President Donald Trump recently commented on "very small" kei cars, popular in Asia, stating he had authorized the Secretary of Transportation to approve their production in the U.S. These remarks, made during discussions on relaxing fuel economy regulations, brought attention to the compact vehicles. While manufacturing small cars in the U.S. is not prohibited, new kei cars built for foreign markets do not meet current federal safety standards and can only be imported if they are at least 25 years old. The Department of Transportation has affirmed that U.S. safety standards for small cars are not being waived. Despite interest from a niche group of enthusiasts, the U.S. automotive market has historically shown a preference for larger vehicles, and industry analysis suggests limited demand for small, inexpensive cars.
Presidential Remarks
During recent press conferences concerning the relaxation of fuel economy regulations, which generally favor larger vehicles, President Trump referenced "very small" vehicles, known as kei cars, popular in Asian markets. He stated that he had authorized the Secretary of Transportation to "immediately approve the production of those cars" in the United States.
Kei Car Characteristics and Regulations
Kei cars are a classification of compact vehicles originating from Japan. While manufacturing small cars in the U.S. is not illegal, new kei cars produced for foreign markets typically 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, which qualifies them for an antique exemption from federal safety regulations. The Department of Transportation has confirmed that existing U.S. safety standards for small cars are not being waived.
Owners of imported antique kei vehicles in the U.S. have reported attributes such as their handling characteristics and distinct appearance. Some individuals cite practical benefits, particularly with kei trucks and vans. For example, some kei trucks, despite being shorter than modern compact cars, can feature a 6-foot cargo bed.
Economic Factors
In Japan, new kei vehicles are available for under $15,000. Imported antique models in the U.S. have been acquired for approximately $8,000. This contrasts with an average price exceeding $34,000 for mainstream used pickup trucks in the U.S.
Safety Considerations
Older kei vehicles typically feature limited safety equipment. Owners acknowledge the absence of modern safety features such as airbags, anti-lock braking systems (ABS), and crumple zones. The design of some models can result in occupants being closer to the front of the vehicle, potentially leading to more direct impact to the lower body in a collision. Some U.S. states have prohibited the registration of imported antique kei vehicles due to these safety concerns, a point of discussion for enthusiasts who note the legality of motorcycles on highways.
Conversely, some individuals suggest that the smaller size and lower speeds of kei cars could offer safety advantages for pedestrians, and their design may provide superior driver visibility compared to larger vehicles. However, concerns persist regarding the visibility of kei cars to drivers of larger, faster vehicles on American roads.
U.S. Market Dynamics and Consumer Preferences
The U.S. automotive market has consistently demonstrated a preference for larger vehicles. Automotive industry analysis indicates that subcompact cars, the smallest category currently sold in the U.S., represent less than 1% of the total market and are experiencing decreasing sales volume.
Past efforts to introduce very small vehicles, such as the Smart fortwo, resulted in disappointing sales figures and its eventual discontinuation in 2019 after a decade in the market. Automakers also tend to realize higher profit margins on larger vehicles, such as trucks and SUVs. Industry analysis and observations from kei car enthusiasts suggest that widespread adoption of these small, slower, and less expensive vehicles in the U.S. is considered unlikely.