Kei car
Encyclopedia
Kei cars, K-cars, or , are a Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

ese category of small vehicles, including passenger cars, vans
Microvan
A microvan is a van that fits into Japanese kei car classification or similar. In certain regions, these models are inexpensive and widely used for small business because of tax and insurance benefits; for example, in Japan they are exempted from a certification that there is adequate parking...

, and pickup trucks. They are designed to comply with Japanese government tax and insurance regulations, and in most rural areas are exempted from the requirement to certify that adequate parking
Parking
Parking is the act of stopping a vehicle and leaving it unoccupied for more than a brief time. Parking on one or both sides of a road is commonly permitted, though often with restrictions...

 is available for the vehicle. This especially advantaged class of cars was developed to promote popular motorization in the post war era. While successful at home, the genre is generally too specialized and too small to be profitable in export markets.
Kei car registration plate
Private car Commercial vehicle

Description

The cars feature yellow licence plates
Japanese license plates
In Japan, the national government issues vehicle registration plates for motor vehicles through the Ministry of Land, Infrastructure and Transport Land Transportation Offices nationwide. However, the local municipality rather than the national government registers certain vehicles with small engine...

, earning them the name "yellow-plate cars" (black numbers on yellow background for private use and yellow numbers on black background for commercial use) in English- and Spanish
Spanish language
Spanish , also known as Castilian , is a Romance language in the Ibero-Romance group that evolved from several languages and dialects in central-northern Iberia around the 9th century and gradually spread with the expansion of the Kingdom of Castile into central and southern Iberia during the...

-speaking circles. Because regulations only restrict physical size and engine displacement (and latterly outright power), manufacturers have been able to introduce many advanced technologies to the class. As a result, kei cars are often available with forced induction
Forced induction
Forced induction is the process of compressing air on the intake of an internal combustion engine . A forced induction engine uses a gas compressor to increase the pressure, temperature and density of the air...

 engines, automatic
Automatic transmission
An automatic transmission is one type of motor vehicle transmission that can automatically change gear ratios as the vehicle moves, freeing the driver from having to shift gears manually...

 and CVT
Continuously variable transmission
A continuously variable transmission is a transmission that can change steplessly through an infinite number of effective gear ratios between maximum and minimum values. This contrasts with other mechanical transmissions that offer a fixed number of gear ratios...

 transmissions, front-, rear- and four-wheel drive
Four-wheel drive
Four-wheel drive, 4WD, or 4×4 is a four-wheeled vehicle with a drivetrain that allows all four wheels to receive torque from the engine simultaneously...

, hybrid drivetrains, air conditioning
Air conditioning
An air conditioner is a home appliance, system, or mechanism designed to dehumidify and extract heat from an area. The cooling is done using a simple refrigeration cycle...

, GPS and many other features.

Daihatsu, Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...

, Mitsubishi
Mitsubishi Motors
is a multinational automaker headquartered in Minato, Tokyo. In 2009 it was the fifth-largest Japan-based automaker and the 17th-largest in the world measured by production...

, Subaru
Subaru
; is the automobile manufacturing division of Japanese transportation conglomerate Fuji Heavy Industries .Subaru is internationally known for their use of the boxer engine layout popularized in cars by the Volkswagen Beetle and Porsche 911, in most of their vehicles above 1500 cc as well as...

, and Suzuki
Suzuki
is a Japanese multinational corporation headquartered in Hamamatsu, Japan that specializes in manufacturing compact automobiles and 4x4 vehicles, a full range of motorcycles, all-terrain vehicles , outboard marine engines, wheelchairs and a variety of other small internal combustion engines...

 all manufacture kei cars, while Nissan sells badge-engineered
Badge engineering
Badge engineering is an ironic term that describes the rebadging of one product as another...

 Mitsubishi and Suzuki models, and Mazda
Mazda
is a Japanese automotive manufacturer based in Fuchū, Aki District, Hiroshima Prefecture, Japan.In 2007, Mazda produced almost 1.3 million vehicles for global sales...

 offers badge-engineered Suzuki
Suzuki
is a Japanese multinational corporation headquartered in Hamamatsu, Japan that specializes in manufacturing compact automobiles and 4x4 vehicles, a full range of motorcycles, all-terrain vehicles , outboard marine engines, wheelchairs and a variety of other small internal combustion engines...

 models. German brand Smart
Smart (automobile)
Smart is an automotive branch of Daimler AG. Smart is a German manufacturer of microcars produced in Hambach, France, and Böblingen, Germany...

 offered a kei version of its Fortwo
Smart Fortwo
The Smart Fortwo is a rear-engined two-seater city car manufactured by Smart GmbH, introduced at the 1998 Paris Motor Show as the Smart City Coupé, and currently in its second generation...

 called the Smart K in Japan from 2001 to 2004 with specially developed rear fenders reduced tire dimensions and track width to conform to kei car standards, however it suffered from poor sales and was the worst-selling kei car of its time.

360 cc era

These standards originated in the times following the end of the Second World War, when most Japanese could not afford a full-sized car yet had enough to buy a motorcycle
Motorcycle
A motorcycle is a single-track, two-wheeled motor vehicle. Motorcycles vary considerably depending on the task for which they are designed, such as long distance travel, navigating congested urban traffic, cruising, sport and racing, or off-road conditions.Motorcycles are one of the most...

