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BYD gains a foothold in Japan after landing a new deal to use EVs as mobile power sources

BYD secured a new deal with the Japanese government to use its EVs as mobile power sources. China’s EV giant looks to gain a foothold in Japan, which has been historically ruthless for foreign automakers to crack.

Japan’s auto market is dominated by domestic players, including Toyota, which accounted for over 36% of the market last year.

BYD launched its first EV, the Atto 3, in Japan in early 2023, starting at about $30,000 (4.4 million yen). Since then, the company has introduced several of its top-selling EV models as it eyes a bigger share of the market.

The low-cost Dolphin EV joined its lineup last year. Starting at just $24,500 (3.63 million yen), BYD’s electric hatch will challenge the popular Toyota Prius and Nissan LEAF.

Most recently, BYD revealed the Seal electric sedan, a direct competitor to the Tesla Model 3. After launching the Seal in June, BYD’s electric sedan was the top-selling imported EV in Japan by August. Now, China’s EV giant is eyeing a bigger role in Japan.

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BYD seal in Japan (Source: BYD)

BYD will use EVs as mobile power sources in Japan

BYD Japan announced it landed a deal with local governments to use its EVs for disaster prevention relief. On December 4, 10 BYD stores in the region signed agreements to support the community.

The company said in a statement that the main purpose is to “ensure a rapid and stable supply of electricity in the event of a disaster. “

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BYD Atto 3 (left) and Dolphin (right) EVs in Japan (Source: BYD)

BYD will supply electricity to evacuation centers using Vehicle-to-Home (V2H) technology. If the power goes out, BYD’s EVs are equipped with a V2H adaptor, enabling up to 1,500 kW of power stored in the vehicles to power homes and appliances.

According to BYD, its Atto 3 electric SUV can supply enough electricity for one household for about four days. Since EVs can be easily moved, they are also ideal power sources for evacuation centers and other disaster relief facilities.

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BYD Dolphin (left) and Atto 3 (right) at the 2024 Tokyo Spring Festival (Source BYD Japan)

The deal is expected to help BYD gain a foothold in Japan, which has historically been a challenging market for imports. Through the first nine months of 2024, BYD has sold 1,742 EVs in Japan, up 96% from last year. BYD is now the number 14 on Japan’s import ranking, up from 19 last year.

Although it may not seem like much, just 10,785 electric cars were imported into Japan through the first half of the year.

After the Central Japan Economic and Trade Bureau held a seminar last month to explore battery electric vehicles (BEV) tech, BYD’s EVs stole the show.

Although over 90,000 parts from 16 foreign EVs were on display, BYD’s Atto 3 received the most attention. Several attendees even asked, “How can it be produced at such a low cost?”

Source: CarNewsChina, BYD Japan

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Avatar for Peter Johnson Peter Johnson

Peter Johnson is covering the auto industry’s step-by-step transformation to electric vehicles. He is an experienced investor, financial writer, and EV enthusiast. His enthusiasm for electric vehicles, primarily Tesla, is a significant reason he pursued a career in investments. If he isn’t telling you about his latest 10K findings, you can find him enjoying the outdoors or exercising

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