BYD has officially launched the Racco EV in Japan, becoming the first automaker from outside Japan to build a kei car. It arrives with aggressive pricing, segment-leading range, a strong warranty, and a long list of standard tech and safety kit.

The car first surfaced back in December 2025 as a near-production prototype. Now the Chinese giant has priced the full lineup and confirmed specifications across every grade.

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The headline is that starting price: ¥2,145,000 ($13,100) before local subsidies. The recently facelifted Nissan Sakura EV and Mitsubishi eK X EV, by comparison, list at ¥2,448,600 and ¥2,446,400, or roughly $14,900 at today’s exchange rates.

Local Rivals Still Have An Advantage

The Chinese newcomer has the lower sticker price, but it’s at a disadvantage compared to its Japanese rivals. Under Japan’s Ministry of Economy, Trade and Industry (METI) rules, subsidies come down to a scoring system that weighs local manufacturing, battery sourcing, domestic charging network investment, and disaster support capabilities.

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That system lets zero-emission kei cars from local brands qualify for the maximum subsidy cap of ¥580,000 ($3,500), while Chinese imports like the BYD can only tap the basic ¥150,000 ($900) grant.

Because local municipal subsidies stack on top of the national one, a Tokyo resident can buy a Racco for as little as ¥1,545,000 ($9,400). That same buyer can pick up a Nissan Sakura EV or Mitsubishi eK X EV for ¥1,298,600 and ¥1,296,400 (around $7,900), leaving both cheaper on the road.

Here’s Where The BYD Racco Wins

It isn’t the cheapest electric kei car on the road once subsidies settle out, but the BYD Racco takes the upper hand on specifications and standard equipment, which makes for a compelling case.

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The entry-level Racco 200 runs a 22.40 kWh battery pack good for a WLTC range of 210 km (130 miles), already ahead of its rivals. The Racco 300 Plus and 300 Premium step up to a 35.84 kWh battery, stretching range to 320 km (199 miles). The car also handles faster charging of up to 6 kW AC and 50 kW DC, with battery pre-heating for winter, plus V2H and V2L capability.

Every grade runs a front-mounted electric motor making 63 hp (47 kW / 64 PS) and 160 Nm (118 lb-ft) of torque, the ceiling for kei cars. BYD says a remarkable 90 percent of the Racco’s components, batteries and electric motors included, were built in-house.

The Racco is based on an adaptation of BYD’s e-Platform 3.0 utilizing Cell-to-Body (CTB) structural LFP Blade battery tech and the “X-PACK” module, which integrates the drive battery, control unit, DC/OBC, and climate control electronics into a single assembly for enhanced crash energy absorption. It also gets a custom suspension system specifically designed for Japanese roads, and four wheel disc brakes, which is uncommon for the segment.

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In terms of styling, it adopts a familiar wagon stance and a boxy silhouette designed to offer the maximum interior space while complying with the strict footprint regulations for kei cars measuring 3,395 mm (133.7 inches) long. Among the elements that distinguish the BYD Racco from rivals are the modern LEDs, the practical sliding doors, and the slightly taller stance.

Class-Leading Space And Equipment

Inside, the base model comes standard with an 8-inch digital instrument cluster and a 10.1-inch infotainment display, while higher grades upgrade to a larger 12.3-inch touchscreen. Note that most kei cars come without a screen in their basic configuration. The entire lineup supports over-the-air (OTA) updates and comes with six airbags.

The flagship BYD Racco 300 Premium features umbrella holders, a Child Presence Detection system, hands-free sliding doors with light guide projection, Black and Beige synthetic leather upholstery, and a heated cup holder. As for practicality, BYD promises class-leading interior length, width, and height, alongside ample storage compartments. The cargo space of 280 lt (9.9 cubic feet) expands to 1,372 lt (48.5 cubic feet) when the seats are folded.

Available Now

The Racco is already up for order in Japan across BYD’s 70 dealerships, backed by an 8-year / 99,500-mile battery warranty that stretches to 10 years / 124,300 miles. Pricing opens at ¥2,145,000 ($13,100) for the base 200 and climbs to ¥2,497,000 ($15,200) for the flagship 300 Premium, before subsidies. BYD says a five-year plan with no money down on the cheapest Racco starts at ¥19,300 ($120) a month.

