Kei cars, a class of compact vehicles popular in Japan, have recently been subjects of discussion regarding their potential presence in the United States market. President Trump commented on the vehicles, noting their small size and suggesting he had authorized the Department of Transportation to approve their production for the U.S. market. This statement was made during a press conference about relaxing fuel economy rules, which generally favor larger vehicles.
Regulatory Framework and Import Restrictions
The assertion that kei cars are "not allowed to build" in the U.S. is inaccurate. While U.S. federal safety standards prevent the import of new kei cars built for foreign markets, it is not illegal for manufacturers to produce small cars designed to meet U.S. specifications. The Department of Transportation confirmed that U.S. safety standards for small cars are not being waived.
Kei vehicles can be imported and driven in the U.S. if they are at least 25 years old, qualifying them as antiques and exempting them from federal safety standards. Some states, however, have their own restrictions on imported antique kei vehicles due to safety concerns.
Kei Car Characteristics and Ownership
In Japan, new kei cars, trucks, and vans are available for under $15,000. Imported antique models typically range in price, with some costing around $8,000, which is significantly less than the average used mainstream pickup truck price of over $34,000 as of November.
Owners report positive experiences with the vehicles' handling and utility. For example, some kei trucks, despite being shorter than modern Mini Coopers, offer a full 6-foot bed.
However, these vehicles present safety drawbacks. Due to their snub-nosed design, they lack a significant crumple zone, and antique models inherently possess antiquated safety features, often including no airbags or anti-lock braking systems (ABS). Drivers of these vehicles are aware of these safety limitations. Concerns also exist regarding the visibility of small vehicles to drivers of larger cars on American roads.
U.S. Market Demand and Industry Trends
Despite the compact design and affordability of kei cars, the U.S. market has historically shown limited interest in small vehicles. The subcompact car segment, representing the smallest cars sold in the U.S., constitutes less than 1% of the total market and is currently shrinking.
Past attempts to introduce very small cars to the U.S. market, such as the Smart fortwo, which was discontinued in 2019 after a decade of sales, have faced challenges. Automotive industry analysis indicates that consumer preferences in the U.S. lean towards larger vehicles. Furthermore, automakers often find greater profit margins on larger trucks and SUVs, and federal fuel economy rules have also been cited as incentivizing larger vehicle production.
While some kei car enthusiasts express a desire for these vehicles to gain popularity, the prevailing sentiment among them is that it is unlikely for small, inexpensive, and slower vehicles to achieve widespread appeal in the current U.S. automotive market.