BYD may introduce its new Racco Kei car to Europe if the EU proceeds with a proposed small electric-car category, which would make such vehicles more commercially feasible.
BYD introduced the Racco at the Japan Auto Show last month, marking the company’s first electric vehicle developed solely for markets outside China.
Built to comply with Japan’s Kei category rules and slated for an initial launch there, the Racco spans 3.4m long, 1.475m wide, and 1.8m tall, and features the same upright, boxy silhouette typical of its Japanese competitors.
The Racco stands out as a rare foreign entry into a category that accounts for nearly one-third of Japan’s car market, a space long dominated by domestic brands. BYD has delivered fewer than 7000 vehicles in Japan since its 2022 debut.
“In Japan, we are already launching a Kei car; we will be very interested to follow the EU regulation,” BYD vice-president Stella Li said, adding that “if there’s some space, we can bring that car here.”
The regulation Li referenced is the proposed E‑car category, which European Commission president Ursula von der Leyen recently announced she is developing in partnership with local automakers. The initiative aims to foster a new wave of ‘small, affordable cars.’
It follows claims from manufacturers that ongoing regulatory demands and compulsory technologies have driven up production costs, making compact vehicles unaffordable for much of the European market.
Exact specifications for the E-car category have yet to be finalized, but the initiative is broadly seen as an important move toward bringing small, affordable cars back to Europe, drawing comparisons with Japan’s established Kei car category.
However, Li emphasized that launching the Racco in Europe is ‘not a topic’ of immediate concern for BYD, as the automaker is currently prioritizing significant investment in expanding its hybrid lineup amid weakening EV demand in the region.
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