Man gets his hands on BYD Racco Kei car and explains why he thinks the EV will scare Japan

When this man got better acquainted with the BYD Racco Kei car, he had one conclusion – this EV was going to worry automakers in Japan.

Presenter Elliot Richards got to review the Racco Kei for his YouTube channel.

The car is set to compete in Japan’s micro-car market, which has historically been dominated by domestic brands.

In his view, Japanese manufacturers may have some cause for concern.

BYD cars have dominating around the world – now the company is setting its sight on Japan

In recent years, Chinese EVs have never been too far from the headlines.

And BYD has been reaping the rewards of this boom.

The Chinese automaker has been outselling its western rivals in markets around the world, from Australia to South America and Europe.

While the US has largely been insulated on account of its sky-high tariffs, industry figures aren’t sure it’ll last.

But for now, it looks as if the Japanese market is the next that BYD is looking to make its mark on.

Should Japanese automakers be worried about the BYD Racco Kei car?

In the view of Elliot Richards, the presenter of YouTube channel Everything Electric CARS, the BYD Racco Kei car is something Japanese carmakers will be keeping a close eye on.

“This car right here might be one of the most significant car launches of 2026 by a Chinese automaker,” he said.

“This is making the Japanese automakers wake up and smell the coffee and think, ‘Uh-oh, now we need to move’. Because this is a bit like a Trojan horse.”

Anyone who’s watched The Odyssey over the summer will know what that means – big trouble.

Now, Kei cars are a form of compact cars unique to the Japanese domestic market.

They account for around 38 percent of new vehicle sales within the country, which is a respectable figure for such tiny cars.

And maybe that’s why Japanese carmakers should be worried that BYD is entering that market with the BYD Racco.

The Racco prioritizes practical styling over exuberance, with standard cloth seats and a basic digital display.

“I love this BYD because it focuses on practicality and functionality. This is very unusual for a Chinese automaker who in their quest for taking over most markets is focusing on luxury and premium,” Richards said.

But don’t underestimate this car, it has a lot to offer – electronic sliding doors, generous leg room and built-in English language support options.

“I think this is one of the best interiors that BYD have done because the temptation is always there to just throw in more to try and beat the other Kei car,” Richards said.

“But the Japanese market is more conservative. They don’t want all of the flashy features.”

Looks aside, how does it handle out on the road?

“The feeling I get from driving this is just how well it fits into Japan,” he noted.

“These streets are very small, very narrow, and a Kei car just makes perfect sense.

“Honestly, for poodling around little cities like Himeji, I cannot complain. I absolutely adore it… It’s just like a comfortable city cruiser.”

So…do Japanese automakers need to be worried?

It’s hard to say – BYD only sold 4,500 cars in Japan in 2025, The Japan Times reported.

There’s a lot of catching up to do, but BYD – which declared it wanted to overtake Toyota as the world’s biggest carmaker – is certainly ambitious enough to make a dent.

Will we see more carmakers in Japan accelerating their production of Kei cars? Watch this space.