BYD launches Racco, Japan's first electric kei car

Chinese automaker BYD has officially launched its first electric kei car, the Racco, in Japan, marking a direct challenge to domestic manufacturers in a segment they have long dominated. The vehicle, which went on sale on Tuesday, July 28, 2026, is positioned with aggressive pricing and claims the title of the longest-range electric kei car available in the country.

The Racco enters a market where small, efficient kei cars account for a significant portion of new vehicle sales, favored for their maneuverability on narrow streets and lower ownership costs. BYD is offering the car in two main variants: the Racco 200 with a 22.4 kWh battery providing 210 km of range, and the Racco 300 with a 35.84 kWh battery delivering up to 320 km on a single charge under the WLTC testing cycle. This surpasses the range of the current best-selling electric kei car, the Nissan Sakura.

Pricing starts at 2,145,000 yen (approximately $13,100) before government subsidies. While this undercuts the base price of rivals like the Nissan Sakura and Mitsubishi eK X EV, the final cost to consumers is influenced by Japan's subsidy system. Domestic manufacturers qualify for higher national incentives due to...