. To promote the growth of the car industry, as well as to offer an alternative delivery method to small business and shop owners, kei car standards were created. Originally limited to a mere 150 cc (100 cc for two-strokes) in 1949, dimensions and engine size limitations were gradually increased (in 1950, 1951, and 1955) to tempt more manufacturers to produce kei cars. It wasn't until the 1955 change to 360 cc as the upper limit for two-strokes as well as four-strokes that the class really began taking off, with cars from Suzuki (Suzulight) and then Subaru 360
Subaru 360
The Subaru 360 was the first automobile mass-produced by Fuji Heavy Industries' Subaru division. A number of innovative features were used to design a very small and inexpensive car to address government plans to produce a small "people's car" with an engine no larger than 360 cc when most in...

 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
Ministry of International Trade and Industry
The Ministry of International Trade and Industry was one of the most powerful agencies of the Government of Japan. At the height of its influence, it effectively ran much of Japanese industrial policy, funding research and directing investment...

 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 the smaller kei cars, or the larger "national car".

The class then went through a period of ever increasing sophistication, with an automatic transmission appearing in the Honda N360
Honda N360
The Honda N360 is a kei car, designed and built by Honda and produced from March 1967 through 1970, while its larger N600 brother lasted three more years. After a January 1970 facelift, the N360 became the NIII360 and continued in production until 1972...

 in August 1968, with front disc brakes becoming available on a number of sporting kei cars, beginning with the Honda Z GS
Honda Z
Honda Z is the name of a two-door hatchback microcar automobile made by the Honda Motor Company, first from 1970 until 1974 and again between 1998 and 2003....

 of January 1970. Power outputs also kept climbing, reaching a peak in the 40 PS Daihatsu Fellow Max SS of July 1970. Sales increased steadily, reaching a peak of 750,000 in 1970. 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. Honda and Mazda withdrew from the contracting passenger kei car market, in 1974 and 1976 respectively, although they both maintained a limited offering of commercial vehicles.

Until 31 December 1974, Kei cars used smaller license plates than regular cars (230 x 125 mm). As of 1975, Kei cars received the medium sized standard plates (330 x 165 mm). To set them apart from regular-sized cars (non-kei), the plates were now yellow and black rather than white and green.

550 cc era

Sales had been steadily declining, reaching a low water mark of 150,000 passenger kei cars in 1975, eighty percent less than 1970 sales. Many were beginning to doubt the continued existence of the Kei car, with both Honda and Mazda withdrawing in the middle of the seventies.

The even stricter emissions standards which were to be introduced in 1975 as part of a staggered program of cleaning the air proved problematic for kei manufacturers. This was particularly hard for Daihatsu and Suzuki who focused on two-stroke engines. Tiny Suzuki was worst off, with their entire production consisting of two-stroke engined kei cars. Daihatsu, on the other hand, had both the engineering backing and powerful connections of their large owner Toyota to aid them in meeting the new requirements. All manufacturers of kei cars were clamoring for relaxing the dimension conditions, claiming that the emissions standards could not be met with a functional 360 cc engine (even though Subaru's SEEC-T equipped Rex
Subaru Rex
The Subaru Rex, also known as Ace, Viki, Sherpa, 500/600/700, Mini Jumbo or M60/M70/M80 in various export markets, is a kei class automobile produced from 1972 to 1992 mainly for sale in Japan by Subaru, although it was also sold in Europe, South America, and the Caribbean...

 proved it possible). In the end, the Japanese legislature relented, increasing the overall length and width restrictions by 200 mm and 100 mm respectively. Engine size was increased to 550 cc, taking effect from January 1, 1976.

Most manufacturers were somewhat surprised by the decision: having expected a 500 cc 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 there was indeed a continued market for the Kei car. As sales improved, they only lasted for a model year or so until manufacturers had had the time to develop "full-size" engines. Only Daihatsu managed to avoid developing transitional engine versions which did not 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, in a quickly growing market the small cars still lost market share.

660 cc era

In March 1990, new standards were again introduced. An extra 110 cc were now allowed in a slightly larger (10 cm longer) bodyshell. These changes came at a time when the Japanese economy was booming
Japanese asset price bubble
The was an economic bubble in Japan from 1986 to 1991, in which real estate and stock prices were greatly inflated. The bubble's collapse lasted for more than a decade with stock prices initially bottoming in 2003, although they would descend even further amidst the global crisis in 2008. The...

, so all manufacturers quickly developed new models to suit. The only 550 cc model to continue to be available for a while was the Mitsubishi Minica
Mitsubishi Minica
-Minica Sedan:The first Minica was first introduced in October 1962 as a two-door sedan based on the Mitsubishi 360 light truck, sharing its front-mounted ME21 359 cc twin-cylinder air-cooled engine driving the rear wheels, transverse leaf springs in front and beam axle/leaf springs at the...

 Dangan, which was only upsized five months later. As a response to ever increasing power, a limit of 64 PS was also added. 64 PS happened to be the highest outputs to have been reached at the time, it is unknown if there are any other reasons that this number was selected.

History of regulations

Date Maximum length Maximum width Maximum height Maximum displacement Maximum power
four-stroke
Four-stroke cycle
A four-stroke engine, also known as four-cycle, is an internal combustion engine in which the piston completes four separate strokes—intake, compression, power, and exhaust—during two separate revolutions of the engine's crankshaft, and one single thermodynamic cycle.There are two...

two-stroke
Two-stroke cycle
A two-stroke engine is an internal combustion engine that completes the process cycle in one revolution of the crankshaft...

