BYD's First Kei Car Takes The Fight To Toyota's Home Turf

It’s the longest-range electric kei car in Japan and also the most feature packed.

Photo by: Motor1.com Deutschland

Suvrat Kothari

By: Suvrat Kothari

Jul 28, at 1:33pm ET

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BYD has a new electric vehicle aimed at the heart of Japan's domestic car market.
The new Racco electric kei car was built from the ground up to take on Japan's kei cars.
It gets powered sliding doors and vehicle-to-load bidirectional charging.

BYD is going after traditional Japanese automakers on their home turf in one of the most popular vehicle segments in the country: kei cars. The Chinese giant revealed the Racco kei car for the Japanese market Tuesday, and on paper, it outclasses rivals from Nissan, Honda and Mitsubishi.

Kei cars have been a smash hit in Japan for decades, thanks to their narrow, boxy body styles that are uniquely suited to the country's tight streets. They're also cheaper to own thanks to lower fees and taxes. Traditional automakers like Toyota have long dominated the segment, but the new entrant from China that’s built from the ground up specifically for Japan could threaten the existing players.

Gallery: BYD Racco (Kei Car) at the Japan Mobility Show 2025

Source: Motor1.com Deutschland

BYD could use the leg up in Japan. As it ramps up exports around the world, China's juggernaut is still a tiny sliver of the Japanese market. BYD sold just over 3,000 cars there last year. For context, Japan sold roughly 4.5 million new cars in 2025, and 1.6 million of those were the mini kei cars. The Racco could help BYD start making a name for itself in the country.

On paper, the Racco has a lot going for it. It'll come with two lithium iron phosphate (LFP) battery options: 22.4 kilowatt-hours and 35.8 kWh. The smaller Blade battery delivers 130 miles of WLTP range, while the larger one is good for 199 miles on a single charge. That means the higher trims will surpass the current best-selling EV in the country, the Nissan Sakura, which tops out around 180 miles of WLTP range. The Racco will also support DC fast-charging speeds of up to 100 kilowatts, beating both the Honda N-One E and the Sakura.

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It's well equipped too, with minivan-like powered sliding doors, bidirectional charging, digital key access, a 10.1-inch central screen, and heated front seats and steering wheel, among other features. The entry-level model will start at just under 2 million yen, or about $11,900 before taxes and government incentives. That undercuts the Sakura, which starts at 2.4 million yen, or roughly $14,600 at current exchange rates.

Contact the author: suvrat.kothari@insideevs.com