BYD Accelerates Japan Expansion with K-EV Racco and Seal 06 DM-i

BYD Debuts K-EV Racco and Seal 06 DM-i at Tokyo Motor Show

BYD debuted its K-EV BYD RACCO and the Seal 06 DM-i for the first time at the 2025 Tokyo Motor Show on Oct. 29. This strategic move made by BYD revealed its ambition to expand Japanese market. As per Japanese market data, Japan’s K-Car sector exceeds two million annual sales, and hybrid vehicles captures 40% market share.

Strategic Entry into Japan’s Growing K-Car and Hybrid Sector

Since entering the Japanese passenger car market in 2022, BYD has introduced multiple pure electric models including the Atto 3, Dolphin, Seal, and Seal 07. RACCO and Seal 06 DM-I will enrich BYD’s product portfolio and target key segment in Japanese auto market.

BYD Racco: Designed for Local Regulations and Comfort

The pure-electric K-Car was specifically designed for Japanese market according to Japanese K-Car regulations such as length ≤ 3,400 mm, width ≤ 1,480 mm, height ≤ 2,000 mm, and power ≤ 64 hp.

RACCO has a large wheelbase, sliding car doors, 20-kWh battery pack delivering 180 km of WLTC range, and a heat pump air conditioning system, offering a larger interior space, and better driving experience. With a starting price about ¥2.6 million (RMB 121,000, equivalent to USD 17,000), the model will rival with established models like the Honda N-BOX, the Suzuki Spacia, and the Daihatsu Tanto.

The model is scheduled to enter the market in H2 2026 and plan to start pre-sale in summer 2026.

Upcoming Market Entry and Long-term Plans

Furthermore, BYD has plans to establish a lineup of 7 to 8 pure electric and hybrid models by 2027. The brand currently operates 66 sales locations across Japan, with continued network expansion underway.

Growing Sales and Market Potential

BYD has entered into Japan market for 20 years, but with very low sales amount. Take 2022 H1 for example, the brand sold a merely 31 units during the period. Recent few years, BYD is accelerating its Japan operation. From January to July 2025, BYD has sold 1936 units.

*(Exchange rate: RMB 7.1 = USD 1)*