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by freetime2 15 days ago
First, I'll point out that EV sales in Japan have doubled in the first half of 2026 due to increased government subsidies which took effect in January. [1] This has greatly reduced the cost difference between EVs and gasoline cars, which I think was a major reason people weren't buying EVs. Things may be changing.

Toyota has also finally started to make compelling EVs with the bZ4X and bz4X Touring, which could help drive sales. There has definitely been a lack of good options among Japanese manufacturers.

But charging infrastructure still sucks, at least where I live.

Electricity is also quite expensive. I did the math on my PHEV - and even if I only charge overnight when electricity rates are lowest, I don't save very much over using gasoline.

Kei cars are really popular (about 38% of car sales) [4], and get about 21 km/l (50mpg). Gasoline is subsidized by the government and costs ¥170 per liter ($4 per gallon). The price to fill a 27 liter tank is ¥4,650 ($29). Kei cars are all around pretty affordable, and there isn't much to save in the way of operating costs by driving an EV.

Minivans are also really popular with families. If I look at a list of best-selling car models (excluding kei cars), 5 of the top 10 are Minivans. [3] The only EV minivan currently on sale in Japan is the Volkswagen ID Buzz, which starts at around ¥9M ($55k), and is out of reach of most Japanese families.

Another factor at least where I live is that 4WD models are pretty popular due to snow and mountains (it's a hard requirement for me). 4WD is available on most gasoline cars sold in Japan, and is a pretty inexpensive option. On EVs getting a car with 4WD requires stepping up to an expensive "performance" trim, if it's available at all. On EV kei cars like the Nissan Sakura or the Honda N-One E 4WD isn't even an option.

[1] https://japannews.yomiuri.co.jp/business/companies/20260707-...

[2] https://en.wikipedia.org/wiki/Kei_car

[3] https://www.best-selling-cars.com/japan/2025-full-year-japan...

[4] https://www.autonergy.co/blog/kei-cars-japan-explained

1 comments

> Electricity is also quite expensive. I did the math on my PHEV - and even if I only charge overnight when electricity rates are lowest, I don't save very much over using gasoline

I'm curious how the math would work out with an all-denka plan. I work from home so I switched from an electric plan where during daylight solar hours my electricity drops to 13 yen/kWh

¥13/kWh is a very good rate. Does that include fuel adjustment and renewable energy surcharge?

My current overnight rate is about ¥21/kWh after factoring in those adjustments - so yes if I could charge at ¥13/kWh that would be a sigicant difference. I'm not aware of any providers that offer that rate in my region, though (electricity here tends to be more expensive than the national average).

I actually reran my calculations and it looks like running my car on electricity is about 40% less expensive per km than gasoline, which is better than I expected. While that's significant if I'm just looking at fuel costs, it's not that significant when I look at total cost of ownership. And I do expect electricity to have less of an advantage in winter, when waste heat from combustion can be used to heat the car.