BYD Launches Third EV in Japan Amid Competitive Market

China’s BYD, standing for Build Your Dreams, announced the launch of its third electric vehicle (EV) in Japan, signaling its continued expansion in a market traditionally dominated by domestic brands.

The new model, a sedan named Seal EV, marks BYD’s most expensive offering in Japan to date.

Details of the Seal EV:

Pricing: The Seal EV’s rear-wheel-drive version costs 5.28 million yen ($33,111.75) in Japan, starting at 179,800 yuan ($24,759.70). in China
Battery and Range: Both the rear-wheel-drive and all-wheel-drive versions come equipped with an 82.56-kilowatt-hour battery pack. The rear-wheel-drive version boasts a cruising range of 640 km (398 miles), while the all-wheel-drive version, priced at 6.05 million yen, offers a range of 575 km on a single charge.

Competitive Landscape:

BYD’s strategic entry into Japan’s EV market, which has been slower to adopt than other regions, poses a challenge for local automakers, who are already facing tough competition from BYD and other Chinese EV brands in China.

Despite this, BYD’s sales in Japan experienced a slowdown in the second quarter, influenced by a reduction in Japanese government EV subsidies.

BYD’s Market Strategy in Japan:

Focus on Battery-Powered Cars: Unlike its diverse offerings in China, including plug-in hybrids, BYD has introduced only battery-powered cars in Japan.
Sales and Expansion: Since launching the Atto 3 and Dolphin EVs last year, BYD has sold about 2,500 vehicles in Japan. The company opened its first Japanese dealership in Yokohama in February 2023.
Future Plans: BYD intends to continue its growth trajectory by adding at least one new model to its Japanese lineup yearly, aiming to steadily increase its market share.

Market Challenges:

Subsidy Reductions: The reduction in subsidies in the new fiscal year has impacted BYD’s sales momentum in Japan.
Consumer Preferences: Japanese consumers strongly prefer domestic brands, making the market challenging for foreign entrants.

BYD Auto Japan President Atsuki Tofukuji highlighted these challenges at the Seal launch event in Tokyo’s Shibuya district, emphasizing the impact of subsidy cuts on their sales performance.