Kei Cars

Kei car is the smallest category of Japanese expressway-legal motor vehicles. The term ''kei'' is a shortening of , (kanji: ), which translates to English as "light vehicle" ().

With restricted dimensions and engine specifications, owners enjoy lower tax and insurance rates, leading to a lower overall ownership cost. In most rural areas, they are also exempt from the general Japanese parking-space ownership requirement to legally buy a motor vehicle at all, as street parking is generally restricted in Japan. Japan's carmakers also make microvans and kei trucks within this legal category. Kei cars are favored by both the elderly and younger demographics, including youths and young families, due to their affordability and ease of use.

The ''kei'' category was created by the Japanese government in 1949, to stimulate both car ownership and growth of Japan's car industry. The regulations were revised multiple times until 1998, but since October 1998, the law consistently specifies a maximum vehicle length of , width of , height under , and engine displacement under . A " gentleman's agreement" between Japanese automakers and lawmakers also set a maximum power output of .

Kei cars have been very successful in Japan since the 1960s, consisting of over one-third of domestic new-car sales in fiscal year 2016, after dropping from a record 40 percent market share in 2013. To reduce their market dominance, Japan increased taxes on the category by 50% in 2014. Despite this, in 2018, seven of the ten top-selling models were kei cars, including high-roof models with sliding doors such as the Honda N-Box, Suzuki Spacia, Nissan Dayz, and Daihatsu Tanto.

For exports, the vehicles are generally too small and specialized to be profitable. Rees, p. 79 Notable exceptions exist; for instance, the Suzuki Alto and Daihatsu Cuore have been exported consistently since around 1980. The export version of the Suzuki Jimny, with upgrades to increase its width, has also gained significant popularity outside Japan.

Nearly all kei cars have been designed and manufactured in Japan, but some exceptions exist. A version of the European-built Smart Fortwo was briefly imported and officially classified as a kei car with modifications to reduce its width. In addition, the British Caterham 7 160 and the Polski Fiat 126p (after 1990) also received such classification.

Description

Japanese government regulations limit the outer physical size, and (combustion) engine displacement and power output of kei cars, see detailed table below. Kei cars have also been subject to other restrictions, chiefly lower speed limits than bigger vehicles; older Kei-cars also had a warning chime that sounded when being driven too fast.

Kei cars are issued special license plates, with black numbers on a yellow background for private use, and yellow numbers on a black background for commercial use, earning them the name "yellow-plate cars" in English-speaking circles.

Modern Kei cars are often available with turbocharged engines, automatic and continuously variable transmissions, and choice of front-wheel or all-wheel drive. After the 1980s, Kei cars had matured so much in power, speed, and passive (crash) safety, that they were no longer bound to lower maximum speeds than other cars. Japan's carmakers since agreed on a self-imposed maximum speed, mostly because of their narrow width.

A-segment comparison

Kei cars are often considered the Japanese equivalent of the European Union's A-segment "city cars". However, contrary to Japan's special Kei cars' legal status and limitations, there are no EU- or pan-European legal restrictions, exceptions or benefits for what European auto journalism or market analysts call the 'A' market-segment of motor vehicles. Although some Kei models are successfully exported or licensed, the great majority are designed and built for the Japanese domestic market only, as they are entirely optimized to offer the most appealing vehicles within the very specific to Japan Kei-car rules, in addition to mainly being built with the steering on the right.

Contrary to popular belief, according to the 1 January 1990 regulations, there is no official power limit for Kei cars. The limit is dictated by a gentleman's agreement among Japanese auto manufacturers, reached to prevent a horsepower race, as the most powerful Kei car at the time was rated at . It also means the cars remain true to the modest spirit of the Kei class, to charge lower tax on small vehicles that are just enough to meet basic transportation needs.

