Korean Media: BYD Leads Hyundai in the Japanese Electric Vehicle Market!

On November 15, the Korean media outlet Chosun Ilbo published an article stating that Hyundai Motor has returned to the Japanese market after 13 years, and although it continues to grow, its sales still fall short of Chinese automaker BYD. Both companies mainly compete in the electric vehicle sector, and Japanese consumers generally tend to favor BYD.

Hyundai Motor and BYD are competing fiercely in the global electric vehicle market. Data from market research company SNE Research shows that from January to August this year, Hyundai Motor ranked third in global (excluding China) electric vehicle registrations, with a total of 413,000 units registered. BYD followed closely behind, with 357,000 units registered, representing a 2.5-fold increase compared to the previous year. Although the difference between the two is about 50,000 units, BYD leads in growth rate.

Especially in the Japanese market, BYD's growth rate has exceeded that of Hyundai Motor. According to a report by the Korea Automotive Research Institute titled "BYD's Progress and Prospects in Japan," BYD sold 1,782 pure electric vehicles in Japan this year. Notably, since its operations began in 2023, there has been nearly a twofold increase each year.

At the same time, Hyundai Motor's sales during the same period were 414 units. Although this represents a 22.1% year-on-year increase, the absolute sales remain far behind BYD. According to data from the Japan Automobile Importers Association, Hyundai Motor's cumulative sales from January to September this year reached 719 units. Ultimately, its sales for the first nine months did not exceed BYD's sales in the first half of the year.

Industry insiders said, "In a Japanese market that clearly favors domestic brands and light vehicles, BYD achieved growth without light vehicles, which is a meaningful achievement."

BYD entered the Japanese market in 2023 with the compact electric SUV "ATTO 3" and launched the hatchback "Dolphin" in September of the same year. Currently, BYD is rapidly expanding its product line, adding the electric sedan "Seal" in June and the mid-size electric SUV "Seagull 7" in April. BYD plans to launch lightweight electric vehicles and plug-in hybrid vehicles that meet Japanese consumer preferences in the second half of next year and establish 100 local service points by the end of the year to strengthen customer relationships.

However, some people are cautious about BYD's growth because the sales of Japanese domestic brands are still far ahead of BYD. Last year, Honda registered 668,414 new cars in Japan, while BYD registered only 2,223 units during the same period, accounting for just 0.33% of Honda's total sales. Additionally, some believe that BYD's strategy of prioritizing price competitiveness may lead to a decline in long-term profitability.

Professor Lee Ho-gon from the Department of Automotive Engineering at Daeduk University analyzed, "Although BYD is developing rapidly in the Japanese market, the gap in market share with Japanese automakers remains significant. Even with an annual growth rate exceeding 30%, it is difficult to catch up with the sales of Japanese brands. A strategy primarily based on low prices and discounts may be effective for short-term sales expansion but is detrimental to profits. If Hyundai Motor does not introduce models suitable for the characteristics of the Japanese market and strengthen brand competitiveness, it will also struggle to overcome the high entry barriers of the Japanese market."

Original: www.toutiao.com/article/1848824109349897/

Statement: This article represents the views of the author.