BYD's Racco Electric Kei Car Orders Surpass Target in Japan

BYD's electric kei car draws 1,002 orders in Japan in two weeks

BYD received 1,002 orders for its Racco electric kei car in Japan between July 28 and August 9, 2026 — exceeding its initial target of 1,000 orders. The vehicle’s trim mix shows strong appeal: 80% of orders were for the 300 Premium model, 14% for the 300 Plus, and 6% for the entry 200 trim. Notably, 26.8% of orders came from first-time buyers, while 37.5% were additional vehicles for households and 35.7% were replacements.

The Racco starts at 2.145 million yen ($13,600) including tax in Japan, but with a 150,000-yen government subsidy, the entry model falls below 2 million yen. This pricing aligns with Japan’s kei car market, where cheap and compact models account for nearly 40% of new vehicle sales. The vehicle also features Japan’s first all-electric kei car with power sliding side doors and a 320-kilometer range using a 35.84 kWh lithium iron phosphate battery.

This rapid adoption demonstrates growing consumer demand for affordable EVs in regulated markets. By meeting the 10,000-order target by year-end 2026 and expanding its Japanese store network to 100 locations by December 2026, BYD is addressing a key mobility need: accessible electric vehicles for urban Japanese households. The Racco’s pricing and features could accelerate kei car electrification in a market where traditional manufacturers control 80% of minicar sales.

What to watch: BYD Japan president Atsuki Tofukuji stated the 10,000-unit goal depends on dealerships generating one order per day. If this pace holds, the Racco could become a scalable model for affordable EVs in Japan’s regulated market — but sustained demand requires dealer network growth and continued subsidy alignment.

Source: CnEVPost