Kei car
Kei car, known variously outside Japan as Japanese city car, ultramini, or Japanese microcar, is the Japanese vehicle category for the smallest highway-legal passenger cars. Similar Japanese categories exist for microvans, and Kei trucks. These vehicles are most often the Japanese equivalent of the EU A-segment.
The kei car category was created by the Japanese government in 1949, and the regulations have been revised several times since. These regulations specify a maximum vehicle size, engine capacity of 660cc and power output, so that owners may enjoy both tax and insurance benefits. In most rural areas they are also exempted from the requirement to certify that adequate parking is available for the vehicle.
Kei cars have become very successful in Japan — consisting of over one third of domestic new car sales in fiscal 2016, despite dropping from a record 40% market share in 2013, after the government increased the kei-car tax by 50 percent in 2014. In 2018, seven of the 10 top-selling models were kei cars including the top four, all boxy passenger vans: Honda N-Box, Suzuki Spacia, Nissan Dayz and Daihatsu Tanto.
However, in export markets, the genre is generally too specialized and too small for most models to be profitable. Notable exceptions exist though, for instance the Suzuki Alto and Jimny models, which were exported consistently from c. 1980. Kei cars are not only popular with the elderly, they are also popular with youths because of their affordability.
Most kei cars are designed and manufactured in Japan, but a version of the French-made Smart was briefly imported and sold as a kei car.
Description
Kei cars feature yellow license plates, earning them the name "yellow-plate cars" in English-speaking circles. Japanese government regulations limit the physical size, engine power and engine displacement of kei cars.Kei cars are often available with forced-induction engines, automatic and CV transmissions, front-wheel drive and all-wheel drive.
History
360-cc era (1949–1975)
The Kei-car legal class originated in the era following the end of the Second World War, when most Japanese could not afford a full-sized car, but many had enough money to buy a motorcycle. To promote the growth of the car industry, as well as to offer an alternative delivery method to small business and shop owners, the kei car category and standards were created. Originally limited to a displacement of only in 1949, dimensions and engine size limitations were gradually expanded to tempt more manufacturers to produce kei cars.In 1955, the displacement limit increased to for both two-strokes, as well as four-stroke engines, resulting in several new kei car models beginning production in the following years. These included the 1955 Suzuki Suzulight and the 1958 Subaru 360, the first mass-produced kei car, finally able to fill people's need for basic transportation without being too severely compromised. In 1955, the Japanese Ministry of International Trade and Industry also set forth goals to develop a "national car" that was larger than kei cars produced at the time. This goal influenced Japanese automobile manufacturers to determine how best to focus their product development efforts for the smaller kei cars, or the larger "national car". The small exterior dimensions and engine displacement reflected the driving environment in Japan, with speed limits in Japan realistically not exceeding in urban areas.
The class then went through a period of ever increasing sophistication, with an automatic transmission appearing in the Honda N360 in August 1968, with front disc brakes becoming available on a number of sporting kei cars, beginning with the Honda Z GS of January 1970. Power outputs also kept climbing, reaching a peak in the Daihatsu Fellow Max SS of July 1970. Sales increased steadily, reaching a peak of 750,000 in 1970. Throughout the 1970s, the government kept whittling away at the benefits offered to kei vehicles, which combined with ever stricter emissions standards to lower sales drastically through the first half of the decade. Honda and Mazda withdrew from the contracting passenger kei car market, in 1974 and 1976, respectively, although they both maintained a limited offering of commercial vehicles.
Until 31 December 1974, kei cars used smaller license plates than regular cars. As of 1975, kei cars received the medium-sized standard plates, which are. To set them apart from regular passenger cars, the plates were now yellow and black rather than white and green.
