- BYD plans to expand sales network coverage in Japan by opening mini dealerships and prepare for the launch of the Racco K-Car.
- These dealerships will be located in remote cities with populations under 500,000, with each outlet displaying only a few models.
China's new energy vehicle (NEV) giant BYD (HKG: 1211, OTCMKTS: BYDDY) plans to expand its sales network coverage in Japan by opening mini dealerships and prepare for the launch of the Racco mini electric K-Car.
The company plans to rapidly expand its Japanese sales network by opening mini dealerships showcasing only one or two models, Nikkei Asia reported on Monday.
"We intend to cover small, regional commercial areas in order to sell mini EVs," said Atsuki Tofukuji, president of BYD Auto Japan, according to the report.
These dealerships will be located in remote cities with populations under 500,000. Each outlet will display only a few models and open quickly, the report said.
Automotive dealerships are typically large-scale to fully showcase a brand's unique identity. BYD is adopting the opposite strategy as its Racco mini EV, developed specifically for the Japanese market, launches this summer.
The mini dealerships will focus on promoting the Racco. These light microcars account for about 40% of Japan's new vehicle sales and are in high demand in rural areas, Nikkei Asia reported.
BYD unveiled the Racco at the Japan Mobility Show on October 29, 2025, announcing plans to launch the mini EV in Japan during summer 2026.
The Racco marks BYD's second model tailored for overseas markets following the Shark hybrid pickup.
K-Cars are compact vehicles unique to the Japanese market, designed to navigate narrow roads and conserve resources.
Typically under 3.4 meters long and less than 1.48 meters wide, these models cap at 64 horsepower.
They benefit from policy incentives including lower purchase taxes, making them a popular second car choice for urban families.
Notable K-Cars currently available in Japan include the Nissan Sakura, which starts at JPY 2,599,300 ($16,580).
BYD announced its entry into Japan's passenger vehicle market in July 2022 and began sales of its first model, the Atto 3 compact electric SUV, in January 2023.
The company originally planned to open 100 sales outlets in Japan by the end of 2025, but failed to meet this target due to challenges such as finding suitable properties.
As of the end of 2025, BYD operated 69 outlets in Japan — including planned locations —covering 38 prefectures, according to Nikkei Asia.
($1 = JPY 156.75)
