The BYD Racco points to huge ambitions from the Chinese brand, tapping into Japan’s massive kei car market with a purpose-built model aimed at Japan’s highest-selling vehicle segment.
Electric Cars
BYD did the unexpected at the Tokyo motor show, and unveiled a vehicle specifically tailored to the Japanese market.
The BYD Racco EV is sized to comply with Japan’s specific kei car regulations, which limit vehicle dimensions, with compliant cars receiving cheaper registration and taxes to encourage their uptake in Japan.
It will be BYD’s first model designed specifically for sale outside of China, and while BYD didn't offer engine or range specifications, as with dimensions, the Racco is likely to comply with the 47kW ‘gentleman's agreement’ power limit observed by other kei models in Japan.
While the kei car regulations are unique to Japan, the segment accounts for around one-third of vehicles sold in Japan each year – almost 1.2 million vehicles in 2024.
The design of the Racco adheres to the layout seen on numerous kei cars with a boxy, upright body that’s designed to maximise space within the limits of the compact footprint allowed by kei regulations.
The 3395mm long body makes it in under the maximum allowable 3400mm overall limit, and the rear sliding doors mimic those of other models in the segment, designed to maximise easy of entry for passengers of all ages in often-compact urban environments.
At 1475mm wide and 1800mm tall, the Racco fits comfortably within the 1480mm width and 2000mm height restrictions of the segment.
The Racco is not the first kei-compliant car from a non-Japanese automaker, with versions of the Smart ForTwo and Caterham 7 having been modified previously to fit within the exterior size and engine size restrictions imposed by the segment.
The Racco offers a four-seat cabin, which is typical of the segment, but with a digital instrument cluster and large infotainment display that Japanese brands have been, so far, slow to adopt.
BYD didn't unveil detailed specifications, but the Racco will feature a front-wheel drive chassis and two versions of BYD’s ‘Blade’ lithium iron phosphate battery technology – one short-range, one long-range.
The short-range Racco is expected to offer a 180km WLTP driving range rating, matching the claimed range of the eK X EV and Sakura.
BYD’s ambition is unprecedented, with the Japanese market overwhelmingly favouring domestic brands. BYD introduced the model with the ominous tagline “BYD will become the norm in the future.”
Of the 4.4 million cars sold in Japan in 2024, Suzuki sold over 466,000 kei cars, while the highest-selling foreign brand in the country was Mercedes-Benz, with just 53,000 sales across all model lines.
While BYD already has a presence in the Japanese market, a slow start means the brand sold just 2223 passenger vehicles in Japan last year, all EVs, but still managed to outsell the 2038 EVs Toyota sold in the Japanese market.
Full details of the Racco will be announced closer to its expected mid-2026 on-sale date.
Electric Cars Guide
Kez Casey migrated from behind spare parts counters to writing about cars over ten years ago. Raised by a family of automotive workers, Kez grew up in workshops and panel shops before making the switch to reviews and road tests for The Motor Report, Drive and CarAdvice.
