In an exciting development for electric vehicle enthusiasts, Toyota has reached a historic milestone by becoming Japan's leading domestic EV brand for the first time. This achievement marks a significant turning point for the world's largest automaker as it accelerates its electric vehicle commitment.

According to the Japan Automobile Manufacturers Association, domestic EV sales in Japan grew by 1.6 percent in 2025, reaching 60,677 units. The real story, however, lies in Toyota's remarkable fourth-quarter performance, which propelled the company to the top spot among Japanese automakers.

The driving force behind this success is Toyota's reimagined bZ4X electric SUV, which launched in Japan last October with impressive improvements. The company sold 3,448 bZ4X models during the final quarter, representing an extraordinary 2,100 percent increase compared to the same period in 2024. This surge in popularity demonstrates that when automakers listen to customer feedback and deliver meaningful improvements, buyers respond enthusiastically.

What makes the new bZ4X so appealing? Toyota went back to the drawing board and enhanced virtually every aspect of the vehicle. The standout feature is an impressive 25 percent increase in driving range, bringing it to 746 kilometers and making it the longest-range domestic EV available in Japan. The company also addressed charging concerns with faster charging speeds, ensuring drivers spend less time waiting and more time enjoying the road.

Perhaps most impressively, Toyota managed to improve the vehicle while also making it more accessible. The new bZ4X starts at 4.8 million yen (approximately $30,600), actually undercutting the previous model despite its significant upgrades. This combination of better performance and lower price points represents a win-win for consumers considering the switch to electric.

Honda secured second place in the quarterly rankings after introducing its N-ONE e model in September, while Nissan, which had held the top position for approximately 15 years, rounded out the top three. Rather than viewing this as a rivalry, these developments showcase how healthy competition drives innovation and ultimately benefits consumers with better choices.

Looking beyond Japan, Toyota's electric vehicle momentum appears to be building globally. In the United States, the 2026 bZ4X starts at just $34,900, making it one of the most affordable electric SUVs available. The base model offers 236 miles of range, while upgraded trims provide up to 314 miles—a meaningful improvement that addresses one of the primary concerns of potential EV buyers.

The company isn't stopping there. Later this year, Toyota plans to introduce the 2026 C-HR electric SUV at under $35,000, further expanding accessible electric options for American consumers. Meanwhile, European markets will welcome several new electric SUVs, including the updated bZ4X, C-HR+, and Urban Cruiser, demonstrating Toyota's commitment to offering electric options across multiple segments and price points.

Perhaps most encouraging is that Toyota sold over 2,000 bZ models in December alone, representing a 6 percent increase year-over-year even as many other automakers reported declining EV sales. This suggests that Toyota's strategy of focusing on range, affordability, and practical improvements is resonating with real-world buyers.

As the electric vehicle market continues to evolve, Toyota's success story offers hope that major automakers are finding the right formula to make electric vehicles appealing and accessible to mainstream consumers worldwide.