BYD Japan Sales Double in 2026 Despite Sharp Cuts to EV Subsidies

In March 2026, BYD registered 625 vehicles in the Japanese market, nearly doubling its year-on-year volume; its total sales for the first quarter surged by over 100% compared to the same period last year. During the same period, the Japanese government reduced the new energy vehicle subsidy for BYD models from JPY 400,000 to JPY 150,000, while subsidies for some domestic competitors, such as Toyota, were increased. BYD continues to expand its product lineup in Japan. As of the end of March 2026, it has launched multiple models covering various segments and plans to introduce a kei car model named "Hai Ta" (Sea Otter). On the distribution front, BYD has established 70 sales outlets within just over three years and aims to increase this number to 100 by 2027, adopting a "small-store strategy" to control costs. Additionally, BYD has accumulated nearly two decades of localized operational experience in Japan, having initially built market credibility and operational foundations through its electric bus business. In response to the revised subsidy policy, BYD has launched its own subsidy program. The launch of the "Hai Ta" is seen as a key move to enter Japan’s kei car market, and combined with deeper localization efforts, it is expected to further drive sales growth.