BYD Enters Japan’s Kei Car Market with Electric Vehicle
Chinese electric vehicle manufacturer BYD is set to develop an electric kei car specifically for the Japanese market. The new model is expected to launch in the second half of 2026 with a target price of 2.5 million yen ($17,700).
Kei cars, or mini cars, account for about 40% of Japan’s automobile market. Despite their popularity, foreign manufacturers have struggled to penetrate this segment due to unique standards and regulations. BYD has completed the design for the new electric vehicle and plans to staff its team with personnel familiar with the Japanese kei car market.
The decision to develop a kei car for Japan marks a significant move for BYD, which has previously introduced models from China to global markets. This will be the company’s first vehicle developed exclusively for a single country. BYD entered the Japanese market in 2023 but has only achieved cumulative sales of 4,530 units as of March 2025. The new kei car is expected to boost the company’s sales volume substantially.
Kei cars are defined by their compact size, measuring 3.4 meters or less in length and 1.48 meters or less in width. They are known for their affordability and receive preferential tax treatment. BYD’s new electric kei car will face competition from existing models such as the Nissan Sakura and Mitsubishi eK X EV.
The launch of BYD’s electric kei car is part of the company’s broader strategy to expand its global presence, particularly in Southeast Asia. With its new model, BYD aims to capitalize on the popularity of kei cars in Japan and increase its market share in the country.
