BYD Launches Racco Electric Kei Car to Enter Japanese Market

The Chinese automaker BYD Company launched the Racco, an all-electric kei minicar, in Japan on July 28, 2026. The vehicle is designed to penetrate the light vehicle segment, which represents approximately one-third of Japanese auto sales and is traditionally dominated by domestic manufacturers such as Honda, Suzuki, and Daihatsu.

The Racco is available in three variants: the base 200, the mid-range 300 Plus, and the top-spec 300 Premium. All models use a 64 PS electric motor. The entry-level model features a 22.4 kWh battery with a 210 km range, while the 300 variants offer a 35.84 kWh battery providing a 320 km range, making it the first electric microcar in Japan to exceed a 300 km range. Features include power-sliding rear doors and vehicle-to-home capabilities.

Pricing starts at 1.95 million yen before taxes and subsidies, or 2.145 million yen including consumption tax. While this undercuts the Nissan Sakura before incentives, the Sakura remains cheaper for consumers after government subsidies are applied because the Racco is eligible for a smaller incentive of 150,000 yen.

BYD is attempting to revive its Japanese sales after struggling since entering the passenger-car segment in 2023, having sold just over 7,400 vehicles by the end of 2025. The company has expanded its presence to 77 sales locations and aims for 10,000 orders by the end of 2026.