04:11 10-02-2026

BYD launches mini-dealerships for Racco electric kei car in Japan

BYD is adopting an unconventional strategy to strengthen its position in Japan. The Chinese automaker plans to launch a network of mini-dealerships in smaller cities ahead of the rollout of its Racco electric kei car. According to Nikkei Asia, these outlets will be located in towns with populations of up to 500,000 people. Each showroom will display only one or two vehicles and open as quickly as possible—a stark contrast to traditional large-scale showrooms.

This move makes sense because kei cars account for about 40% of all new vehicle sales in Japan, particularly in rural and suburban areas. The Racco is a compact EV designed specifically for the local market and debuted at the Japan Mobility Show in 2025. Sales are set to begin in summer 2026, with the mini-dealerships serving as a key promotional channel.

BYD has been actively expanding its presence in Japan since 2022, when the brand first announced its market entry. However, it has struggled to meet its goal of opening 100 locations by the end of 2025, citing difficulties in finding suitable spaces. Currently, BYD has 69 operational and planned sites across 38 prefectures.

The new Racco model will be the second product developed by BYD specifically for overseas markets, following the hybrid Shark pickup. Kei cars, which are up to 3.4 meters long and have up to 64 horsepower, remain attractive due to incentives and low taxes. BYD aims to leverage this demand structure by promoting its affordable electric vehicles through this compact dealer network.