China’s BYD is adding a tiny electric vehicle to its lineup in Japan, in a challenge to domestic brands in the country’s most important vehicle segment.

Including subsidies, the entry level Racco will cost less than ¥2 million ($12,210) and offer a minimum range of 210 kilometers, BYD Auto Japan CEO Atsuki Tofukuji said Tuesday. That’s on par with Nissan Motor’s Sakura mini, the best-selling Japanese EV, which starts at about ¥2.44 million but has a maximum range of only 180 kilometers when fully charged.

Cheap and ultra-compact kei, or lightweight, cars account for nearly 40% of new vehicle sales in Japan. Most commonly offered as micro vans or trucks, they offer an affordability and versatility that’s tailored to the island nation’s narrow backstreets and rural byways. New gas-powered models sell for as little as ¥1.2 million.