Tesla is seeing strong sales in Japan, with Q1 "other" vehicle sales up 56%, including a record 1,249 units in March, Nikkei reported Saturday.

This increase contrasts with a 13% global sales drop to 336,681 units in Q1, driven by boycotts and declines in China, the US, and Europe, according to the report.

Japan's limited domestic EV options, like Nissan's Leaf and Toyota's bZ4X, have boosted Tesla's market share, with imports now making up 75% of the EV market, the report said.

Despite a 33% overall drop in Japan's EV sales, Tesla remains competitive, offering incentives like free Supercharger use for Model Y buyers, according to the report.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)