BYD Is developing an electric kei car for Japan

It will be available exclusively in Japan and is set to launch in the second half of 2026.

Chinese EV maker BYD is preparing to develop a kei (mini car) electric car for the Japanese market. So far only domestic manufacturers in Japan have been making kei cars.

Mini cars or kei-ji dosha (light vehicles) in Japanese, make up about 40 percent of the Japanese car market. Due to the unique standards of these kei cars, no foreign carmaker has been able to tap this segment in Japan so far.

Sources say BYD has completed the design for the new electric car. It will be available exclusively in Japan and is set to launch in the second half of 2026. It will have a target price of 2.5 million yen ($17,700).

This move comes at a time when BYD is rapidly ramping up sales globally, especially in Southeast Asia. The EV maker entered Japan in 2023 but has had cumulative unit sales of only 4,530 as of March 2025. BYD is hoping to substantially increase its sales volume by entering the kei car segment.

While BYD has introduced models sold in China to global markets, this is the first time the EV maker will be developing a car exclusively for a certain country. Additionally, BYD will also secure personnel familiar with the Japanese minicar (kei) market.

Kei or mini-cars are defined as being 3.4 meters or less in length and 1.48 meters or less in width. These cars are priced low and get preferential tax treatment. However, BYD’s new model won't be the only kei car in the market. Other EVs in the segment include the Nissan Sakura and Mitsubishi ek X EV.

Source : Nikkei Asia