In a big surprise of sorts, Hyundai’s pull out from the Japanese Automobile market is one of the biggest upsets for the company. Surging demand for Hyundai’s everywhere else in the world is another part of the story. Hyundai blames poor brand recognition in the highly competitive Japanese market and another reason is the high import duties that have made its cars very expensive.

Hyundai has sent official messages to all of its 46 dealers in Japan to shut shop. Lets have a look at the facts – The firm sold just under 800 units in 2009 and overall, just 15,095 since its entry in 2001. High import duties have turned away buyers to local brands and in Japan, local brands carry a huge fan following.

“If you’re not a Gucci or a BMW, there are very few who prosper there,” (A frustrated) Hyundai spokesman Oles Gadacz told Automotive News. “Mass-market players have it very tough.”

Hyundai, which is South Korea’s No1 automaker and arguably the only company in the world to have shown an increase in sales from 2008 levels, has finally called it quits and intends to focus on its commercial vehicle sales in Japan and other emerging markets like India and China. Japan is one of the toughest markets in the world where brand value matters and not to mention intense competition from local manufacturers from the likes of Toyota, Honda, Nissan, Mitsubishi, Mazda, Subaru, Suzuki, Daihatsu etc and not to mention the imports. That is one heavy competition out there.

‘Hyundai Motor has decided to suspend passenger vehicle sales in Japan and will instead allocate its resources to focus on commercial vehicle sales in the country,’ Hyundai said in a statement. Hyundai also added that it could resume sales if the market condition improves but we feel, Hyundai has breathed its last in Japan. The timing of the pull out will be decided after consulting with dealerships in Japan, said Hyundai spokesman Ki Jin Ho.

However, Hyundai’s sales have taken a massive leap in India though. Read that article here.

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