550-cc era (1976–1990)
Sales had been steadily declining, reaching a low-water mark of 150,000 passenger cars in 1975, 80% less than 1970 sales. Many were beginning to doubt the continued existence of the kei car, with both Honda and Mazda withdrawing in the middle of the 1970s.Emissions laws were another problem for the kei car industry in the mid 1970s. From 1973 to 1978, emissions standards were to be tightened in four steps. Meeting the stricter standards which were to be introduced in 1975 would be problematic for manufacturers of kei cars. This was particularly hard for Daihatsu and Suzuki, which focused on two-stroke engines; especially Suzuki, a relatively small company whose entire production consisted of two-stroke kei cars. Daihatsu, though, had both the engineering backing and powerful connections of their large owner, Toyota, to aid them in meeting the new requirements. All manufacturers of kei cars were clamoring for increased engine displacement and vehicle size limits, claiming that the emissions standards could not be met with a functional 360-cc engine. In the end, the Japanese legislature relented, increasing the overall length and width restrictions by and respectively. Engine size was increased to, taking effect from 1 January 1976. The new standards were announced on 26 August 1975, leaving very little time for manufacturers to revise their designs to take advantage of the new limits.
Most manufacturers were somewhat surprised by the decision; having expected a limit, they had already developed new engines to fit such restrictions. These new engines were quickly introduced, usually mounted within widened bodies of existing models. These interim versions were "feelers", developed to see if indeed a continued market existed for the kei car. As sales improved, they only lasted for a model year or so until manufacturers had the time to develop "full-sized" engines. Only Daihatsu managed to avoid developing transitional engine versions which did not take full advantage of the new regulations. Kei car sales remained stagnant, however; while combined passenger and commercial kei car sales reached 700,000 for the first time since 1974, the small cars still lost market share in a quickly growing market.
As the kei cars became larger and more powerful, another benefit appeared, as exports increased considerably. In particular, export sales of trucks increased, while kei passenger car exports increased at a lower rate. In 1976, combined exports of kei cars and trucks were 74,633, despite exports of passenger kei cars decreasing. In 1980, another record year occurred as exports climbed 80.3%, of which 77.6% were microtrucks. Nearly 17% of exports went to Europe, dwarfed by Chile which took nearly a quarter of the exported keis. Due to the difficult economic environment, low-price cars sold well and 1981 marked another successful year as Japanese midget car sales reached their highest since the 1970 record. As the 1980s progressed, kei cars became increasingly refined, losing their utilitarian origins as Japanese customers became ever better off. Features such as four-wheel drive, turbochargers and air-conditioning began to become available on kei car models.
660-cc era (1990–2013)
The kei car regulations were revised in March 1990, allowing engines an increase of in displacement, and the overall car length to be increased by. These changes occurred during the 1990s Japanese economic bubble, and all manufacturers quickly developed new models to suit. Within five months, all the major models of kei cars had switched from to engines. For the first time, a power limit was also applied, in addition to the limit on engine size. This power limit of matched the highest output reached by any kei manufacturer at the time. The only kei-engined car which has exceeded this limit was the Caterham 7 160, a lightweight British sports car which does not qualify as a kei even though it is small enough to fit the Kei car regulations. Its engine is rated at.The addition of a power limit was a response to the ever-increasing power outputs available with turbocharging and multi-valve technologies popularized in the late eighties. Engine technology was also shared with sport bikes, which are designed for rider enjoyment, and less so for fuel economy - going against the idea of small, people's cars.
In a rare example of an overseas mass-produced model being sold as a kei car in Japan, a kei version of the Smart Fortwo was sold at the Yanase dealerships in Japan from 2001 to 2004. The Smart K used revised rear fenders, reduced tire dimensions and track width to conform to kei car regulations. The model was not a success, and it sold the fewest examples of a kei car when it was marketed.
The Suzuki Wagon R was the best selling kei car in Japan from 2003 to 2008.
Starting in 2011, Toyota entered the kei car market for the first time. The resulting Toyota Pixis Space, a rebadged Daihatsu Move Conte, was expected to increase competition in the kei car market. Currently, Nissan and Mitsubishi jointly produce the Mitsubishi eK. Honda's kei car line-up— the N-one, N-Box and N-WGN— accounts for around a quarter of its overall sales.
Reduced incentives (2014–present)
In April 2014 the Japanese government significantly reduced advantages for kei-car owners, imposing higher sales tax, higher gasoline tax and higher kei car tax – the last of which was raised by 50% – greatly reducing their tax benefits, compared to regular-size cars.Daihatsu, Honda, Mitsubishi and Suzuki are currently the only mass-production manufacturers of kei cars. Nissan sells rebadged Mitsubishi and Suzuki models, Mazda sells rebadged Suzuki models, and Toyota and Subaru sell badge-engineered Daihatsu models.