The Chinese auto giant BYD continues its global expansion and, it seems, is no longer limited to Europe. Now the brand is targeting the world’s most complex and closed automotive market – the Japanese one. Ahead of its debut at the Tokyo Motor Show 2025, spy photographers have for the first time captured the compact electric car BYD Racco, created specifically for Japanese kei-class standards.
What seemed like fantasy just a few years ago – a Chinese automaker encroaching on Honda and Suzuki’s dominance in the segment of iconic kei-cars – has today become a reality. And the Racco could become for the Japanese the same symbol of change as the appearance of the BYD Dolphin in Europe.
The new model is executed in the classic kei-class form factor: a boxy silhouette, compact proportions, sliding rear doors, and a ‘floating’ roof. The length will not exceed 3.4 meters – exactly what Japanese legislation allows. Inside – a minimalist electric vehicle with a modern digital panel, and under the floor – a 20-kWh battery providing about 180 km of range according to WLTC. It also has a heat pump and fast charging up to 100 kW – serious arguments in the ‘urban mini’ segment.
The price is expected to be around 2.6 million yen (≈$17,000) – on par with competitors, which include the Honda N-Box, Suzuki Spacia, and Nissan Sakura. This means the Japanese will get not just a cheap alternative, but a full-fledged player in a segment that is almost sacred to the local market.
The reaction from the Japanese side adds intrigue. Suzuki Motor President Toshihiro Suzuki welcomed BYD’s entry into the kei-car segment and directly acknowledged: “The psychological barrier of Japanese consumers towards Chinese cars is lowering. BYD is a serious challenge.” This sounds telling. Once, the Japanese disrupted the European and American markets, and today Chinese brands are repeating their path – and even reaching Japan itself.
BYD already sells the Dolphin, Seal, and Atto 3 models in Japan and plans to expand its dealer network to 100 showrooms by the end of 2025. The Racco will become the first truly localized product for Japan – and the first Chinese challenge in the segment of kei-cars, which is sacred to the Japanese.
It seems that the new ‘automotive war’ is not only being waged for Europe – now the battle is moving to the very heart of the Japanese automotive industry’s bastion. And if the Chinese can convince the Japanese – then nothing in the world will be able to stop them anywhere.