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Beyond the electric kei cars, the Racco also squares up against ICE-powered kei wagons like the Honda N-Box, Suzuki Spacia, Daihatsu Tanto, Nissan Roox, Mitsubishi Delica Mini, and eK Space. Whether Japanese buyers go for the BYD’s value and high-tech features over the more established names is the open question.

BYD

Nearly a year has passed since BYD ran the limited-run Yangwang U9 Xtreme to 308.4 mph (496.22 km/h) and took the one-way top speed record for a production car. The Chinese carmaker isn’t done with it either. It’s now planning its next move, and that’ll be breaking through the 311 mph (500 km/h) barrier.

As part of BYD’s ongoing expansion in the UK, including the launch of its Denza brand, it had a large display at the recent Goodwood Festival of Speed. Attending the event was none other than BYD vice president Stella Li, who revealed that the brand will attempt to break its own record in November.

Read: China’s YangWang U9 Smashed Bugatti’s Speed Record But Still Isn’t Officially The World’s Fastest Car

While speaking with BYD brand and PR manager Li Yunfei, Stella Li noted BYD will head back to the Automotive Testing Papenburg proving grounds in Germany, where it set the record last year. An analysis of last year’s run indicated that test driver Marc Basseng had enough room on the circuit’s straight to pin the throttle for an extra 1.5 seconds, and could have blasted past 311 mph, a mark that companies like Koenigsegg and Hennessey have been speaking about for years, but have so far failed to eclipse.

Watch that run back and it’s obvious the car had more to give. As the hypercar quickly hit 305 mph (490 km/h), it began drifting out of the center lane and into the left lane, prompting Basseng to lift off the throttle before anything could go wrong. With perhaps some small aero tweaks, BYD may be able to ensure the car remains rock-solid as it reaches speeds no other production car has reached.

How Is It So Quick?

At the heart of the Yangwang U9 Xtreme is a 1,200-volt electrical architecture and four electric motors producing an extraordinary 2,978 hp. Global production is being capped at just 30 units.

Although the U9 Xtreme has surpassed the one-way top speed record of the Bugatti Chiron Super Sport 300+, set back in 2019 at 304.77 mph (490.48 km/h), the SSC Tuatara still holds the official two-way record of 282.9 mph (455.3 km/h). If BYD wants to snatch that one away, it’ll have to find a location where it can run in both directions.

Sources: BYC, CarNewsChina

Chinese carmakers have spent the last decade dismantling their reputation for cheap, poorly built cars, and by most measures they’ve succeeded. Every so often, though, something surfaces that gives the old stereotype another day in the sun.

Last week, Chinese social media lit up over footage and photos of a BYD Tang EV making its way down a road in Shenyang during a heavy downpour. Ordinary enough on its face, but the part that drew attention was the electric motor hanging out of the back of the SUV, still attached to the car but no longer part of it in any meaningful sense.

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This immediately prompted speculation that the Tang’s electric motor had fallen out by chance because of the slightly flooded road. Obviously, ordinary passenger vehicles shouldn’t be driven in flash floods, but at least in the video, water on the road doesn’t appear to be any more than an inch or two deep, so it’d be strange if this had somehow led to the motor falling out.

According to BYD itself, the Tang’s motor didn’t fall out after coming into contact with water. It claims the SUV suffered “a severe underbody collision” as the driver waded through the flood water, which was presumably deeper before anyone started filming or snapping photos of the vehicle.

Still Functional, Minus One Motor

A close-up photo shared online by CarNewsChina indicates that part of the motor’s housing snapped off from the underside of the SUV, and it was only left connected by a single, orange high-voltage cable. It’s believed that the Tang in question, which BYD sells in plug-in hybrid and all-electric guises, was one of the dual-motor EV models, and it appears to still be operational after the motor fell out, relying on the front one for forward momentum.

BYD says it reached out to the owner after the incident and inspected the vehicle. For the owner’s sake, we hope their insurer will pay to have the motor replaced, as buying a new one and fitting it wouldn’t be cheap.