BYD launches its first plug-in hybrid model in Japan

The Chinese new energy vehicle (NEV) maker officially launched today the Sealion 6 PHEV in Japan. The model offers two options: a front-wheel-drive version and an all-wheel-drive version, priced starting at 3,982,000 Japanese yen ($25,620) and 4,488,000 Japanese yen respectively

BYD has launched its first plug-in hybrid electric vehicle (PHEV) in Japan, intensifying competition with local automotive giants including Toyota, Honda, and Nissan. The Chinese new energy vehicle (NEV) maker officially launched the Sealion 6 in Japan today. The plug-in SUV is known as the Sealion 06 DM-i in China. The Sealion 6 offers two options in Japan: a front-wheel-drive version and an all-wheel-drive version, priced starting at 3,982,000 Japanese yen ($25,620) and 4,488,000 Japanese yen respectively. 

The hybrid SUV was first launched in China on July 24, offering both the Sealion 06 DM-i and the all-electric Sealion 06 EV. The Sealion 6 launched in Japan measures 4,775 mm in length, 1,890 mm in width, and 1,670 mm in height, with a wheelbase of 2,765 mm. These dimensions are slightly smaller than the Sealion 06 available in China, which measures 4,810 mm in length, 1,920 mm in width, and 1,675 mm in height, with a wheelbase of 2,820 mm. 

The Sealion 06 DM-i features BYD's fifth-generation DM (dual mode) hybrid technology, unveiled in May 2024, delivering lower fuel consumption. BYD plans to launch 7-8 models in Japan by 2027, the company said at the time. Currently, it offers five models in Japan, including four pure electric vehicles. BYD announced its entry into Japan's passenger vehicle market in July 2022 and began sales there in January 2023 with its first model, the Atto 3 compact electric SUV. 

The introduction of the Sealion 6 marks the official expansion of BYD’s product lineup in the Japanese market from pure electric SUVs to the plug-in hybrid segment. The Chinese new energy vehicle maker has been steadily advancing in the Japanese market in recent years. 

In May of this year, BYD’s monthly registrations in Japan surpassed 400 units for the first time, securing a place among the top ten imported car brands. In August, BYD Japan announced that its cumulative sales of passenger vehicles in the local market had officially exceeded 5,000 units. According to the plan, BYD aims to establish 100 dealerships in Japan by the end of 2025 to accelerate its expansion in the local market. 

With the launch of the Sealion 6, BYD’s strategy in Japan of “building the brand with pure electric vehicles and boosting sales with plug-in hybrids” has officially taken shape. Japanese giants like Toyota and Honda are about to face the first wave of direct competition from a Chinese brand. 

BYD is recalibrating its strategy in Japan two years after entering the market, shifting to aggressive price cuts in an effort to revive sluggish sales. Despite having launched its fifth vehicle, and planning to introduce a pure electric K-car—a popular microcar category in Japan—by the end of 2026, BYD’s cumulative sales reached only 5,300 units as of June this year. Market traction has fallen short of expectations. 

To regain momentum, the company has launched a price offensive, with discounts of up to 1 million yen ($6,700), and when combined with government subsidies, final transaction prices can fall to as low as 50 percent of the original sticker price. With the Atto 3 as an example, the official price is just under 4.2 million yen ($28,000), but after discounts it is priced close to certain entry-level hybrid models. 

Such tactics, however, are uncommon in Japan. Local automakers rarely cut prices to chase volume. Tatsuo Yoshida, a senior automotive analyst at Bloomberg Intelligence, warned that deep discounts could leave early adopters feeling shortchanged, erode residual values and undermine long-term brand trust. 

Pricing is not BYD’s only obstacle. Japanese buyers remain heavily loyal to legacy players such as Toyota and Honda: General Motors previously withdrew its Saturn brand from Japan due to weak performance, and Hyundai only re-entered the market 14 years after its exit.