BYD Entry Tests Japan’s Electric Minivehicle Market

Tokyo, Aug. 3 (Jiji Press)–BYD Co.’s entry is set to intensify competition into Japan’s electric minivehicle market, still a niche in the country’s passenger-vehicle segment. The Chinese electric vehicle giant last week launched the Racco in Japan, becoming the latest entrant in a segment expected to draw additional competition from EMT Co., a Japanese startup partly owned by China’s Chery Automobile Co., as well as Suzuki Motor Corp., a major Japanese minivehicle maker. Minivehicles, which are popular for their affordability and practicality, account for more than 30 pct of new vehicle sales in the country. Still, only four electric passenger minivehicle models are available. Nissan Motor Co.’s Sakura, the segment leader, sold about 10,000 units in fiscal 2025, which ended last March, far below the roughly 200,000 units sold by Honda Motor Co.’s N-Box, the top-selling gasoline-powered minivehicle model, according to the Japan Light Motor Vehicle and Motorcycle Association. BYD aims to sell 10,000 Raccos annually, saying it intends to make the model “the new standard” for minivehicles. “The battle between makers will certainly become fiercer,” an official at a Japanese automaker said. All electric minivehicle models currently on the market cost more than 2 million yen, making them more expensive than gasoline counterparts. To encourage adoption, the Japanese government offers subsidies of up to 580,000 yen for electric minivehicle purchases. Combined with local incentives, buyers in Tokyo and some others can acquire some models for less than 1 million yen. Analysts, however, question whether the market can sustain growth without public support. “Minivehicle buyers place a lot of weight on price. Competition will become far tougher once subsidies expire,” said Hikari Todoroki, a principal at KPMG Consulting Co. An official at a Japanese automaker already selling electric minivehicles said, “Manufacturers must compete not only against rival electric models but against overall minivehicles on both performance and price.” END [Copyright The Jiji Press, Ltd.]