BYD is bringing China’s EV price war, which it helped ignite, overseas. After launching steep discounts of up to 50% on its most popular EVs, BYD wants to charge up sales in this key overseas region
BYD is heavily discounting EVs in Japan
It has been over two years since BYD introduced its first vehicle in Japan in early 2023, but the company has yet to experience the explosive sales growth it has seen in other overseas regions.
It isn’t all BYD’s fault. Japan is a notoriously brutal market for foreign automakers. Domestic brands, like Toyota, Honda, and Nissan, dominate sales year after year, mostly with low-cost city cars.
Lower-priced vehicles are BYD’s specialty, and one of the main factors driving its impressive growth in China and overseas regions, including Southeast Asia, parts of Europe, and Central and South America. But Japan is a different beast.
Since entering the market in January 2023, BYD has sold just 5,300 vehicles in Japan through June of this year. The company now offers four EVs in Japan and just opened its 45th sales location.
To attract buyers, BYD launched an aggressive campaign offering discounts of up to 50% off EVs, including government subsidies.
“Maybe it’s time for an EV,” the company is promoting. On BYD’s website, the Seal, Atto 3, and Dolphin are all listed as on sale.
The Atto 3, one of BYD’s top-selling electric SUVs, starts at just ¥4.18 million ($28,100), down from ¥4.4 million ($29,600) earlier this year.
Although the price cuts were effective in China, they could backfire in Japan. According to Bloomberg Intelligence senior auto analyst Tatsuo Yoshida, the move could hurt resale value and risk upsetting current BYD drivers who paid higher prices for the same vehicle.
Meanwhile, it may not all be about market share for BYD. “Winning Japan isn’t the point; leaving a mark is. Earning even a sliver of recognition from the most demanding customers in the world matters for BYD,” Yoshida said.
What BYD really wants, “is to have a track record of doing business in Japan with the world’s most discerning, quality conscious customers,” Bloomberg’s senior auto analyst explained, “even if it’s not economically rational.”
Can BYD make its mark in Japan? It’s planning to launch its first electric kei car, the small city cars that fill Japan’s streets, in the second half of 2026.
BYD’s mini electric car will compete with the Nissan Sakura, Japan’s top-selling EV, and the recently launched Honda N-ONE e, the brand’s first compact electric vehicle. Honda launched the N-ONE e on September 12, starting at just ¥2.7 million ($18,300).
Source: Bloomberg, BYD Japan
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