Hyundai Mobility Japan CEO Cho Won-sang, right, poses with Iwasaki Group CEO Yoshitaro Iwasaki after signing a letter of intent to supply five electric buses to the Japanese firms in Tokyo, Thursday. Courtesy of Hyundai Motor

Hyundai Motor will supply its electric buses to Japan's Iwasaki Group, enabling the tourism service firm to operate a total of five Elec City vehicles on routes on Yakushima Island, a tropical island off the southern coast of Kyushu, Japan, the Korean automaker announced Tuesday.

Under the letter of intent, Hyundai Motor will start supplying the electric buses in the fourth quarter of 2024 to the Japanese region designated as a UNESCO World Heritage site. The company plans to complete the supply by the first quarter of next year.

Iwasaki said the contract was secured as Hyundai Motor's quality in electric vehicles (EV) surpasses those of Chinese firms.

"There are Chinese electric buses in Japan, but we chose Hyundai Motor for its credible quality," Iwasaki Group CEO Yoshitaro Iwasaki said.

"We will replace all of our vehicles with EVs on Yakushima down the road."

A group of 40 executives from both sides joined the signing event to celebrate the partnership. They included Hyundai Mobility Japan CEO Cho Won-sang and the head of Iwasaki Group.

Hyundai Motor's Elec City bus / Courtesy of Hyundai Motor

The latest achievement comes with symbolic significance, as most Japanese clients prefer to purchase vehicles from domestic manufacturers. Hyundai Motor started introducing its IONIQ 5 EV in Japan for the first time in 2022 and launched a set of other key EV models, such as Kona Electric and high-performance IONIC 5.

In 2025, the company also aims to release compact EV models to expand its footing in Japan.

"We are on track to solidify our brand identity as one of the world's leading EV manufacturers in Japan and will keep supporting Japan's carbon reduction policy initiative," a Hyundai Motor official said.

Hyundai Motor will also build maintenance infrastructures to ensure most of the bus parts can be supplied within two days in Japan. Additionally, the company is considering offering insurance benefits to Iwasaki.