Japanese Media: BYD Faces Japan's Automotive "Last Stronghold" Amid Subsidy Discrimination

A exclusive report published by Japanese media outlet DIAMOND ONLINE on July 28th reveals that China's BYD, the world's largest electric vehicle manufacturer, has launched its lightweight electric vehicle model "RACCO" as a flagship entry into the Japanese market, with an actual starting price controlled within approximately one million yen (after subsidies).

Despite receiving government subsidies 430,000 yen (about 18,000 RMB) lower than Nissan and Honda, BYD remains firm in its pricing strategy. Its target is not merely the "electric vehicle" segment, but rather Japan’s entrenched stronghold—the "lightweight car market." Chinese automakers are choosing to confront Japanese manufacturers head-on in their traditional domain.

BYD has set the recommended starting price of the "Haier" at 2,145,000 yen (about 90,000 RMB). With a government subsidy of 150,000 yen (about 6,300 RMB), the actual purchase price drops to 1,995,000 yen (approximately 83,800 RMB).

The launch includes three models. The two higher-end variants extend the range to 320 kilometers. The "Haier 300 Plus" is priced at 2,398,000 yen (about 100,000 RMB), while the top-tier "RACCO 300 Premium" comes in at 2,497,000 yen (around 105,000 RMB). The main competitor, Nissan Sakura, has a subsidized starting price of about 1.87 million yen (about 78,500 RMB), which is lower than RACCO. Meanwhile, the "RACCO 200" offers a range of 210 km, while the top two models reach up to 320 km—far surpassing the Nissan Sakura’s 180 km. BYD has thus pushed Japan’s traditionally protected lightweight EV market into an unprecedented level of competition.

Due to Japan’s unique standards for lightweight vehicles, BYD established a dedicated development team focused specifically on the Japanese market and conducted in-depth research on key rivals such as the Nissan Sakura and Honda N-BOX. The "Haier" adopts a popular high-roof design with electric sliding side doors, built from the ground up for Japanese consumers.

Japan’s national EV subsidy program only recognizes batteries produced domestically. As a result, Nissan and Honda models qualify for a 580,000 yen (about 24,000 RMB) subsidy, whereas BYD’s "Haier" receives only 150,000 yen (about 6,300 RMB). Despite being 430,000 yen (about 18,000 RMB) short in subsidies compared to domestic manufacturers, BYD successfully kept the actual purchase price below 2 million yen.

A representative from BYD Japan stated: “We’ve kept our prices within the one-million-yen bracket. Although we’ve maintained pricing around 1.5 million yen due to new features, it still holds strong competitiveness. With Tokyo’s additional 800,000 yen subsidy, the lowest-trim model will cost roughly 1.2 million yen.” This pricing strategy reflects BYD’s primary goal: entering the Japanese market, not maximizing profit.

A senior executive at BYD Japan added: “Our objective is the entire lightweight car market—not just the EV segment.” Lightweight vehicles represent the largest segment in Japan, accounting for nearly 40% of new car sales. Foreign manufacturers’ full-scale entry into this market is extremely rare. BYD not only competes directly on price but also demonstrates formidable product strength—including a maximum range of 320 km, the renowned blade battery known for safety, spacious interior space, and sliding side doors.

Beyond the "Haier," the real threat to Japanese automakers may extend further. In May last year, BYD announced plans to roll out its "Tian Shen Zhi Yan" driver-assistance system across all models and accelerate internal development of advanced automotive semiconductors. If these technologies mature and are applied to Japanese lightweight EVs, the competitive focus will undoubtedly shift from price and range to software and artificial intelligence.

The launch of the "Haier" marks BYD, the world’s largest EV manufacturer, fully entering Japan’s lightweight vehicle market—a market long regarded as the “last fortress” of Japanese automakers—and may signal a pivotal turning point in Japan’s automotive industry.

Original article: toutiao.com/article/1871923010126924/

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