BYD Faces Uphill Battle in Japan’s EV Market Despite Aggressive Discounts

BYD's ambitious push into Japan's electric vehicle market has yielded lackluster results, with only 5,300 units sold since January 2023. The Chinese automaker has deployed showroom expansions, new models, and unprecedented price cuts—including ¥1 million ($6,700) discounts—yet struggles against entrenched domestic brands.

The company's Atto 3 now retails below ¥4.2 million after combining subsidies, creating rare affordability in a market where Japanese rivals maintain rigid pricing. While these measures resonate with cost-conscious Chinese buyers, they've failed to disrupt Japan's insular automotive ecosystem.

Analysts note the paradox: BYD's aggressive discounting contrasts sharply with local manufacturers' price stability, revealing structural barriers foreign EV makers face in Japan. The planned 2026 kei car launch represents a last-ditch effort to penetrate Japan's unique microvehicle segment.