It has been revealed that BYD, China’s largest electric vehicle manufacturer, will finally enter the Japanese minicar market. BYD Auto Japan officially announced in April 2025 that it will launch a minicar exclusively for Japan in the second half of 2026. BYD has previously ventured into the Japanese market with standard-sized EVs, but now that they have finally begun developing an electric vehicle that meets Japan’s unique minicar standards, it is expected that competition in the minicar market will intensify.
BYD to launch light electric vehicles exclusively in Japan in the second half of 2026
Eight vehicles will be exhibited at the Japan Mobility Show 2025
BYD has announced that it will exhibit a total of eight vehicles, including one world premiere and three Japan premieres, at the Japan Mobility Show 2025 (held from October 29 to November 9, 2025) . These are expected to include the much talked about light electric vehicle, demonstrating the company’s enthusiasm for making a full-scale entry into the Japanese light vehicle market.
BYD SEAL
Current status and challenges of Japan’s light EV market
Price range and adoption of existing light EVs
Currently, the Japanese mini EV market is dominated by the Nissan Sakura and Mitsubishi eK Cross EV , but their prices range from around 2.3 million to 3 million yen, which is on the high side for a mini vehicle. Despite the appeal of mini vehicles being “affordable,” they are still out of reach for many users.
SAKURA
Expectations for BYD’s pricing strategy
BYD has implemented an aggressive pricing strategy, such as lowering the price of the existing Dolphin model to 2,992,000 yen. In addition, the company is running its own discount campaign called “BYD Subsidy,” and is expected to launch its light EVs in the low 2 million yen range .
Predicted features of BYD’s new light EV
Battery technology and cost competitiveness
BYD’s strength lies in its LFP battery technology. Compared with ternary lithium batteries, lithium iron phosphate batteries:
- Low cost
- High safety
- long life
- Supports fast charging
These features are expected to enable competitive pricing even for light EVs.
Optimized for light vehicle standards
The car will need to be designed to meet Japan’s unique light vehicle standards (length less than 3.4m, width less than 1.48m, height less than 2.0m, engine displacement equivalent to 660cc or less), but BYD already has the technological capabilities to develop EVs in a variety of segments.
Impact on the light EV market and future outlook
Intensifying price competition
BYD’s entry into the market is expected to intensify price competition in the mini EV market, particularly:
- Price review by existing manufacturers
- Combined with government subsidies, real prices fall
- Accelerating the spread of light EVs
The need to expand charging infrastructure
Expanding charging infrastructure is essential for the widespread use of light EVs. In particular:
- Creating a charging environment in housing complexes
- Charging spots tailored to the usage patterns of light vehicle users
- Standardization of fast charging
Highlights of the Japan Mobility Show 2025
New models to be exhibited
BYD K8
BYD J7
BYD SEALION 7
BYD SEAL
BYD DOLPHIN
In addition to the mini EV, BYD will also exhibit the following models:
- SEAL 06 (PHEV sedan)
- SEAL 06 Touring (PHEV station wagon)
- SEALION 06 (PHEV mid-size SUV)
- YANGWANG U9 (Supercar)
Expectations for the technology exhibit
BYD’s latest technologies are expected to be introduced in the light EVs as well:
- 5th generation DMi 5.0 PHEV system
- Thermal efficiency 46.06% engine
- 670L large capacity trunk (depending on vehicle model)
Summary: A new era is dawning in the light EV market
BYD’s entry into the mini electric vehicle market has the potential to bring about major changes in Japan’s mini vehicle market. BYD’s move to challenge existing manufacturers with its price competitiveness and cutting-edge technology will likely bring greater choice and more reasonable prices to mini vehicle users.
With the car set to be released in the second half of 2026 , attention will be focused on the details to be announced at the Japan Mobility Show 2025. As the popularity of light EVs becomes widespread, it will be interesting to see what kind of pricing and performance BYD will offer when it enters the market.
BYD
