Japan sold 4,565,777 new vehicles including kei mini-vehicles in 2025, up about 3% on a 2024 hit by certification-testing production stoppages (industry figures via Autofile, 14 January 2026). The market remains well below its historical highs. The structural decline reflects an aging, urbanizing population that owns fewer cars per household.
Toyota Still Takes Nearly 1 in 3
Toyota sold 1,413,632 units in Japan in 2025 (excluding Lexus and Daihatsu), up more than 4% and about 31% of all new vehicles. Add Daihatsu (535,919, a Toyota subsidiary) and Lexus and the Toyota Group takes well over 40% of Japanese new vehicle sales. Few automakers dominate their home market the way Toyota dominates Japan.
The Hybrid Capital of the World
Hybrids are the default powertrain for registered cars in Japan, and Japan has one of the highest hybrid shares of any major market. Toyota's relentless hybrid push, the suitability of HEV for short urban commutes, and the absence of a strong BEV incentive structure all sustain HEV dominance. Pure BEVs remain a low single-digit share of the market.
Kei Cars: 36.5% of the Market
Mini "Kei" vehicles (660cc engine, sub-3.4m length) were 1,667,360 of Japan's 4,565,777 new vehicles in 2025, a 36.5% share, and 34.0% of passenger cars, on JADA and Zenkeijikyo figures. The Honda N-Box was Japan's best-selling car for a fourth straight year with 201,354 units, ahead of the Toyota Yaris (166,533) and the Suzuki Spacia (165,589) (JADA and Zenkeijikyo data via Jiji/Adnkronos).
March is the Super Bowl
Japan's fiscal year ends 31 March. New car registrations spike in March every year, far above an average month. Many buyers and corporate fleets explicitly time purchases to qualify for the new fiscal-year tax bracket.
Drill into the full Japan brand and Kei vs registered split on the Japan dashboard.