<W commentary> Is the Japanese market still a big barrier? South Korea's Hyundai Motor, which reentered the country, sold only 60 units in July

South Korean automaker Hyundai, which re-entered the Japanese market in May this year, is facing a harsh reality. Only 60 units were sold in the Japanese market last month when deliveries began, leaving imports such as Mercedes-Benz and BMW far behind. I wonder if the Japanese market, which is also called the "imported car graveyard", is still a big wall.

Hyundai Motor announced in February this year that it would enter the Japanese passenger car market for the first time in about 12 years. President Jang Jae-hoon delivered a video message in Japanese at a press conference held for the Japanese media at the time. "I decided to go back to the starting point and face customers seriously," he said, "The Japanese market is a place to learn, but at the same time it is a place to challenge." . The company began accepting orders for the electric vehicle (EV) "Ionic 5" and the fuel cell vehicle (FCEV) "Nesso" in May this year, and has delivered the vehicles since last month.

Hyundai Motor entered the Japanese market for the first time in 2001. It was a time when interest in South Korea was on the rise, with the World Cup soccer co-sponsored by Japan and South Korea to be held the following year. Under the defiant slogan, "Japan may be the only one who doesn't know about Hyundai," sales of "Hyundai Sonata" and "Hyundai XG (Korean name: Granger XG)" struggled. Completely retired in 2010. It is said that the number of sales during this period was about 15,000 units.

In this re-advance, we have partnered with the car sharing service "Anyca" and introduced a new model that allows customers to test drive before purchasing and sells online. Based on the keyword "anytime, anywhere online", we are developing services that can be performed online, from quotations to ordering, payment, and confirmation of delivery information.

The "Ionic 5," which was selected as the flagship model for this re-entry into the Japanese market, is equipped with a lithium-Eon battery with a capacity of 58-73 kWh and a cruising range of 498-618 kilometers. The interior space is spacious, and the interior is decorated in the style of Nordic furniture. The price is set at 4.79 million to 5.89 million, which is cheaper than its rivals in Europe and the United States.

In South Korea, 23,760 units were sold on the first day of pre-contracts in February last year, creating a sensation that the planned sales for the entire year were achieved in one day. It has also received high acclaim in Europe and the United States, where it was first released. In the European market, the Hyundai Ionic 5 Project 45, which is a first-run limited model, has sold more than three times the planned number within one day of the start of pre-orders. At the time, Hyundai Europe's vice president said, "European customers appreciate the ultra-fast charging, long cruising range, and outstanding individuality." In Germany last year, it was selected as the "Germany's Car of the Year" by a jury of automotive journalists. The chairman of the judging committee said, "Ionic 5 was excellent in terms of design, energy efficiency, and running performance." Furthermore, in April this year, it won the "2022 World Car of the Year", which is a global automobile award, showing that it is highly evaluated worldwide.

It was a long-awaited attempt to re-enter Japan, but according to a report by the Japan Automobile Importers Association (JAIA), Hyundai Motor sold only 60 imported cars last month. Mercedes-Benz topped the list with 3,325 units. This was followed by BMW (2285), Volkswagen (2231) and Audi (1402). Of the two models that Automobile currently sells in the Japanese market, it is estimated that most of them were sold as the Ionic 5.

The Dong-A Ilbo, a South Korean newspaper, reported on the current situation, saying, "Hyundai Motor has high hopes for the growth potential of the Japanese electric vehicle market. Rather than short-term sales results, the brand will become more familiar to consumers from a medium- to long-term perspective. We are thinking about a strategy that can be positioned."

Hyundai Motor opened "Hyundai Customer Experience Center Yokohama" in Yokohama on the 30th of last month. It is said that it introduces not only the electric vehicle itself, but also the daily life that is changed by the electric vehicle. This is based on the judgment that sales of the Ionic 5 will grow as the electric vehicle market expands. The Korea Trade-Investment Promotion Agency (KOTRA) told the Dong-A Ilbo, "In the case of Japanese consumers, in addition to price, differentiated value is important, so it is necessary to actively capture this point." pointed out. Hyundai Motor's re-challenge has just begun.