Hyundai Enters the EV-wary Japanese Market with US 18,000 EV

In an attempt to break into a market controlled by regional behemoths with well-established gas and hybrid vehicle technologies, South Korea's Hyundai Motor announced on Friday that it would launch the most affordable small electric car in Japan.

Following efforts by Tesla, opens new tab, and other international companies to reach a market where EV adoption is sluggish, Hyundai launched the Inster in Japan. Hyundai will use a low-price approach with the Inster, similar to that of China's top EV manufacturer.

The entry-model's pricing of 2.85 million yen ($18,000) will be the lowest in Japan for a small electric vehicle, falling short of the 3.63 million yen BYD set for its Dolphin in 2023.

Inster, which debuted as Casper in South Korea, made its European premiere last year.

At a press conference during the Tokyo Auto Salon auto show, Toshiyuki Shimegi, CEO of Hyundai Mobility Japan, stated that Inster, which debuted in Europe last year after launching in South Korea as Casper Electric, will begin shipping to Japanese consumers in May.

The most popular electric vehicle in Japan is the Nissan Motor's 7201.T, which is the newest model in the ultra-compact, limited-power "kei car" category. It costs 2.60 million yen.

However, an industry count revealed that even Sakura had fewer than 23,000 sales last year, down over 40% from 2023. This underscored the lack of popularity of EVs in the Japanese passenger car market, which has about 4 million vehicle sales annually.

In Japan, BYD sold 2,223 cars last year, compared to Hyundai's mere 607 sales. Tesla kept its sales in Japan a secret.

Shimegi stated, "Inster is our core product to win Japanese customers' recognition," adding that it aids Hyundai in achieving its objective of tenfold growth in Japan sales over the next five years.

After withdrawing from the Japanese passenger car market in 2009 due to low sales in a nation dominated by Toyota Motor, Honda Motor, and other Japanese auto majors, Hyundai, which ranks third in the world along with Kia, opens a new tab, and returns in 2022 with only electric and fuel cell vehicles.