[DigitalToday reporter Jinju Hong (홍진주)] Chinese EV maker BYD's Japan-only kei car-style electric vehicle Racco has surpassed 1,000 cumulative orders in two weeks after its launch. Kei cars are a segment where local automakers have particularly strong influence in Japan, drawing attention to whether BYD can speed up its push into the market with its first kei car-style EV.

On Aug. 10 local time, EV media outlet Electrek reported that BYD said Racco, which began sales in Japan on July 28, secured more than 1,000 orders in the two weeks since its launch.

BYD said the early order pace for Racco is the fastest among its models released in Japan so far. The company said it is drawing significant interest across Japan.

Racco is a model developed specifically for Japan's kei car market. With local automakers such as Nissan, Honda, Toyota and Suzuki having long been strong in the segment, it is seen as a strategic model BYD chose to break into the local market.

Early buyers preferred higher trims over low-priced versions. About 80 percent of all orders were concentrated in the premium Racco 300 Premium. The Racco 300 Plus accounted for 14 percent, while the base Racco 200 made up 6 percent. It means many consumers considered driving range, convenience features and overall product appeal, rather than simply looking for a cheap EV.

Purchase purposes also varied. Among early buyers, 37.5 percent bought Racco as an additional vehicle while already owning one. Another 35.7 percent chose it to replace an aging vehicle, and 26.8 percent selected it when buying a new vehicle. On charging, 55.4 percent already had home charging equipment, while 43 percent did not yet have charging equipment at home.

BYD said an early buyer survey found that Racco's cost performance, functions and overall build quality exceeded expectations. Low maintenance costs typical of EVs were also cited as a key purchase factor. BYD also highlighted software. Racco is based on a software-defined vehicle (SDV) and is designed to add new functions through software updates.

Price competitiveness is another strength of Racco. The base Racco 200 starts at 2,145,000 yen in Japan. It has a 22.4 kWh lithium iron phosphate (LFP) battery and a WLTC-rated range of 210 km. The higher trims, Racco 300 Plus and Racco 300 Premium, use a 35.84 kWh battery for a range of 320 km. BYD emphasised it is the first kei car-style EV in Japan to offer a range of more than 300 km.

Japan government EV subsidies also help boost price competitiveness. Racco qualifies for a 150,000 yen subsidy, lowering the effective purchase price to as little as 1,995,000 yen. The starting price of Japan's best-selling kei car, the Honda N-Box, is 1,739,100 yen, which is lower than Racco, but applying the subsidy narrows the price gap considerably.

Racco also has a price advantage against competing EV models. Nissan Sakura is Japan's best-selling EV, with a starting price of 2,448,600 yen. Racco comes in at a lower price. This is also why BYD has paired price, driving range and product appeal in its kei car strategy.

BYD set a goal of securing 10,000 cumulative orders for Racco by the end of 2026. With orders surpassing 1,000 in the first two weeks after launch, attention is on whether BYD's pace of expansion in Japan's kei car-style EV market will continue.