BYD is set to enter Japan’s KEI car market with its first ultra-compact electric vehicle, aiming to challenge established local automakers like Nissan, Honda, and Suzuki. This move is part of BYD’s broader strategy to expand its presence in Japan, where KEI cars—vehicles no longer than 3.4 meters—accounted for nearly 40% of new vehicle sales in 2023 .
BYD’s New Electric Kei Car
The upcoming BYD mini EV, expected to launch in 2026, was recently spotted during road tests in Japan. It features a boxy design with sliding side doors, characteristic of traditional KEI cars. Reports suggest that the vehicle will be built on a new platform and equipped with a 20 kWh battery, offering a WLTC range of approximately 180 km (112 miles) .
Priced around 2.5 million yen (approximately $18,000), BYD’s mini EV will compete directly with models like the Nissan Sakura, which starts at 2.59 million yen and was Japan’s best-selling EV in 2023 . By leveraging its in-house Blade LFP battery technology, brands aims is to achieve a cost advantage in this segment.
BYD’s entry into the KEI car market signifies its commitment to expanding in Japan, a market traditionally dominated by domestic brands. The company’s previous models, such as the Atto 3 SUV, Dolphin hatchback, and Seal sedan, have already made inroads, with surpassing Toyota in Japan’s EV sales in 2024 by selling 2,223 units compared to Toyota’s 2,038.
As automaker continues to introduce new models tailored to Japanese consumers, its presence in the country’s EV market is poised to grow, potentially reshaping the competitive landscape in the KEI car segment.
