Hyundai Motor Company is expanding its presence in Japan’s commercial vehicle market by supplying electric buses to the Iwasaki Group for use on Yakushima Island, a UNESCO World Natural Heritage Site.

Last Thursday, Hyundai signed a letter of intent with Iwasaki Group, a transportation and tourism service provider in Kagoshima Prefecture, Japan, at the Imperial Hotel in Tokyo. The agreement sets the stage for Hyundai to supply its “Elec City Town” zero-emission electric buses to the Iwasaki Group, with the first bus set to be delivered in the fourth quarter of this year and a total of five units by the first quarter of next year.

“Hyundai’s electric buses stand out for their quality and dependability, which is why we picked them over Chinese alternatives. We’re looking forward to transitioning our entire fleet on Yakushima to electric,” said Yoshitaro Iwasaki, CEO of the Iwasaki Group during the signing ceremony.

The Elec City Town will be used as a fixed-route bus on Yakushima, an island celebrated for its rich biodiversity, ancient cedar forests and eco-tourism appeal. Known as the “Alps by the Sea,” Yakushima’s mountainous terrain and unique climate make it an ideal setting for showcasing Hyundai’s electric bus capabilities.

The Elec City Town is a 9-meter, low-floor electric bus equipped with a 145 kilowatts-hour battery and a high-efficiency motor, capable of a peak output of 160 kilowatts. It boasts a range of over 220 kilometers on a single charge and uses the CHAdeMO fast-charging system, tailored to Japan’s infrastructure, allowing charging up to 180 kW.

Earlier this year, the Elec City Town completed rigorous tests on Yakushima’s terrains, receiving positive feedback from the Iwasaki Group and local operators.

Hyundai will implement an inventory management system to ensure over 95 percent of parts are available within two days, minimizing maintenance-related downtime. In collaboration with local insurers, the Korean carmaker plans to offer top-tier after-sales service, including partial coverage for frequently damaged parts.

“Launching our first electric bus in Japan on Yakushima, a UNESCO World Heritage Site, is a proud moment for us. It reinforces our leadership in electric vehicles and aligns with Japan’s efforts to cut carbon emissions,” said a Hyundai Motor official.