Suzuki undercuts BYD as competition for cheap mini EVs heats up

Suzuki Motor has unveiled its first fully electric kei car, the e SKY, in a move that is expected to intensify competition in Japan's most important vehicle segment. The Japanese government considers kei cars, which are affordable, ultra-compact vehicles, to be a crucial part of the market, accounting for more than a third of automobile sales.

The e SKY model will be priced at around ¥1.6 million (US$10,120) when sales begin in November, including federal subsidies. This makes it cheaper than Nissan Motor's top-selling Sakura EV and BYD's first kei car, which was introduced in July. Kei cars are popular in Japan, with Japanese brands such as Nissan, Honda, Daihatsu, and now Suzuki controlling about 80% of the market.

Suzuki has targeted around 1,000 monthly sales for the e SKY, which boasts a battery range of 310km (193 miles) and a base price of ¥2.1 million. However, federal subsidies can reduce the sticker price by around half a million yen. BYD, meanwhile, unveiled its own kei car, the Racco, in July. The Chinese company claims its Racco will cost less than ¥2 million, including subsidies, and offers a minimum range of 210km.

Suzuki's chief engineer, Tomoyuki Tsubata, explained that the company aimed to create a product that would convince kei drivers to switch to an electric vehicle. "We asked ourselves what kind of product would convince kei drivers to shift to an EV, and this is our answer," Tsubata said. "We're hoping this will help them recognise that option."