Overview
- BYD launched the Racco on Tuesday, July 28, 2026, a Japan-specific ultracompact electric vehicle with 180 cm height, sliding power doors on both sides, and two range options of about 210 km or 320 km.
- The entry model is priced just under ¥2.15 million and falls below ¥2.0 million after the flat ¥150,000 clean-energy subsidy that applies to BYD models.
- BYD has set a 10,000-unit annual sales target for the Racco and plans to expand its Japan showrooms to roughly 100 outlets from about 70 to reach all 47 prefectures.
- A major constraint is Japan’s 200-point subsidy scoring system, which has left BYD with far smaller subsidies than some rivals and zero points on certain local measures despite dealer charger installs, widening the effective price gap versus domestic kei EVs.
- Kei cars make up roughly 40% of new vehicle sales in Japan and are dominated by Daihatsu, Suzuki and Honda, so BYD faces entrenched domestic rivals plus new entries from Honda, Suzuki and a Chery-backed EMTA joint venture that could further intensify competition.