BYD is preparing to take its X-PACK technology, first introduced in the Racco electric K-Car for Japan, to global markets. The company aims to use this space-saving system to develop small electric vehicles for regions including Europe, as demand for compact EVs grows.
X-PACK Technology: A New Approach to Small EV Packaging
BYD’s X-PACK technology integrates major electrical components, such as the inverter, directly into the battery pack and places the entire system beneath the vehicle floor. This differs from traditional designs, where these components are typically housed in the engine compartment at the front of the vehicle.
By relocating these elements, X-PACK frees up valuable cabin and crash-energy absorption space, which is especially important for small cars operating under strict size regulations.
Racco Electric K-Car: Designed for Japan, Inspiring Global Models
The BYD Racco, which debuted in Japan on July 28, was the first model to feature X-PACK. The Racco is built to comply with Japanese K-Car regulations, which limit vehicles to 3.4 meters in length, 1.48 meters in width, and 2 meters in height. The Racco itself measures 3,395 mm (~134 inches) long, 1,475 mm (~58 inches) wide, and 1,800 mm (~71 inches) tall.
The entry-level Racco uses a 22.4 kWh battery for a WLTC range of 210 km (~130 miles), while higher-end versions offer a 35.84 kWh battery and a range of 320 km (~199 miles). BYD states the Racco is Japan’s first electric K-Car with a range exceeding 300 km (~186 miles) and the first equipped with power sliding doors.
European and Global Expansion Plans
BYD plans to adapt X-PACK technology for small EVs in Europe and other global markets. The European Union decided in 2025 to introduce a new vehicle category modeled on Japan’s K-Car standards. Under this plan, small EVs produced in the EU and measuring no more than 4.2 meters in length could receive preferential treatment in subsidies and regulatory requirements.
BYD’s Hungary plant, scheduled to begin production in 2026, could play a role in manufacturing these small EVs for the European market.
Racco’s Market Performance in Japan
The Racco starts at $13,402 (~AUD 18,709) in Japan. After a government subsidy of 150,000 yen, the entry-level version costs less than $12,496 (~AUD 17,444).
As of August 9, the Racco had received 1,002 orders in its first two weeks on sale, with the higher-end 300 Premium version accounting for 80% of those orders, according to BYD Japan.
BYD’s Overseas Revenue Milestone
In the first half of 2026, BYD generated revenue of $51.2B (~AUD 71.5B), with overseas markets contributing $26.9B (~AUD 37.6B), or 52.57% of the total. This marks the first time in BYD’s history that overseas revenue has accounted for more than half of its total revenue.
Why this matters
BYD’s move to globalize its X-PACK technology highlights the company’s focus on innovation in the small EV segment. The integration of electrical components into the battery pack allows for more efficient use of space, which is crucial for compact vehicles.
With new regulatory categories in Europe and growing overseas sales, BYD’s approach could influence how small electric vehicles are designed and produced in multiple markets.
What this means for buyers
Buyers can expect to see more compact electric vehicles from BYD in the coming years, potentially offering improved cabin space and range thanks to X-PACK technology. Those in Europe may benefit from new models that qualify for subsidies and regulatory incentives under the EU’s updated small EV category.
As BYD expands production outside China, local buyers in regions like Europe could see reduced prices and greater availability of these small EVs.
Key Specs
- X-PACK Technology: Integrates inverter and electrical components into battery pack under floor
- Racco Dimensions: 3,395 mm (~134 inches) L, 1,475 mm (~58 inches) W, 1,800 mm (~71 inches) H
- Entry-level Battery: 22.4 kWh
- Entry-level Range (WLTC): 210 km (~130 miles)
- Premium Battery: 35.84 kWh
- Premium Range (WLTC): 320 km (~199 miles)
- Starting Price (Japan): $13,402 (~AUD 18,709)
- Orders in First 2 Weeks: 1,002
Source
Images sourced from: cnevpost.com, arenaev.com, antaranews.com