History

Up to 360 cc era (1948–1975)

The kei legal class originated in the era following the end of World War II, when most Japanese citizens could not afford a full-sized car, though many had enough money to buy a light motorcycle. To stimulate growth of the car industry, as well as offer alternative commuting means, and small delivery vehicles for shops and businesses, the kei-car category, reduced tax-burden, and accompanying legal maximums for "essential transportation" vehicles were created. At first limited to a displacement of just 150 cc (or just 100 cc for two-stroke engines) in 1949, dimensions and engine size limitations were gradually expanded in 1950, 1951, and 1955, to make kei cars more attractive to buyers, and production more viable to manufacturers.

In 1955, the displacement limit was increased to 360 cc for both two-stroke and 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 (considered the first truly mass-produced kei cars), which were 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 (MITI) 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 kei cars or the larger "national" cars. The small exterior dimensions and engine displacement reflected the driving environment in Japan, with speed limits in Japan realistically not exceeding in urban areas. Kei cars were not allowed to be driven any faster than 40 km/h until the mid-1960s, when the kei speed limit was increased to . The early vehicles were comparable to the European 'bubble-cars' of the era.

In 1968, with the introduction of the Honda N360, the domestic market for kei passenger cars began to grow rapidly. Before the model was launched on March 6, 1968, the monthly kei passenger car market consisted of less than 10,000 cars. This had swelled to 16,000 cars by March 1968 and over 18,000 by May. In May 1968, the 5570th N360 was registered, making it the market leader. Most kei cars registered were still in the commercial class, however.

The class then went through a period of ever increasing sophistication, Rees, p. 78 with an automatic transmission appearing in the Honda N360 in August 1968, and front disc brakes becoming available on a number of sporting kei cars, beginning with the Honda Z GS of January 1971. Power outputs also kept climbing, reaching a peak with the Daihatsu Fellow Max SS of July 1970. Sales increased steadily, reaching a peak of 750,000 in 1970.

Until 31 December 1974, kei cars used smaller license plates than regular cars, at . From 1975, they received 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)

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. Previously exempt, mandatory annual inspections for kei cars were added in 1973 and put an additional damper on sales. Honda and Mazda withdrew from the shrinking passenger kei car market in 1974 and 1976, respectively, although they both maintained a limited offering of commercial vehicles. Sales had been steadily declining, reaching a low of 150,000 passenger cars in 1975, 80% less than 1970 sales.

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, and especially Suzuki, a relatively small company whose entire lineup consisted of two-stroke kei cars. Daihatsu, though, had both the engineering backing and powerful connections of their 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 550 cc, 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, with displacements ranging between 443 and 490 cc, were "feelers", developed to see if a continued market existed for the kei car. As sales improved, these engines only lasted for a model year or so until manufacturers had the time to develop maximum-sized engines. Only Daihatsu had a 550 cc engine ready and thus avoided developing transitional engines that did not immediately 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 kei trucks increased, while kei passenger car exports increased at a lower rate. In 1976, the number of exported kei cars and trucks combined was 74,633 (up 171% year-on-year), despite exports of passenger kei cars decreasing. In 1980, another record year occurred as exports grew by 80.3% (to 94,301 units), of which 77.6% were microtrucks. Nearly 17% of exports went to Europe, dwarfed by Chile, which took nearly a quarter of the exported kei vehicles.

Due to the difficult economic environment, low-priced cars sold well at the turn of the decade; 1981 marked another successful year as Japanese kei car sales reached their highest since 1970 (at 1,229,809 units for cars and trucks). This was also thanks to a new phenomenon: To help boost their sales, Suzuki developed a new car which could be sold as a commercial vehicle although it was really intended for private use, thus avoiding the 15.5% excise tax. Efficient, bare bones design meant that the resulting Suzuki Alto was considerably cheaper than any of its competitors, and it set the tone for kei cars for the entire 1980s. Until the excise tax was abolished in 1989, light commercials like the Alto and its competitors nearly completely supplanted the passenger car versions.

