China’s Chery Automobile looks to offer an all-electric minicar in Japan next spring, joining a market made increasingly competitive by Japanese rivals and Chinese electric vehicle leader BYD.

Chery and four partners will launch the EV brand Emta. The operating company, EMT, has been established in Yokohama to handle development and sales.

“This is a new brand aimed at Japanese consumers,” EMT CEO He Xiaoqing told reporters on May 27. “It will make life easier and more comfortable.”

EMT is a subsidiary of a Singaporean joint venture established by Chery and its four partners including Jiangsu Yueda Automobile Group and battery supplier Gotion High-tech, both from China. Japan’s Autobacs Seven, the automotive parts retailer, and Anest Iwata, which supplies coating equipment, are the other two investors.

The kei car will be developed in China and Japan, with production initially in China. Chery technology will be used for driver assistance and other features.

EMT aims for a price “comparable to gasoline-powered kei cars,” said Susumu Uchikoshi, the company’s chief marketing officer. Honda Motor’s N-Box, Japan’s best-selling kei car, ranges in price from JPY 1.74–2.48 million (USD 10,922.1–15,567.2)

EMT will debut four electric models in Japan by 2029, starting with the kei car. Autobacs Seven will contribute its network of outlets toward sales.

The operating company looks to establish 100 locations for sales and service combined when the kei EV is launched. EMT also will add new locations, expanding the business to hundreds of locations in fiscal 2027.

The market for kei cars, a category unique to Japan, has grown to become a battleground in the EV space, especially with the entry of Chinese rivals. Kei cars, often used for short-distance errands, fit as all-electric vehicles, given the limited driving ranges.

Honda launched the N-One e: last September, and BYD rolls out the Racco mini-EV this summer. Suzuki Motor also plans to start sales of a kei EV this fiscal year. In 2028, Honda will release the all-electric version of the N-Box.

“Kei cars don’t need the same driving range as regular vehicles,” said Seiji Sugiura, senior analyst at Tokai Tokyo Intelligence Laboratory. “Depending on the price, kei EVs have the potential to gain prominence.”

EVs still account for only about 2% of new cars sold in Japan, the lowest share among developed countries. Limiting factors include an insufficient number of charging stations and the high price tags. Affordable mini EVs could boost the adoption rate.

Elsewhere, the European Union is establishing a new class of compact, affordable EVs called the “E car,” based on Japan’s kei car. EMT is considering overseas expansion.

“Japan will be the most important market,” said He. “The newly established small EV standard in Europe presents an opportunity for global expansion.”

This article first appeared on Nikkei Asia. It has been republished here as part of 36Kr’s ongoing partnership with Nikkei.

Note: JPY figures are converted to USD at rates of JPY 159.31 = USD 1 based on estimates as of May 29, 2026, unless otherwise stated. USD conversions are presented for ease of reference and may not fully match prevailing exchange rates.