BYD enters Japanese kei car market with new RACCO electric vehicle

Chinese automaker BYD has entered the Japanese light vehicle (kei car) market with the RACCO, a dedicated electric vehicle (EV) designed specifically for Japan. Following its release, the model secured approximately 100 orders within its first three days, with over 70 percent of those being the top-tier premium grade.

The RACCO is positioned as a competitive option in a market dominated by domestic manufacturers like Honda. With government subsidies, the entry-level grade can cost less than 2 million yen. The vehicle features a range of up to 320km (WLTC mode) for higher trims and includes practical features such as dual electric sliding doors.

Despite the launch, BYD Auto Japan President Atsuki Tofukuji initially advised against entering the segment. He cited the intense competition among established domestic players and the fact that the specialized Japanese specifications prevent the model from being exported to other markets. However, BYD headquarters proceeded with the development, completing the project in an unusually rapid three-year timeframe.

Local Honda sales representatives have expressed a sense of threat, noting that customers who previously ignored Chinese brands are now considering the RACCO as a viable alternative to domestic models like the N-BOX due to its pricing and equipment levels.