Chinese electric vehicle maker BYD has expanded its presence in Japan with the launch of the Raco, its first electric mini car designed for the country’s highly competitive kei car segment. The move is an important step in BYD’s strategy to strengthen its position in Japan after entering the passenger vehicle market in 2023.
Priced at 1.95 million yen before taxes and government subsidies, the Raiko is positioned as one of the most affordable electric mini cars in Japan. Although the vehicle is eligible for lower government subsidies than the Nissan Sakura, resulting in a slightly higher effective purchase price after incentives, BYD believes its competitive pricing and feature-rich package will appeal to Japanese buyers.
The company has set an ambitious target of securing 10,000 orders for the Raiko by the end of 2026, reflecting its confidence in the model’s ability to improve its foothold in the Japanese market.
Speaking at the launch, BYD Auto Japan President Atsuki Tofukuji said the sales target was driven by the company’s determination to establish a strong presence in the country rather than detailed market projections. He said annual sales at this level could be sustainable if each dealership consistently generated about one order per day.
The Raco offers a driving range of up to 320 km on a full charge and becomes the first electric kei car to feature sliding rear doors, a practical feature that is highly valued by Japanese consumers for urban mobility and ease of access.
Industry analysts see the launch as a strategic move to increase BYD’s brand recognition in Japan’s kei car segment, which accounts for about a third of the country’s passenger vehicle sales and has traditionally been dominated by domestic manufacturers such as Honda, Suzuki and Nissan.
According to Tang Jin, senior researcher at Mizuho Bank, Raiko’s price reflects BYD’s serious commitment to compete in Japan. However, he added that the company may need to introduce promotional campaigns or additional features if demand is lower than expected.
By the end of 2025, BYD had sold more than 7,400 passenger vehicles in Japan since market entry in early 2023. Raco’s launch highlights the growing ambitions of Chinese automakers as they expand into overseas markets and step up competition with established Japanese brands, even in one of the country’s most fiercely contested auto sectors.