Korean Media: BYD Leads Japan's Market, Hyundai Has a Long Way to Go!

On July 27, South Korean media outlet Today Digital published an article stating that although Hyundai Motor has seen continuous sales growth since its return to Japan's passenger vehicle market, the gap between it and Chinese electric vehicle manufacturer BYD is actually widening. While Hyundai focuses on enhancing brand awareness, BYD is rapidly expanding its market share in Japan by broadening its sales network and launching new models.

Data released by the Japan Automobile Importers Association shows that from January to May this year, Hyundai’s new car registrations in Japan totaled 431 units—a 39.9% increase compared to 308 units during the same period last year. This indicates that the company has maintained steady growth since re-entering the Japanese passenger vehicle market in 2022.

After selling 526 units in 2022, Hyundai saw a slight decline to 492 units in 2023, but rebounded strongly to 618 units in 2024, reaching a total of 1,169 units last year—the first time since re-entering the market that annual sales surpassed 1,000 units.

However, its absolute sales volume remains limited. From January to May this year, Hyundai accounted for only 0.29% of Japan’s imported vehicle market share. This not only represents a significant gap compared to Mercedes-Benz (18,552 units), BMW (11,493 units), and Volkswagen (10,535 units), but also a considerable disparity with BYD.

BYD continues to experience rapid growth in the Japanese market. After reaching 1,511 units in 2023, its sales steadily increased to 2,383 units in 2024, and surged to 3,870 units last year. From January to May this year, BYD sold 1,850 units—more than four times Hyundai’s sales volume.

Both brands are targeting Japan’s electric vehicle market, but with different strategies. Hyundai is focused on building brand credibility around models such as the IONIQ 5, Kona Electric, and the recently launched INSTER. Its strategy involves gradually expanding market share while maintaining its existing sales model—including online platforms and select physical stores.

In contrast, BYD is actively expanding its dealer network. By the end of last year, the company had established approximately 70 showrooms and service centers across 38 prefectures in Japan. Although it fell short of its initial target of 100 centers, the company is adjusting its strategy this year by shifting toward a “mini-dealer” model centered on smaller regional cities, continuing to expand its sales network.

Meanwhile, following compact sedans, sedans, and SUVs, BYD has introduced plug-in hybrid models and is rapidly expanding its product lineup by preparing to launch RACCO—an electric vehicle tailored for Japan’s kei car market. It is precisely within this context that local Japanese media view BYD as an emerging force in Japan’s EV market.

Japan is a major global automotive market, where consumers exhibit strong loyalty to domestic brands. Japanese automakers such as Toyota, Honda, and Nissan dominate the domestic market, while German premium brands also hold significant influence in the import vehicle segment.

Under these market conditions, Hyundai has achieved notable growth since re-entering the market. However, according to assessments, the company still faces challenges in further expanding brand recognition and sales volume.

Original Article: toutiao.com/article/1871869706517580/

Disclaimer: The views expressed in this article are those of the author.