President Donald Trump recently commented on kei cars, a class of small vehicles popular in Asia, stating he had authorized the Secretary of Transportation to approve their production in the U.S. This statement, made during a discussion on relaxing fuel economy rules, brought attention to the regulatory framework, safety considerations, and market dynamics surrounding these compact vehicles in the United States. While U.S. federal safety standards currently restrict the import of new kei cars, their potential for wider adoption in a market that historically favors larger vehicles remains a subject of discussion.
Presidential Remarks and Regulatory Context
During a press conference concerning the relaxation of fuel economy regulations, President Trump referenced "very small" vehicles, known as kei cars, and stated he had authorized the Secretary of Transportation to "immediately approve the production of those cars" in the U.S. The Department of Transportation subsequently confirmed that U.S. safety standards for small cars are not being waived.
Kei Car Characteristics and U.S. Regulations
Kei cars are a category of compact vehicles predominantly popular in Japan. While the manufacture of small cars designed to meet U.S. specifications is not prohibited in the U.S., new kei cars built for foreign markets do not comply with current U.S. federal safety standards. Consequently, these vehicles cannot be imported for general use unless they are at least 25 years old, qualifying them for an antique exemption from federal safety regulations. Despite this federal exemption for older models, some U.S. states have imposed their own restrictions on the registration of imported antique kei vehicles due to safety concerns.
Ownership Experiences and Economic Factors
Owners of imported antique kei vehicles in the U.S. frequently cite attributes such as handling characteristics, unique appearance, and practical utility. For example, some kei trucks, despite being shorter than modern compact cars, can feature a 6-foot bed.
Economically, new kei vehicles are available in Japan for prices typically under $15,000. Imported antique models have been acquired for approximately $8,000. This contrasts with an average price of over $34,000 for mainstream used pickup trucks in the U.S., as reported in November.
Safety Considerations
Older kei vehicles present certain safety limitations, often lacking modern safety features such as airbags, anti-lock braking systems (ABS), and crumple zones. The design of these vehicles can place occupants closer to the front in a collision. Concerns also exist regarding the visibility of kei cars to drivers of larger, faster vehicles on American roads.
Conversely, some proponents suggest potential safety advantages. These include enhanced pedestrian safety due to lower speeds and, for the kei car operator, superior driver visibility compared to larger vehicles.
U.S. Market Dynamics and Consumer Preferences
Despite the compact design and affordability of kei cars, the U.S. automotive market has historically demonstrated a preference for larger vehicles. The subcompact car segment, which represents the smallest cars currently sold in the U.S., constitutes less than 1% of the total market and has shown a declining sales volume.
Past attempts to introduce very small vehicles to the U.S. market, such as the Smart fortwo, resulted in limited sales and its eventual discontinuation in 2019 after a decade. Automotive industry analysis indicates that automakers also tend to realize higher profit margins on larger vehicles like trucks and SUVs. Among kei car enthusiasts, there is a general skepticism regarding the widespread adoption of these small, slower, and less expensive vehicles by the general American public.