This all-electric BYD kei car will initially launch in China before eventually being exported to Japan.
Foreign automakers have long struggled to break into Japan’s fiercely domestic car market, especially in segments seen as uniquely Japanese. But BYD seems to be throwing its considerable Chinese weight around, as it’s reportedly preparing to launch a full-fledged electric kei car that has been built specifically to challenge Japan on its own turf.
Spy shots of a prototype testing in China have recently emerged online, and while it may look like just another cute cube on wheels, this BYD could really spell real trouble for Japanese kei car makers. Why? Because this tiny EV marks the first time ever a foreign automaker has gone through the trouble of designing a car that actually complies with Japan’s notoriously stringent kei car regulations.
Now for those unfamiliar, kei cars (or keijidōsha) are small, boxy city cars that have been a uniquely Japanese form of personal transportation since the postwar era. Regulations for their classification are fastidious to say the least: no longer than 3.4 metres, no wider than 1.48 metres, and with a power cap of 64 horsepower.
And because it’s such a uniquely Japanese category, no foreign automaker has ever seriously bothered to build one from scratch. Sure, Smart tried adapting its ForTwo to comply, and Hyundai flirted with the idea through the Inster, but none of them went full kei… until BYD that is.
From what we know so far, BYD’s upcoming kei car is being built on an all-new, custom small EV platform. It’ll reportedly pack a 20 kWh battery that is good for 180 km of range according to the WLTP, and will supposedly support 100 kW fast charging. It also will apparently net a heat pump HVAC system.
Word from China suggests a starting price of around 2.5 million yen (about RM84,000) for this upcoming all-electric BYD box. That puts it right in the same price bracket as the Nissan Sakura and Mitsubishi eK X EV — the current darlings of Japan’s electric kei segment. These two mechanically identical kei siblings, launched in 2022 under the NMKV joint venture, have since become Japan’s best-selling EVs.
…but now, with BYD preparing to go head-to-head with these local champions, the bigger question arises: will the Japanese public embrace this bold new electric interloper? Or will national pride steer them back toward their trusted homegrown brands?
Well if history is anything to go by, Japanese buyers have been cautious—sometimes even outright dismissive—of foreign offerings. This is especially true when it comes to something as culturally specific as kei cars, where domestic loyalty runs deep and competition is fiercely guarded.
But surprisingly, BYD is already showing signs that it may just be the exception. The Chinese EV maker has after all exceeded all expectations in 2024 by outselling Toyota in Japan’s EV market, moving 2,223 electric cars compared to the local giant’s 2,038.
According to BYD, the plan is to begin exporting this new kei EV from China to Japan by late 2026. The company is reportedly targeting a bold 40% share of the electric kei market within just a few years and is also working to expand its Japanese dealer network to 100 locations by 2025.
Industry analysts see this as more than just a push for sales volume for BYD. “Developing a proper kei car requires completely rethinking vehicle architecture,” says Li Ming, a noted analyst. “BYD’s move signals a deep commitment to the Japanese market.”
And with that, the battle for Japan’s smallest cars is about to get a whole lot bigger.
