There has been a drastic increase in demand for the Tesla Model 3 in Japan recently.
Delivery estimates for the Tesla Model 3 have been pushed back as far as 12 to 16 weeks in Japan, based on Tesla’s local configurator. Previously, the delivery estimate for the Model 3 was 6 to 8 weeks. Customers who want faster delivery are encouraged to consider purchasing stock vehicles on the website.
Tesla adjusted the price of the Model 3 Standard Range Plus RWD and Dual Motor AWD variants around February. It resulted in a 17% and 24% price reduction for the Standard Range and Long-Range Dual Motor AWD variants, respectively.
The Tesla Model 3 SR+ currently costs ¥4,290,000 ($40,085) compared to ¥5,110,000 ($47,747) in January. The long range variant now costs ¥4,990,000 ($46,626) compared to ¥6,522,000 ($60,941) before the price adjustment.
Takeshi Miayo, an analyst for a Tokyo-based consulting firm in Carnorama, linked the spike in demand for the Tesla Model 3 to the price adjustment. “This proves that EVs will sell if they’re cheaper,” Miayo told Bloomberg. “It’s a shocking situation,” he said.
Tesla’s Giga Shanghai was instrumental in the price reduction of the Model 3 in Japan, noted a person familiar with the matter. Miyao thinks Japanese automakers may find it difficult to compete with Tesla.
“It’s going to be difficult for them [to] offer a similar value proposition,” said the Carnorama analyst.
The EV startup has done fairly well, increasing Giga Shanghai’s production capacity and establishing tight ties to battery suppliers in Asia. Tesla’s Shanghai factory gave the company a solid foundation to enter the auto market in Asia.