Hyundai Returns to Japan for First Time Since 2009; Will Sell Only Electric Cars Online

In a somewhat surprising move, Hyundai plans to return to the Japanese car market in 2022. The South Korean manufacturer arrived at that decision 13 years after it left Japan due to poor sales in the country.

Hyundai's chief executive officer Jaehoon Chang told Bloomberg in an interview that the company is now well prepared to not repeat its previous mistakes in Japan that resulted in the car brand having abysmal sales performances there.

According to the Bloomberg report, Hyundai's strategy moving forward in Japan is to sell only all-electric cars, starting with the brand's popular Ioniq 5 model. Hyundai will take a more direct approach with their Japanese customers, selling its cars only online. More details will be unveiled regarding Hyundai's plan in Japan once it makes an official announcement later this month.

Hyundai expects EV sales to surge in Japan

So what made Hyundai decide to try its luck in Japan again? According to Chang, it is the surge in the popularity of electric vehicles. Chang said, "We've experienced huge growth on the EV side in Korea, and we're expecting the same thing will happen even faster in Japan."

The Bloomberg report indicated that Hyundai's EV sales goal in Japan would be higher than the 15,000 gasoline-engine cars the South Korean firm sold during its prior foray in the country. However, Hyundai will have its work cut out to achieve that target as Japan has not become a major all-electric car market thus far. Around 4.5 million vehicles were sold in Japan last year, and BEVs only accounted for a share below 1 percent.

There is room for growth, though, and Hyundai's arrival will expand the options for Japanese buyers, who are willing to go the electric route in their car choices. The new BEV models arriving this year in Japan are the Nissan Ariya and the all-new Toyota bZ4X, and Subaru Solterra. Tesla also remains a major force when it comes to its all-electric lineup.

Related Article: Computer Chip Shortage Strikes Chevrolet Again as Automaker Drops Rear Park Assist in 2022 Corvette

Hyundai looking for Ioniq 5 to be a hit in Japan

Hyundai hopes the Ioniq 5 will be a hit among Japanese consumers. Hyundai first launched that model in South Korea and Europe (ramp-up) and most recently in Canada and the United States. The Hyundai Ioniq 5 has won several awards, including the German Car of the Year award, a UK company car award, and Popular Science award. The Ioniq 5 was also recently named the Best Car of the Year by Automotive Daily.

Hyundai plans to release two more electric vehicles after the Ioniq 5 based on the E-GMP platform, namely the Hyundai Ioniq 6 sedan and Hyundai Ioniq 7 large SUV. The latest Genesis and Kia electric cars have also utilized the E-GMP platform.

READ MORE ON AWN: 

Kia Starts Production of 2023 Sportage in Georgia: Find Out Its Price, Specs, Interior, and Release Date 

 'Phantom Braking' Complaints Increase Among Tesla Drivers; 107 Owner Reports Filed in Last 3 Months