BYD has set an annual sales target of 10,000 vehicles in Japan, implying an increase by more than 6,000 units from 2025 levels. BYD plans to accelerate the buildout of its sales network in Japan by opening a large number of “mini EV dealerships,” according to a report by Nikkei Asia on February 9. Under the plan, BYD has largely completed its initial presence in major Japanese cities and prefectural capitals. From 2026, the company will shift its expansion focus to mid-sized cities with populations below 500,000 and to regional commercial areas. These new outlets typically display only one or two vehicles, offer greater flexibility in site selection, and require shorter setup periods. Their primary goal is to quickly address gaps in sales network coverage. Atsuki Tofukuji, president of BYD Auto Japan Atsuki Tofukuji, president of BYD Auto Japan, said bluntly that the current number of dealerships has begun to constrain sales growth, particularly as new models are set to enter the market. A key driver behind the strategic shift is the upcoming launch of the Racco, a mini electric vehicle scheduled for release this summer. Developed specifically for the Japanese market, the Racco is positioned as a kei car, the light vehicle segment that accounts for about 40% of Japan’s new car sales and is especially dominant in regional cities and rural areas. By the end of 2025, BYD had 69 dealerships in Japan, including planned openings, covering 38 prefectures. The total number of outlets is already more than double that of Tesla in the country. BYD Racco However, this figure still falls short of BYD’s previously stated target of 100 dealerships, largely due to difficulties in securing suitable properties. As the Racco launch approaches, BYD Japan’s management has noticeably accelerated the pace of store expansion. In addition to directly operated dealerships, BYD is also experimenting with diversified sales channels. In October 2025, the company partnered with Japanese retail giant Aeon to set up shop-in-shop sales points at around 30 commercial facilities. BYD sales store in Japan From a sales perspective, BYD’s growth in Japan remains challenging. In 2025, the company sold 3,731 battery electric passenger vehicles in Japan, excluding commercial vehicles, up 68% year on year. BYD ranked fifth among EV brands, but overall volumes remained modest. By comparison, Tesla sold about 10,600 vehicles in Japan in 2025, representing roughly 90% YoY growth and marking the first time its annual sales exceeded 10,000 units in the country. Tofukuji said BYD has set an annual sales target of 10,000 vehicles as a near-term milestone, implying that sales would need to increase by more than 6,000 units from 2025 levels following the launch of the Racco.
