Suzuki undercuts BYD as competition for cheap mini EVs heats up

Suzuki Motor has introduced its first fully electric kei car, the "e SKY," in a move that is expected to intensify competition in Japan's most crucial vehicle segment. With the potential to sell around 1,000 units monthly, the e SKY boasts a battery range of 310km and a base price of ¥2.1 million, which can be reduced by approximately ¥500,000 through federal subsidies.

The e SKY joins the ranks of electric kei cars being offered by Nissan, Honda, and Daihatsu, all of which together command about 80% of the market. Kei cars, which are small, affordable, and ultra-compact vehicles, make up more than a third of automobile sales in Japan.

Suzuki's chief engineer, Tomoyuki Tsubata, revealed that the company aimed to develop a product that would convince existing kei car drivers to transition to electric vehicles. He explained, "We asked ourselves what kind of product would convince kei drivers to shift to an EV, and this is our answer."

With EV adoption still lagging behind in Japan compared to the US, Europe, and China, Suzuki believes that its electric kei car can help lower the barrier for customers to make the switch from traditional gasoline vehicles.