Prime Highlights :

• BYD launches its Racco electric mini-car in Japan, targeting 10,000 orders by the end of 2026.
• Racco’s price undercuts Nissan’s Sakura before subsidies, though Sakura remains cheaper for buyers after incentives.

Key Facts :

• Entry-level Racco priced under 2 million yen after taxes and government subsidies.
• BYD had sold just over 7,400 vehicles in Japan since entering the market in 2023.

Background :

China’s BYD has launched its Racco electric mini-car in Japan, aiming to build on its presence in a market it entered in 2023. The Shenzhen-based automaker said buyers can get the entry-level Racco for under 2 million yen after taxes and government subsidies, a price point analysts see as key to drawing Japanese drivers.

The Racco’s suggested retail price starts at 1.95 million yen before taxes and subsidies, coming in under Nissan’s Sakura, Japan’s best-selling electric mini-car. After subsidies, though, the Sakura still works out cheaper for buyers, since the Racco qualifies for a smaller government incentive.

Hiroki Ihara, an analyst at Tachibana Securities, said ahead of the launch that BYD is likely less focused on profit from the Racco and more on building brand awareness by adding a kei car to its lineup.

Kei cars, meaning light vehicles, make up roughly a third of Japan’s auto sales and have long been dominated by domestic makers such as Honda and Suzuki.

BYD is targeting 10,000 orders for the Racco by the end of 2026 as it works to grow its footprint in Japan. The company had sold just over 7,400 vehicles in the country since its 2023 launch, as of the end of 2025.

The launch adds ground to BYD’s international expansion, at a time when Chinese EV makers keep building presence in the world’s largest auto market and beyond.