Suzuki Calls BYD's Kei Car Introduction a New Threat

KatadataOTO – BYD has just introduced an electric car developed specifically for the kei car or small car segment in Japan, the BYD Racco.

This is said to be BYD's first model designed specifically for a single market outside of China.

BYD's decision to introduce the Racco kei car is to expand its market reach and provide more options to consumers.

It should be noted that electric cars are arguably not yet that popular in the land of the rising sun. BYD had previously started offering Electric Vehicles (EVs) there, but its portfolio was still similar to that in other countries, such as the Seal and Dolphin.

Photo : KatadataOTO

Thus, BYD finally followed local market demand and created its first kei car, the BYD Racco.

This drew responses from various parties, one of which was the local Japanese manufacturer, Suzuki.

Suzuki stated that BYD's entry is a significant innovation in Japan's small vehicle sector.

Among the many small car standards worldwide, BYD chose the kei car as the basis for developing its latest product.

“Japanese consumers' hesitation to buy Chinese products is decreasing. I believe they (BYD) are a major threat,” said Toshihiro Suzuki, President and CEO of Suzuki Motor Corporation, quoted from IT Home, Wednesday (05/11).

Suzuki said a new competition will begin. He hopes all parties can learn from each other to support the industry's progress.

Suzuki's response could be a sign that the big risk BYD is taking in the Japanese market has a chance to pay off. 

This is because the model presented this time adapts to consumer needs and is a type of vehicle widely used in Japan.

Photo : KatadataOTO

In response, BYD asserted that its main competitors in Japan are other vehicle importers.

“We have said before, we are not here to compete with Japanese manufacturers. But rather to offer consumers more choices,” said Liu Xueliang, General Manager of BYD Asia-Pacific Automotive Sales Division, on a separate occasion.

Xueliang also believes that BYD's market growth in Japan may not be as fast as in other countries.