Chinese EV giant BYD plans to enter Japan’s 18 billion USD microcar market in 2025 with a low-cost electric vehicle as part of its expanding global strategy. Atsuki Tofukuji, president of BYD Japan, confirmed in an interview with the Financial Times that the company will launch a new micro-EV explicitly designed for overseas markets and not sold in China.
As reported earlier, BYD plans to launch an affordable microelectric vehicle in Japan in the second half of next year, targeting a price of around 2.5 million yen (approx. 17,700 USD), undercutting its own Dolphin model, which sells for about 2.9 million yen (approx. 14,000 USD). The new kei car will feature a 20 kWh battery with a WLTC range of 180 km, support 100 kW fast charging, and a heat pump HVAC system. Aimed at competing with Japan’s top-selling electric microcars—the Nissan Sakura and Mitsubishi eK X EV—it may become the first foreign EV explicitly designed for the Japanese kei segment. As microcars grew to 46.3% of Japan’s EV sales in 2022, up from just 2.6% in 2021, BYD is positioning itself to tap into this rapidly expanding market, having already sold 4,530 vehicles in Japan by March 2025.
The move follows BYD’s growing success in overseas markets. On June 1, BYD reported May sales of 382,500 new energy vehicles (NEVs), up 15.3% year-on-year. Overseas passenger vehicle and pickup sales reached 88,640 units, a 133.6% increase from May 2024. Total NEV exports for the month hit 89,047 units, and battery installations totalled 28.48 GWh.
BYD sold 1.76 million NEVs globally from January to May, up 38.7% from last year. Passenger vehicle sales reached 1.74 million, while commercial vehicle sales surged over fivefold to 27,726 units.
BYD is also expanding its overseas footprint with localised production in Thailand and Uzbekistan and a new factory under construction in Cambodia. The company has launched its fleet of car carriers to support exports. Brokerages expect BYD’s exports to continue rising in 2025, driven by a growing product lineup, stronger logistics, and expanded dealer networks.
In April, BYD overtook Tesla in Europe’s electric vehicle market for the first time. According to JATO Dynamics, BYD sold 7,231 EVs in Europe that month, up 169% year-on-year, while Tesla’s sales fell to 7,165 units—a 49% drop.
Analysts expect BYD’s global expansion, supported by smart vehicle rollouts and continued investment in production, to drive sustained growth and profitability. As it ramps up exports and launches region-specific models like the upcoming Japan micro-EV, BYD is quickly cementing itself as a global EV powerhouse.
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