Hyundai Unveils Affordable $18,000 EV in Japan to Challenge Local Market Dominance

Hyundai Motor has launched its most affordable electric vehicle (EV) yet, the Inster, in Japan, aiming to carve a space in a market dominated by local car manufacturers. The South Korean automaker introduced the compact EV at a starting price of ¥2.85 million ($18,000), making it the cheapest compact EV in the country. This price undercuts the ¥3.63 million set by Chinese rival BYD with its Dolphin in 2023.

Hyundai’s strategy mirrors that of China’s top EV maker and follows similar efforts by foreign brands, including Tesla, to penetrate Japan’s relatively slow EV market. The Inster, which debuted in Europe last year as the Casper Electric, will be available to Japanese customers by May, according to Toshiyuki Shimegi, CEO of Hyundai Mobility Japan.

While Nissan's popular Sakura EV is priced at ¥2.60 million, EV adoption remains sluggish in Japan, with Sakura sales falling by nearly 40% in 2023. Overall, the Japanese car market continues to see low EV penetration, with Hyundai's sales in Japan last year reaching only 607 units, compared to BYD’s 2,223 units.

Shimegi highlighted that the Inster is a key part of Hyundai's strategy to gain recognition in the Japanese market, with the company setting an ambitious goal of increasing its sales in the country tenfold within five years. The launch marks Hyundai's re-entry into Japan’s passenger car market, which it left in 2009 due to poor sales, now targeting a market dominated by Toyota, Honda, and other local giants.