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01 Nov 2025

BYD enters the Japanese ‘Kei Car’ market with the Racco EV

BYD enters the Japanese ‘Kei Car’ market with the Racco EV

BYD has revealed its entry into the Japanese ‘Kei Car’ market with the Racco EV microcar.

The Japanese Kei Car is a special category of vehicle in Japan, which has strict limits on the vehicles’ engine capacities and exterior dimensions. Cars falling within this segment benefit from significant tax breaks compared to ‘standard’ vehicles.

BYD is entering this market with the Racco, which will come with an electric powertrain; although the Chinese firm hasn’t confirmed any technical details on its size, range and performance figures at this stage.

The Racco has a tall and narrow body, while there are electric sliding rear doors to make it easier for rear passengers to climb in and out of the vehicle. At the rear, there’s a completely flat back with an extremely low load lip.

Inside, there is space for four people, while up in the front, there is a bench-like front seat, a touchscreen infotainment system. Rear passengers also have grab handles located on the B-pillar trims.

The Racco EV will rival other electric Kei Car models such as the Nissan Sakura and Honda N-One e:, when it goes on sale in Japan next year.

Sadly, BYD has no plans to bring the Racco to the UK market, with the Racco destined for the Japanese market only.

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