BYD Co., Ltd. announced on August 3 that its Japan-only pure electric K-Car, the “Racco”（Sea Otter）, has received over 700 orders since its launch on July 28. However, data from Japan's automotive sales industry organizations on the same day indicated that only 125 units of the Racco were registered in the first four days of release.
The Japan Automobile Dealers Association and the National K-Car Association Federation reported that total new car sales in Japan for July rose 7% year-on-year to 417,163 units, marking the fourth consecutive month of growth above the previous year's levels. Within this, regular car sales increased 10% year-on-year to 276,679 units, continuing a four-month growth streak, while K-Car sales grew 2% year-on-year to 140,484 units, ending a three-month decline.
Addressing the gap between the Racco's order volume and sales figures, BYD Co., Ltd. explained that the 125 units primarily consisted of test drive vehicles registered by dealerships. The company confirmed that actual orders have already surpassed 700 units. BYD Co., Ltd. aims to expand the Racco's market beyond major cities, targeting regions where K-Cars are commonly used as secondary vehicles in multi-car households. In rural areas, K-Cars have become deeply integrated into daily life, with BYD Co., Ltd. Vice President Liu Xueliang noting that these vehicles are visible everywhere in local towns.
Senior researcher at Itochu Research Institute, specializing in the automotive sector, Shiro Fukao, observed that the number of gas stations in Japan is declining, while K-Cars remain a primary mode of transport in rural areas. He suggested that the transition of K-Cars to electric vehicles could perform well in the market. By the end of fiscal 2024, Japan had approximately 27,000 gas stations, down from a peak of around 60,000 in fiscal 1994, a reduction of over 50%. Challenges such as lack of successors, aging equipment, and population decline have led to the closure of many gas stations, with government statistics showing that 381 municipalities across the country have three or fewer gas stations, accounting for more than 20% of all municipalities.
Electric vehicles, conversely, can be recharged with electricity, which is broadly available. Installing a standard home charging device costs about 100,000 yen (approximately 4,286 yuan), and overnight charging sufficiently covers most daily travel needs. Outside major metropolitan areas, single-family homes are more common, offering more parking space, making home charging conditions significantly better than in urban centers. BYD Co., Ltd. Japan therefore plans to focus its store expansion on regional markets, opening small outlets dedicated to the Racco in areas with a commercial population of under 500,000. According to the company's plan, BYD Co., Ltd. will increase its Japanese outlets from the current 80 to 100 by the end of 2026, and further expand to 120 by the end of 2027.
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