BYD Enters Japan's Kei Car Market with All-Electric "RACCO"

Junichi Akama, Chairman of the Japan Light Motor Vehicle and Motorcycle Association, welcomed Chinese automaker BYD's entry into Japan's kei car (mini-vehicle) market, calling it a validation of the segment’s promising future. BYD plans to launch its all-electric mini vehicle, the "RACCO" (inspired by the sea otter), in Japan on July 28, with an expected price range of ¥2.5 million to ¥3 million (approximately RMB 107,000 to RMB 126,000). The RACCO measures 3,395 mm in length, 1,475 mm in width, and 1,800 mm in height, with a wheelbase of 2,490 mm—fully compliant with Japan’s kei car regulations, which cap vehicle length at 3.4 meters and height at 2.0 meters. The model offers either a 20 kWh or 30 kWh lithium iron phosphate (LFP) battery, delivering a WLTC-certified driving range of 180 to over 300 kilometers. It also supports 100 kW fast charging, enabling the battery state of charge to rise from 30% to 80% in just 15 minutes. Kei cars account for roughly 40% of Japan’s new vehicle market and are especially prevalent in regional cities. Liu Xueliang, President of BYD Japan, stated that the company is committed to launching products tailored to local market needs in every country, and that entering Japan’s kei car segment aligns precisely with this philosophy. He added that the global shift toward electric vehicles (EVs) is unstoppable, noting that EVs not only shield users from volatile fuel prices but can also serve as emergency power sources. Previously, only a European automaker attempted to enter Japan’s kei car market back in 2001, making overseas participation in this segment exceptionally rare. The market has long been regarded by outsiders as protected by non-tariff barriers due to its stringent dimensional restrictions. In response, Akama remarked that BYD’s entry demonstrates these barriers are not insurmountable.