- The Racco is BYD's fifth model in Japan, targeting a popular segment in the country.
- The Racco marks BYD's second model tailored for overseas markets following the Shark hybrid pickup.
BYD (HKG: 1211) debuted its first electric mini K-Car in Japan, targeting a popular segment in the country.
The Chinese new energy vehicle (NEV) giant unveiled the BYD Racco at the Japan Mobility Show today, saying the four-door sedan is slated for a summer 2026 launch in Japan.
The Racco marks BYD's second model tailored for overseas markets following the Shark hybrid pickup, as the company continues its international expansion efforts.
BYD launched the Shark pickup in Mexico in May 2024, marking its first instance of debuting a new model overseas before its home market. To date, the BYD Shark is available in multiple international markets but remains unavailable in China.
The Racco becomes BYD's fifth model in Japan, following the Yuan Plus, Dolphin, Seal, and Sealion 07 EV.
The Yuan Plus was rebranded as the Atto 3 in Japan, while the Sealion 07 EV became the Sealion 7.
K-Cars are microcars exclusive to the Japanese market, designed specifically for narrow roads and resource constraints.
Typically under 3.4 meters long and less than 1.48 meters wide, these vehicles have maximum power outputs capped at 64 horsepower.
They benefit from policy incentives in Japan, including lower acquisition taxes, making them a popular choice as a second vehicle for many urban families.
Currently well-known K-Cars in the Japanese market include the Nissan Sakura, which starts at 2,599,300 Japanese Yen ($17,120).
In addition to the Racco, BYD also announced at the Japan Mobility Show the introduction of its first plug-in hybrid electric vehicle (PHEV) model for the Japanese market, the Sealion 06 DM-i, which has been renamed locally as the Sealion 6.
BYD plans to launch 7-8 models in Japan by 2027, it said. Currently, the company has established 66 sales outlets in Japan.
BYD announced its entry into Japan's passenger vehicle market in July 2022 and began selling its first model there in January 2023: the Atto 3 compact electric SUV (sport utility vehicle).
On August 4, the company announced its cumulative passenger vehicle sales in Japan had surpassed 5,000 units.
BYD's current models in Japan have struggled to gain market acceptance, recently resorting to deep discounts to stimulate demand, a Bloomberg report today noted.
The company offers discounts of up to 1 million Japanese Yen, which combined with government subsidies can reduce the list price by as much as 50 percent, according to the report.
($1 = 151.93 Japanese Yen)
