BYD Seal Launches In Japan Despite Slow Demand

BYD has expanded its EV offering in Japan by lancing its Seal electric sedan model there.

The BYD Seal, priced at ¥5.28 million (RM154,000), has an 82.56 kilowatt-hour battery capacity similar to the ones sold here in Malaysia. An all-wheel-drive (AWD) model is available for ¥6.05 million (RM179,000).

Since entering the Japanese passenger vehicle market, BYD's sales have been rather slow and hopes the new offering would enable it to gain foothold in a market dominated by hybrid vehicles and local brands like Toyota and Nissan.

To date BYD has registered only 2,206 new vehicles in Japan in 2023, a stark contrast to the 34,000 units of Nissan Sakura EV sold last year. BYD's sales performance has further declined, with a 26% drop in April and a 28% drop in May compared to the previous year.

This decline is further fueled by cheaper ICE offerings such as the Toyota Corolla which retails at about ¥2 million (RM59,000) which is not helping BYDs mission in solidifying its presence in Japan amidst increasing challenges in North America and Europe.

Recently, the United States has imposed tariffs of over 100% on Chinese EVs, while the European Union has also suggested increasing tariffs on Chinese EVs by as much as 48% later this year.

BYD Auto Japan President Atsuki Tofukuji outlined the company's goals, saying, "We want to become a frontrunner in EV imports to Japan." He also indicated that BYD plans to launch a new model every year in Japan. BYD now operates in 55 locations throughout Japan, with ambitions to increase to 90 by the end of 2024 and 100 by the end of 2025.

BYD's ambitions to break into the Japanese market are part of a bigger drive to broaden its market presence and lower reliance on its home market.

Source: Japan Times