BYD Expands Its Smallest EV, the Racco, Beyond Japan

BYD is taking its most compact electric vehicle to new shores. The Racco, a tiny urban hatchback designed specifically to slot into Japan’s Kei car segment, will now be offered in Sri Lanka and Macau, according to reports citing Nikkei Asia. The announcement was reportedly made at a dealership event in Hiratsuka, Kanagawa Prefecture, near Tokyo.

The Racco, whose name translates to “Sea Otter” in Japanese, first arrived as a 2026 model aimed at the country’s unique Kei car class. It entered the market with a base 22-kWh battery pack delivering 210 km of WLTC range, priced at roughly the equivalent of $19,000 in Japan. A higher-spec version bumps capacity to 35.8 kWh and stretches range to 320 km on the same WLTC cycle. Both AC and DC charging are supported.

At under 3.4 metres long, the Racco is built for tight city streets, but its packaging is unusually clever. It features electrically operated rear sliding doors, a layout more commonly associated with premium people movers than budget city cars. The rear seats can slide and fold, and with them stowed the cargo area exceeds 1,300 litres — more space than many small SUVs offer. BYD even fits an umbrella holder in the back.

For now, the model is sold only in right-hand-drive form and exclusively in Japan. Its sub-$20,000 price undercuts popular offerings from domestic Japanese brands such as Nissan on their home turf, giving BYD a sharp entry point into a segment long dominated by local manufacturers. Early reviews from Japan have been largely positive for what is the first non-Japanese electric Kei car.

The move into Sri Lanka and Macau signals a gradual broadening of the Racco’s footprint, though both are right-hand-drive markets, which limits how quickly the car could reach left-hand-drive regions. Even so, the expansion marks a meaningful step for a model that could eventually reach markets closer to Australia. Whether BYD brings the Racco further afield will depend on demand and how well the formula translates outside Japan’s distinctive Kei car framework.