Sales of Chinese and Korean electric vehicles continue accelerating in Japan’s EV market, challenging the dominance of hybrid vehicles and European imports.
The foreign automakers introduced their new models recently at a widely attended auto show just outside Tokyo as they expand their presence in the domestic market.
Currently, HVs, which combine an electric motor with a gasoline engine, are the most popular option in Japan.
Electric vehicles, which run only on electric motors and produce no emissions, have struggled to gain traction in Japan. But the Chinese and Korean newcomers are starting to make inroads in the imported car market.
According to the Japan Automobile Importers Association, 24,198 new foreign EVs were registered in 2024, up 5.7 percent from the previous year.
While this marks a slowdown from the sharp 66.6 percent increase in 2022 and the 59.6 percent rise in 2023, the growth remains steady.
EVs accounted for 10.7 percent of all foreign-made vehicles registered in 2024, surpassing the 10 percent mark for the first time.
The high number of EVs among imported cars is driven by Western automakers, which have been proactive in electrification.
More recently, Chinese and Korean manufactures have been gaining momentum.
In January, China’s BYD Co. and South Korea’s Hyundai Motor Co. showcased their latest EVs for the Japanese market in the Tokyo Auto Salon at the Makuhari Messe in Chiba.
The event, known as a showcase for custom and modified vehicles, typically attracts car enthusiasts, who modify their vehicles with aero parts, wheels and other customizations, rather than mainstream buyers.
BYD and Hyundai used this platform to boost brand recognition in Japan.
BYD unveiled the Sealion 7, an SUV set for release in April. This marks its fourth passenger car launch in Japan, all of which are EVs.
Since entering the Japanese market in 2023, BYD has established 59 sales locations across the country and aims to expand to 100 by the end of this year.
The Chinese automaker also plans to introduce plug-in hybrid vehicles (PHEVs) and expand its lineup to seven or eight models by around 2027.
Hyundai’s highlight at the event was the compact EV Inster, which has already been released in South Korea and other markets. Pre-orders have now begun in Japan.
The Korean automaker markets the Inster as a relatively affordable EV, starting at around 2.84 million yen.
Hyundai returned to Japan’s passenger car market in 2022 after a 13-year absence. It also introduced a sporty EV as part of its effort to attract new customers.
In Japan, German and other European cars have long dominated the imported car market, while Chinese and Korean brands have relatively low recognition.
In 2024, BYD sold 2,383 vehicles in Japan, and Hyundai sold 618, with both accounting for less than 1 percent of the imported car market.
However, the global automotive landscape is shifting.
Hyundai Motor Group has become the world’s third-largest automaker, trailing only Toyota Motor Corp. and Volkswagen.
BYD has made significant strides in the EV market. It sold 4.27 million vehicles worldwide in 2024, surpassing Honda Motor Co.’s 3.8 million and Nissan Motor Corp.’s 3.34 million.
BYD acquired a Japanese mold manufacturer in 2010, and the technology behind its passenger car exterior panels is supported by Japanese craftsmanship.
An industry insider said that a growing number of buyers are switching from Japanese EVs to Chinese and Korean models.
The presence of Chinese and Korean automakers in the Japanese market is expected to draw increasing attention in the coming years.
