Chinese brands making an impression in Japan

Chinese automobile companies are showcasing new energy vehicle models and latest technologies at the ongoing Japan Mobility Show, aiming to enter what has long been considered a "relatively closed "automotive market.

The show, which began in Tokyo on Thursday, saw participation from 500 companies with most being domestic. Chinese NEV giant BYD has garnered attention by unveiling the Racco, a pure electric K-Car model specifically designed for the Japanese market.

The model, set for launch in the summer of 2026, falls under Japan's unique K-Car category. These are compact vehicles with a maximum length of 3.4 meters and engine displacement not exceeding 0.66 liters.

Such vehicles also enjoy tax reductions, insurance discounts, and are exempt from parking space proof requirements, accounting for 35-40 percent of Japan's auto market.

The BYD Racco is equipped with a 20-kilowatt-hour lithium battery pack and can achieve a range of 180 kilometers under Worldwide Harmonized Light Vehicles Test Cycle conditions.

BYD also introduced the Sealion 06 DM-i, its first plug-in hybrid model in Japan at the auto show.

Since entering the Japanese passenger vehicle market in 2022, BYD has launched models including Atto 3, and Sealion 07 EV. By June, it had sold 5,300 cars in the country.

In October, the automaker and Japanese retail group Aeon reached an agreement to sell BYD NEVs in 30 commercial facilities across Japan.

Geely's Zeekr brand introduced the 009 MPV at the auto show through its distributor, Folofly. The company plans to start accepting orders in Japan this year and will begin deliveries in 2026.

Chinese autonomous driving supplier QCraft made its debut in Japan at the event, with plans to introduce its Level 4 product, the driverless Robobus, along with a full-stack autonomous driving solution for the Japanese market.

Yale Zhang, managing director of consultancy Automotive Foresight, said the Japanese auto market is difficult for foreign manufacturers to enter.

In the internal combustion engine era, mainstream brands from Europe and the US struggled against Japanese automakers like Toyota, Nissan, and Honda. But in the EV era, Chinese automakers have taken the lead, so companies like BYD may stand a chance.

He pointed out that Japanese automakers have been relatively slow in the electric transition as they performed exceptionally well in the ICE era with high profits, making them reluctant to shift, which presents opportunities for Chinese NEV makers.

Data from BloombergNEF also show that EV sales in Japan are projected to account for only 3.4 percent of total new car sales by 2025.

However, the Japanese market is relatively closed with customers preferring domestic brands. "It remains to be seen whether the market will accept foreign products," Zhang added.

In contrast to the limited presence of overseas automakers, Japanese automakers have a dominant position at the show.

Toyota is showcasing several new models, including the all-new Corolla concept car, the Land Cruiser FJ off-roader, the Kayoibako city car concept, and a two-wheel mobility device designed for individuals with disabilities named Boost Me.

Its luxury Lexus brand is displaying three LS series concept cars, along with other new models.

Honda introduced several new models at the event, including the Honda 0 Series Saloon prototype and the entry-level 0 SUV. The 0 Series is set for global release in 2027, targeting Japan and India. The Super-ONE compact EV prototype is nearing production, with a Japan launch expected in 2026.

At Honda's booth, there are also a variety of forward-looking mobility products, including a reusable rocket that had its first test flight this year and the BF350 large outboard motor.

Nissan has introduced several new models, including the new Elgrand MPV, the new Leaf electric crossover SUV, and the Ariya electric SUV.

Japan's cumulative vehicle sales from January to September reached 3.65 million units, a 5 percent increase year-over-year.