Chinese language electrical car big BYD is getting ready to problem Japan’s tightly held mini-vehicle market with a daring new contender: a totally electrical kei automotive engineered particularly for Japanese roads. Not too long ago leaked spy images reveal a compact prototype that’s being examined. It options hallmark design components like sliding rear doorways and a twin A-pillar structure, indicating strict adherence to Japan’s kei automotive rules.

Kei vehicles, quick for keijidōsha (mild vehicles), are a uniquely Japanese class of ultra-compact autos. By regulation, they have to not exceed 3.4 meters in size, 1.48 meters in width, and a couple of meters in top, with engine output capped at 64 horsepower. These autos obtain tax and parking advantages, making them excellent for city drivers. Regardless of incentive cuts in 2014—together with a 50% hike in kei automotive taxes—these autos nonetheless account for roughly 35% of Japan’s auto market.

BYD’s kei automotive can be the primary ground-up electrical mannequin on this class developed by a overseas automaker. Whereas Good as soon as tailored its ForTwo and Hyundai’s Inster got here shut, neither was designed solely for Japan’s kei requirements. In distinction, BYD has developed an all-new platform with Japan in thoughts.

Reviews from China counsel the car will characteristic a 20 kWh battery delivering 180 km WLTC vary, 100 kW quick charging, and an environment friendly warmth pump HVAC system. With an anticipated value of two.5 million yan (17,700 USD), it is going to compete straight with the Nissan Sakura and Mitsubishi eK X EV—Japan’s two main electrical kei vehicles. Each have been launched in 2022 by the NMKV three way partnership, that includes 20 kWh batteries and 47 kW motors.

BYD plans to provide the mannequin in China for export to Japan beginning in late 2026 and goals for a 40% share of the electrical kei market inside a number of years. Its push into this class follows modest success in Japan with the Dolphin and Seal EVs, which helped BYD attain over 2,200 car gross sales in 2024. The corporate plans to develop its dealership community to 100 areas by 2025.

Solely Daihatsu, Honda, Suzuki, and the Nissan-Mitsubishi NMKV partnership construct kei vehicles at scale, whereas Toyota, Mazda, and Subaru depend on rebadged fashions. BYD’s entry would mark the primary severe competitors from outdoors Japan.

“Growing a correct kei automotive requires utterly rethinking car structure,” stated analyst Li Ming. “BYD’s transfer alerts a deep dedication to the Japanese market.”
In 2024, the Shenzhen-based automaker surpassed Toyota in Japan’s EV gross sales for the primary time, delivering 2,223 all-electric vehicles, up 54% from the 12 months earlier than. Toyota offered 2,038 EVs, and in whole, 59,736 all-electric autos have been offered in Japan in 2024.