BYD has launched the Racco, an electric kei car in Japan priced under 2 million yen after subsidies, positioning it against Nissan Sakura and Honda N-One in the country’s key kei car segment.

BYD targets 10,000 orders by the end of 2026, aiming to break into a market where foreign automakers have struggled to gain share.

BYD Japan president Liu Xueliang says the goal is to deliver unprecedented convenience and enjoyment through BYD’s technology as the brand expands to 77 sales locations.

The Racco supports DC fast charging up to 100 kW, offering quicker charging than several domestic rivals.

A premium variant includes ground projection lighting for the door area and automatic opening of the sliding door when a foot gesture is detected under the sensor.

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The Racco measures about 1.8 meters in height and 147.5 centimeters in width, with spacious interior and sliding rear doors designed for family use.

Key features include a 10.1-inch central touchscreen, power-sliding doors, bi-directional charging, digital key access, heated seats and steering wheel, six airbags, and V2L capability.

The car is marketed as Japan’s first kei EV with power sliding doors (kick sensor) and Level 2 driver assistance, plus battery preconditioning.

BYD’s Japan unit emphasizes expanding EV model variety to showcase benefits beyond zero emissions, such as using batteries as power sources for other uses.

The subsidy gap is highlighted by Japan’s 200-point scoring system, in which BYD scored zero for charging infrastructure and local humanitarian contributions despite installing fast chargers at dealerships.