BYD plans to launch a new mini electric vehicle in Japan in 2026, aiming to compete directly in the country’s kei car segment—a category dominated by local automakers such as Nissan, Honda, and Suzuki.
The announcement signals an aggressive push by China’s leading electric vehicle manufacturer into one of the few markets where foreign brands have struggled to gain traction. BYD sold 2,223 EVs in Japan in 2024, accounting for around 4% of the country’s total EV sales.
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The upcoming model, described as a kei-class vehicle, is expected to start around 2.6 million yen (approximately $18,000), a price comparable to that of the Nissan Sakura, Japan’s top-selling EV last year. Kei cars, known for their compact size and affordability, made up nearly 40% of all new vehicle sales in Japan in 2023, with 1.55 million units sold.
“Young people do not have a negative view of BYD. It would be a huge threat if the company launches cheap models in Japan,” a Suzuki dealer told Nikkei.
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BYD’s most compact EV to date, the Seagull, which is 3,780 mm long, has already proven popular in China with over 55,000 units sold in a single month. The new Japan-bound mini EV is expected to be smaller to better suit urban driving conditions and consumer preferences.
To support the launch, BYD said it has opened a dedicated website to recruit talent with “extensive experience” in light vehicle operations. The company is also leveraging its cost advantage through its Blade battery technology, used in multiple models across brands including Tesla and Toyota.
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The move adds pressure on Japanese automakers who rely heavily on kei cars for domestic growth. BYD’s entry could accelerate price competition and challenge the dominance of established local players in a market traditionally resistant to foreign EV brands.