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BYD Plots Bold Entry into Japan’s Kei Car Market

KS

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Fresh from securing its place as Japan’s best-selling EV with the BYD Seal in 2024, Chinese automotive titan BYD now has set its sights on Japan’s most iconic and fiercely protected automotive segment - the kei car.

Kei cars, or kei-jidōsha vehicle segment, was created in the aftermath of World War II as a ultra-compact and affordable form of vehicles to help mobilise Japan’s population during its economic recovery. Today, they remain hugely popular, making up about 35% of the country's auto market.

These cars are defined by tight regulations - dimension wise it can be no longer than 3,400 MM, no wider than 1,480 MM and its power output capped at 64 HP. In exchange, these small vehicles get tax breaks and easier parking rules, making them perfect for Japan’s crowded cities.


Nissan-Dayz-KeiCar-2024MY-Japan-17.jpg


Leaked spy shots published by CarNewsChina shows a BYD kei prototype under development. It features the signature sliding rear doors and a dual A-pillar design, both classic kei features. But what sets this apart is that it’s not a repurposed city car. This is a ground-up EV, made specifically for the Japanese market.

This makes BYD the first foreign automaker to develop a true kei-class electric vehicle from scratch. Others like Smart and Hyundai have come close, but none have fully committed to Japan’s kei regulations the way BYD seem to.

Reports suggest the vehicle will come with a 20 kWh battery, offer 180 KM of range, and support 100 kW fast charging. It’ll also include an energy-efficient heat pump. The expected selling price is expected to be around 2.5 million yen (RM77,500) - lining it up directly against Nissan’s Sakura and Mitsubishi’s eK X EV.


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Both the Sakura and ek X were launched by NMKV Co., Ltd. - a joint venture between Nissan and Mitsubishi riding on the same platform.

Production will begin in China, with exports to Japan starting in late 2026. BYD is targeting a 40% share of the electric kei market within a few years. That’s no small feat, given the market is currently dominated by domestic giants like Daihatsu, Honda, Suzuki, and NMKV.


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To put things into perspective, these days even brands such as Toyota, Mazda and Subaru don’t even develop their own kei cars - they rely on rebadged models from others. Which means if BYD succeeds, it would be the first real outsider to break into this protected class.

“Developing a proper kei car requires a complete rethinking of vehicle architecture,” said auto analyst Li Ming. “BYD’s move signals a deep commitment to the Japanese market.”


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BYD’s earlier entries, the Dolphin and Seal, have already proven it can find a foothold in Japan. The company is also rapidly expanding its dealership network, aiming for 100 locations by 2025.

The kei segment has always been a fortress for Japanese automakers. If BYD can deliver on its promise, it won’t just be selling a car - it will be rewriting the rules of Japan’s most traditional vehicle class.


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Written By

KS

More then half his life spend being obsessed with all thing go-fast, performance and automotive only to find out he's actually Captain Slow behind the wheels...oh well! https://www.linkedin.com/in/kumeran-sagathevan/

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JPJ Running Numbers

KUALA LUMPUR

VPG2447

SELANGOR

BSF4609

JOHOR

JYA4043

PULAU PINANG

PRR4557

PERAK

ANW6095

PAHANG

CFC1064

KEDAH

KGA9085

NEGERI SEMBILAN

NEG2172

KOTA KINABALU

SJL2702

KUCHING

QAB5039L

Last updated 15 Jun, 2025

Fuel Price

Petrol

RON 95

RM 2.05

RON 97

RM 3.07

RON 100

RM 5.00

VPR

RM 6.23

Diesel

EURO 5 B10

RM 2.74

EURO 5 B7

RM 2.94

Last updated 12 Jun, 2025

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