KATHMANDU: BYD has started a price war in Japan, cutting prices sharply to draw local buyers. The company has been in the market for more than two years and is still working to earn customer trust.
So far, BYD has opened 45 stores in Japan and launched four models. As of June, it has sold around 5,300 vehicles. The company also plans to launch a small electric “K-Car” by the end of 2026.
To boost sales, BYD is offering discounts of up to 1 million yen equal about 6,800 USD. With government subsidies, the price of some cars can fall by almost half. For example, the Atto 3 now costs a little under 28,000 USD.
Experts say this move may have risks. Early buyers could feel unhappy about paying higher prices before and resale values may also be affected.
Japanese car buyers are known for their strong loyalty to local brands like Toyota. Most still prefer hybrid cars over fully electric ones. This has made it hard for foreign carmakers such as Ford, GM and Hyundai to succeed in Japan.
BYD, however, has seen stronger sales in Europe. Analysts believe Japan’s EV market has long-term potential, even though only about 3.4% of new car sales this year will be electric.
“Winning the Japanese market is not the main goal,” said Tatsuo Yoshida, a senior auto analyst. “Leaving a mark and gaining some recognition from Japanese customers would be a big step for BYD.”
Still, BYD faces tough competition. In June, BYD sold 512 cars in Japan, while Nissan’s Sakura EV sold 1,137 units. Other Japanese brands are also moving into electric cars. Honda launched its first compact EV this month, and Toyota and Suzuki are preparing to release a joint electric K-Car.
Yoshida added, “The key is to build brand loyalty and lifelong customers. Whether BYD can do that in Japan is still uncertain.” Bloomberg reports.
