Japan Mobility Show 2025: Focus on the Kei Cars: The Japanese market
- Japan was the first country to regulate its automotive market in favour of ultra-compact vehicles. These mini cars, known locally as “Kei-jidōsha” or simply Kei cars, occupy a distinct and enduring segment of Japan’s mobility landscape. To qualify as a Kei car, a vehicle must not exceed 3.4 meters in length, 1.48 meters in width, or 2 meters in height. Engine output is capped at 64 horsepower (47 kW), and displacement is limited to 660 cc. Notably, these restrictions apply to both internal combustion and battery-electric Kei cars. There are, however, no weight limitations, allowing extra battery mass in electric variants without altering the prescribed dimensional standards.
- In recent years, Kei cars have accounted for 35% to 39% of Japan’s passenger car market. In the first nine months of 2025, their share slipped to 32%, reflecting a decline in an already shrinking domestic market. Most Kei cars are powered by small combustion engines, though mild hybrids have become increasingly common. Fully electric Kei cars, however, remain a rarity.
- The roots of Japan’s Kei car segment reach back to the post–World War II era, when the nation was rebuilding amid severe material shortages and widespread poverty. The government sought to promote small, affordable, and fuel-efficient vehicles that could be produced economically and made accessible to a broad segment of the population. These cars not only stimulated economic recovery but also enhanced personal mobility at a critical moment in Japan’s modernization.
- Eighty years later, Kei cars remain a cornerstone of Japanese mobility culture. Their enduring appeal lies in their practicality, compact dimensions, and urban suitability. In a country where land is scarce and cities are densely populate, small and agile vehicles make perfect sense, further cementing their status as an integral part of everyday life in Japan. Kei cars also benefit from tax incentives, lower insurance costs, and simplified registration procedures.