BYD’s Racco kei EV hits 5,000 orders in first week in Japan

BYD's Racco electric kei car secured more than 5,000 paid orders in its first week on sale in Japan, putting the Chinese automaker halfway to its 10,000-unit target for the year, according to Electrek and Chinese automotive outlet Yiche.carscoops+1

The milestone, reported on July 30, came just days after BYD officially launched the Racco on July 28 — making it the first electric kei car from a non-Japanese brand to enter a segment that accounts for roughly 40 percent of Japan's new-vehicle sales.reuters+1

Undercutting Domestic Rivals

The Racco's pricing is central to its early momentum. The entry-level Racco 200, equipped with a 22.4 kWh lithium iron phosphate battery and 210 km of WLTC range, starts at ¥2,145,000 (about $13,100). After a ¥150,000 national EV subsidy, the price drops below ¥2 million. The higher trims offer a 35.84 kWh pack rated at 320 km — which BYD says makes it the first kei EV in Japan to exceed 300 km on the WLTC cycle.paultan+3

That undercuts Nissan's Sakura, Japan's current best-selling EV, which starts near ¥2,448,600 with only 180 km of range, and Honda's ↗ 0.13% N-ONE e:, priced around ¥2.7 million.electrek+1

Breaking Into a Fortress Market

Reuters reported that BYD Japan head Jin Liu acknowledged the company was "under pressure" to hit its 10,000-order goal, noting the brand could expand dealer capacity if demand warranted. BYD currently operates about 70 dealerships in Japan.carscoops+1

The kei segment has long been dominated by Toyota's Daihatsu and Suzuki subsidiaries alongside Honda, which together control about 80 percent of the market. The Racco concept had drawn roughly 30,000 non-binding expressions of interest after its debut at the 2025 Tokyo Motor Show.globalchinaev

Localization as Strategy

BYD designed the Racco from the ground up for Japanese regulations, hiring a former Nissan kei-car executive to lead development. The vehicle meets strict kei dimensions — 3,395 mm long and 1,475 mm wide — while offering power sliding doors on both sides, a first for a kei EV in Japan. BYD Japan also developed a proprietary modular component called X-PACK to consolidate battery, control, and charging systems into a single unit, freeing crush space in the compact frame.globalchinaev+1

Whether the initial surge translates into sustained sales remains to be seen. Honda's N-BOX, Japan's overall best-selling vehicle with more than 56,000 units in the first quarter of 2026 alone, still runs on gasoline and costs less before subsidies are factored in.electrek+1