Who Killed the Kei Car?

[botsapper]

Might be the title of the demise of the 'loveable' Japanese under .66 liter category of very light and small vehicles! Quite useable in the dense urban traffic, as well as tiny trucks, favored by farmers to carry crates of produce around tight mountain passes. They are popular because of obvious great mpg, preferential lower taxation and value/affordability in a wobbly national economy. Many buyers have downsized from 'normal' cars to K's. They have a steady sales growth in the country. But because of its success, the national government wants to prop up regular car sales - so they hit the market with a higher sales tax, higher gas tax and even 50% higher kei car tax! The historically low taxation was a vestige of post-war recovery measures to help the Japanese afford vehicles. By bullying the inexpensive car buyers, taxation is now comparable to normal sized cars. The gov'ment along with the Japanese car manufacturers are intentionally killing the segment off. They pragmatically reasoned that the niche/Japan-only market is wasting R&D money and intruding production capacity to more profitable larger & luxury cars. Many car manufacturers are reducing their future kei product planning. Some agree that there is NO need for kei cars (in their home market). Enlightened companies can see their kei designs for sizable export markets; India, Southwest Asia, etc.

That's packaging!

http://www.youtube.com/watch?v=4gOjJ8eQwjA

[Frank Lee]

Bummer

[Varn]

The little trucks are fairly popular around here. You don't have to license them Just keep them off state roads and stay under 30 mph. Also have to run a slow moving vehicle sign.

[mikeyjd]

Sad

[ecomodded]

Someone will build a new mini cargo truck , there is a need, its just small like its size..


to me they are Futuristic , we will be seeing them again..

[cRiPpLe_rOoStEr]

If the Japanese manufacturers are going to give up the Kei segment, the Chinese newcomers might not repeat this error. Anyway, these cars are still suitable to the conditions of many markets in Southeast Asia, Africa, Latin America and Europe. Regarding the JDM, it's really kinda pointless to overtax the Kei cars, considering that their manufacturing and the maintenance (including expenses with fuel, lube oils, brake pads and tyres) consume a smaller amount of energy and natural resources, so their footprint is even lower than the one of a hybrid.

[kir_kenix]

I would actually really like to own a kei truck with dump box. I see them occasionally at airports and at wharehouses. They would work really well for me around the farm, far better than the UTV style vehicles that are currently marketed. However they seem to run $11,000+.

[Varn]

Most around here buy them used. It seems like the oppressive Jap taxation system really nips vehicles that are a few years old. They put them on ships and send the used ones over. I have seen a number of them for 4-5000. Dumpers go for more.

The one I drove was on a farm started by crossing a creek and back on some ATV trails. Then drove it to town and back. It had low range, 4wd with lockers. The sides and back of the bed folded down. The engine was under the bed.

I would like one for hauling firewood from the back woods but I needed a tractor more. So it is still on my list. A lot of hunters will used them as a blind. Works great when it is cold and raining.

[niky]

Actually, Kei cars DO reduce R&D money and production capacity that could go to bigger vehicles that local manufacturers can export.

Kei cars are a market distortion. Just like the "full sized" and "mid sized" US pick-up classes, created by the market distortion that is CAFE, the Kei class is an unusually restrictive class that encourages manufacturers to make specific cars to take advantage of favorable taxation... cars which are not suited to any other market. (US pickups are just way too big and thirsty. Keis are just too small for the price)

Kei car size and displacement restrictions are so extreme that the Toyota Agya (Daihatsu Ayga), the cheapest Toyota on sale in developing markets today, is based on a stretched and widened Daihatsu Mira, and fitted with an engine twice as big.

I'd hate to see the class go. And I'm sad that I might never get a chance to buy a Honda N-One locally... but that's the way the cookie crumbles.

[cRiPpLe_rOoStEr]

I'd still see some of the Kei cars as a good alternative to some models like the Volkswagen Up or the Ford Ka. Even if they had a bigger engine dropped into, it doesn't make it less impressive how they have a good way to optimize the internal space and the maneuverability in thight spots.