TOKYO - China's BYD Co. has begun introducing its Racco ultracompact electric vehicle in Macao and Sri Lanka, taking a model developed specifically for Japanese customers to other markets.
The automaker sees demand for the car's compact size and plans to expand sales to more countries and regions, targeting right-hand-drive markets, many of which are in Asia.
"We want to give more people the chance to experience the Racco and expand sales further," said BYD Japan Co. President Liu Xueliang at a ceremony earlier this month.
The electric Racco is the same size as Japan's 660 cc engine minivehicles, known as "kei" cars, which are narrower and shorter than the iconic Italian Fiat 500.
Relatively low prices and preferential tax treatment have long made kei cars popular with cost-conscious buyers.
The model received more than 2,000 orders in Japan between its late-July launch and mid-October. Its spacious cabin and power sliding doors on both sides have proved popular with buyers. The vehicle stands 180 centimeters tall.
BYD introduced the Racco to boost sales in Japan, where it has struggled to gain traction despite being one of the world's leading EV makers.
Japan's minivehicle market has long been dominated by domestic manufacturers such as Suzuki Motor Corp., Honda Motor Co. and Daihatsu Motor Co., a unit of Toyota Motor Corp.
BYD sold 3,742 vehicles in Japan in 2025, up 68 percent from the previous year, but still only a small fraction of Japan's overall market of around 4.5 million vehicles.
When BYD launched the Racco in July, it set an annual sales target of 10,000 units for the model in Japan.
Suzuki also sells kei models such as the Alto and Every in overseas markets, including Brunei and Pakistan.