8 July 1949 2.8 m (9.2 ft) 1 m (3.3 ft) 2 m (6.6 ft) 150 cc 100 cc n/a
26 July 1950 3 m (9.8 ft) 1.3 m (4.3 ft) 300 cc 200 cc
16 August 1951 360 cc 240 cc
4 April 1955 360 cc
1 January 1976 3.2 m (10.5 ft) 1.4 m (4.6 ft) 550 cc
March, 1990 3.3 m (10.8 ft) 660 cc 47 kW
1 October 1998 3.4 m (11.2 ft) 1.48 m (4.9 ft)

Present day

Starting in 2011 Toyota Motor Corp launched its first minicar the Pixis Space which is expected to increase competition in the minicar sector. Currently Nissan Motors
Nissan Motors
, usually shortened to Nissan , is a multinational automaker headquartered in Japan. It was a core member of the Nissan Group, but has become more independent after its restructuring under Carlos Ghosn ....

 is in partnership with Mitsubishi Motors
Mitsubishi Motors
is a multinational automaker headquartered in Minato, Tokyo. In 2009 it was the fifth-largest Japan-based automaker and the 17th-largest in the world measured by production...

 who produces the minicars for Nissan, while Honda's
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...

 minicar sales total around a quarter of its overall sales.

Financial advantages

  • Vehicle excise tax
Taxable amount is only 3% of the purchase price, compared to 5% for a regular sized car.
  • Automobile weight tax
For a three year period, the amount is 13,200 yen. For two years it costs 8,800 yen, which compares to the 18,900 and 12,600 yen respectively charged to larger size passenger cars. The savings are thus above 30% in both cases. This weight tax is paid after the vehicle has passed its safety inspection
Motor-vehicle inspection (Japan)
, a contraction of , is the name of the vehicle inspection program in Japan for motor vehicles over 250 cc in engine displacement.- Reason for existence :...

.
  • Automobile liability insurance (compulsory insurance) premiums
A 24-month insurance contract typically costs 18,980 yen at the time of registration, versus 22,470 yen for a regular car.
  • Annual road tax, which is based on the engine's displacement size
  • Optional added insurance is also much cheaper.

Financial disadvantages

Due to the popularity of "light cars", there is a tax on the size of these vehicles called the Light Motor Vehicle Tax. The amount charged for the size of "Passenger Cars" (the largest of the three classifications recognized in Japan) is 7,200 yen (US$83.50), or 4,000 yen ($46.40) for commercial vehicles. Normally the car tax on "light cars" below 1,000 cc is 29,500 yen ($342), with passenger cars and trucks with a load carrying capacity of 1,000 kg or less is at 13,200 yen ($153). (Some local governments may charge even higher based on local regulations).

Classic

After World War II, Kei car was born as the public car. The engineers of the erstwhile Nakajima Aircraft Company
Nakajima Aircraft Company
The Nakajima Aircraft Company was a prominent Japanese aircraft manufacturer throughout World War II.-History:...

 developed the first truly successful Kei car, the Subaru 360.
Kei cars, K-cars, or , are a Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

ese category of small vehicles, including passenger cars, vans
Microvan
A microvan is a van that fits into Japanese kei car classification or similar. In certain regions, these models are inexpensive and widely used for small business because of tax and insurance benefits; for example, in Japan they are exempted from a certification that there is adequate parking...

, and pickup trucks. They are designed to comply with Japanese government tax and insurance regulations, and in most rural areas are exempted from the requirement to certify that adequate parking
Parking
Parking is the act of stopping a vehicle and leaving it unoccupied for more than a brief time. Parking on one or both sides of a road is commonly permitted, though often with restrictions...

 is available for the vehicle. This especially advantaged class of cars was developed to promote popular motorization in the post war era. While successful at home, the genre is generally too specialized and too small to be profitable in export markets.
Kei car registration plate
Private car Commercial vehicle

Description

The cars feature yellow licence plates
Japanese license plates
In Japan, the national government issues vehicle registration plates for motor vehicles through the Ministry of Land, Infrastructure and Transport Land Transportation Offices nationwide. However, the local municipality rather than the national government registers certain vehicles with small engine...

, earning them the name "yellow-plate cars" (black numbers on yellow background for private use and yellow numbers on black background for commercial use) in English- and Spanish
Spanish language
Spanish , also known as Castilian , is a Romance language in the Ibero-Romance group that evolved from several languages and dialects in central-northern Iberia around the 9th century and gradually spread with the expansion of the Kingdom of Castile into central and southern Iberia during the...

-speaking circles. Because regulations only restrict physical size and engine displacement (and latterly outright power), manufacturers have been able to introduce many advanced technologies to the class. As a result, kei cars are often available with forced induction
Forced induction
Forced induction is the process of compressing air on the intake of an internal combustion engine . A forced induction engine uses a gas compressor to increase the pressure, temperature and density of the air...

 engines, automatic
Automatic transmission
An automatic transmission is one type of motor vehicle transmission that can automatically change gear ratios as the vehicle moves, freeing the driver from having to shift gears manually...

 and CVT
Continuously variable transmission
A continuously variable transmission is a transmission that can change steplessly through an infinite number of effective gear ratios between maximum and minimum values. This contrasts with other mechanical transmissions that offer a fixed number of gear ratios...

 transmissions, front-, rear- and four-wheel drive
Four-wheel drive
Four-wheel drive, 4WD, or 4×4 is a four-wheeled vehicle with a drivetrain that allows all four wheels to receive torque from the engine simultaneously...

