Overview
- BYD unveiled the Racco on July 28, 2026, marketing a compact, tall-bodied electric kei car built to Japanese size and power rules for the minicar segment.
- The Racco is offered in three trims with two battery options: a 22.4 kWh pack for about 210 km WLTC range and a 35.84 kWh pack for about 320 km, with prices starting at ¥2,145,000.
- BYD has set a 10,000-unit annual sales goal for the Racco and plans to grow its Japan dealer network to roughly 100 showrooms this year to reach regional buyers.
- A major hurdle is Japan’s METI subsidy scoring: imported models receive a flat ¥150,000 national grant versus up to ¥580,000 for some domestic kei EVs, which can leave the Racco more expensive to buy on the road despite its lower sticker price.
- Kei cars make up roughly 40% of new car sales in Japan and are dominated by Toyota-linked Daihatsu, Suzuki and Honda; the Racco’s feature set and price could pressure rivals but sustained gains will depend on resolving subsidy gaps and shifting strong local brand preferences.