TOKYO — Chinese EV giant BYD has officially launched the “Racco,” an all-electric mini-car designed specifically for the Japanese market. The move marks an aggressive strategy to boost sales. Brand recognition in a region where the automaker has struggled to gain significant traction since entering the passenger-car segment in 2023.

The Racco enters Japan’s highly competitive “kei car” (light vehicle) category. A unique segment of ultra-compact cars that makes up nearly 40% of all new vehicle sales in the country. Standing 1.8 meters tall with a footprint under 3.4 meters in length. The Racco is the first kei-class vehicle introduced in Japan by an overseas manufacturer.

Sub-2 Million Yen Pricing Strategy

To entice local buyers away from entrenched domestic rivals like Nissan, Honda, and Suzuki, BYD has priced the entry-level Racco starting at 2.145 million yen ($13,100). After factoring in a 150,000-yen government subsidy, the effective purchase price drops under the critical 2-million-yen ($12,200) threshold. A price point analysts identify as vital for mass-market adoption in Japan.

Key vehicle specifications and features include:

• Range & Battery: High-spec trims feature a 35.84-kWh lithium iron phosphate (LFP). A Battery delivering up to 320 kilometers (198 miles) on a single charge. Making it the first electric kei car in Japan to break the 300-km range barrier.
• Convenience & Tech: The Racco is equipped with dual power-sliding doors, kick sensors, a 10.1-inch central touchscreen. Also, Level 2 driver assistance, and Vehicle-to-Load (V2L) capability.
• Sales Targets: BYD is aiming for 10,000 orders for the Racco by the end of 2026. Supported by new regional mini-dealerships across Japan.

While Nissan’s Sakura currently stands as Japan’s top-selling electric mini-car. BYD’s aggressive pricing and extended range highlight how Chinese manufacturers are increasingly bringing high-spec, cost-competitive electric vehicles directly to traditional auto hubs.

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