As the 1980s progressed, kei cars became increasingly refined, losing their utilitarian origins, as Japanese customers became ever better off. Features such as electric windows, turbochargers, four-wheel drive, and air conditioning became available on kei-car models. Conversely, van versions of kei hatchbacks were now marketed to non-business customers to take advantage of even lower taxation and more lenient emissions rules; this move in the market was spearheaded by Suzuki with their 1979 Alto, and competitors soon followed suit, with the Subaru Family Rex and the Daihatsu Mira appearing within a year's time.

In the 1980s, the speed limit for kei cars was . Government rules also mandated a warning chime to alert the driver if this speed was exceeded.

660 cc era (1990–2014)

The kei car regulations were revised in March 1990, allowing engines a displacement increase of , or twenty percent, while the maximum length was increased by . These changes occurred during the 1990s Japanese economic bubble, and all manufacturers quickly developed new models to suit. Within five months, all major kei models had switched from 550 cc to 660 cc engines.

For the first time, a power limit of was also applied in addition to the limit on engine size, in response to the ever-increasing power outputs available with turbocharging and multivalve technologies popularized in the late 1980s. Engine technology was also shared with sports bikes, which are designed more for rider enjoyment and less so for fuel economy, going against the idea of small people's cars and putting the kei cars' tax and structural advantages at risk of a governmental backlash. This power limit matched the highest output reached by any kei manufacturer at the time and was a gentlemen's agreement amongst the manufacturers in an effort to avoid a kei-class horsepower war. The only kei car to have exceeded this limit is the Caterham 7 160, a lightweight British sports car that was not expected to qualify as a kei car, though it is small enough (in dimensions and displacement) to fit the regulations. Its engine is rated at —since that is how the car is homologated in the United Kingdom, Japanese authorities told the importer that its power should remain unchanged. The Japan Automobile Manufacturers Association also self-imposes a speed limit of for kei 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 (called the Smart K) was sold in Japan by Yanase from 2001 to 2004. The Smart K used revised rear fenders and reduced tire dimensions and track width to conform to kei regulations. The model was not a success, and sold the fewest examples of a kei car when it was marketed.

The Suzuki Wagon R was the best-selling kei car in Japan between calendar years 1996 and 2011, except in 2003, when the Daihatsu Move outsold the Wagon R. 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 that market. Nissan and Mitsubishi began to jointly produce the Mitsubishi eK (also sold as the Nissan Dayz and formerly the Nissan Otti). Honda's kei car lineup—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 a higher sales tax, a higher gasoline tax, and a higher kei car tax, the last of which was raised by 50 percent—greatly reducing tax benefits compared to regular-sized cars.

Daihatsu, Honda, Suzuki and Nissan-Mitsubishi (through the NMKV joint venture) are currently the only mass-production manufacturers of kei cars. Mazda sells rebadged Suzuki models, Toyota and Subaru sell badge-engineered Daihatsu models, and Nissan-Mitsubishi sources their commercial kei models from Suzuki.

Electric kei cars

The electric version of the Mitsubishi i, the Mitsubishi i-MiEV was the first electric kei car. This was launched for fleet purchasers in 2009 in the Japanese domestic market. It became available to the wider public as well as the global market in 2010. The i-MiEV uses a permanent-magnet synchronous motor powered by a 16 kWh lithium-ion battery pack. It can charge overnight in 14 hours from home 100-volt mains, or in 30 minutes from quick-charging stations installed at fleet locations. Its range is as tested by the US EPA, and as tested by the Japanese Transport Ministry. It was the world's first mass-produced electric car, and the first electric car to sell more than 10,000 units.

Rebadged and slightly updated variants of the i-MiEV were also sold in Europe as the Peugeot iOn and Citroën C-Zero. In 2011, Mitsubishi launched the MINICAB-MiEV; a battery electric version of the Minicab microvan, borrowing the drivetrain and key components from the i-MiEV. As of March 2015, over 50,000 units across all variants (including the two minicab versions sold in Japan) have been sold worldwide since 2009. Production of the i-MiEV was discontinued in 2021.

