Hyundai Motor Company, South Korea’s largest carmaker, is gearing up to expand its presence in Japan by introducing high-performance electric vehicles (EVs) and small EVs. The carmaker, which had exited the Japanese market in 2009 due to sluggish sales, re-entered the market in 2022.
A total of 585 Hyundai Motor vehicle units were registered in Japan from April last year to March this year, slightly down from the previous year’s 649 units, according to the Japan Automobile Importers Association on June 27. As a result, Hyundai’s market share in Japan fell from 0.21% to 0.19% within a year. During the same period, Chinese electric car maker BYD increased its share from 0.09% to 0.65%, with car registrations rising from 293 to 2026 units.
Hyundai re-entered the Japanese market with a lineup of zero-emission vehicles, including the IONIQ 5 EV, the hydrogen-powered NEXO, and the Kona Electric SUV. Hyundai initially entered the Japanese market in 2001 but withdrew in 2009.
Japan has been slow to adopt EVs compared to other major countries. EVs represented just 2% of total car sales in Japan last year, whereas the global average was about 16.5%, according to market research firm SNE Research.
Japan is known as the “graveyard of imported cars,” as Japanese consumers are highly loyal to domestic brands. Japanese brands account for over 90% of sales in Japan, the fourth-largest car market in the world, with more than 4 million cars sold annually.
Despite these challenges, Hyundai remains optimistic about the company’s prospects in Japan. Hyundai Motor CEO Jang Jae-hoon is committed to expanding the carmaker’s presence in the Japanese market. He led a task force established in 2021 to prepare for Hyundai’s re-entry, focusing on building a local sales network, researching market trends, and developing marketing strategies.
Hyundai plans to introduce the high-performance IONIQ 5 N and the lightweight Casper Electric. The Ioniq 5 N is an enhanced version of the existing IONIQ 5. The Casper Electric is set to launch in Korea in the second half of this year and Japan early next year. Hyundai will unveil the Casper Electric at the ‘Busan Mobility Show’ at BEXCO in Busan this month.
