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Right-hand-drive BYD Racco will remain a Japan-only model for the time being, but the Chinese kei car could still be imported.
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BYD’s bold Racco all-electric kei car will remain exclusive to Japan for now as the Chinese brand looks to gain a foothold in a market dominated by domestic brands.
Although the Racco will be made in right-hand drive, and kei-sized cars have come to Australia before, BYD currently has no plans to offer the Racco globally.
Speaking to Drive at the 2025 Tokyo motor show, BYD Japan Corporate Communications Division Director Hiroshi Ikehata said the new model was designed with a single market in mind to try and capitalise on Japan’s kei-car popularity.
“[Racco is] only in Japan. You can imagine export to other countries from China, but nothing,” Ikehata-san said.
“This is kind of a challenge model for creating presence for BYD in the Japanese market.
“We have only less than 50 per cent name [recognition], so we have to increase our reputation, and we can [do that] so much more by using this kind of [car in this] market.”
Kei cars account for around one third of Japan’s circa-1.2-million new-car market, with the Suzuki Spacia, Daihatsu Tanto, Suzuki Hustler, and Honda N-Box all making it to the Top 10 last year – the latter model also topping the overall sales table.
However, kei cars are restricted in size (up to 3.4 metres long, 1.48 metres wide, and 2 metres tall), engine size (660cc), and power outputs (47kW).
As such, many opt for tall, boxy designs that maximise practicality and interior space while still maintaining a small footprint – a tactic BYD has also employed for the Racco.
“People are happy they can chose various types of kei car,” Ikehata-san said.
“[The Racco offers] super height, sliding doors both sides, battery electric – this is now an alternative now.”
Ikehata-san also said if the Racco proves to be a sales hit in Japan, the platform could be spun off to other kei varieties such as sports cars and trucks
“We have to get good sales performance, after that we can have a think about what is the best type of kei EV for Japanese customers,” Ikehata-san said.
However, Ikehata-san also admitted that BYD Japan is working from a very low base, selling only a fraction of units compared to the brand in Australia.
“Just only 7000 units in three years, after that we are thinking what various models are important,” Ikehata-san said.
With a strong grey-import market that specialises in Japanese cars however, it is expected that the Racco will be available in Australia at some point in the future, just not through official BYD channels.
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Tung Nguyen has been in the automotive journalism industry for over a decade, cutting his teeth at various publications before finding himself at Drive in 2024. With experience in news, feature, review, and advice writing, as well as video presentation skills, Tung is a do-it-all content creator. Tung’s love of cars first started as a child watching Transformers on Saturday mornings, as well as countless hours on PlayStation’s Gran Turismo, meaning his dream car is a Nissan GT-R, with a Liberty Walk widebody kit, of course.
