For Elon Musk, success is proving elusive in Japan’s car market

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A March 2019 poll of more than 1,000 adults found that only half knew of Tesla. Nissan clocked in at 98%.

The day after taking the electric-car maker public in June 2010, the first Roadster sports cars shipped to Asia weren’t destined for Shanghai – they went to Yokohama. Four years later, the chief executive officer handed over the first Model S sedans during a splashy ceremony on the 52nd floor of a Tokyo tower.

An industry official with knowledge of the numbers, who asked not to be identified because of their sensitive nature, offered some rough ones: Of the imported electric vehicles bought in Japan last year, roughly 90% were Teslas. But this was a towering share of a teeny segment -- the total purchased was just 1,378 units.

Registrations in two key European markets have plunged to start the year, and industrywide sales have plummeted in China due to the coronavirus keeping customers away from showrooms. Representatives for Tesla didn’t respond to requests for comment. More significant factors behind Tesla’s underwhelming sales include shockingly limited brand recognition and a lack of white-glove treatment that Japanese car buyers are accustomed to.

Last fall, the mayor of Ichikawa, just outside Tokyo, was forced to return a Model X SUV and cancel plans to lease a Model S sedan for the city after drawing withering criticism for trading in its Toyota Crown hybrid. Constituents objected to taxpayer funds being used on foreign-made luxury vehicles.

 

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