Chinese electric vehicle manufacturer BYD is preparing to make a bold move into one of Japan’s most competitive and highly regulated automotive segments with the launch of the BYD Racco, its first electric car developed exclusively for Japan’s kei car category.
The Racco will make its public debut at the Japan Mobility Show before officially launching in summer 2026.
Designed to meet Japan’s kei car standards — with a maximum length of 3.4 meters and width of 1.48 meters — the BYD Racco measures 3,395 mm long and 1,475 mm wide. The compact EV features sliding rear doors, an uncommon but practical design choice that enhances accessibility in Japan’s tight urban spaces and narrow parking spots.
Battery and Performance
While BYD has not yet disclosed full drivetrain specifications, early reports suggest that the Racco will feature a 20 kWh battery pack, offering an estimated 180 km (112 miles) WLTC range. The model is also expected to support DC fast charging up to 100 kW, making it ideal for city driving. A 40 kWh extended-range variant is reportedly under consideration for later release.
Market Positioning and Pricing
BYD plans to price the Racco from approximately ¥2.6 million (around US $17,000), placing it in direct competition with established Japanese kei EVs such as the Nissan Sakura and Honda N-Van EV. This aggressive pricing strategy aims to attract urban commuters looking for an affordable, eco-friendly vehicle option.
Strategic Significance
The Racco marks a major milestone in BYD’s localization strategy and highlights its commitment to the Japanese market. Unlike other models adapted for export, the Racco was engineered specifically to meet Japan’s kei car regulations, reflecting BYD’s deep understanding of local preferences.
Industry analysts view BYD’s entry as a potential disruption to Japan’s kei car dominance, challenging long-standing domestic automakers. With its compact size, modern design, and practical driving range, the BYD Racco is poised to become a strong contender in Japan’s growing electric mobility landscape.