Hyundai and Kia Launch Bold EV Push in Japan’s Tough Market

UPDATE: South Korea’s top automakers, Hyundai Motor Co. and Kia Corp., are making a significant move into Japan’s challenging automotive market, infamous as a “graveyard for imported vehicles.” Their latest electric vehicle (EV) lineup will debut at the Japan Mobility Show set to open on October 30, 2023. This marks a historic collaboration as both brands appear together at Japan’s premier motor exhibition.

The Hyundai Motor Group, which includes the luxury brand Genesis, aims to disrupt the stronghold of local giants like Toyota, Honda, and Nissan. By focusing on EVs, Hyundai and Kia are targeting the Achilles’ heel of Japanese automakers: their slow transition to electrification.

At the show, Hyundai will unveil its updated hydrogen fuel-cell SUV, the NEXO, and highlight its flagship EV, the IONIQ 5. Other models include the Inster Cross—known as the Casper Electric in Korea—and a new concept vehicle called Insteroid. Kia will reveal its first purpose-built electric model, the PV5, aimed at Japan’s commercial market, ahead of its official launch next year.

This bold strategy comes after Hyundai’s renewed entry into the Japanese market, which it abandoned in 2009 due to poor sales. In recent months, the company has made strides, selling 759 vehicles in Japan from January to September, surpassing last year’s total of 618 units. The Inster Cross has been particularly popular, aligning well with Japan’s preference for small cars.

Despite these gains, Hyundai and Kia face fierce competition from BYD Co., whose rapid expansion has made it a key player in Japan’s EV segment. Current data shows that Nissan leads the market with 11,695 units, capturing nearly 40% of the total EV sales, while Tesla and Mitsubishi also maintain substantial shares.

As the Japan Mobility Show approaches, BYD is expected to showcase a comprehensive lineup, including its luxury brand offerings and plans to expand its sales network with retail giant Aeon. Meanwhile, Japan’s homegrown manufacturers are not standing still. Toyota is set to unveil its high-end Century Coupe alongside new concept models, while Honda will showcase its upcoming 0 Series EVs.

The evolving dynamics in Japan’s automotive landscape signal a shift long awaited by international competitors. For Hyundai and Kia, succeeding in Japan is not just about sales; it represents a breakthrough in one of the world’s most insular car markets.

With October 30 on the horizon, all eyes will be on the Japan Mobility Show as Hyundai and Kia aim to redefine their presence in this tough arena.

Stay tuned for updates as these developments unfold, reflecting a dramatic shift in the global automotive industry.