Photo/Illutration Mercedes-EQ Yokohama, a Mercedes-Benz Japan Co. outlet dedicated to sales of electric vehicles, in Yokohama’s Kanagawa Ward in December 2022 (Junichi Kamiyama)

Western automakers are setting up sales outlets exclusively for electric vehicles in Japan, where EVs remain somewhat of a novelty and domestic manufacturers are lagging behind in the field.

The Western companies hope to take the lead in establishing sales systems for EVs at a time when Japanese automakers’ lineups remain limited.

Mercedes-Benz of Germany opened its first EV-only outlet in Yokohama’s Kanagawa Ward in December.

Called Mercedes-EQ Yokohama, the outlet features five demo cars of EV models that Mercedes-Benz is marketing in Japan.

The shop also features three EV chargers and seven “EQ experts” who wait on customers.

Few Japanese understand how to use electric vehicles. And given the limited number of EV chargers installed in Japan, many drivers fear the vehicles will run out of battery power.

The shop’s staff members explain to customers how to set up charging equipment at their homes, and how a vehicle-to-home (V2H) system transmits power from storage devices in electric cars to households.

They also help customers apply for central and local government subsidies for EV purchases.

“We hope the outlet will help dispel general anxiety about electric vehicles by providing concrete explanations,” said Kintaro Ueno, president of Mercedes-Benz Japan Co.

Mercedes-Benz has set a goal of selling only EVs as new cars in 2030.

The European Union, including Germany, will ban sales of gasoline-powered vehicles in 2035, including gas-electric and plug-in hybrid vehicles.

In Japan, hybrids account for the bulk of eco-friendly cars on sale, while EVs make up only about 1 percent of all cars sold, far below the level of penetration in Europe.

Mercedes-Benz, which sees growth potential in Japan, has decided to rearrange its sales system to put more emphasis on EVs.

The company is also moving quickly to put new EV models in the Japanese market. It released three such models, including an SUV, last year, bringing the total number of available models to five.

The automaker plans to add two more models to its EV lineup later this year.

Porsche Japan KK, the local arm of the German luxury automaker, opened its first Porsche Studio as a sales base for EVs in Tokyo’s Nihonbashi district in April.

To woo customers, the outlet exhibits a sample of the Taycan family-friendly luxury EV.

The automaker opened its second Porsche Studio in Japan in the capital’s Ginza district in August and plans to set up similar outlets outside Tokyo.

“Sales personnel need broad knowledge to pitch electric vehicles,” said auto consultant Keiichi Wakabayashi, who is well-versed in imported cars. “That’s why typical outlets tend to rely on sales of gasoline-powered and diesel vehicles, which sales staff find relatively easy to pitch.”

He said Western automakers “are likely setting up specialized outlets in hopes of improving the quality of their sales operations and helping to spread electric vehicles (in Japan).”

EV customers, including clientele of Tesla Inc. of the United States, are said to make most of their purchases online.

Online marketing has also become more common for EVs imported to Japan. This has helped to attract new clients, particularly young people, in the country.

There is, however, a deep-rooted trust in brick-and-mortar shops in Japan.

Wakabayashi pointed out that after-sales service, such as customer support for possible problems, is at stake.

Volvo Car Corp. of Sweden has made arrangements to sell its EVs online, in principle. The company, however, still plans to maintain its network of physical outlets in Japan.

“Not everything can be done online,” a Volvo representative said. “We need to have functions to provide support to customers when they purchase our products, including offering test rides.”

Tesla is also establishing more service bases across Japan. It opened a base to accept repair and maintenance requests in Chiba’s Inage Ward in November.

Japanese automakers have not only failed to release ample lineups of EVs, but they also have yet to set up outlets specializing in the vehicles.

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