Chinese automaker BYD officially launched its all-electric Racco kei minicar in Tokyo, Japan, on July 28, 2026. The launch includes a marketing campaign featuring popular Japanese actress Alice Hirose to promote the vehicle [1, 2, 3, 4, 5].

The Racco is BYD's first kei car in Japan, a segment traditionally dominated by domestic brands. Kei cars account for about 40% of new vehicle sales in Japan and are designed to be ultra-compact and affordable, tailored for the country's narrow roads [1, 4, 5].

BYD set the Racco’s starting price between 1.95 million and 2.1 million yen ($12,210 USD) before taxes and subsidies, with the final cost dropping below 2 million yen after government incentives. This pricing puts the Racco in direct competition with rivals such as Nissan’s Sakura, which starts around 2.44 million yen. Nissan’s best-selling electric kei car offers a range of up to 180 kilometers, while the Racco delivers a longer minimum driving range of about 210 kilometers on a full charge [1, 4, 6, 7, 5].

“Including subsidies, the entry level Racco will cost less than ¥2 million (US$12,210 or RM50,000),” said Atsuki Tofukuji, BYD Auto Japan CEO [1]. Tang Jin, senior researcher at Mizuho Bank, commented, “Looking at the price, you can see how serious BYD is about taking on the Japanese market.” Tofukuji added that their goal to secure 10,000 orders by the end of 2026 reflects more conviction than detailed market analysis [6].

The Racco’s dimensions comply with kei car limits, standing 180 cm tall and fitting within the 1.4 meter width and 3.4 meter length requirements for the segment [4, 5]. BYD has established 77 sales locations in Japan to support the rollout [4, 5]. Liu Xueliang, BYD Japan president, said the company aims to deliver “unprecedented convenience and enjoyment to all people across Japan through our technology.”

Foreign automakers have traditionally struggled to gain market share in Japan’s kei car segment, which is highly competitive and dominated by domestic manufacturers [4, 5]. The entry of BYD signals a new challenge to that dominance.

US President Donald Trump has also expressed enthusiasm for mini kei cars like the Racco and encouraged US firms to produce similar models [1, 4, 5].

BYD’s initial sales push will focus on securing 10,000 orders by the end of 2026, with its 77 sales locations across Japan ready to handle customer demand [6].