TOKYO, June 25 Reuters China39;s BYD launched its third electric vehicle in Japan, it said on Tuesday, a sedan that will be its most expensive model so far in a market where consumers have long favoured domestic brands.

The Shenzhenbased automaker said it had started taking orders for its flagship Seal EV in Japan from Tuesday, setting the suggested retail pricing for the rearwheeldrive version of the vehicle in the country at 5.28 million yen 33,111.75.

The model starts from 179,800 yuan 24,759.70 in China.

The expansion of BYD, which stands for Build Your Dreams, in Japan could become a worry for domestic automakers, which are struggling in China against BYD and other Chinese EV brands.

The automaker has only rolled out batterypowered cars for the Japanese market, but not vehicles with other powertrain technology such as plugin hybrids, in which it is a big player in China.

BYD39;s sales in Japan have lost some momentum in AprilJune compared with last year, BYD Auto Japan president Atsuki Tofukuji said at a Seal launch event in Tokyo39;s Shibuya district.

A big reduction in the Japanese government electricvehicle subsidies the company39;s models qualify for in the business year that started in April put a drag on sales, he told reporters.

The company will offer a rearwheeldrive and an allwheeldrive version in Japan that will both come with a 82.56 kilowatt per hour battery pack, the company said in a news release.

The rearwheeldrive version has a cruising range…