Suzuki Considers BYD Racco A Serious Threat At Japan's Kei Car Market

BYD Racco became their first kei car in the Japanese market. (Photo: BYD)

JAKARTA BYD drew great attention to the Tokyo Motor Show 2025 with the launch of its first Kei Car for the Japanese market, BYD Racco. Suzuki sees the presence of the Chinese manufacturer's car as a serious threat.

President of the Suzuki Motor Corporation Toshihiro Suzuki, assesses the presence of Chinese manufacturer BYD Auto Co., Ltd. (BYD), in Japan's K-car segment as a big challenge for local manufacturers. According to Toshihiro Suzuki, many small car standards in the world, and BYD chose Japanese K-car standards.

"There are a lot of small car standards around the world, and BYD chose Japanese K-Car standards. I'm happy about that," Suzuki said as quoted by Carnewschina, Tuesday, November 4.

He assessed that the new competition is starting and he hopes both sides can learn and progress. However, he also acknowledged that BYD is a significant threat, adding that Japanese consumers are increasingly open to buying Chinese products.

Meanwhile, General Manager of Asia-Pacific Automotive Sales BYD Liu Xueliang, explained that BYD's strategy in Japan is not to compete directly with local manufacturers, but to provide consumers with more choices so they can choose a car that suits their preferences.

"We didn't come to compete with Japanese car manufacturers. Our goal is to offer Japanese consumers more choice so they can freely choose the car or brand they like," Liu said.

The K-car segment, known for its engine capacities below 660 cc and concise dimensions, accounts for about 40 percent of Japan's total car market with annual sales value of around IDR 291 trillion. In 2025, models like Honda N-Box are still leaders in this segment, followed by Suzuki Spacia and Daihatsu Move and Tanto.

Since entering the Japanese passenger car market in July 2022, BYD has launched a number of electric vehicles, including BYD Atto 3, BYD Dolphin, BYD Seal, and BYD Sealion 7. As of October 2025, the total sales of BYD passenger cars in Japan have reached more than 7,000 units.

Liu revealed that sales growth this year has even surpassed the previous year's achievement in just the first nine months. However, BYD views their expansion in Japan will proceed in stages.

Liu emphasized that slowly growing is actually useful for building a strong foundation, as it allows companies to carry out continuous evaluations and improvements.

BYD's entry into the K-car segment, which was previously relatively closed to outsiders, clearly sparked reactions from Japanese manufacturers. In an industry that strongly upholds brand loyalty and distinctive technical characteristics, the presence of foreign competitors with electrification technology can change the landscape of competition.