Hyundai is set to enhance its presence in Japan, a market that has historically posed challenges for the South Korean automaker, by focusing on small electric vehicles (EVs). Chief Executive Chang Jae-hoon announced this strategy on Monday, revealing plans to launch an electric model of the Casper, Hyundai’s smallest sport utility vehicle, in the first half of this year, primarily through online sales channels.
“It’s not easy to penetrate the Japanese market, but we’ll continue to sell high-quality electric vehicles online,” Chang stated during a presentation at the Global Management Dialogue 2024 forum, hosted by Nikkei and Swiss business school IMD.
Hyundai first entered the Japanese market in 2001 but exited its passenger car business in 2009 due to poor sales performance. The company re-entered the Japanese market in 2022, focusing on online marketing strategies to attract consumers. To facilitate online sales, Hyundai partnered with Culture Convenience Club (CCC) in 2023, leveraging the company’s extensive data from its 120 million customers in the video rental and bookstore sectors. This partnership aims to enhance online engagement with potential Japanese EV buyers and strengthen data-driven marketing efforts in line with personalization trends.
Chang emphasized the importance of ongoing communication with Japanese consumers, noting that it has contributed to sales growth. With the introduction of the Casper Electric, Hyundai will expand its lineup in Japan to include three EV models, joining the already available IONIQ 5 crossover and Kona Electric.
Hyundai Motor Group, which includes Kia Corp., aims to develop an extensive EV portfolio, planning to introduce 21 models by 2030 and sell a total of 2 million EVs during that period. Chang also highlighted the company’s plans to launch extended-range electric vehicles (EREVs) targeting key export markets like North America and China to address a slowdown in overall EV demand. EREVs are expected to achieve a range of at least 900 kilometers on a full charge.
“China’s proportion of our business has hit a trough of 6%. We’ll launch EVs in China from next year,” Chang told The Korea Economic Daily on the sidelines of the Nikkei forum. He added that the new EVs will cater to both domestic consumers and international markets.
Regarding Hyundai Motor India’s recent stock market listing, Chang indicated that the company plans to invest more than the $3.3 billion raised through the IPO back into its Indian operations, furthering its commitment to expanding its global footprint.