, hybrid drivetrains, air conditioning
Air conditioning
An air conditioner is a home appliance, system, or mechanism designed to dehumidify and extract heat from an area. The cooling is done using a simple refrigeration cycle...

, GPS and many other features.

Daihatsu, Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...

, Mitsubishi
Mitsubishi Motors
is a multinational automaker headquartered in Minato, Tokyo. In 2009 it was the fifth-largest Japan-based automaker and the 17th-largest in the world measured by production...

, Subaru
Subaru
; is the automobile manufacturing division of Japanese transportation conglomerate Fuji Heavy Industries .Subaru is internationally known for their use of the boxer engine layout popularized in cars by the Volkswagen Beetle and Porsche 911, in most of their vehicles above 1500 cc as well as...

, and Suzuki
Suzuki
is a Japanese multinational corporation headquartered in Hamamatsu, Japan that specializes in manufacturing compact automobiles and 4x4 vehicles, a full range of motorcycles, all-terrain vehicles , outboard marine engines, wheelchairs and a variety of other small internal combustion engines...

 all manufacture kei cars, while Nissan sells badge-engineered
Badge engineering
Badge engineering is an ironic term that describes the rebadging of one product as another...

 Mitsubishi and Suzuki models, and Mazda
Mazda
is a Japanese automotive manufacturer based in Fuchū, Aki District, Hiroshima Prefecture, Japan.In 2007, Mazda produced almost 1.3 million vehicles for global sales...

 offers badge-engineered Suzuki
Suzuki
is a Japanese multinational corporation headquartered in Hamamatsu, Japan that specializes in manufacturing compact automobiles and 4x4 vehicles, a full range of motorcycles, all-terrain vehicles , outboard marine engines, wheelchairs and a variety of other small internal combustion engines...

 models. German brand Smart
Smart (automobile)
Smart is an automotive branch of Daimler AG. Smart is a German manufacturer of microcars produced in Hambach, France, and Böblingen, Germany...

 offered a kei version of its Fortwo
Smart Fortwo
The Smart Fortwo is a rear-engined two-seater city car manufactured by Smart GmbH, introduced at the 1998 Paris Motor Show as the Smart City Coupé, and currently in its second generation...

 called the Smart K in Japan from 2001 to 2004 with specially developed rear fenders reduced tire dimensions and track width to conform to kei car standards, however it suffered from poor sales and was the worst-selling kei car of its time.

360 cc era

These standards originated in the times following the end of the Second World War, when most Japanese could not afford a full-sized car yet had enough to buy a motorcycle
Motorcycle
A motorcycle is a single-track, two-wheeled motor vehicle. Motorcycles vary considerably depending on the task for which they are designed, such as long distance travel, navigating congested urban traffic, cruising, sport and racing, or off-road conditions.Motorcycles are one of the most...

. To promote the growth of the car industry, as well as to offer an alternative delivery method to small business and shop owners, kei car standards were created. Originally limited to a mere 150 cc (100 cc for two-strokes) in 1949, dimensions and engine size limitations were gradually increased (in 1950, 1951, and 1955) to tempt more manufacturers to produce kei cars. It wasn't until the 1955 change to 360 cc as the upper limit for two-strokes as well as four-strokes that the class really began taking off, with cars from Suzuki (Suzulight) and then Subaru 360
Subaru 360
The Subaru 360 was the first automobile mass-produced by Fuji Heavy Industries' Subaru division. A number of innovative features were used to design a very small and inexpensive car to address government plans to produce a small "people's car" with an engine no larger than 360 cc when most in...

 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
Ministry of International Trade and Industry
The Ministry of International Trade and Industry was one of the most powerful agencies of the Government of Japan. At the height of its influence, it effectively ran much of Japanese industrial policy, funding research and directing investment...

 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 the smaller kei cars, or the larger "national car".

The class then went through a period of ever increasing sophistication, with an automatic transmission appearing in the Honda N360
Honda N360
The Honda N360 is a kei car, designed and built by Honda and produced from March 1967 through 1970, while its larger N600 brother lasted three more years. After a January 1970 facelift, the N360 became the NIII360 and continued in production until 1972...

 in August 1968, with front disc brakes becoming available on a number of sporting kei cars, beginning with the Honda Z GS
Honda Z
Honda Z is the name of a two-door hatchback microcar automobile made by the Honda Motor Company, first from 1970 until 1974 and again between 1998 and 2003....

 of January 1970. Power outputs also kept climbing, reaching a peak in the 40 PS Daihatsu Fellow Max SS of July 1970. Sales increased steadily, reaching a peak of 750,000 in 1970. 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. Honda and Mazda withdrew from the contracting passenger kei car market, in 1974 and 1976 respectively, although they both maintained a limited offering of commercial vehicles.

Until 31 December 1974, Kei cars used smaller license plates than regular cars (230 x 125 mm). As of 1975, Kei cars received the medium sized standard plates (330 x 165 mm). To set them apart from regular-sized cars (non-kei), the plates were now yellow and black rather than white and green.

