Kei cars are Japanese car culture at heart. So it’s symbolic and sensitive at the same time that Chinese automaker BYD has pulled the wraps off its first kei car, the Racco, at the 2025 Japan Mobility Show. Though the car is small, it is a bold step into Japan’s compact-car market.
The Racco writes history as the first kei car developed by a non-Japanese brand. It’s also the first BYD designed exclusively for an overseas market, and to challenge the legacy brands even harder, it will be built in China and exported to Japan.
Sea otter
Of course, the Racco – or sea otter to explain its name – is built to the tight dimensional limits of Japan’s kei class. So, it’s 3.4 meters long, 1.48 meters wide, and 1.8 meters tall. The format is that of the “super-height wagon” that prioritizes interior space over styling elegance.
The Racco features an upright silhouette, sliding rear doors, and compact wheels, emphasizing practicality in Japan’s crowded cities. Although kei cars must adhere to strict power limits — capped at 64 horsepower — BYD has given its first kei-car modern EV credentials that few in this category can match.
To no surprise, the battery stems from the proprietary Blade lithium-iron-phosphate (LFP) family in both short- and long-range variants. The top version is expected to carry a 20 kWh pack, offering a range of about 180 kilometers under Japan’s test cycle.
It will support DC fast charging at up to 100 kW, a figure that stands out in this segment, where 50 kW is much more typical. To boost efficiency in colder weather, a heat pump system will come standard. These specs give the Japanese home players something to think about.
Technological edge
The front fascia replaces a conventional grille with a smooth, enclosed surface punctuated by two thin air inlets. Rounded headlamps and subtle surfacing lend it a friendly appearance so beloved by Japanese citizens. The connected taillights and the illuminated BYD logo seek to provide a technological edge.
During the unveiling, Atsuki Tofukuji, president of BYD Auto Japan, said the Racco was engineered from the ground up with Japanese consumers in mind. The automaker built over 100 prototypes to evaluate crash safety, handling, and charging performance before finalizing the design.
National pride
BYD entered the Japanese market two years ago with the Atto 3, Dolphin, and Seal, and has sold just over 5,000 vehicles since then. Though these are modest beginnings, the Racco foretells an acceleration. It could be the breakthrough model the company needs to gain traction.
BYD is positioning the Racco squarely against Nissan’s Sakura, Japan’s best-selling electric vehicle, which has accounted for more than 40 percent of the nation’s EV sales since its launch in 2022. Pricing has not yet been announced, but analysts expect it to closely mirror that of the Nissan Sakura, which starts at about ¥2.54 million (€15,000).
The biggest challenge will be convincing Japanese buyers, who remain fiercely loyal to domestic brands, and that will undoubtedly be the case for a category that belongs to national heritage.
