BYD unveils Japan-only electric kei car 'Racco' at Japan Mobility Show

Overview

On October 29, 2025, BYD, the Shenzhen-headquartered automaker and battery manufacturer, gave the world premiere of the BYD Racco, a battery-electric vehicle built to Japan's kei-car standard, during the press days of the Japan Mobility Show 2025 at Tokyo Big Sight. The show was open to the public from October 31 to November 9 and drew more than 500 exhibiting companies and organizations, the largest number in the event's history, including its predecessor, the Tokyo Motor Show.

Atsuki Tofukuji, President of BYD Auto Japan, said the Racco is the first model the brand has developed exclusively for an overseas market. The launch is planned for around summer 2026, and according to reports BYD has no plans to sell the car outside Japan.

Background

BYD began selling rechargeable batteries in Japan in 1999 and later supplied energy storage systems, electric buses and electric forklifts to the Japanese market. It announced its entry into Japan's passenger car market at a brand conference in Tokyo in July 2022 and currently sells the Seal, Sealion 7, Dolphin and Atto 3.

Kei cars account for roughly 40% of new vehicle sales in Japan, with about 1.55 million units sold in the previous year. However, the choice of electric kei cars remains limited, with models such as the Nissan Sakura, the Mitsubishi eK X EV and the Honda N-One e:. It is unusual for a foreign manufacturer to develop a dedicated model for this segment.

Key Points

• Body: 3,395 mm long, 1,475 mm wide and 1,800 mm tall. It is a "super-height" kei wagon with four seats and sliding rear doors on both sides.
• Name: "Racco" is the Japanese word for sea otter, following BYD's practice of naming its Ocean Series models after marine animals.
• Battery: It will use BYD's in-house lithium iron phosphate Blade Battery, in short-range and long-range versions. Reports suggest the top version will have a battery of about 20 kWh and a WLTC range of about 180 km, but official specifications and pricing have not been announced.
• Development: More than 100 prototypes are reportedly being used to evaluate crash, driving and charging performance.
• Production: According to staff at the BYD booth, the car will be manufactured in China, which is unusual for a kei car.

Significance for Japan-Shenzhen Exchange

The kei car is a category unique to Japan. The fact that a Shenzhen company has designed a dedicated model around Japan's regulations and consumer needs is being watched as a sign that Chinese companies are moving from exporting existing models toward developing products tailored to the Japanese market.

For Japanese automakers and parts suppliers, the move may change the competitive landscape in the electric kei segment. At the same time, areas such as charging infrastructure, sales and service networks, and battery recycling could open new room for cooperation between Japanese and Shenzhen companies. How Japanese consumers will respond to an electric kei car from a Chinese brand is also drawing attention.

About three years after announcing its entry into Japan's passenger car market in July 2022, BYD has reached the stage of developing a model specifically for Japan. If foreign manufacturers seriously enter the kei segment that Japanese automakers have cultivated for decades, consumers will gain more choice, while perceptions of quality, safety and after-sales service are likely to be key to adoption. Experience gained in Japan may also inform localized product development by Shenzhen companies in other overseas markets.

Outlook

BYD plans to launch the Racco around summer 2026, but official details such as price, battery capacity and range had not been disclosed at the time of the premiere. Further information, including eligibility for purchase subsidies and the development of the dealer network, will be the focus as the launch approaches.

From the Association

Product development by Shenzhen companies tailored to the Japanese market represents one new form of industrial exchange between the two regions. The Association will continue to follow such developments and to provide opportunities for companies and people from Japan and Shenzhen to exchange information.