BYD is offering a limited-time price reduction of 500,000 to 1.17 million yen (approximately 24,200 to 56,700 yuan) for its EVs in Japan. The compact car Dolphin will become the cheapest EV in Japan. Although BYD is facing difficulties in its domestic market, its sales in Japan from January to July have increased by 50%.
BYD (Build Your Dreams) has started to reduce the prices of its battery electric vehicles (BEVs) in Japan. The price reduction ranges from 500,000 to 1.17 million yen (about 24,200 to 56,700 yuan). The compact car of BYD has become the cheapest EV in Japan. The growth of BYD in the Chinese market, its main market, has come to a sudden halt, and it will launch a price offensive in Japan, where the market is expected to grow, in an effort to expand its market share.
On August 29, BYD announced on its official website a limited-time price reduction until the end of September. Besides the BEV sedan “SEAL” and the compact EV “DOLPHIN”, it also includes the SUV model “SEALION 7” which was launched in April.
The price reduction ranges from 500,000 to 1.17 million yen. This is the largest price reduction by BYD in Japan. The four-wheel drive model of SEAL will have a price reduction of 1.17 million yen. With the ongoing promotional activities, the lowest price will be 4.55 million yen (about 220,500 yuan).
The cheapest EV, Dolphin, will have a price reduction of 500,000 yen, with the lowest price being 2.492 million yen (about 120,700 yuan). It is 100,000 yen cheaper than Nissan’s light EV “SAKURA” (2.5993 million yen, about 125,900 yuan), making it the cheapest among all electric passenger cars including light vehicles.
Considering the subsidies provided by the Japanese government and prefectures when purchasing EVs, the Dolphin can be purchased for as low as 1.49 million yen (about 72,200 yuan).
The background of BYD’s eagerness to expand its business in Japan is its difficulties in the Chinese market. In July, BYD’s global new car sales increased by 0.6% year-on-year to 344,296 units. The growth rate until June was over 10%, but it has now slowed down. In the financial report released on August 29, BYD pointed out that the competition in the Chinese market is becoming increasingly fierce.
BYD has stimulated the Chinese automotive market through price wars. Due to excessive competition, it has become difficult to increase profits even if EV sales increase, and it seems to be in a difficult situation. The price reduction by BYD in China in late May was criticized by industry associations and other automakers for triggering a price war in the domestic market.
Against the background of expected slowdown in domestic demand in China, BYD will boost its sales in Japan, where there is more room for growth in the EV market. From January to July 2025, BYD’s sales in Japan increased by 50% year-on-year to 1,936 units, showing a strong performance. In the second half of 2026, BYD will also introduce a light EV to the Japanese market. Using a newly developed chassis dedicated to Japan, it aims to have a selling price lower than that of light EVs of Nissan, Mitsubishi Motors and others.
South Korea’s Hyundai Motor also announced a limited-time price reduction on its official website on August 29. The price reduction period is until December, with a reduction range of 47,000 to 1.58 million yen (about 2,277.19 to 76,600 yuan). The main EV “IONIQ 5” has a price reduction of 1.58 million yen, dropping to 3.91 million yen (about 189,400 yuan); the compact SUV “KONA” has a price reduction of 983,000 yen, and can be purchased for as low as 3.01 million yen (about 145,800 yuan).
In May, Tesla of the United States also started a limited-time price reduction in Japan, and the price competition of imported EVs is becoming increasingly fierce. They are striving to seize the Japanese domestic market share before Japanese companies.
Among Japanese automakers, Honda will launch the light EV “N-ONE e:” within 2025, Suzuki will launch its first EV “e VITARA”, and Nissan will launch the new “LEAF”. They are countering the imported car companies that are challenging the Japanese market with low prices.
