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Japanese Carmakers Face a Reckoning Moment As BYD Enters Their Home Market

Toyota is a pioneer of electrification, having launched its first hybrid car, the Prius, 25 years ago. Since then, the Japanese carmaker has perfected its hybrid technology but refuses to let go of the internal combustion engine. Things might change soon, though, as the Chinese carmaker BYD is set to launch three EV models in Japan.
BYD enters Japanese market next year 7 photos
Photo: BYD
BYD enters Japanese market next yearBYD enters Japanese market next yearBYD enters Japanese market next yearBYD DolphinBYD DolphinBYD Seal
President Akio Toyoda announced a big electrification push last December, with no less than 30 EVs in the pipeline by 2030. However, Toyota is still missing from the EV sales statistics. The Japanese carmaker has done everything in its power to extend the life of the combustion engine, either via electrification or by making it burn hydrogen instead of gas.

Toyota is not the only Japanese carmaker with a toxic relationship with the combustion engine. Japanese carmakers, including Honda and Mazda, still lack a compelling electric vehicle to compete in the increasingly hot EV market. Sure, Toyota recently launched the electric bZ4X, while Subaru was more inspired with the Soltera name for what is, essentially, the same SUV. Honda and Mazda too launched electric vehicles, but neither of them is considered a serious contender in the EV market.

The Japanese carmakers, Toyota included, will soon face a reckoning moment as BYD announced it will enter the Japanese market next year. As if this fact alone was not outrageously enough, the Chinese company will bring three electric models to the market, the BYD Seal, Atto 3, and Dolphin. It is too early to speculate whether the trio will prove successful or not in Japan. Still, they will indeed send the Japanese carmakers scrambling for a response.

The Atto 3 is the first to launch in Japan, starting in January 2023. The electric SUV was introduced to the Chinese market this February and is the first SUV built on BYD’s new all-electric e-platform 3.0. The Atto 3 is also the first BYD model built for the global market, being available to order in Australia, Macao, and Singapore.

Dolphin is part of the new Ocean line of EVs coming from BYD and is a direct competitor to the Honda Fit. It should become available in Japan around next summer. The BYD Seal is a family sedan that uses BYD’s CTB (cell-to-body) technology, with the Li-Ion battery integrated into the car’s body. The Japanese customers will be able to order it in the second half of 2023.

BYD made waves earlier this year when it announced stopping the production and sales of conventional internal combustion engine (ICE) vehicles. The Chinese company is already firmly entrenched in the Japanese EV market, with 70% of the domestic electric bus market. BYD also sells batteries for energy storage systems in Japan.
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About the author: Cristian Agatie
Cristian Agatie profile photo

After his childhood dream of becoming a "tractor operator" didn't pan out, Cristian turned to journalism, first in print and later moving to online media. His top interests are electric vehicles and new energy solutions.
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