550 cc era

Sales had been steadily declining, reaching a low water mark of 150,000 passenger kei cars in 1975, eighty percent less than 1970 sales. Many were beginning to doubt the continued existence of the Kei car, with both Honda and Mazda withdrawing in the middle of the seventies.

The even stricter emissions standards which were to be introduced in 1975 as part of a staggered program of cleaning the air proved problematic for kei manufacturers. This was particularly hard for Daihatsu and Suzuki who focused on two-stroke engines. Tiny Suzuki was worst off, with their entire production consisting of two-stroke engined kei cars. Daihatsu, on the other hand, had both the engineering backing and powerful connections of their large owner Toyota to aid them in meeting the new requirements. All manufacturers of kei cars were clamoring for relaxing the dimension conditions, claiming that the emissions standards could not be met with a functional 360 cc engine (even though Subaru's SEEC-T equipped Rex
Subaru Rex
The Subaru Rex, also known as Ace, Viki, Sherpa, 500/600/700, Mini Jumbo or M60/M70/M80 in various export markets, is a kei class automobile produced from 1972 to 1992 mainly for sale in Japan by Subaru, although it was also sold in Europe, South America, and the Caribbean...

 proved it possible). In the end, the Japanese legislature relented, increasing the overall length and width restrictions by 200 mm and 100 mm respectively. Engine size was increased to 550 cc, taking effect from January 1, 1976.

Most manufacturers were somewhat surprised by the decision: having expected a 500 cc 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 there was indeed a continued market for the Kei car. As sales improved, they only lasted for a model year or so until manufacturers had had the time to develop "full-size" engines. Only Daihatsu managed to avoid developing transitional engine versions which did not 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, in a quickly growing market the small cars still lost market share.

660 cc era

In March 1990, new standards were again introduced. An extra 110 cc were now allowed in a slightly larger (10 cm longer) bodyshell. These changes came at a time when the Japanese economy was booming
Japanese asset price bubble
The was an economic bubble in Japan from 1986 to 1991, in which real estate and stock prices were greatly inflated. The bubble's collapse lasted for more than a decade with stock prices initially bottoming in 2003, although they would descend even further amidst the global crisis in 2008. The...

, so all manufacturers quickly developed new models to suit. The only 550 cc model to continue to be available for a while was the Mitsubishi Minica
Mitsubishi Minica
-Minica Sedan:The first Minica was first introduced in October 1962 as a two-door sedan based on the Mitsubishi 360 light truck, sharing its front-mounted ME21 359 cc twin-cylinder air-cooled engine driving the rear wheels, transverse leaf springs in front and beam axle/leaf springs at the...

 Dangan, which was only upsized five months later. As a response to ever increasing power, a limit of 64 PS was also added. 64 PS happened to be the highest outputs to have been reached at the time, it is unknown if there are any other reasons that this number was selected.

History of regulations

Date Maximum length Maximum width Maximum height Maximum displacement Maximum power
four-stroke
Four-stroke cycle
A four-stroke engine, also known as four-cycle, is an internal combustion engine in which the piston completes four separate strokes—intake, compression, power, and exhaust—during two separate revolutions of the engine's crankshaft, and one single thermodynamic cycle.There are two...

two-stroke
Two-stroke cycle
A two-stroke engine is an internal combustion engine that completes the process cycle in one revolution of the crankshaft...

8 July 1949 2.8 m (9.2 ft) 1 m (3.3 ft) 2 m (6.6 ft) 150 cc 100 cc n/a
26 July 1950 3 m (9.8 ft) 1.3 m (4.3 ft) 300 cc 200 cc
16 August 1951 360 cc 240 cc
4 April 1955 360 cc
1 January 1976 3.2 m (10.5 ft) 1.4 m (4.6 ft) 550 cc
March, 1990 3.3 m (10.8 ft) 660 cc 47 kW
1 October 1998 3.4 m (11.2 ft) 1.48 m (4.9 ft)

Present day

Starting in 2011 Toyota Motor Corp launched its first minicar the Pixis Space which is expected to increase competition in the minicar sector. Currently Nissan Motors
Nissan Motors
, usually shortened to Nissan , is a multinational automaker headquartered in Japan. It was a core member of the Nissan Group, but has become more independent after its restructuring under Carlos Ghosn ....

 is in partnership with Mitsubishi Motors
Mitsubishi Motors
is a multinational automaker headquartered in Minato, Tokyo. In 2009 it was the fifth-largest Japan-based automaker and the 17th-largest in the world measured by production...

 who produces the minicars for Nissan, while Honda's
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...

 minicar sales total around a quarter of its overall sales.

Financial advantages

  • Vehicle excise tax
Taxable amount is only 3% of the purchase price, compared to 5% for a regular sized car.
  • Automobile weight tax
For a three year period, the amount is 13,200 yen. For two years it costs 8,800 yen, which compares to the 18,900 and 12,600 yen respectively charged to larger size passenger cars. The savings are thus above 30% in both cases. This weight tax is paid after the vehicle has passed its safety inspection
Motor-vehicle inspection (Japan)
, a contraction of , is the name of the vehicle inspection program in Japan for motor vehicles over 250 cc in engine displacement.- Reason for existence :...

.
  • Automobile liability insurance (compulsory insurance) premiums
A 24-month insurance contract typically costs 18,980 yen at the time of registration, versus 22,470 yen for a regular car.
  • Annual road tax, which is based on the engine's displacement size
  • Optional added insurance is also much cheaper.