In May 2022, NMKV launched the Nissan-badged Sakura and the Mitsubishi-badged eK X EV in the Japanese domestic market. These models have a 20 kWh lithium-ion battery pack with an estimated WLTC range of . Both use a single electric motor with a maximum output of . The eK X EV is a battery-electric version of the Mitsubishi eK X, and the Sakura is an update to Nissan's Dayz line. The two are eligible for EV purchase incentives in Japan, and as of June 2022, are also the cheapest new BEVs from a major Japanese manufacturer.

Taxation and insurance

The vehicle excise tax levy is 2% of the purchase price, compared to 3% for a regular car. A 24-month insurance contract typically costs ¥18,980 at the time of registration versus ¥22,470 for a larger car.

An automobile weight tax also is levied: The amount is ¥13,200 and ¥8,800 for a three- and two-year period, respectively, as compared to the ¥18,900 and ¥12,600 charged for larger-sized passenger cars. The savings are thus more than 30% in both cases. This weight tax is paid after the vehicle has passed its safety inspection. The required road tax is based on the engine's displacement.

Best-selling models

Gallery

;360 cc era

File:Subaru360-1.jpg, Subaru 360
(1958–1970)
File:Mazda-r360-coupe01.jpg, Mazda R360
(1960–1969)
File:1972 Daihatsu Fellow Max Hardtop TL.jpg, Daihatsu Fellow
(1970–1976)
File:HondaN360.JPG, Honda N360
(1967–1972)
File:HondaLifeStepvan.JPG, Honda Life Step Van
(1972–1974)
File:Suzuki Fronte Coupe 001.JPG, Suzuki Fronte Coupé
(1971–1976)

;550 cc era

File:Mitsubishi minica h21a lettuce 1 f.jpg, Mitsubishi Minica
(1962–2011)
File:1979 Suzuki Cervo CX-G.jpg, Suzuki Cervo (exported as the Suzuki SC100)
(1977–1982)
File:Subaru Sambar 401.JPG, Subaru Sambar
(1961–present)

;Kei sports cars

File:MAZDA AZ-1.JPG, Autozam AZ-1
(1992–1994)
File:HondaBeat.JPG, Honda Beat
(1991–1996)
File:SuzukiCappuccino.jpg, Suzuki Cappuccino
(1991–1998)
File:Daihatsu Leeza SPIDER.jpg, Daihatsu Leeza Spider
(1991–1993)
File:1994 Subaru Vivio T-Top 660.jpg, Subaru Vivio T-top , T-top GX-T
(1993–1994)
File:2015_Honda_S660.jpg, Honda S660
(2015–2022)
File:Daihatsu Copen 003.JPG, Daihatsu Copen
(2002–2012, 2014–present)

;Kei off-road cars

File:Blue Suzuki Jimny XC (3BA-JB64W-JXCR-J) front.jpg, Suzuki Jimny
(1970–present)
File:Mitsubishi PAJERO MINI Limited (ABA-H53A) front.jpg, Mitsubishi Pajero Mini
(1994–2012)
File:Daihatsu Terios Kid.jpg, Daihatsu Terios Kid
(1998–2012)

;Present

File:Honda N-ONE RS 6MT (6BA-JG3) front.jpg, Honda N-One
File:Mitsubishi eK X space T 2WD (4AA-B35A-HXTTZ) front.jpg, Mitsubishi eK X space
File:Suzuki WagonR HYBRID FX MH55S.jpg, Suzuki Wagon R
File:2019 Nissan Dayz X.jpg, Nissan Dayz
File:Mazda CAROL GX (DBA-HB36S) front.jpg, Mazda Carol
File:Toyota PIXIS JOY F G Turbo"SA II" (DBA-LA250A-GBVZ) front.jpg, Toyota Pixis Joy

See also

* Kei truck

References

Further reading

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External links

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{{Authority control

1949 introductions
Car classifications
Road transport in Japan