On Friday, South Korea’s Hyundai Motor Company announced plans to launch Japan’s most affordable compact electric car, aiming to break into a market dominated by domestic automakers known for their advanced petrol and hybrid technologies. The launch of the Inster follows Tesla’s efforts to pave the way for foreign brands in a country where EV adoption has been relatively slow. Priced at 2.85 million yen ($18,000) for the base model, the Inster significantly undercuts the 3.63 million yen price of BYD’s Dolphin, a leading EV model from China’s top manufacturer.
With its standard 42 kWh battery, the Inster has a projected driving range of 327 kilometers (WLTP) on 15-inch wheels. Hyundai says it has worked hard to reduce the EV’s total energy consumption by improving the powertrain and aerodynamics and developing a more efficient cooling system for its electric motors.
The Inster is designed to be driven for short distances, such as trips around town or to and from work. Its comparatively small footprint makes it suitable for narrow city streets. It has a lower roofline than the IONIQ, a longer wheelbase, and a more compact track, allowing it to comfortably fit three passengers. The Inster also has a larger cargo space than the IONIQ.
A compact and lightweight body allows the Inster to be more agile on the road. Its drivetrain is more responsive, and it has better fuel economy than its rivals. It also boasts a higher maximum torque than the average of its class, which makes it more fun to drive on a twisty road or in an EV race.
Inster’s Vehicle-to-Load function can charge or power external devices with up to 110V/220V output, increasing customer convenience and further expanding the EV’s potential uses. It will also support charging from public and private DC fast chargers with up to 480 kW of output, offering more rapid charging times than its competitors.
Hyundai is already selling a full line of EVs in North America, where it has signed an agreement with Waymo to supply its Ioniq 5 electric vehicles for the self-driving tech firm’s sixth-generation self-driving car project. The company has also started building a battery plant in Georgia with partner LG Chem and is expected to start production in 2025. To qualify for President Joe Biden’s federal EV tax credit, vehicles must be assembled or manufactured in the United States and contain critical materials extracted or processed within a U.S. Free Trade Agreement country.
Hyundai’s re-entry into the Japanese market, with its all-electric IONIQ, is part of its broader strategy to diversify its global operations and capitalize on the shift from gasoline-powered cars to electric ones. The company pulled out of the market in 2009 but has been re-entering it slowly since then with a strict focus on electric and fuel-cell vehicle technology.