BYD, the world’s largest electric vehicle manufacturer, is preparing to launch its Racco kei car in Japan in the middle or late of 2026, potentially at a highly competitive price point, according to reports emerging from the Japan Mobility Show 2025.
The fully electric mini vehicle, designed exclusively for the Japanese market, debuted at the show in October 2025, with details of its interior and specifications quickly circulating. BYD aims to “cool the earth by one degree” with its electric vehicles, starting with this compact offering.
The Racco is expected to be priced around 2.5 million yen (approximately $270 million yen, or roughly $16,700 USD as of February 21, 2026), slightly more expensive than leading kei car models from Honda, such as the N-One, N-Box and N-WGN. Yet, it remains more affordable than comparable kei cars offered by Mitsubishi and Nissan.
BYD intends to import the Racco as a completely built-up (CBU) unit from China, contributing to its relatively low price. The vehicle measures 3,395 mm in length, 1,475 mm in width, and 1,800 mm in height. It is powered by a single electric motor producing 27 horsepower, and utilizes a lithium iron phosphate (LFP) battery offering a maximum range of 180 kilometers (approximately 112 miles).
The interior of the Racco, revealed for the first time at the show, features a two-tone white and black color scheme and is equipped with a floating touchscreen and an LCD instrument panel. The design emphasizes functionality, with a central console offering storage space and additional compartments located around the center tunnel.
BYD is establishing a network of dedicated kei car dealerships in major Japanese cities to facilitate sales and service for the Racco. The company, which entered the Japanese passenger vehicle market in July 2022 with models like the Yuan PLUS, Dolphin, and Seal, plans to offer seven to eight battery-electric and plug-in hybrid models by 2027. Alongside the Racco, BYD too debuted the Sealion 06 DM-i plug-in hybrid SUV at the Japan Mobility Show, signaling a dual-track “EV + PHEV” strategy for the Japanese market.
The launch of the Racco represents BYD’s commitment to establishing a comprehensive new energy vehicle lineup in Japan, encompassing both passenger and commercial vehicles. The company currently operates 66 retail locations across Japan, with plans for continued expansion.