Tesla Sales Climb 1,300% In Japan As Gigafactory Shanghai Allows More Efficient Deliveries

Japan is the fourth-largest auto market, and Tesla Inc TSLA has historically had a hard time selling vehicles in the country.

The Model S and X are too big for many of the parking structures in Japan, which require cars of a certain size to fit into movable parking spaces that help with the country's limited space. The Model 3 solved this by being just the right size, but 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.

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This was due to multiple factors, but the main trigger was Gigafactory Shanghai. This is Tesla's factory in China producing the Model 3 and Y. These vehicles are being sold mainly in China, but some are exported for delivery to Europe, Australia and Japan.

Earlier in March, Tesla lowered prices of the Model 3 in Japan due to lower shipping costs. The standard range Model 3 price was reduced by 17%, while the long-range variant saw a decrease of 25%. There is currently a backlog of orders in Japan for the Model 3.

Another factor is Japan's EV subsidies. The subsidies have increased this year, meaning buyers can save even more buying electric vehicles. 

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Photo courtesy of Tesla.