Suzuki's first electric kei car, the e SKY, goes on sale in Japan on November 16. When it does, it will be the cheapest mini EV in the country. If you were eyeing BYD's Racco, Suzuki just made that choice harder, mostly because of how Japan hands out EV subsidies.
Kei cars are Japan's tiny, low-tax city cars, and they make up more than a third of the country's car sales. BYD moved first this summer with the Racco, the first kei EV from a foreign brand, and took roughly 1,000 orders in its first two weeks. Now a home brand is answering on price.
Close on the sticker, far apart after the grant
On paper the gap is tiny. The base e SKY lists at ¥2.12 million (roughly US$13,500), just under the ¥2.145 million (US$13,700) entry Racco 200. Every e SKY trim is rated for 310 km on Japan's WLTC test cycle. The Racco 200 manages 210 km, and the pricier Racco 300 trims reach 320 km.
The subsidy is what really separates them. Suzuki says e SKY buyers can claim a national grant of ¥568,000 (US$3,600), while Japan's scoring system gives the Racco only the basic ¥150,000 (around US$1,000). That brings the entry e SKY to ¥1,552,000 (US$9,900) and the entry Racco to ¥1,995,000 (US$12,700), close to ¥443,000 (US$2,800) apart. Those figures leave out prefecture and city grants, which depend on where you live.
There are catches. Suzuki's site says that entry trim is built only to order, so you won't find one sitting on a dealer lot. Nikkei also reports that the e SKY's lithium iron phosphate (LFP) cells come from BYD's own battery business. Suzuki's release doesn't name a supplier. If Nikkei is right, BYD makes money on the deal whichever car you pick.
Range may matter more than price
Suzuki's target is 1,000 e SKYs a month, about the number of Racco orders BYD took in its first two weeks. "We asked ourselves what kind of product would convince kei drivers to shift to an EV," chief engineer Tomoyuki Tsubata told reporters, Bloomberg reported. BYD's early orders point to an answer: most Racco buyers skipped the cheap version and paid for the long-range top trim. Suzuki is betting that giving every trim the same range takes that worry away.
Suzuki hasn't said when deliveries start, only that sales open November 16. The ¥568,000 grant covers applications filed between October 6 and December 31, and it closes early if the budget runs out. That leaves roughly six weeks after launch to get the full discount, so if you want the build-to-order base car, ask the dealer about timing before you sign.
Sources
- 1.スズキ、軽乗用EV新型「e SKY」を発売 · Suzuki Motor Corporation
- 2.e SKY 軽乗用EV · Suzuki Motor Corporation
- 3.Suzuki undercuts BYD with a $13,500 mini EV powered by BYD batteries · Electrek
- 4.Suzuki to Launch Cheapest Mini EV in Japan · Jiji Press via nippon.com
- 5.BYD's Kei EV Has The Lowest Sticker In Japan And The Highest Price On The Road · Carscoops
- 6.BYD's electric kei car draws 1,002 orders in Japan in 2 weeks · CnEVPost
- 7.Suzuki undercuts BYD in Japan with cheapest-in-class mini EV · Nikkei Asia
- 8.Suzuki undercuts BYD as competition for cheap mini EVs heats up · Bloomberg via Free Malaysia Today
Reported by the WattsUpNext desk from the sources linked below. Spot an error? Tell us at corrections@wattsupnext.com.
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