Suzuki undercuts BYD as competition grows in market for low-budget EV minicars

Suzuki Motor has unveiled its first fully electric minicar, fueling competition in Japan’s most important vehicle segment.

Including government subsidies, the “e SKY” model will cost around ¥1.6 million ($10,120) when sales start in November, Suzuki said Tuesday. That’s cheaper than Nissan Motor’s top-selling Sakura EV and BYD’s first minicar, introduced by the Chinese company in July.

Minicars are affordable, ultracompact vehicles that account for more than a third of automobile sales in Japan. 

The arrival of the e SKY adds to signs that the country is becoming a key battleground for electric versions of the tiny cars, with Nissan, Honda, Daihatsu and now Suzuki offering them. Together, the Japanese brands control about 80% of the market.

Suzuki targets around 1,000 monthly sales for the tiny EV, which has a battery range of 310 kilometers and a base price of ¥2.1 million. Government subsidies can bring its sticker down by around half a million yen. BYD said in July that its Racco minicar, which offers a minimum range of 210 kilometers, will cost less than ¥2 million including subsidies.

In Japan, where EV uptake is far lower than in the U.S., Europe or China, Suzuki is betting that its first electric minicar can help lower the barrier for customers to make the switch from gasoline vehicles.

“We asked ourselves what kind of product would convince minicar drivers to shift to an EV, and this is our answer,” the model’s chief engineer Tomoyuki Tsubata told reporters in Tokyo. “We’re hoping this will help them recognize that option.”