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China's BYD electric car challenges Japan's 'kei car' market, exceeding 1,000 orders in two weeks

From Hankyoreh · () Korean

Translated from Korean, summarized and contextualized by DistantNews.

At a glance

News Sources not specified Context piece
  • China's BYD electric car, the Seagull (Laco), has exceeded 1,000 orders in Japan within two weeks of its release.
  • The Laco meets Japan's strict kei car regulations, challenging the long-dominant domestic market.
  • The car's success, particularly in its higher trims, suggests it offers more than just affordability, appealing to Japanese consumers' needs.

China's BYD has made a significant splash in Japan with its electric kei car, the Laco, dubbed the 'Seagull' in Japanese. In just two weeks since its release, the Laco has garnered over 1,000 orders, a notable achievement in a market long considered a "graveyard for imported cars."

Japan's kei car segment, characterized by strict size and engine displacement regulations, has historically been dominated by domestic manufacturers like Toyota, Suzuki, Honda, and Nissan. These regulations have often been cited as a non-tariff barrier for foreign automakers. However, the BYD Laco, measuring 3.395m in length, 1.475m in width, and 1.8m in height, precisely fits within these constraints.

It's truly a 'black ship' invasion.

— Motor FanJapanese automotive media outlet 'Motor Fan' comparing the BYD Laco's arrival to the 1853 arrival of U.S. ships that ended Japan's isolationist policy.

The Laco is available in three trims, with the top-tier '300 Premium' accounting for 80% of orders, indicating that the car's appeal extends beyond mere cost-effectiveness. This suggests BYD has successfully tapped into the specific needs and preferences of Japanese consumers, offering features that resonate with their daily lives, such as the popular "super height wagon" design and sliding rear doors.

The era has begun where Japanese kei cars, which have evolved independently, are exposed to international competition.

— Nikkei ShimbunJapanese newspaper Nikkei Shimbun commenting on the impact of the BYD Laco's entry into the market.

BYD strategically targeted smaller cities and rural areas, where the decline of gas stations and limited public transportation make electric kei cars a more attractive option. The company's meticulous market research is evident in design choices like the integrated umbrella holder in the rear footwell and uniquely sized cup holders, tailored to Japanese daily habits and products.

Despite the initial success, some Japanese consumers express concerns about long-term maintenance, safety, and the "Made in China" label. BYD is attempting to address these by offering an extended warranty of six years or 150,000 kilometers, double that of typical Japanese kei cars. The company has set an ambitious goal of selling 10,000 Lacos by the end of the year, which would place it among the top 10 imported car brands in Japan.

In rural areas, kei cars are part of the local landscape.

— BYDBYD's rationale for targeting smaller cities and rural areas in Japan for Laco sales.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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