Chinese automaker BYD is poised to challenge Japan’s stronghold on the mini-vehicle market with a bold, all-electric offering specifically designed for Japanese roads. Recently disclosed spy shots unveil a compact prototype undergoing rigorous scrutiny. The tiny car’s design features Hallmark-inspired elements, such as sliding rear doors and a distinctive twin A-pillar architecture, demonstrating a commitment to conforming to Japan’s strict kei automobile regulations.
Japan’s kei (), are a distinctive class of extremely small cars designed for personal transportation. Under strict regulations, these vessels are limited to dimensions no larger than 3.4 meters in length, 1.48 meters in width, and a peak height of two meters, while the engine power is constrained to a maximum of 64 horsepower. Compact electric vehicles enjoy preferred tax and parking benefits, making them an ideal choice for urban commuters. Despite the 2014 incentive cut and a 50% surge in kei automobile taxes, these vehicles still command around 35% of Japan’s automotive market share.
BYD’s kei automobile is poised to become the first-ever ground-up electric model in this class, crafted by a foreign automaker. While the original mini-cars from Good and Hyundai – the ForTwo and Intruder respectively – were fine-tuned to meet Japan’s specific kei class regulations, they were not exclusively created with these market demands in mind. Notably, BYD has crafted a novel platform specifically geared towards Japan’s requirements.
Chinese reviewers commend the vehicle’s capabilities, featuring a 20 kWh battery that powers a range of approximately 180 km on the WLTC cycle, rapid charging up to 100 kW, and an eco-friendly warm air conditioning system. At a projected value of ¥2.5 million ($17,700 USD), this new model will directly rival Japan’s top-selling electric kei vehicles, the Nissan Sakura and Mitsubishi eK X EV. Here is the rewritten text:
The trio of electric vehicles, launched by the NMKV three-way partnership in 2022, boast 20-kilowatt-hour batteries and 47-kilowatt motors.
BYD intends to commence supplying electric vehicles (EVs) in China, destined for Japan’s market starting late 2026, with a vision to capture approximately 40% of the electrical kei market within a short timeframe. Building on its moderate Japanese market success with the Dolphin and Seal electric vehicles, BYD has seen a notable surge in car sales to date, exceeding 2,200 units in 2024. The corporation plans to expand its dealership network to 100 locations by 2025.
While solely Daihatsu, Honda, Suzuki, and the Nissan-Mitsubishi NMKV partnership produce kei vehicles in large quantities, Toyota, Mazda, and Subaru instead focus on rebadging existing models. The introduction of BYD as a major competitor would signify the first significant external threat to Japan’s dominance in this market.
According to analyst Li Ming, reimagining the fundamental design of a kei automobile is essential for successful growth. “BYD’s significant investment in Japan signals a profound commitment to the country’s automotive market.”
In 2024, BYD, a Shenzhen-based automobile manufacturer, notched a milestone by surpassing Toyota in Japan’s electric vehicle (EV) market, with deliveries of 2,223 all-electric vehicles, representing a significant 54% year-over-year increase. In 2024, Toyota acquired 2,038 electric vehicles, while a total of 59,736 all-electric cars were purchased in Japan that year?
