BYD takes aim at Japan’s unique Kei Car market with new electric model

Chinese electric vehicle powerhouse BYD is setting its sights on one of the final corners of the automotive world it hasn't covered: the specialized market for mini-vehicles known as "kei cars." Leaked spy photos show BYD is in the advanced stages of development of a brand-new electric car to fit Japan's strict rules for these tiny but popular vehicles.

Kei cars, short for "kei jidosha," are a unique part of Japan's transportation scene. They are small, boxy vehicles designed for crowded city streets and tight parking spots. To qualify as a kei car, a vehicle must be no longer than 340 cm, no wider than 148 cm, and no taller than 200 cm. Their engines cannot produce more than 64 horsepower. In return for sticking to these limits, owners get benefits like lower taxes and easier parking regulations, making them incredibly popular. Even after many tax increases over the years, kei cars still make up a big chunk – about 35% – of all new cars sold in Japan.

While some foreign companies have tried adapting existing small cars, like Smart with its ForTwo, none have designed an electric car purely for the Japanese kei standards. BYD appears to be doing just that, developing a completely new vehicle platform tailored for Japan. The leaked images show a small prototype that seems to follow the kei car shape, even featuring handy sliding rear doors and a special design with two front pillars – common features on kei cars built to maximize interior space within the size limits.

Information coming out of China hints at what this new BYD electric car might offer. Reports suggest it will have a 20 kWh battery pack, designed to provide a driving range of around 112 miles based on the WLTC test cycle. It's also expected to support fast charging at up to 100 kW and include an efficient heating and cooling system that uses a heat pump.

When it arrives, likely exported from China to Japan starting in late 2026, BYD's electric kei car is expected to carry a price tag of around 2.5 million Japanese yen, which is roughly $17,700 at current exchange rates. This price point puts it squarely against Japan's current leading electric kei cars: the Nissan Sakura and Mitsubishi eK X EV. These two models, the results of a joint project between Nissan and Mitsubishi launched in 2022, also use 20 kWh batteries and have a 47 kW electric motor.

BYD has previously seen some success in Japan with its Dolphin and Seal electric cars, selling 2,223 vehicles in Japan in 2024. That's already more than Toyota managed in its home market (2,038). The total number of electric cars sold across all brands in Japan in 2024 was 59,736.

BYD plans to grow its presence in Japan by increasing its dealership network to 100 locations by 2025. Entering the kei car segment, especially with an electric model, is a bold move in a market traditionally dominated by a few Japanese players like Daihatsu, Honda, Suzuki, and the Nissan-Mitsubishi partnership. Toyota, Mazda, and Subaru typically sell kei cars made by other companies under their own badges.

Via