Chinese electric vehicle giant BYD launched its electric mini vehicle Racco in Japan on Tuesday, hoping to boost local sales. Since entering the Japanese passenger car market in 2023, BYD's sales performance has been lackluster.
BYD pointed out that, including taxes and after deducting government subsidies, the entry-level Racco can be priced below 2 million yen (about RM49,900). Some analysts believe that setting the price below this level is key to attracting Japanese consumers.
The suggested retail price of the Racco starts at 1.95 million yen (about RM48,700), excluding taxes and subsidies, which is lower than Nissan Sakura, the best-selling electric mini vehicle in Japan. However, because Racco receives less government subsidies, the actual car price for consumers after deducting the subsidy is still higher than the Sakura.
Tachibana Securities analyst Hiroki Ihara said before the new car launch: "BYD may not expect to earn much profit from the Racco, but hopes to raise brand awareness by adding a 'kei car' to its product lineup."
'Kei car' refers to mini vehicles, which account for about one-third of car sales in Japan and have long been almost monopolized by local carmakers such as Honda and Suzuki.
BYD plans to secure 10,000 Racco orders by the end of 2026 to expand its foothold in the Japanese market. As of the end of 2025, BYD's cumulative sales since entering the Japanese market in 2023 were only slightly above 7,400 units.
The report pointed out that the launch of the Racco highlights the growing challenge Chinese carmakers pose to their Japanese counterparts. In China, the world's largest car market, Japanese carmakers are also continuously losing market share to domestic EV manufacturers such as BYD.