BYD Racco EV tops 700 orders in first week in Japan, report says

• Registrations of the Racco were 125 units in July, with BYD saying most of those were demo cars for dealerships.
• BYD is targeting 10,000 orders for the Racco in Japan by the end of 2026.

BYD (HKEX: 1211) has secured more than 700 orders for the Racco, its all-electric kei car, since the model went on sale in Japan on July 28, Nikkei said in a report on Monday, citing the company.

Registrations of the Racco in Japan came in at 125 units in July, covering the four days after its launch, according to the report, which cited industry association data.

BYD said most of those 125 units were registrations of demo cars for dealerships, adding that "on an order basis, the figure has already topped 700 at this point."

The Chinese new energy vehicle (NEV) maker is targeting 10,000 orders for the Racco by the end of 2026, Reuters said in a July 28 report, citing an executive at the company.

That means the first week's orders are equivalent to about 7% of the target.

BYD Auto Japan president Atsuki Tofukuji said the goal of securing 10,000 orders by year-end was driven more by conviction than detailed market analysis, as the company seeks to build on the momentum of the model's launch.

"It's really a matter of determination and gut feeling," he told reporters at a roundtable on the day of the launch, adding that annual sales at around that level should be sustainable from next year if dealerships can generate roughly one order per day on average.

The Racco starts at 2.145 million yen ($13,600) including tax in Japan, with a suggested retail price of 1.95 million yen before tax. After a 150,000-yen government subsidy, the entry-level version comes in below 2 million yen.

Its pre-tax price undercuts Nissan's Sakura, Japan's best-selling electric mini-car. But because the Racco is eligible for a smaller subsidy, the Sakura remains cheaper for buyers after incentives are applied.

Higher-end versions of the Racco offer up to 320 kilometers of range, and the model is the first electric kei car to feature sliding rear doors, a popular feature among Japanese buyers.

Cheap and compact kei cars account for nearly 40% of new vehicle sales in Japan, a segment long served almost entirely by local automakers including Honda and Suzuki.

Toyota-controlled Suzuki and Daihatsu, together with Honda, control about 80% of the mini-vehicle market, according to Bloomberg Intelligence.