Kei Car Market Is Heating Up, Honda N-Box Electric Is Prepared for Jegal BYD Racco

JAKARTA - BYD's move to bring the Racco electric car to Japan seems to have triggered a chain reaction in the kei car market. Honda is rumored not to want to just be a spectator and is now aiming to launch an electric version of its best-selling model, the N-Box, in 2027.

For Japanese consumers, the presence of the electric N-Box will be an important milestone. For the first time, the national favorite kei car is available in a full battery configuration, as reported by Carcoops, Thursday, December 25.

Until now, the N-Box has only been marketed with a 658 cc three-cylinder gasoline engine, with 58 hp for the naturally aspirated version or 63 hp on the turbo variant. N-Box's dominance itself is not a pipe dream in the Sakura Country.

This tiny car has been the best-selling vehicle in Japan for three years in a row. After the third generation launched two years ago, sales remained strong with more than 206,000 units sold last year.

However, details of the electric N-Box are still minimal because its development is in its early stages. However, if Honda wants to make it a serious competitor for the BYD Racco which is projected to enter the market in 2026, there are benchmarks that must be pursued.

Racco is reportedly equipped with a 20 kWh battery with an estimated range of around 180 kilometers on a single charge. The Nikkei Asia report said Honda is still working on pricing and range strategies for the electric N-Box.

Interestingly, this EV version will not replace the internal combustion engine model. Both will be sold side by side in the Japanese kei car market, giving consumers options without forcing a total transition.

Amid Japan's reputation as a center of innovation, electric car adoption in the domestic market is still faltering. Currently, EVs account for only about 2 percent of total new car sales.

Even so, the kei EV segment is starting to show promise through models such as the Nissan Sakura and Mitsubishi eK X, which together account for about 40 percent of national EV sales. Honda is not the only challenger to BYD.

Suzuki is also reportedly preparing its own electric mini car. However, until now, it is not clear whether Suzuki will develop a model from scratch or utilize an existing platform.

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