BYD Plans to Launch Kei-Class EV in Japan in Second Half of 2026

Overview

BYD, the Shenzhen-headquartered new energy vehicle maker, plans to launch a battery electric vehicle built to Japan's unique kei car standard in Japan in the second half of 2026, according to reports in early June 2025. The plan was disclosed in an interview with Atsuki Tofukuji, president of BYD Auto Japan, published by the Financial Times on June 1, and was reported by Chinese media including IT Home on June 2.

According to the reports, the model is being developed for overseas markets and will not be sold in China, making it a Japan-specific vehicle. It will compete with popular kei EVs in Japan such as the Nissan Sakura and the Mitsubishi eK X EV.

Background

Kei cars are a Japan-specific category of small vehicles that must meet conditions such as an engine displacement of 660cc or less. According to IT Home, Japan's kei car market was worth about US$18 billion last year and accounts for around 40% of the country's new car market. CarNewsChina reported that kei models rose from 2.6% of Japan's EV sales in 2021 to 46.3% in 2022.

BYD entered Japan's passenger car market in 2023 and, according to CarNewsChina, had sold a cumulative 4,530 vehicles there by March 2025. Its Japanese lineup has centered on SUVs, compact cars and sedans, and it had not yet entered the kei segment, which accounts for a large share of sales in Japan.

Key Points

• Timing: The car is planned for launch in Japan in the second half of 2026.
• Developed for Japan: It is being developed for the Japanese market to meet kei standards.
• Rationale: Tofukuji told the FT that rising fuel-related costs and the decline of rural gas stations due to population decline could open a market for small EVs. He was also reported as saying that kei cars fit Japanese lifestyles well and that consumers would buy them even from a brand that is not a major one, once they understand the economic benefits.
• Reported specifications: CarNewsChina reported a target price of about 2.5 million yen, a 20 kWh battery, a WLTC range of 180 km and support for 100 kW fast charging. These details have not been officially announced by BYD.
• Response from a Japanese automaker: Citing a Nikkei report, IT Home said Suzuki President Toshihiro Suzuki personally welcomed the move, saying that if battery cost constraints are removed, EVs could be most effective in kei and small cars.
• BYD's overseas expansion: According to CarNewsChina, BYD sold 382,500 new energy vehicles in May 2025, up 15.3% year on year, including 88,640 overseas passenger cars and pickups, up 133.6%.
• Overseas production and Europe: According to the same outlet, BYD has localized production in Thailand and Uzbekistan and is building a plant in Cambodia. In Europe, BYD sold 7,231 EVs in April 2025 according to JATO Dynamics, overtaking Tesla (7,165) for the first time.
• Price comparison: The reported target price would be below that of the Dolphin, BYD's compact EV sold in Japan for about 2.9 million yen.

Implications for Japan–Shenzhen Exchange

A Shenzhen automaker developing a dedicated model for the Japanese market appears to signal a new stage in Chinese companies' engagement with Japan. Product development tailored to how Japanese consumers use their cars may also widen points of contact with Japanese companies in areas such as parts procurement and sales and after-sales networks. For Japanese automakers, the competitive environment in the kei EV segment may change, and developments are drawing close attention.

Outlook

At the time of the reports, details such as the official model name, price, production site and sales targets had not been announced. How well BYD is received in the kei market is likely to depend on pricing, its sales network and the charging environment, and an official announcement is awaited.

From the Association

The Association will continue to follow product development and business expansion by Shenzhen companies aimed at the Japanese market. We will work to provide opportunities for Shenzhen and Japanese companies to deepen mutual understanding and explore possibilities for cooperation.