Sales of imported motor vehicles fell 1 percent in January from a year earlier to 15,334 units.
The Japan Automobile Importers Association said Thursday the sales consisted of 13,087 foreign-brand vehicles, down 4.6 percent, and 2,247 vehicles manufactured by Japanese automakers overseas, up 27.5 percent.
Volkswagen clinched the top slot on the list of foreign-made vehicles, outselling its German rival BMW, which fell to third place, the association said.
Volkswagen logged sales of 2,967 units, down 5.8 percent, for a market share of 19.35 percent.
Mercedes-Benz came in second, with an 18.35 percent share on sales of 2,814 units, up 0.2 percent, followed by BMW with a 10.86 percent share on sales of 1,665 units, up 2.3 percent.
Toyota finished fourth with a market share of 9.97 percent on 1,529 units, up 242.1 percent. An association official attributed Toyota's ranking to brisk sales of its Avensis sedans and station wagons assembled at its British factory.
Volvo ranked fifth with a 6.62 percent share on 1,015 sales, down 7.6 percent.