BYD Launches Racco Kei BEV in Japan Amid Tightening CEV Subsidies

BYD entered the Japanese passenger vehicle market in earnest with the launch of the Atto 3 in 2023, expanding its sales as a BEVexclusive brand by adding the Dolphin, Seal, and Sealion 7. In late 2025, the brand introduced the Sealion 6 PHEV, shifting its strategy to drive volume across the broader NEV spectrum rather than relying solely on battery electrics. Concurrently, BYD is working to fast-track the establishment of a 100-outlet nationwide dealer network to build brand awareness and retail infrastructure hand in hand. During the first five months of 2026, BYD’s sales volume in Japan grew 54.8% year-on-year (YoY) to 1,850 units, capturing a 2.0% share of the import vehicle market (up 1.2 percentage points YoY). While its BEV lineup faced headwinds—with combined sales of the Dolphin, Atto 3, and Seal dropping 20.3% YoY to 952 units—overall volume was buoyed by the Sealion 6 PHEV, which contributed 898 units.