BYD's new Racco is the first electric kei car in Japan to offer a range exceeding 300 km.

      The Racco also significantly lowers the price of Nissan's Sakura before taxes and incentives, offering features that are uncommon in the kei car market.

      BYD Japan has entered the kei car segment with the Racco, an electric vehicle designed specifically for Japan’s compact car class. Its top variant boasts a range of 320 km, marking it as the first compact electric vehicle in the market to exceed 300 km, according to ITHome.

      Kei cars are vehicles classified in Japan with strict limitations on size and engine power, a segment historically dominated by local manufacturers like Honda, Nissan, Suzuki, and Daihatsu. The Racco represents BYD's initial effort to compete in this market.

      Price undercuts Nissan’s Sakura

      The Racco starts at 2.145 million yen (around $13,100), including Japan’s consumption tax. A national EV subsidy of 150,000 yen (approximately $915) further reduces the price for consumers.

      Before tax and the subsidy, the base trim is priced at 1.95 million yen (roughly $11,900), making BYD’s model more affordable than Nissan’s Sakura electric kei car, as reported by CarNewsChina. BYD offers two battery choices, with the base version equipped with a 22.4 kWh battery providing a range of 210 km, while the higher variant has a 35.84 kWh battery with a range of 320 km.

      Equipment list reads bigger than the car

      Despite its compact size, BYD has outfitted the Racco with numerous features. Higher trims include a power sliding door activated by a foot gesture, an NFC phone key, heated front seats and steering wheel, and vehicle-to-load capabilities to power appliances from the car's battery. While cargo space might seem limited, BYD claims it can expand to a considerable 1,372 liters with the rear seats folded down.

      With the Racco, BYD has entered a space currently led by Honda’s N-Box, which sold over 56,000 units in Japan during the first quarter of 2026 alone. BYD has employed a similar strategy of providing low-cost, high-feature vehicles as seen in its Seagull, one of the cheapest EVs on the global market. The Racco will be the first significant test to see if this strategy can succeed in the Japanese kei car segment as well.

      Pranob is an experienced tech journalist with more than eight years covering consumer technology.

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