BYD has officially launched the Racco all-electric kei car in Japan, marking the Chinese automaker’s entry into the country’s largest passenger vehicle segment as it seeks to compete directly with established domestic manufacturers including Toyota, Honda and Nissan.
The Racco starts at 2.145 million yen ($13,100). After applying Japan’s 150,000-yen government subsidy, the entry-level model is priced below 2 million yen, offering a WLTC driving range of 210 kilometers.
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Positioned Against Japan’s Leading Kei EVs
The Racco enters a highly competitive segment currently led by Nissan’s Sakura, Japan’s best-selling electric vehicle, which starts at approximately 2.44 million yen and offers a 180-kilometer WLTC range.
Honda’s N-ONE e: is priced from around 2.7 million yen.
BYD is offering the Racco in three variants: the entry-level 200, alongside the higher-spec 300 Plus and 300 Premium.
The two upper trims start at 2.398 million yen and 2.497 million yen, respectively.
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Both are equipped with a 35.84 kWh lithium iron phosphate (LFP) battery, providing a WLTC driving range of 320 kilometers.
According to BYD, the Racco is the first electric kei car in Japan to deliver more than 300 kilometers of range under the WLTC testing standard.
Designed for Japanese Drivers
Built specifically to comply with Japan’s kei car regulations, the Racco measures 3,395 mm long, 1,475 mm wide and 1,800 mm high.
The tall roof design maximizes cabin space while remaining within the country’s size limits for kei vehicles.
The Racco also becomes Japan’s first electric kei car equipped with power sliding doors featuring kick-sensor activation.
Power comes from a 47 kW electric motor producing 160 Nm of torque.
The vehicle supports 50 kW DC fast charging, similar to competing electric kei cars despite its larger battery pack.
Inside, the Racco features a 10.1-inch touchscreen, Level 2 driver assistance, vehicle-to-load (V2L) capability, heated seats and steering wheel, an NFC smartphone key and battery preconditioning.
With the rear seats folded, cargo capacity expands to 1,372 liters.
Expanding BYD’s Presence in Japan
Kei cars account for nearly 40% of new vehicle sales in Japan, particularly in rural areas and cities with narrow streets.
Toyota-affiliated brands Suzuki and Daihatsu, together with Honda, control roughly 80% of the country’s kei car market.
BYD entered Japan’s passenger vehicle market in 2023 with the Atto 3, sold in China as the Yuan Plus.
Earlier this year, the company confirmed plans to expand its Japanese lineup with the Atto 2 and Seal 6, bringing its total offering to eight models.
To support the Racco’s launch, BYD also plans to establish compact dealerships displaying one or two vehicles in regional cities with populations below 500,000, targeting areas where demand for electric kei cars is expected to grow.