BYD Plots Bold Entry into Japan’s Kei Car Market
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.
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.
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.
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.”
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.
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/
JPJ Running Numbers
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VPJ1963
SELANGOR
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CFC4131
KEDAH
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NEG3787
KOTA KINABALU
SJL5401
KUCHING
QAB6174L
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Last updated 26 Jun, 2025
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