BYD could bring its new Racco kei car to Europe if the EU's mooted E-car category for small cars increases the viability of such models.
BYD revealed the Racco at the Tokyo motor show last month as a statement of intent to establish a foothold in a market served almost exclusively by domestic manufacturers such as Honda, Suzuki, Toyota, Subaru and Mitsubishi.
Designed and engineered to meet the kei class regulations of Japan, where it's initially set to be sold exclusively, the Racco measures 3.4m long, 1.475m wide and 1.8m tall and has similarly boxy, straight-edged proportions to its Japanese rivals.
It has a 20kWh battery, said to be good for 112 miles of range and charging at up to 100kW, which powers a single motor of undisclosed strength on the front axle.
The Racco is a landmark external entry into a segment that represents almost a third of car sales in Japan, which has historically favoured homegrown marques. BYD has sold fewer than 7000 cars there since launching in 2022, compared with 11,000 in September 2025 alone in the UK.
There is much scrutiny over whether cracking the fiercely competitive kei car market could be key to BYD's future success in Japan - but now company vice-president Stella Li has suggested to Autocar the Racco could ultimately play an important role globally as a new entry model.
"In Japan, we are already launching a kei car; we will be very interested to follow the EU regulation," she said. "If there's some space, we can bring that car here."
The EU regulation Li referred to is the E-car category that European Commission president Ursula von der Leyen recently said she was working to establish in collaboration with domestic manufacturers, as part of a drive to usher in a new generation of "small, affordable cars".
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