China’s BYD rolls out ultracompact EV to challenge Japan’s minicar market

China’s BYD Co. on Tuesday launched a new ultracompact electric vehicle developed specifically for Japanese customers to challenge the country’s minicar market, long dominated by domestic automakers.

The Racco, standing 180 centimeters tall, has ample interior space, as the Chinese leading EV maker aims to meet strong demand for tall minicars in Japan’s competitive segment, which accounts for around 40 percent of new vehicle sales.

“We want to deliver unprecedented convenience and enjoyment to all people across Japan through our technology,” said BYD Japan Co. President Liu Xueliang at a launch event held in Tokyo.

BYD seeks to sell 10,000 units per year, with the starting price set at just under 2.15 million yen ($13,000). The government’s 150,000 yen subsidy for clean energy vehicles applies to all three types, bringing the actual cost of purchasing the entry-level model below 2 million yen.

Intending to make all new passenger vehicle sales electrified by 2035, the Japanese government has been offering subsidies to promote purchases of more environmentally friendly cars, such as EVs, fuel cell vehicles and plug-in hybrid EVs.

BYD’s ultracompact EV is the first mini EV in Japan to feature power sliding doors on both sides and is available with either a 210-kilometer or 320-km cruising range, the automaker said.

When a passenger approaches the premium model with the key, a light guide is projected onto the ground, and waving a foot over it automatically unlocks and opens the sliding door.

Since entering the Japanese auto market in 2023, BYD has launched five models, but sales remain sluggish.

© KYODO