waiting times.

 

As a result, Tesla sells only around 6,000 cars a year in Japan. That is roughly what Toyota sells of the Corolla in Japan in about one month.

 

Tesla’s problem in Japan is not just the car. It is the environment around the car: roads, housing, charging, service, and customer expectations.

 

To succeed in Japan, even a global company must adapt to Japan. In other words, when in Japan, do as the Japanese do.