Financial disadvantages

Due to the popularity of "light cars", there is a tax on the size of these vehicles called the Light Motor Vehicle Tax. The amount charged for the size of "Passenger Cars" (the largest of the three classifications recognized in Japan) is 7,200 yen (US$83.50), or 4,000 yen ($46.40) for commercial vehicles. Normally the car tax on "light cars" below 1,000 cc is 29,500 yen ($342), with passenger cars and trucks with a load carrying capacity of 1,000 kg or less is at 13,200 yen ($153). (Some local governments may charge even higher based on local regulations).

Classic

After World War II, Kei car was born as the public car. The engineers of the erstwhile Nakajima Aircraft Company
Nakajima Aircraft Company
The Nakajima Aircraft Company was a prominent Japanese aircraft manufacturer throughout World War II.-History:...

 developed the first truly successful Kei car, the Subaru 360.
Kei cars, K-cars, or , are a Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

ese category of small vehicles, including passenger cars, vans
Microvan
A microvan is a van that fits into Japanese kei car classification or similar. In certain regions, these models are inexpensive and widely used for small business because of tax and insurance benefits; for example, in Japan they are exempted from a certification that there is adequate parking...

, and pickup trucks. They are designed to comply with Japanese government tax and insurance regulations, and in most rural areas are exempted from the requirement to certify that adequate parking
Parking
Parking is the act of stopping a vehicle and leaving it unoccupied for more than a brief time. Parking on one or both sides of a road is commonly permitted, though often with restrictions...

 is available for the vehicle. This especially advantaged class of cars was developed to promote popular motorization in the post war era. While successful at home, the genre is generally too specialized and too small to be profitable in export markets.
Kei car registration plate
Private car Commercial vehicle

Description

The cars feature yellow licence plates
Japanese license plates
In Japan, the national government issues vehicle registration plates for motor vehicles through the Ministry of Land, Infrastructure and Transport Land Transportation Offices nationwide. However, the local municipality rather than the national government registers certain vehicles with small engine...

, earning them the name "yellow-plate cars" (black numbers on yellow background for private use and yellow numbers on black background for commercial use) in English- and Spanish
Spanish language
Spanish , also known as Castilian , is a Romance language in the Ibero-Romance group that evolved from several languages and dialects in central-northern Iberia around the 9th century and gradually spread with the expansion of the Kingdom of Castile into central and southern Iberia during the...

-speaking circles. Because regulations only restrict physical size and engine displacement (and latterly outright power), manufacturers have been able to introduce many advanced technologies to the class. As a result, kei cars are often available with forced induction
Forced induction
Forced induction is the process of compressing air on the intake of an internal combustion engine . A forced induction engine uses a gas compressor to increase the pressure, temperature and density of the air...

 engines, automatic
Automatic transmission
An automatic transmission is one type of motor vehicle transmission that can automatically change gear ratios as the vehicle moves, freeing the driver from having to shift gears manually...

 and CVT
Continuously variable transmission
A continuously variable transmission is a transmission that can change steplessly through an infinite number of effective gear ratios between maximum and minimum values. This contrasts with other mechanical transmissions that offer a fixed number of gear ratios...

 transmissions, front-, rear- and four-wheel drive
Four-wheel drive
Four-wheel drive, 4WD, or 4×4 is a four-wheeled vehicle with a drivetrain that allows all four wheels to receive torque from the engine simultaneously...

, hybrid drivetrains, air conditioning
Air conditioning
An air conditioner is a home appliance, system, or mechanism designed to dehumidify and extract heat from an area. The cooling is done using a simple refrigeration cycle...

, GPS and many other features.

Daihatsu, Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...

, Mitsubishi
Mitsubishi Motors
is a multinational automaker headquartered in Minato, Tokyo. In 2009 it was the fifth-largest Japan-based automaker and the 17th-largest in the world measured by production...

, Subaru
Subaru
; is the automobile manufacturing division of Japanese transportation conglomerate Fuji Heavy Industries .Subaru is internationally known for their use of the boxer engine layout popularized in cars by the Volkswagen Beetle and Porsche 911, in most of their vehicles above 1500 cc as well as...

, and Suzuki
Suzuki
is a Japanese multinational corporation headquartered in Hamamatsu, Japan that specializes in manufacturing compact automobiles and 4x4 vehicles, a full range of motorcycles, all-terrain vehicles , outboard marine engines, wheelchairs and a variety of other small internal combustion engines...

 all manufacture kei cars, while Nissan sells badge-engineered
Badge engineering
Badge engineering is an ironic term that describes the rebadging of one product as another...

 Mitsubishi and Suzuki models, and Mazda
Mazda
is a Japanese automotive manufacturer based in Fuchū, Aki District, Hiroshima Prefecture, Japan.In 2007, Mazda produced almost 1.3 million vehicles for global sales...

 offers badge-engineered Suzuki
Suzuki
is a Japanese multinational corporation headquartered in Hamamatsu, Japan that specializes in manufacturing compact automobiles and 4x4 vehicles, a full range of motorcycles, all-terrain vehicles , outboard marine engines, wheelchairs and a variety of other small internal combustion engines...

 models. German brand Smart
Smart (automobile)
Smart is an automotive branch of Daimler AG. Smart is a German manufacturer of microcars produced in Hambach, France, and Böblingen, Germany...

 offered a kei version of its Fortwo
Smart Fortwo
The Smart Fortwo is a rear-engined two-seater city car manufactured by Smart GmbH, introduced at the 1998 Paris Motor Show as the Smart City Coupé, and currently in its second generation...

 called the Smart K in Japan from 2001 to 2004 with specially developed rear fenders reduced tire dimensions and track width to conform to kei car standards, however it suffered from poor sales and was the worst-selling kei car of its time.

