Suzuki to launch ultracompact EV model in intensifying race in Japan

Suzuki Motor Corp. will introduce an ultracompact electric vehicle (EV) model in Japan in November, aiming to attract customers with budget-friendly prices as the industry becomes increasingly competitive, according to the company's announcement on Tuesday. The e SKY, scheduled to hit the market on November 16, boasts a driving range of approximately 310 kilometers on a single charge.

Following a government subsidy of 568,000 yen ($3,600), the initial price for the compact EV begins at 1.55 million yen. Suzuki has set a sales target of 1,000 units per month for the new model.

This strategic move is a response to the rapidly evolving mini EV market, as Suzuki, a prominent Japanese minicar manufacturer, enters the electric vehicle segment for the first time. Speaking at an event for the new model in Tokyo, President Toshihiro Suzuki emphasized that the company's approach is derived from its extensive experience in producing minicars. Suzuki, one of Japan's two largest minicar producers, entered the EV market as other automakers intensified their competition.

In July, BYD Co., a Chinese automaker, became the first foreign brand to enter Japan's mini EV market by launching the Racco at a subsidized price of around 2 million yen. As of the end of September, about 650 Raccos had been sold in Japan, according to the Japan Light Motor Vehicle and Motorcycle Association. Other notable EV models in the market include Nissan's Sakura, priced around 1.87 million yen after subsidies, and Honda's N-ONE e, starting at approximately 2.12 million yen, both of which are supported by government incentives.

Suzuki's president noted that the company deliberately took time to develop the e SKY carefully, learning from other automakers before making its entry into the market. The president added that Suzuki decided against being the first to enter the segment, instead focusing on delivering a well-designed mini EV at an affordable price point.