China’s BYD has already entered the Japanese market, which is challenging territory for foreign brands. Now, it plans to take on the Japanese carmakers with what they do best: kei cars.
Nikkei Asia reports BYD’s first kei car is due for release in Japan in the second half of 2026, and will be priced at around 2,490,000 yen (~A$27,600) – thereby undercutting key rivals.
It’ll be the Chinese carmaker’s first country-specific model, and BYD is reportedly securing personnel familiar with the Japanese minicar market.
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Mitsubishi eK X -
Nissan Sakura
The production vehicle will enter the crowded kei-jidosha market which consists largely of petrol-powered vehicles.
There are some electric models on offer, however, including the Mitsubishi eK X (priced from 2,568,500 yen/A$28,500) and the Nissan Sakura (priced from 2,599,300 yen/A$28,800)
Kei cars account for around 40 per cent of the overall Japanese car market, and are offered by almost every Japanese auto brand.
These receive preferential tax treatment, however, in order to qualify for this they must meet specific standards.
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BYD Dolphin
Kei vehicles must measure no longer than 3.4m, and no wider than 1.48m. Those with petrol engines must have a displacement no greater than 660cc.
They’ve effectively been the sole domain of Japanese brands, though Smart’s Fortwo was previously offered in Japan in a variant that met local kei car regulations.
BYD only entered the Japanese market in 2023, and Nikkei Asia reports it has sold only 4530 vehicles there to March 2025.
It currently offers only the Dolphin hatchback, Seal sedan, and the Atto 3 and Sealion 7 SUVs – all with electric power.
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BYD Seagull
In China, however, BYD sells an even smaller electric vehicle (EV): the Seagull. But at 3780mm long and 1715mm wide, it’s quite a bit larger than Japanese kei cars.
The Seagull features a 55kW/135Nm electric motor and either a 30.08kWh LFP battery that supports 30kW DC fast-charging, or a 38.88kWh LFP BYD Blade battery that supports 40kW DC charging, with CLTC range figures of 305km and 405km respectively.
It’s unclear how much the upcoming BYD kei car will differ in terms of outputs and battery capacity.
For context, the Mitsubishi eK X uses a 20kWh lithium-ion battery and a 47kW/195Nm electric motor.
Both the BYD Seagull and Mitsubishi eK K have so far been deemed by their makers as too small for the Australian market.
