Why Japan’s Kei Vehicles Are Finding Fans in America
- Kei vehicles offer a low-cost, high-efficiency alternative to large SUVs but face safety, highway, and import restrictions in the U.S.
- Regulatory loopholes and shifting political signals are opening limited pathways for microcars and quadricycles in American cities.
- Growing consumer interest suggests a niche market for smaller vehicles as car prices and vehicle sizes continue to rise.
Japan’s tiny Kei trucks are gaining traction in the United States several decades after they were first launched in Japan. Despite being difficult to import and register, more Americans are investing in the vehicles, in stark contrast to the rising U.S. uptake of mega SUVs.
Kei is short for kei-jid?sha, which translates roughly as “light vehicle.” The compact Japanese utility vehicles measure a maximum of just 3.4 metres long, 1.48 metres wide and 2 metres high, and are equipped with a 660cc engine. Kei cars contribute almost 40 percent of new vehicle sales in Japan. They were designed to comply with rigorous Japanese fuel economy standards, meaning that they can reportedly run for between 40 and 50 miles per gallon under normal conditions.
It can be difficult to import Kei cars into the United States as they often do not meet the country’s rigorous safety and emissions standards. However, consumers can import foreign vehicles that are at least 25 years old as a classic or antique, making them exempt from the typical standards. This means that most of the stock of Kei vehicles in the U.S. is from around the year 2000.
Meanwhile, the size of the average car is growing wider, at a rate of 1cm every two years, according to the non-profit Transport and Environment. In 1975, the U.S. Congress introduced new fuel economy regulations on new passenger vehicles through the Corporate Average Fuel Efficiency standards, making requirements more lax for light trucks and SUVs than standard cars. The standards have since been updated, but larger vehicles still qualify for lower fuel-efficiency standards. This has driven the uptake of larger cars across the United States.
While many in the U.S. are opting for bigger vehicles, the Kei offers an alternative for those who do not need so much space and power in a vehicle to hop around town. Kei cars are extremely cost-effective, at a cost of under $10,000, compared to the average U.S. used car price of over $25,000, according to the vehicle valuation company Kelley Blue Book.
Most Kei vehicles are not designed for highway driving, accelerating from 0 to 60 mph in around 35 seconds, and some states do not allow Keis on their highways due to safety concerns, as many are not fitted with airbags and other modern safety features. They are also designed for Japan’s roads, meaning that the steering wheel is on the right side of the car. However, as they become more popular, several states have begun to formally legalise the vehicles.
In December, President Donald Trump said that he had approved the production of “tiny” cars in the United States, supporting aims to make vehicles more affordable for consumers. Trump had previously seen Kei cars in Japan and described them as “really cute” on his social media. “Manufacturers have long wanted to do this, just like they have so successfully built in other countries… These cars of the very near future are inexpensive, safe, fuel efficient and, quite simply, AMAZING!” Trump wrote.
Trump said that the newly approved small cars could be gasoline, electric, or hybrid powered. The U.S. Transportation Secretary Sean Duffy told reporters that the administration was in the process of “clearing the deck” for regulatory changes following Trump’s announcement.
“If there’s a market for those vehicles, I want to give our manufacturers the opportunity to build those cars,” said Duffy. He also said that tiny cars would likely not be permitted to be used on U.S. freeways. “But again, vehicles that work in cities and if that’s where you drive, it could be a great solution for you,” he said, adding that they are “much more affordable than other options.”
Following the announcement by Trump, Chrysler’s parent company, Stellantis, said it planned to bring the Fiat Topolino all-electric small car model to the U.S. market. The firm did not state a timeline for the launch of the Topolino, which translates to “little mouse” in Italian, but Fiat’s CEO, Olivier François, said there would be “more details to come next year”.
A Stellantis spokeswoman said Fiat’s announcement was not related to Trump’s directive to permit the production of microcars and that the company had, rather, seen customer interest for the Topolino at auto shows. The model, which is produced in Morocco, falls into the all-electric quadricycle category rather than a car, strictly speaking. It has a top speed of around 28 mph and a driving range of less than 50 miles on a single charge.
As the average car size continues to grow, with more people investing in mega SUVs and other large vehicles, the tiny Japanese alternative is gaining traction in the U.S. market. As consumers look for more affordable car options, the production of microcars in the United States could help to develop a new car market, while automakers with existing models in other global markets could also contribute to the stock of tiny cars.
By Felicity Bradstock for Oilprice.com
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