Japan Mobility Show 2025: Focus on the Kei Cars: Will Europe follow the Japanese regulation?
- While Europe's current situation differs from post-war or modern Japan, the necessity for affordable, space-saving, cost-efficient, fuel-efficient, and lightweight vehicles is critically relevant. This stems from the trend toward increasingly expensive, larger, and heavier cars, particularly with the growth of SUVs. Moreover, Europe's dependence on foreign resources means reducing vehicle demand translates to less geopolitical reliance. Economic stagnation, resulting in stagnant incomes, combined with rising car costs, makes personal mobility, especially BEVs, unattainable for more and more people.
- The EU Commission has recognized the problem and its economic risks. It also sees its political goal of 100% emission-free vehicles from 2035 onwards as being at risk, as well as growing competition from China, which produces and sells fully electric vehicles at much lower prices than European carmakers. It is in this context that Ursula Von Der Leyen, President of the European Commission, announced her desire to develop small vehicles, “E-car.“ The name “E-car” refers to: E for environmental – clean, efficient and lightweight, E for economical – affordable for people and E for European – built here in Europe, with European supply chains.
- This idea is inspired by the one in force in Japan concerning Kei Cars. It follows repeated complaints from Renault and Stellantis who advocated for regulations inspired by those of Japanese Kei Cars in order to revive the European automobile industry. It is also supported by the work of "Gerpisa" ("Permanent Study and Research Group on the Automotive Industry and its Employees "), a global network of researchers in economics, management, history and sociology specialising in the automotive industry. This work has notably led to the proposal to create a category of automobiles between motor quadricycles (M0) and passenger cars (M1) that must comply with specific regulations, with the idea of allowing carmakers to develop small and light low-cost electric models in large series. This option has also been supported for several years by Inovev (see in particular the analyses relating to Kei Cars).
- Within this context, Kei Cars are receiving special attention at the Japan Mobility Show 2025. It is striking that the Kei Car concepts announced are all BEVs. Is this an indication of the future direction of this vehicle class? The following new Kei Car models/concepts will be displayed: Mitsubishi Delica Mini, Mitsubishi eK Space, Nissan Roox, Suzuki Vision e-Sky (BEV concept), Suzuki mini commercial vehicle (BEV concept), Suzuki Xbee, Suzuki Spacia, BYD Kei Car (BEV concept).
- The best-selling kei cars in 2025 are, in descending order, the Honda N Box, the Suzuki Spacia, the Daihatsu Tanto, the Daihatsu Move, the Suzuki Hustler, and the Nissan Roox. The only kei car with an electric motor that sells above 1 000 units this year is the Nissan Sakura. Competition from Mitsubishi with its electric versions of the eK and Delica Mini, as well as the Toyota C+, is marginal.
- The question of whether such cars can also be successful in Europe is justified. Smart enjoyed temporary success with small cars. It also ties in with the question of whether the current dominance of SUVs is driven by demand or supply. If the EU succeeds in introducing regulations for such vehicles, will this convince the European industry and, more importantly, European customers? Among European carmakers, French carmakers seem to be best placed to respond to this vehicle class, as France also has a tradition of small cars. However, in order for this new market segment is to be successful, European carmakers must be well-prepared, especially since Japanese carmakers already offer a wide range of products and Chinese companies (like BYD) can quickly launch attractive, affordable new models.