Kei Car Discussions and U.S. Market ConsiderationsIn a recent address, President Trump referenced small vehicles popular in Asia, known as kei cars, noting their compact size and affordability. He stated he had authorized the Secretary of Transportation to approve the production of such cars in the U.S. This comment occurred during a press conference concerning relaxed fuel economy rules, which facilitate the sale of larger vehicles.### Regulatory Landscape and Import RestrictionsKei cars are widely used in Japan. However, new kei car models manufactured for foreign markets do not align with U.S. federal safety standards. Consequently, these vehicles cannot be legally imported into the U.S. unless they are at least 25 years old, qualifying them for an antique exemption from federal safety regulations. The Department of Transportation confirmed that these safety standards are not being waived for small cars.American kei car enthusiasts, such as Andrew Maxon, founder of the Capital Kei Car Club, expressed interest in potential shifts in the domestic auto industry. Attendees at a club meetup highlighted several attributes of their antique kei vehicles, including their handling, appearance, and practicality. Ryan Douglass, who replaced a midsize pickup with a Japanese kei truck, noted that despite its compact size, his vehicle features a 6-foot bed, comparable to or longer than many modern large trucks.### Economic and Safety FactorsNew kei cars in Japan are typically priced under $15,000. Imported antique models can be obtained for significantly less. For instance, Douglass purchased his kei truck for $8,000, contrasting with the average price of over $34,000 for used mainstream pickups in the U.S.However, kei vehicles present certain limitations. Their compact design often results in a limited crumple zone, meaning occupants are closer to the front of the vehicle in a collision. As antique vehicles, they lack modern safety features such as airbags and anti-lock braking systems (ABS), as acknowledged by owners like Sergey Hall. This absence of contemporary safety features has led some U.S. states to prohibit the registration of imported antique kei vehicles, even though federal regulations permit their import. Drivers also express concern about their visibility to other motorists on American roads, where larger, faster vehicles are common.Conversely, some owners, including Dan Kobayashi, argue for specific safety advantages, such as enhanced pedestrian safety due to lower speeds and better driver visibility compared to larger vehicles.### U.S. Consumer Preferences and Market RealitiesDespite President Trump's remarks about authorizing production, the manufacturing of small cars is not prohibited in the U.S. The primary factor hindering their widespread availability is consumer demand. Jessica Caldwell, head of insights at Edmunds, noted that the subcompact car segment, representing the smallest cars sold in the U.S., constitutes less than 1% of the market and is declining.Automakers have also historically generated higher profit margins from larger vehicles. 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 underperforming sales, have demonstrated limited consumer interest.At the Capital Kei Car Club meetup, the prevailing sentiment among enthusiasts was skepticism regarding the broad adoption of small, affordable, and slower vehicles by the general American public. While some acknowledge their utility and popularity in other nations, a widespread shift in U.S. consumer preference is not anticipated by most.