360 cc era

These standards originated in the times following the end of the Second World War, when most Japanese could not afford a full-sized car yet had enough to buy a motorcycle
Motorcycle
A motorcycle is a single-track, two-wheeled motor vehicle. Motorcycles vary considerably depending on the task for which they are designed, such as long distance travel, navigating congested urban traffic, cruising, sport and racing, or off-road conditions.Motorcycles are one of the most...

. To promote the growth of the car industry, as well as to offer an alternative delivery method to small business and shop owners, kei car standards were created. Originally limited to a mere 150 cc (100 cc for two-strokes) in 1949, dimensions and engine size limitations were gradually increased (in 1950, 1951, and 1955) to tempt more manufacturers to produce kei cars. It wasn't until the 1955 change to 360 cc as the upper limit for two-strokes as well as four-strokes that the class really began taking off, with cars from Suzuki (Suzulight) and then Subaru 360
Subaru 360
The Subaru 360 was the first automobile mass-produced by Fuji Heavy Industries' Subaru division. A number of innovative features were used to design a very small and inexpensive car to address government plans to produce a small "people's car" with an engine no larger than 360 cc when most in...

 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
Ministry of International Trade and Industry
The Ministry of International Trade and Industry was one of the most powerful agencies of the Government of Japan. At the height of its influence, it effectively ran much of Japanese industrial policy, funding research and directing investment...

 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 the smaller kei cars, or the larger "national car".

The class then went through a period of ever increasing sophistication, with an automatic transmission appearing in the Honda N360
Honda N360
The Honda N360 is a kei car, designed and built by Honda and produced from March 1967 through 1970, while its larger N600 brother lasted three more years. After a January 1970 facelift, the N360 became the NIII360 and continued in production until 1972...

 in August 1968, with front disc brakes becoming available on a number of sporting kei cars, beginning with the Honda Z GS
Honda Z
Honda Z is the name of a two-door hatchback microcar automobile made by the Honda Motor Company, first from 1970 until 1974 and again between 1998 and 2003....

 of January 1970. Power outputs also kept climbing, reaching a peak in the 40 PS Daihatsu Fellow Max SS of July 1970. Sales increased steadily, reaching a peak of 750,000 in 1970. 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. Honda and Mazda withdrew from the contracting passenger kei car market, in 1974 and 1976 respectively, although they both maintained a limited offering of commercial vehicles.

Until 31 December 1974, Kei cars used smaller license plates than regular cars (230 x 125 mm). As of 1975, Kei cars received the medium sized standard plates (330 x 165 mm). To set them apart from regular-sized cars (non-kei), the plates were now yellow and black rather than white and green.

550 cc era

Sales had been steadily declining, reaching a low water mark of 150,000 passenger kei cars in 1975, eighty percent less than 1970 sales. Many were beginning to doubt the continued existence of the Kei car, with both Honda and Mazda withdrawing in the middle of the seventies.

The even stricter emissions standards which were to be introduced in 1975 as part of a staggered program of cleaning the air proved problematic for kei manufacturers. This was particularly hard for Daihatsu and Suzuki who focused on two-stroke engines. Tiny Suzuki was worst off, with their entire production consisting of two-stroke engined kei cars. Daihatsu, on the other hand, had both the engineering backing and powerful connections of their large owner Toyota to aid them in meeting the new requirements. All manufacturers of kei cars were clamoring for relaxing the dimension conditions, claiming that the emissions standards could not be met with a functional 360 cc engine (even though Subaru's SEEC-T equipped Rex
Subaru Rex
The Subaru Rex, also known as Ace, Viki, Sherpa, 500/600/700, Mini Jumbo or M60/M70/M80 in various export markets, is a kei class automobile produced from 1972 to 1992 mainly for sale in Japan by Subaru, although it was also sold in Europe, South America, and the Caribbean...

 proved it possible). In the end, the Japanese legislature relented, increasing the overall length and width restrictions by 200 mm and 100 mm respectively. Engine size was increased to 550 cc, taking effect from January 1, 1976.

Most manufacturers were somewhat surprised by the decision: having expected a 500 cc 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 there was indeed a continued market for the Kei car. As sales improved, they only lasted for a model year or so until manufacturers had had the time to develop "full-size" engines. Only Daihatsu managed to avoid developing transitional engine versions which did not 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, in a quickly growing market the small cars still lost market share.

660 cc era

In March 1990, new standards were again introduced. An extra 110 cc were now allowed in a slightly larger (10 cm longer) bodyshell. These changes came at a time when the Japanese economy was booming
Japanese asset price bubble
The was an economic bubble in Japan from 1986 to 1991, in which real estate and stock prices were greatly inflated. The bubble's collapse lasted for more than a decade with stock prices initially bottoming in 2003, although they would descend even further amidst the global crisis in 2008. The...

