BYD's RACCO Kei EV Lands Under 2 Million Yen With Subsidies
- BYD has launched the RACCO, an electric vehicle designed for Japan's kei car standard.
- Including subsidies, the price comes in below two million yen.
- The report weighs whether it is worth buying and what it means for Nissan and Honda.
Kei cars are the hardest segment of Japan's auto market to enter: the standard is written into Japanese regulation, distribution belongs to domestic brands, and buyers care deeply about service networks. BYD built the RACCO to that standard and priced it below two million yen after subsidies, forcing the door open on price.
For Nissan and Honda the problem is the price band rather than one model. Battery costs have kept kei EVs above two million yen even after incentives, leaving them dearer than petrol equivalents. If a Chinese maker holds a sub-two-million price, domestic brands must either compress margins or push electrification upmarket.
The indicators to watch are monthly sales after launch and second-hand residual values, since weak residuals erode a price advantage over the full ownership period.