Yahoo Finance·2025-09-28 22:00Core Viewpoint - BYD Co. is struggling to gain traction in the Japanese electric vehicle market despite its efforts, including opening new sales locations and introducing new models [1][2][5]. Sales Performance - The company sold only 5,300 vehicles in Japan from January 2023 to June 2023, even after launching its 45th sales location and a fourth EV model [2]. - Discounts of up to ¥1 million ($6,700) are being offered to boost sales, which can reduce prices by as much as 50% when combined with government subsidies [3]. Market Challenges - The Japanese market shows strong loyalty to local brands like Toyota, making it difficult for foreign automakers like BYD to penetrate [5]. - The practice of discounting may backfire, potentially alienating early buyers and affecting resale values [4]. Strategic Outlook - Despite the current challenges, BYD sees long-term opportunities in Japan, where EV sales are expected to grow from just 3.4% of new car sales this year [6]. - The company aims to establish a presence in Japan to gain recognition among discerning customers, even if immediate economic returns are not evident [7].