Revenge of the K Car: Will the Chinese Micro Car Change the Japanese Street?

BYD launched the Raku, an electric micro car, in Japan last June. Sales began on July 21, and within a week 5,000 orders were recorded, with the allocation for 2026 being 10,000 cars. The Raku is tiny: 3.395 meters long, 1.475 meters wide, and 1.8 meters high. It is offered with 20 or 30 kWh batteries, with a range of 180 or 300 km. Its price is $12,200, with a government subsidy of $900, making it cheaper than the Honda N-BOX ($10,500). BYD entered Japan in 2023, and in 2024 sold 2,233 electric cars, a 54% increase, more than Toyota's 2,038.

BYD, the Chinese car manufacturer, has launched the Raku, an electric micro car designed for the Japanese market. The Raku was unveiled last June, and sales began on July 21. Within a week, 5,000 orders were recorded, with the total allocation for 2026 standing at 10,000 cars. The Raku is an electric kei car, tiny: 3.395 meters long, 1.475 meters wide, and 1.8 meters high. It is offered with two battery options: 20 kWh with a range of 180 km, or 30 kWh with a theoretical range of 300 km. Its price is $12,200, and it receives a government subsidy of $900, making it cheaper than the Honda N-BOX, which costs $10,500. BYD entered the Japanese market in 2023, and in 2024 recorded 2,233 orders for electric cars, a 54% increase over the previous year. For comparison, Toyota, which holds more than a third of the Japanese market, sold only 2,038 electric cars that year. The article explains that kei cars are a category unique to Japan, with significant tax benefits, and account for about a third of annual sales. Despite the purchase tax increase in 2014, the category has remained strong. BYD's entry into this market is considered a significant breakthrough, as a Chinese car in the most Japanese market segment was considered an almost impossible mission.