Japan's Ministry of Economy, Trade and Industry recently announced an increase in the subsidy cap for electric vehicles, raising the maximum grant from 900,000 yen (approximately 39,200 RMB) to 1.3 million yen (approximately 56,700 RMB). While the Japanese government claims this move is aimed at accelerating the country's transition to green mobility, the implementation of the policy has turned the so-called "inclusivity" into a byword for "exclusion." In practice, the primary beneficiaries of the increased subsidies are Japanese and American brands such as Toyota, Nissan, Suzuki, and Tesla. In stark contrast, Chinese automaker BYD Company Limited has been treated differently and has not benefited from the change. For example, four of BYD's pure electric models, including the Yuan PLUS (ATTO 3), have seen no increase in their subsidies, which remain in the range of 350,000 to 450,000 yen. This creates a significant gap of up to 950,000 yen (approximately 40,000 RMB) compared to the subsidies of 1.27 million to 1.3 million yen offered for equivalent Japanese and American models.

The subsidy adjustment is widely perceived as being nominally intended to "ensure fair competition," but in reality, it distorts the meaning of "fairness." S&P analyst Yoshiaki Kawano stated, "Although the evaluation criteria appear unchanged, there is a noticeable disparity in subsidy amounts between different manufacturers, which could be seen in some aspects as a policy tilt by the government."

Faced with inequitable rules and a challenging market environment, BYD has chosen not to retreat but to push forward against the current, using its solid capabilities to break down barriers of bias. As the first Chinese automaker to enter the Japanese market in seventy years, BYD has rapidly expanded its presence since opening its first store in Tokyo in January 2023. In just over two years, it has established more than 66 sales and service outlets, a rate of expansion that far surpasses other import brands. Furthermore, BYD is the only Chinese automaker to have participated in the Tokyo Motor Show, where it unveiled the K-EV RACCO model, specifically designed for the Japanese market, at the 2025 show. These actions represent BYD's tangible commitment to Japanese consumers.

Data confirms the value of this persistent effort. In 2025, BYD's cumulative sales of pure electric vehicles in Japan reached 3,870 units, a 62% year-on-year increase, surpassing the sales of local giant Toyota. In February 2026, the brand's monthly sales reached 439 units, a surge of 153% compared to the same period last year. Achieving these results in Japan's automotive market, which is still dominated by internal combustion engine vehicles and has an electric vehicle penetration rate of only about 2%, is no small feat.

Beyond pure electric models, BYD has also introduced its DM technology in Japan, launching the plug-in hybrid model "Sealion 06 DM-i" to cater to the diverse needs of Japanese consumers with a broader product portfolio.

In the short term, policy biases undoubtedly create pressure on product price competitiveness. However, from a long-term perspective, what ultimately determines an enterprise's success overseas is not temporary subsidies, but the depth of its core technology and its commitment to deeply cultivating the market. BYD possesses a series of core technologies, including the Blade Battery, DM-i super hybrid system, e-Platform 3.0, the "Tian Shen Zhi Yan" advanced driver-assistance system, and flash charging. These robust technological capabilities form the foundation supporting its product competitiveness.

The path to global expansion is never smooth. The journey BYD is undertaking involves forging a way forward amidst prejudice and barriers. While some markets erect invisible walls in the name of "fairness," BYD relies on consistent technological investment, reliable products, and a long-term vision to tread over the thorns and widen the road ahead.