BYD Starts Sales of Kei-Class EV 'Lacco' in Japan, First with Dual Electric Sliding Doors

BYD has begun selling a kei-class pure electric vehicle in Japan. Kei cars are a uniquely Japanese specification that overseas manufacturers have historically found difficult to enter, with the domestic market dominated by local producers. Foreign players have criticized the class as a non-tariff barrier, but because electric vehicles do not require the development of small internal combustion engines, overseas manufacturers can enter the market more easily.

Kei cars feature compact bodies and small engines with displacement of 660cc or less, and thanks to low prices and maintenance costs, they have long served as affordable everyday transportation, accounting for nearly 40 percent of new car sales in Japan. The BYD kei EV belongs to the popular super height wagon category, which accounts for roughly half of the kei market, and no Japanese-made kei EV in this category has existed before. The vehicle is also the first kei EV to feature electric sliding doors on both sides, enhancing comfort and convenience.

BYD began selling passenger cars in Japan in 2023, but cumulative sales stand at only about 3,700 units. To reverse this situation, BYD studied kei market trends and competitors in developing the new vehicle, aiming to expand its sales in the kei market, which includes gasoline-powered models.

Chinese manufacturer Chery Automobile plans to enter the kei market through a joint venture in 2027. Compared with Japanese domestic manufacturers, Chinese automakers are clearly deficient in sales and service networks, but the competitive landscape is set to change.

Chinese automakers are growing significantly in global markets, and Japanese manufacturers are gradually losing share not only in China but also in traditional strongholds such as Southeast Asia.