BYD Launches $20,000 Car, Penetrating the Last Bastion of Japan’s Auto Industry

At the 2025 Tokyo Motor Show, BYD officially unveiled its first all-electric kei car, the Racco. Designed exclusively for the Japanese market, the name “Racco” translates to “sea otter” in Japanese. The vehicle is set to launch in summer 2026.

Currently, kei cars account for one-third of Japan’s automotive market. The Racco is expected to start at 2.6 million yen (approximately $17,000 USD or 450 million VND). Upon release, it will be BYD’s fifth model in Japan, joining the Atto 3, Dolphin, Seal, and Sealion 7.

Upon release, the BYD Racco will compete directly with popular Japanese kei cars like the Honda N-Box, Nissan Sakura, and Suzuki Spacia. Notably, the Nissan Sakura, priced at 2.53 million yen ($16,700 USD), features a 20 kWh battery with a 180 km range.

The Racco boasts a boxy exterior design, characteristic of Japanese kei cars, with four doors, including a rear sliding door. Its dimensions are 3,395 mm in length, 1,475 mm in width, and 1,800 mm in height, accommodating four passengers comfortably.

Powered by a front-mounted electric motor and a 20 kWh Blade (LFP) battery, the Racco offers a 180 km range under the WLTC standard. It also supports 100 kW DC fast charging. Detailed powertrain specifications remain undisclosed.

The interior features a digital instrument cluster, a central infotainment screen, a three-spoke steering wheel, and rectangular air vents on the dashboard.

According to Nikkei’s Chinese edition, Suzuki Motor Chairman Toshihiro Suzuki commented on BYD’s entry into Japan’s kei car market: “There are many small car standards globally, and BYD has chosen Japan’s kei car standard. I’m thrilled to see this. A new competition is about to begin, and I hope we can learn from each other and grow together. Japanese consumers’ psychological barriers toward Chinese products are diminishing. I believe BYD is posing a significant challenge.”

BYD entered Japan’s passenger car market in 2023 and plans to expand its dealership network to 100 locations nationwide by the end of 2025. The Racco marks BYD’s first kei car and its most localized product in Japan to date.