BYD’s decision to enter the Japanese passenger car market benefits Africa

BYD Cars has announced that it will start selling electric passenger vehicles in Japan from January 2023. 

Initially, three of BYD’s newest models will be offered in Japan, starting with the ATTO. January 3.  Next up will be  Dolphin and Seal, which will be available for purchase in the mid and second half of 2023.  General manager of BYD’s 

 APAC Automotive Business Division, Liu Xueliang,  revealed BYD’s tagline. for the market – “Hello Electronic Life”. BYD, from today, launch customer-oriented electric vehicle products in Japan hand in hand with Japanese dealers as well as individuals from all circles. We stick to the goal of ‘e-travel for all. Under the guidance of the slogan ‘Hello life, we are committed to achieving a low-carbon lifestyle in Japan’. Liu said.

BYD President and Chairman Wang Chuanfu said that in the past few decades, BYD has penetrated the Japanese market, and has taken up an excellent market. It also builds up a good reputation and found the brand thanks to pure electric buses, energy storage,  electric forklifts pure and other business areas. Today, with the support and expectations of consumers, BYD officially entered the new energy passenger car market in Japan. The longest journey begins with a  step, and we are grateful for that. cherishes this business opportunity to provide Japanese consumers with advanced technologies, excellent products and high-quality services, in order to provide an exceptional travel experience.

The Japanese market essentially orients the automotive sector to the right-drive markets in Africa. In fact, more than 90% of vehicles in these markets (excluding South Africa) are used cars imported from Japan. 

These include the fact that the majority of people in these developing markets have lower incomes than people in developed countries, as well as a lack of affordable car financing. The majority of buyers of 8-year-old cars buy online from Japanese dealers or from domestic dealers importing from Japan. 

 These used cars can be more than 8 years old depending on the import regulations of each country. Popular vehicles in this lineup include the Honda Fit, Toyota Yaris, and Mazda CX 5. These vehicles will retail in the domestic market for prices ranging from approximately $8,000 to approximately $20,000 depending on the trim level. age, condition, and mileage, allowing more people to afford a car.. 

Over the past decade, Japanese automakers have focused more on wireless hybrids than on battery-powered vehicles. Because the supply chain from Japan is well established, these plug-in hybrid devices are now found in large numbers in these African markets. Many people are looking for more fuel-efficient vehicles as the high cost of gas is starting to eat into their budget.  

The Honda Fit Hybrid and Toyota Aqua Hybrid are models which you can see anywhere in cities. It sounds like Harare. For electric vehicle enthusiasts and early adopters, the first-generation Nissan Leaf was also the only right-hand drive available to them. 

The first-generation Nissan Leaf battery does not have active thermal management. Therefore, it is not an ideal vehicle for these markets due to battery problems that rapidly degrade in hot environments. 

Japanese automakers’ focus on hybrid vehicles coupled with slow sales of fully battery-powered vehicles in Japan means there isn’t a good selection of used battery-powered vehicles to buy. in this African market. There is now a glimmer of hope because as of 2021,  sales of 4,444 battery electric vehicles start to increase in Japan. 

In Japan, electric vehicles reached the records of 20,000 new-sold cars. The brilliant score consisted of 8,600 imported electric vehicles. In addition, Japan imported 8600 electric vehicles, which was about 3 times more than the previous year, showing significant growth. BYD’s entry into the Japanese market in January next year will help boost the market.

BYD Dolphin belongs to the same car segment as the popular Honda Fit and Toyota Yaris. The BYD Dolphin is launched in the market with a price tag of around $15,000 in China. Prices for the Japanese market are likely to be much higher. This gives us some hope that within the next 4-5 years some of them will find their way into the used car market and the scooter market in Africa. I drive a 2013 Nissan Leaf in Zimbabwe that I bought from Japanese used car dealers in 2020. When I ordered the car, it was 7 years old and I bought it after that. more affordable than buying new. for over $35,000 before import tax. In a few years, these BYD Dolphins could start appearing as used vehicles at prices that potential buyers here can currently afford.

We need all existing channels to accelerate electric vehicle adoption. Leveraging the existing used car market ecosystem to bring electric vehicles to these markets will be one of the key ways to do this.