BYD has announced a full-scale entry into the Japanese market with a kei EV developed for Japan. Nissan has outlined the scope of subsidies under which the SAKURA can be purchased for an effective price starting at ¥560,000, highlighting how the availability and amount of subsidies create price differences.
China’s BYD has reportedly developed a kei EV for the Japanese market, targeting Japan’s kei-car market. The vehicle achieves a range of 320 km and is priced from ¥2,145,000, which BYD presents as among the lowest in Japan. BYD is emphasising its commitment to the Japanese market.
Meanwhile, Japanese automakers have indicated that they intend to keep the effective price down by making maximum use of national and local government subsidies, centred on Nissan’s SAKURA kei EV. The subsidy is set at ¥580,000, and in some cases, including in Tokyo, the vehicle can be purchased for an effective price starting at ¥560,000.
With demand for EVs remaining uncertain, price competition led by BYD and Nissan is expected to intensify, along with efforts to establish sales networks. BYD’s head of operations in Japan previously spent many years leading kei-car development at Nissan, and the company is working to strengthen its development capabilities in Japan.
Japan’s market has so far been dominated by domestic manufacturers, but winning a foothold in the kei-car market is being positioned as a new growth opportunity. The competition is expected to continue as companies seek advantages beyond relying on subsidies and competing on price alone.