Hyundai Pulls Out of Japanese Market

2011 Hyundai Sonata revealed in Korea

Only sold 15,095 vehicles since 2001

Hyundai will exit the consumer vehicle market in Japan, after eight years.

While unexpected, the move is not surprising considering Hyundai has only sold 15,095 vehicles in Japan since 2001. For comparison, Volkswagen sold 61,996 vehicles in 2008 alone.

The company declined to cite a reason for the lackluster sales, but Japan's automotive market is relatively small and Hyundai never overcame the stereotype of making "cheap Korean cars."

According to spokesman Oles Gadacz, "If you're not a Gucci or a BMW, there are very few who prosper there (in Japan)," He added, "Mass-market players have it very tough."

Despite exiting the consumer market, Hyundai will continue to sell commercial vehicles in the country. However, that business hasn't been terribly successful either as Hyundai has only managed to sell 43 Universe buses since 2006.

Source: Automotive News

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CarFan56

Its a hyundai. I don't want one either

December 1, 2009 1:19 pm

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1 reply

fire_bird

thay didnt told u to take one :D

December 1, 2009 2:01 pm

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otakki

It's an interesting situation like this all over the world. That is, desirability dictating price. For example, a GTR costs around $80K here in the state, whereas a M3 or C63 costs around $60K. In Japan, the price of GTR is around the same in but the M3 or C63's price skyrocked up to over $110K. Of course, we are not looking at this depressing exchange rate. I bet one of these days Japan will readjust price of cars based on the current USD/Yen exchange rate and the price of cars are going to go through the roof.

December 1, 2009 1:27 pm

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2 replies

dbehmoaras

The price of a car in different parts of the world has very little to do with local desirability. The Germans are more expensive in Japan because of import costs in addition to state-imposed taxes. The GTR is cheap in comparison because it is made in Japan. The reason why the GTR is roughly the same price in the US is because the US has very low import costs/taxes. They wouldn't readjust their prices based on exchange rates because the prices are set in approximate equivalence in different currencies, before the taxes, external costs, and other money-drainers are factored into price of the car. It's not like the GTR costs 80g USD and 80g in yen. That's not how it works.

December 1, 2009 3:44 pm

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Ash

YES, The USA has had cars too cheap for a long time, the rest of the 'Automotive' World bas been subsidising the USA for too long... The US loves KIA and HEEYUNDAY, goes to show their taste is in their FAT, UGLY, OVERWEIGHT arses..

December 2, 2009 4:23 am

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termigni

good decision Hyundai. nice looking car btw.

December 1, 2009 2:24 pm

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o3n1k

well not surprisin cos all they do is copy others manufacturers' car design. its disgusting to see how hyundai's cars have some similarities with other cars.

December 1, 2009 3:24 pm

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2 replies

S197GT

And what, Lexus, Infinity and Acura never did?

December 1, 2009 4:53 pm

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o3n1k

well at least during my lifespan here in this world, i have not seen them doin like what hyundai did. Hyundai was just too obvious.

December 2, 2009 2:34 am

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dbehmoaras

I don't really see why they would have gone into Japan in the first place, what with Toyota and Honda in Japan, as they are far better than Hyundai.

December 1, 2009 3:37 pm

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NardoW12

Even in the US they are still considered cheap korean cars. Their sales did go up but the image of their product didn't change much. I will never buy one

December 1, 2009 3:55 pm

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Xenicide

The Genesis is the only Hyundai worth a damn, but even then, it's still a Hyundai.

December 1, 2009 5:35 pm

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Faithback

Success in any market requires sufficiently positive differentiation. Reliability at low purchase price is not the smartest area to compete against the Japanese in. Anyway the Japanese, like the Germans, have a strong patriotism that also shapes their business decisions. Coming front the outside, you have to be extraordinary to gain their attention, which Hyundai is not. Somebody said that 'The Koreans would achieve in 2 decades what the Japanese did in 5 or more decades and the Chinese would take 1 decade to do the same. Let's see what happens.

December 1, 2009 5:47 pm

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Edison

Why would a Japanese citizen buy a Hyundai over a Japanese-branded car? Let's face it, a Japanese car is typically better looking, better to drive, typically better built, and built by a Japanese company. Korean cars typically ape Japanese designs (and others as well), so why not have the genuine article? Not only that, I'm sure the Japanese don't feel too sympathetic after years of the Korean government practicing extreme protectionism, particularly in the area of electronics.

December 1, 2009 7:14 pm

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NardoW12

Not only protectionism. I read an article saying that some korean protesters were killing the Japanese national birds(which was gifted by the Japanese government I believe) with hammers outside the Japanese embassy. Protesting is one thing, but killing innocent animals that were friendly gifted to you, something's wrong with their brain. I will never buy any korean product myself. Many of their products(electronics) are heavily overpriced and quality is not that great. My friend got a samsung phone and he had to get T-Mobile to repair/exchange it 5 times within 1 year.

December 1, 2009 8:06 pm

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2010S5

Unfortunately for the Japanese, that new Sonata looks anything that's been coming out of Japan recently.

December 1, 2009 7:22 pm

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kswillie507

I think I just got dumber reading your post......

December 1, 2009 11:40 pm

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bravado

It may seem that it has a lot to do with Hyundai's "cheap Korean image" but what needs to be considered are the relations (specifically the bad) that exist between Japan and Korea - it's deep and historical. BTW, Toyota, Nissan and Honda had the same kind of reputation that Hyundai had from '86 to the 90's back in the early to mid 1970's. Back then, the US automakers thought that they'd never sell and they won't become anything in the US market... what a difference 30 years can make.

December 2, 2009 4:52 am

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kattanh3

Good for Hyundai, how unfortunate for the Japanese... and this is coming from a german cars fanatic who (currently) owns a lexus. Hyundai has proven itself to the whole world recently and IMO is a better Bang-4-$ choice than most Japanese cars.

December 2, 2009 5:47 am

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1 reply

avanthomme

love german cars, but agree that the new cars coming out of korea provide superior warranty, std options etc., which make hyundai a great value. i enjoy being independent and not riding on the wave of of the collective masses.

December 2, 2009 9:52 pm

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fast_lane

I would guess the reason why they pulled out of the Japanese market was because of their product offering. While the U.S. and Europe got fresh offerings, Japan still received the old (the same when Chevrolet was there). Also, if Hyundai wanted to do better in Japan, they should have adapted to their tastes, i.e. smaller cars and wagons. Too bad they decided to pull out now, with cars like the Genesis and upcoming small SUVs.

December 2, 2009 2:57 pm

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avanthomme

even so, i think given the past history between the two countries, korean cars WILL NOT sell in japan. there is a big movement against china and korea, especially against korea, as the "korean wave" or korean pop culture is popularized throughout asia. the biggest pop stars in japan and the rest of asia are korean. since the rise of korean pop culture, anti-korean propaganda began appearing again. the nytimes published a piece on how the #1 selling comic/manga in japan for years was an anti-korean and anti-chinese filled manga akin to the anti-black eugenics movement at the turn of the last century in the u.s. ...

December 2, 2009 9:56 pm

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