BYD launches Racco, Japan’s first kei car from an overseas automaker

Chinese electric vehicle maker BYD launched the Racco in Japan on Tuesday, becoming the first overseas automaker to enter the country’s popular kei car market.

BYD priced the electric super-compact vehicle from 2.1 million yen, or $12,830.

Kei cars are designed for Japan’s narrow roads and are restricted to a maximum width of 1.4 metres and length of 3.4 metres. They account for about 40 percent of all new vehicle sales in the country.

The Racco is 180 centimetres high, according to BYD.

BYD Japan president Liu Xueliang said at the Tokyo launch that the company wanted to bring its technology to consumers across Japan. The automaker has hired Japanese actor Alice Hirose to promote the vehicle.

Foreign carmakers have traditionally struggled to gain a significant share of the Japanese market, but BYD has established 77 sales locations across the country, according to Bloomberg News.

The launch is part of BYD’s expansion into overseas markets after it overtook Tesla in 2025 to become the world’s largest seller of electric vehicles.