Core Viewpoint - The collaboration between BYD and AEON in Japan is expected to transform the domestic automotive distribution framework, which has been predominantly controlled by manufacturers and their affiliated stores [2][5]. Group 1: Collaboration Details - AEON will engage in a "sales intermediary" role, facilitating orders and purchase contracts while collaborating with BYD's exclusive stores to showcase vehicles in their commercial facilities [3]. - BYD aims to increase its exclusive stores in Japan to 100 by 2025, with AEON establishing sales points near these stores [3]. - AEON will independently set prices and promotional activities, offering customers points in AEON's electronic currency "WAON" and discounts on home charger installation, potentially reducing the purchase price by around 1 million yen [3]. Group 2: Market Context - In the first half of 2025, domestic sales of pure electric passenger vehicles in Japan are projected to grow by 3% year-on-year, reaching 28,501 units, marking a return to positive growth after a year [3]. - However, the market share of new electric vehicles, including hybrids and gasoline cars, remains low at around 1%, compared to approximately 20% in overseas markets, indicating challenges in infrastructure development [3]. - As of February, AEON operates about 2,500 electric vehicle chargers across 374 stores, aiming to enhance customer convenience by allowing charging while shopping [5]. Group 3: BYD's Strategic Moves - BYD's expansion in Japan is partly driven by slowing sales in China and increasing competition among EV manufacturers, with inventory reaching 150 billion yuan by the end of March 2025 [6]. - The company plans to launch a pure electric light vehicle specifically developed for the Japanese market by 2026 [6]. - BYD's presence in Japan is growing, with approximately 20% of the EV import market share as of September, indicating a strengthening foothold in the region [5].