BYD takes its Japan-designed kei EV Racco overseas, starting with Sri Lanka and Macau

Overview

BYD, the Chinese automaker and battery manufacturer headquartered in Shenzhen, announced on Sunday, October 4, 2026, that it will sell the Racco, a battery-electric minicar developed specifically for the Japanese market, in markets outside Japan. According to Nikkei Asia and other outlets, the announcement was made at a BYD dealership in Hiratsuka, Kanagawa Prefecture. The first overseas markets are Sri Lanka and Macau. The official Sri Lanka launch was scheduled for October 9, and order books have opened in Macau.

The Racco is designed to fit Japan's kei-car regulations, which cap vehicle length, width, height and power output. It has drawn attention as the first BYD model developed solely for Japan. BYD said it will prioritise right-hand-drive markets and is actively evaluating overseas demand for the car.

Background

BYD entered Japan's passenger car market in 2023 and has since introduced several EVs, including SUVs and a sedan. According to reports, its cumulative sales in Japan across all models have exceeded 10,000 units. The company is also expanding its retail network and has reportedly set a target of around 100 outlets in Japan by the end of 2026.

Kei cars are said to account for roughly one-third of new vehicle sales in Japan and have long been a stronghold of domestic manufacturers. It is unusual for a foreign brand to launch a kei-standard EV, and the Racco is positioned against models such as the Nissan Sakura and the Mitsubishi eK X EV. After its Japanese launch, the Racco reportedly received more than 1,000 orders within two weeks and more than 2,000 orders within about two months.

Key Points

• First overseas markets: Sri Lanka (launch scheduled for October 9) and Macau. Like Japan, both drive on the left and use right-hand-drive vehicles.
• Dimensions: 3,395 mm long, 1,475 mm wide and 1,800 mm tall, with a 2,520 mm wheelbase and four seats.
• Powertrain: a front motor rated at 47 kW, the kei-class legal limit, with lithium iron phosphate (LFP) battery options of 22.4 kWh and 35.84 kWh.
• Range (WLTC): about 210 km with the smaller pack and about 320 km with the larger pack; it is described as the first kei EV with a WLTC range above 300 km.
• Price in Japan: from 2.145 million yen.

The move can be seen as an attempt to take a model engineered around Japanese standards into other right-hand-drive markets. At the same time, reports suggest a launch in mainland China is unlikely, given intense price competition among local small EVs.

Implications for Japan-Shenzhen Exchange

A Shenzhen company developing a product around Japanese specifications and consumer needs, then extending it to third markets, appears to illustrate how Japan can serve as a starting point for product development. Products that meet Japanese consumers' demanding quality expectations may also be regarded as credible in other markets.

The entry of a foreign brand into the uniquely Japanese kei EV segment is also drawing attention for what it may mean for domestic automakers and for parts and charging-infrastructure companies, both in terms of competition and potential cooperation. As BYD's dealer network grows, local touchpoints between Japanese and Chinese businesses, such as maintenance and after-sales service, are also likely to increase.

Outlook

The Sri Lanka launch and the opening of orders in Macau are the immediate milestones. Media reports have mentioned other right-hand-drive markets such as Hong Kong, the United Kingdom and Australia as possibilities, but BYD has made no official announcement, and which further markets the Racco will enter remains undecided. The car's sales performance in Japan and the progress of BYD's dealer expansion will also continue to be watched.

From the Association

The Association will continue to follow how Shenzhen companies develop products and expand their business for the Japanese market. We will keep working to provide opportunities for companies and stakeholders from Japan and Shenzhen to exchange information and deepen mutual understanding.