BYD reportedly plans global small EVs with Racco’s X-PACK tech

At a BYD dealership in Japan, the Racco is a compact car built around a tight constraint: its K-Car dimensions measure 3,395 millimeters long, 1,475 millimeters wide and 1,800 millimeters high. The model went on sale on July 28. Now BYD reportedly plans to take the battery technology developed for it into small electric vehicles for Europe and other markets, with launches expected within several years.

The technology is called X-PACK. It places the inverter—the component that converts voltage—and other major electrical parts inside the battery pack, installed beneath the vehicle floor. Conventional layouts generally put those components in the front engine compartment. Moving them helps leave more room in the cabin and in the front section used to absorb crash energy, a useful trade-off in a car constrained by Japan’s K-Car limits of 3.4 meters in length, 1.48 meters in width and 2 meters in height.

The Racco shows what that packaging supports today. Its entry-level version uses a 22.4 kWh battery and offers a WLTC range of 210 kilometers; higher-end versions use 35.84 kWh and offer 320 kilometers. BYD says the Racco is Japan’s first electric K-Car with a range exceeding 300 kilometers. As of August 9, it had received 1,002 orders in its first two weeks on sale, with the higher-end 300 Premium representing 80% of orders.

And so what, concretely? If BYD carries X-PACK into production small EVs, the same space-saving layout could help it offer compact cars in markets seeking more affordable electric vehicles, without treating a small body as a simple compromise on room or crash-energy absorption. Europe is one target: Nikkei reported that the European Union decided in 2025 to introduce a vehicle category modeled on Japan’s K-Car standards, covering EU-produced vehicles no more than 4.2 meters long for possible preferential treatment in subsidies and regulatory requirements.

That route is not open yet for a finished global model. BYD has only decided to begin detailed development. Its Hungary plant, scheduled to begin production in 2026, could provide a European manufacturing base, while Southeast Asia and South America are also under consideration. The overseas strategy comes as BYD’s first-half overseas revenue reached 181.27 billion yuan, or 52.57% of its total, The overseas strategy remains at the detailed-development stage.