, so all manufacturers quickly developed new models to suit. The only 550 cc model to continue to be available for a while was the Mitsubishi Minica
Mitsubishi Minica
-Minica Sedan:The first Minica was first introduced in October 1962 as a two-door sedan based on the Mitsubishi 360 light truck, sharing its front-mounted ME21 359 cc twin-cylinder air-cooled engine driving the rear wheels, transverse leaf springs in front and beam axle/leaf springs at the...

 Dangan, which was only upsized five months later. As a response to ever increasing power, a limit of 64 PS was also added. 64 PS happened to be the highest outputs to have been reached at the time, it is unknown if there are any other reasons that this number was selected.

History of regulations

Date Maximum length Maximum width Maximum height Maximum displacement Maximum power
four-stroke
Four-stroke cycle
A four-stroke engine, also known as four-cycle, is an internal combustion engine in which the piston completes four separate strokes—intake, compression, power, and exhaust—during two separate revolutions of the engine's crankshaft, and one single thermodynamic cycle.There are two...

two-stroke
Two-stroke cycle
A two-stroke engine is an internal combustion engine that completes the process cycle in one revolution of the crankshaft...

8 July 1949 2.8 m (9.2 ft) 1 m (3.3 ft) 2 m (6.6 ft) 150 cc 100 cc n/a
26 July 1950 3 m (9.8 ft) 1.3 m (4.3 ft) 300 cc 200 cc
16 August 1951 360 cc 240 cc
4 April 1955 360 cc
1 January 1976 3.2 m (10.5 ft) 1.4 m (4.6 ft) 550 cc
March, 1990 3.3 m (10.8 ft) 660 cc 47 kW
1 October 1998 3.4 m (11.2 ft) 1.48 m (4.9 ft)

Present day

Starting in 2011 Toyota Motor Corp launched its first minicar the Pixis Space which is expected to increase competition in the minicar sector. Currently Nissan Motors
Nissan Motors
, usually shortened to Nissan , is a multinational automaker headquartered in Japan. It was a core member of the Nissan Group, but has become more independent after its restructuring under Carlos Ghosn ....

 is in partnership with Mitsubishi Motors
Mitsubishi Motors
is a multinational automaker headquartered in Minato, Tokyo. In 2009 it was the fifth-largest Japan-based automaker and the 17th-largest in the world measured by production...

 who produces the minicars for Nissan, while Honda's
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...

 minicar sales total around a quarter of its overall sales.

Financial advantages

  • Vehicle excise tax
Taxable amount is only 3% of the purchase price, compared to 5% for a regular sized car.
  • Automobile weight tax
For a three year period, the amount is 13,200 yen. For two years it costs 8,800 yen, which compares to the 18,900 and 12,600 yen respectively charged to larger size passenger cars. The savings are thus above 30% in both cases. This weight tax is paid after the vehicle has passed its safety inspection
Motor-vehicle inspection (Japan)
, a contraction of , is the name of the vehicle inspection program in Japan for motor vehicles over 250 cc in engine displacement.- Reason for existence :...

.
  • Automobile liability insurance (compulsory insurance) premiums
A 24-month insurance contract typically costs 18,980 yen at the time of registration, versus 22,470 yen for a regular car.
  • Annual road tax, which is based on the engine's displacement size
  • Optional added insurance is also much cheaper.

Financial disadvantages

Due to the popularity of "light cars", there is a tax on the size of these vehicles called the Light Motor Vehicle Tax. The amount charged for the size of "Passenger Cars" (the largest of the three classifications recognized in Japan) is 7,200 yen (US$83.50), or 4,000 yen ($46.40) for commercial vehicles. Normally the car tax on "light cars" below 1,000 cc is 29,500 yen ($342), with passenger cars and trucks with a load carrying capacity of 1,000 kg or less is at 13,200 yen ($153). (Some local governments may charge even higher based on local regulations).

Classic

After World War II, Kei car was born as the public car. The engineers of the erstwhile Nakajima Aircraft Company
Nakajima Aircraft Company
The Nakajima Aircraft Company was a prominent Japanese aircraft manufacturer throughout World War II.-History:...

 developed the first truly successful Kei car, the Subaru 360.


Sport

The Kei sports car was born by "Bubble boom
Japanese asset price bubble
The was an economic bubble in Japan from 1986 to 1991, in which real estate and stock prices were greatly inflated. The bubble's collapse lasted for more than a decade with stock prices initially bottoming in 2003, although they would descend even further amidst the global crisis in 2008. The...

" in the latter years of the 1980s, although a few sporty iterations such as the Fronte Coupé, Honda Z
Honda Z
Honda Z is the name of a two-door hatchback microcar automobile made by the Honda Motor Company, first from 1970 until 1974 and again between 1998 and 2003....

 and Minica Skipper had appeared in the early seventies.


Present

The engine capacity has been expanded to 660 cc (in 1990) to aid high-speed performance and the increased weight of new safety equipment. Ever tighter safety regulations have also necessitated a slightly larger body, since 1998.


Commercial vehicle

A lot of kei trucks ("keitora") and microvan
Microvan
A microvan is a van that fits into Japanese kei car classification or similar. In certain regions, these models are inexpensive and widely used for small business because of tax and insurance benefits; for example, in Japan they are exempted from a certification that there is adequate parking...

s are used in Japan. The price of many of them is one million yen or less.


External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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