Asia Tech Wire (Sep 25) -- BYD will launch a seven-seat SUV, the BYD Tang, in Japan to enrich its current product lineup on sale in the country, according to Chinese media outlet 36Kr.

This is BYD Japan's fourth model after a compact SUV, minivan and sedan. In addition, BYD Han and Qin will come to Japan one after another.

Sources revealed a unified minimum price in BYD's Japanese dealer system, with a profit margin of at least 10%, and BYD will settle the corresponding incentives to dealers quarterly, "which is more profitable than selling BBA." BBA refers to the three major luxury car brands - Mercedes-Benz, BMW and Audi.

The Chinese electric vehicle maker does not have a direct-sale store in Japan, and the parent companies behind its dealers are basically listed companies or zaibatsu groups, most of which also act as agents for BBA's automotive products.

However, after the depreciation of the yen, it is more costly for Japanese auto dealers to take goods from BBA, further compressing profit margins.

BYD's aggressive market strategy in Japan has greatly increased the motivation of dealers. According to BYD Japan's official website, BYD currently has nearly 60 stores in Japan, of which 20 new stores will open soon.

BYD is expected to realize a distribution network of 100 stores by the end of this year, thus covering the entire Japanese market.

In order to secure more store operation slots, Japanese dealers are in the midst of performance sprints and recruiting, especially for sales positions.

"People from BBA, Toyota and Suzuki have already been tapped," one of the sources said.

(Reporting by Jacky Ling; Editing by Vincy Lu)