The introduction of the Hyundai Inster in Japan follows previous efforts by Tesla and other international brands to enter a market that has seen a sluggish adoption of electric vehicles. Hyundai's strategy with the Inster mirrors that of BYD, a leading Chinese EV manufacturer, focusing on a low-cost approach.
With a starting price of 2.85 million yen ($18,000), the Inster will be the most economical compact electric car available in Japan, undercutting BYD's Dolphin, which was priced at 3.63 million yen in 2023.
The Inster, which debuted in Europe last year after its initial launch in South Korea as the Casper Electric, is expected to reach Japanese customers around May, as stated by Toshiyuki Shimegi, CEO of Hyundai Mobility Japan, during a press conference at the Tokyo Auto Salon motor show.
In the ultra-compact "kei car" segment, Nissan's Sakura is currently the most popular electric vehicle in Japan, priced at 2.60 million yen. However, even the Sakura saw sales drop to fewer than 23,000 units last year, a nearly 40% decline from 2023, indicating the challenges facing EV adoption in a market that typically sees around 4 million vehicle sales annually.
Hyundai's sales in Japan were limited to just 607 vehicles last year, while BYD managed to sell 2,223 units. Tesla has not disclosed its sales figures for Japan.
Shimegi emphasized that the Inster is crucial for gaining recognition among Japanese consumers, stating that it will assist Hyundai in achieving its goal of increasing sales in Japan tenfold over the next five years.
Hyundai, which is part of the world's third-largest automotive group alongside Kia, re-entered the Japanese passenger car market in 2022, focusing exclusively on electric and fuel cell vehicles after previously exiting in 2009 due to poor sales in a market dominated by major players like Toyota and Honda.