China Targets Japan's Kei-Car Market: BYD Racco and New Brand EMTA

Chinese makers are aiming at one of the most closed niches in the Japanese market - kei cars. Two China-linked projects are preparing to launch in Japan: BYD's Racco kei microvan and EMTA, a new Chery-backed brand.

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China Targets Japan's Kei-Car Market: BYD Racco and New Brand EMTA - photo 1
China Targets Japan's Kei-Car Market: BYD Racco and New Brand EMTA - photo 2
China Targets Japan's Kei-Car Market: BYD Racco and New Brand EMTA - photo 3
China Targets Japan's Kei-Car Market: BYD Racco and New Brand EMTA - photo 4
China Targets Japan's Kei-Car Market: BYD Racco and New Brand EMTA - photo 5
China Targets Japan's Kei-Car Market: BYD Racco and New Brand EMTA - photo 6
Tags EV ChinaKei

Chinese carmakers are taking aim at one of the most closed niches in the Japanese market: kei cars. Two China-linked projects are now preparing to launch in Japan.

BYD Racco is a battery-electric kei microvan, first shown in Tokyo in autumn 2025. It sits within kei limits at 3,395 x 1,475 x 1,800 mm, with front-wheel drive. Two batteries are offered: 20 kWh for 200 km of range, or 30 kWh for 300 km. Prices are due on 28 July, and BYD has set up a contest - guess the top trim’s price and win a Racco.

EMTA is a new brand launching in Japan in 2027, created with several Chinese companies, including Chery, which supplies the platform and driver-assistance systems. Its first model is an electric kei-class hatchback, with specs not yet disclosed. Three more are planned - a compact hatchback, a crossover, and a minivan - and EMTA has said it could move to local production in Japan if the brand succeeds.

Both projects target a segment long dominated by domestic brands, where Daihatsu, Suzuki, and Honda account for the bulk of sales. Breaking in means clearing Japan’s strict kei dimensions and tax rules - and winning over buyers in a category defined by trust in local names.


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