BYD’s new mini EV is ‘a huge threat’ to Japanese automakers and it’s coming soon

BYD is already known for its smaller, low-cost electric cars like the Seagull, which you can snag for under $10,000 in China. Now, China’s EV leader is looking to go even smaller. BYD plans to launch a new mini EV, or kei car, that could pose “a huge threat” to Japanese automakers as a cheaper alternative.

BYD’s new mini EV will launch in Japan in 2026

China’s EV leader is already starting to crack Japan’s auto market, where foreign automakers have struggled for years.

BYD sold 2,223 EVs in Japan in 2024, accounting for 4% of overall electric car sales. Meanwhile, two mini EVs, the Nissan Sakura and Mitsubishi’s eK X, represented over 40% of the country’s electric car sales last year.

Mini, or kei cars, are among the most popular options in Japan. They are lower-priced, easy to maneuver around city streets, and functional enough for everyday use.

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BYD wants its piece of the booming market. The company announced plans to enter Japan’s mini EV segment next year, and it’s already stoking fear among domestic automakers.

“Young people do not have a negative view of BYD. It would be a huge threat if the company launches cheap models in Japan,” a Suzuki dealer said (via Nikkei). Japanese automakers like Suzuki, Subaru, and Nissan have relied on kei cars for domestic growth.

Last year, they represented around 40% of new vehicle sales in Japan, with around 1.55 million units sold. The Honda N-Box, which was the best-selling kei car in Japan for the third straight year, is 3,395 mm long, 1,475 mm wide, and 1,790 mm tall.

To give you an idea, BYD’s smallest EV, the Seagull, is 3,780 mm long, 1,715 mm wide, and 1,540 mm tall. Last month, it was BYD’s top-selling EV, with over 55,000 models sold.

BYD will likely have an advantage in terms of costs. It already builds ultra-affordable electric cars powered by the BYD Blade batteries, which are also used by Tesla, Toyota, Hyundai, Mercedes-Benz, and several others.

The company will begin recruiting talent with “extensive experience” in the light vehicle business. As it looks to grow its business in Japan, BYD opened a new website this month for applications.

BYD’s new mini EV is expected to start at around 2.6 million yen, or roughly $18,000. The Nissan Sakura, Japan’s top-selling EV last year, starts at about the same amount (2.59 million yen).

Its electric SUV, the Atto 3, caused a stir last year during a seminar on battery tech held by the Central Japan Economic and Trade Bureau. A few attendees even asked, “How can it be produced at such a low cost?”

The Atto 3 starts at 4.18 million yen in Japan, or around $29,000, undercutting most in the segment. Since launching the electric SUV in 2023, BYD has introduced several of its top sellers, including the Dolphin and Seal. Last month, BYD launched its new midsize smart electric SUV, the Sealion 7, starting at 4.95 million yen ($34,500)