BYD aims to conquer the Japanese market with the Racco kei car

The Chinese automotive giant BYD presented its first kei car at the Japan Mobility Show 2025. The electric BYD Racco is specifically designed for the Japanese market.

What is known

Kei cars are compact vehicles that have gained popularity only in Japan and account for about 40% of the new car market there. Tax benefits are provided for their purchase if certain size and engine power requirements are met.

Until now, kei cars were mass-produced only by Japanese brands, but BYD has unexpectedly decided to compete with local manufacturers on their home turf. The BYD Racco is a compact electric "box" with a short hood, high roof, and rear sliding doors. 15-inch wheels and a small size make the model ideal for tight city streets.

The vehicle is equipped with a 63 hp electric motor and a battery with a capacity of 20 or 40 kWh, providing a range of about 180 km. A fast charging feature with a capacity of up to 100 kW is also expected. The model will cost approximately 2–2.5 million yen (11,300–14,100 euros), comparable to Japan's best-selling electric car—the Nissan Sakura.

Source: Carscoops