Kei Cars: Everything you need to know

Kei cars are the tiny cars that are ubiquitous in Japan, navigating the often narrow streets to cruising on the expressway at speed. They are easily identifiable by their yellow license plates, and are gaining popularity in other countries as unofficial imports.

I'll give you an overview of this fascinating class of vehicle, including:

• What are Kei cars
• Regulations
• History
• Cost benefits
• Kei cars outside of Japan
• My thoughts

Suzuki Spacia Custom, a Mini MPV style Kei car

What are Kei Cars?

'Kei car' in Japanese literally translates to 'Light vehicle'. They are a category of cars in Japan that have regulations on size and power along with tax incentives.

Kei cars come in all shapes and sizes:

• Hatchbacks
• Mini MPVs
• Mini SUVs
• Flatbed Trucks
• Vans
• Coupes

Due to the restrictions, Kei car design can be challenging (and fascinating). Models are often tall and box shaped in an effort to maximise the available space, whilst simultaneously attempting to make them visually appealing to a large and discerning market.

Small engine development has advanced as well. Top models will often have hybrid turbocharged models that maximise torque, and minimise emissions and fuel costs - a key factor in the appeal of any small car.

The Honda S660 is a turbocharged 660cc, mid-engined, rear-wheel drive Kei car

The Kei category is then further divided into two distinct groups - Passenger and Commercial.

The latter group includes the ubiquitous Kei Trucks as well as Kei Vans. These vehicles are often cheaper due to being more utilitarian in design and specs. Manual window cranks anyone?

In the passenger segment, Hatchbacks are still hanging on, and much like their larger counterparts they almost feel like a token offering nowadays. Coupes are just about gone. The Daihatsu Copen is the only Kei coupe available today, and the last legacy of a line of iconic cars such as the Honda Beat, Mazda AZ-1, Suzuki Cappuccino and Honda S660.

Trends shifted toward the Mini MPV style some years ago as they maximise the utilisation of space and overall are the best featured and most practical Kei cars available. Whilst the global popularity of SUVs has not influenced Kei design significantly, there are some models such as the Suzuki Hustler that fit in this (so far) niche category, providing rugged looks and a design which suggests a larger scale than it actually is.

Interiors are often well appointed with exceptional attention to detail. Honda N-Box Custom

Regulations

Since the inception of the Kei category, the rules governing them have evolved over time. As Japan and the car industry developed, they were revised allowing larger dimensions and larger engines. The end result is today's regulations, which have been in effect since 1998.

• Maximum size - 3.4m 
• Maximum width - 1.48m
• Maximum height - 2.0m
• Maximum engine capacity - 660cc
• Maximum engine power - 63hp
• Seat a maximum of 4 persons.

1991 Honda Beat. A well known classic. Kei''s date back much further.

History

In the years after the war, during Japan's economic recovery, the Government introduced the Kei car category to grow Japan's domestic automotive industry. At that time cars were not really affordable for many, with motorcycles being a popular and affordable choice. The Kei category was created with regulations to ensure the cars were small and affordable for the masses and came with lower taxes to incentivise uptake. Over the years that followed, Kei cars boosted both the Japanese automotive industry as well as the economy as a whole, as small businesses and commuters now had access to affordable transportation.

Initially the maximum engine size was 150cc, but in 1955 was increased to 360cc, and this is when Kei cars really started to take off, as they become more universally useful with the larger engine size. 

In the 70s, displacement was increased to 550cc and exports started to grow, and by the 80s manufacturers really started to push the boat out, adding quality of life features that defied the concept of the affordable car, and was the beginning of the Kei car becoming a viable choice for all budgets.

The engine capacity limit was upped to the current 660cc in 1990, and in 1998 the maximum dimensions were increased to the current regulations. 

Tax incentives were introduced with the category from the beginning, and it certainly helped the Kei class become what it is today - certainly when you look at the cars available and their capabilities.  However in 2014, the government reduced the tax advantages. Perhaps a victim of their own popularity with the cars themselves being a viable and popular option with lower running costs than larger cars,  the people no longer needed such heavy incentives.

Incredible versatility from the Honda N-Van, the entire floor can fold flat.

Cost benefits of Kei car ownership in Japan

Owning a car in Japan is an expensive proposition. Kei cars have many financial benefits beyond the cheaper purchase price and lower fuel costs.

Below are all of the areas of car ownership in Japan where a Kei will save you money:

• Purchase cost 
• Tonnage tax
• Ownership change cost
• Liability insurance (mandatory)
• Optional insurance
• Yearly automobile Tax
• Shaken - (roadworthy inspection)
• Fuel costs

I'll do a detailed breakdown when I go car shopping myself in Japan. Im VERY excited for that.

Kei Trucks such as the Suzuki Carry are the backbone of rural Japan, and popular overseas.

Kei cars outside of Japan

To my bewilderment, none of the local agents of the Japanese brands in western countries so far have had the courage to officially bring in new ones, and I really have no idea why. They are low cost. Well equipped. Economical. They play it safe and assume they won't sell, but the increasing number of imports shows that they do. Imagine if they had official support and warranties. 

The offerings of new cars in New Zealand is just plain boring. Maybe it's the people's tastes that are boring. Either way, the market is dominated by big utes, big SUVs, and those Hatchbacks with plastic wheel arches pretending to be SUVs. The west is obsessed with things being bigger. In New Zealand we have this awful culture that a ute is basically a symbol of manhood, and most young men see owning a new Ford Ranger Raptor Evo (or whatever the latest version is), as the pinnacle achievement in their pursuit of being a man. 

For design it's akin to a lot of new western houses, as soon as you have space and size on your side, all design flair and innovation goes out of the window. Most standard houses are boring and are completely lacking in the types of intelligent and delightful features you might find in a tiny home. Its the same thing with your average larger cars vs Kei cars.

With a smaller size, you have to be smarter how to use the space, and with a smaller size you have lower costs, so you can add useful features without the price skyrocketing. A similarly priced 'normal' car will be absolute bare bones, forcing you to go for higher priced models.

If you are a fan of Kei cars like myself, please take a moment to appreciate our poor American friends, who cannot import them until they are 25 years old (see more info about that rule here:) Despite this, Kei Trucks are gaining some popularity, particularly for farm vehicles as they are rugged, durable, capable off-road and are considerably cheaper than a side-by-side, which are horrendously overpriced in comparison.

Most of the hatchbacks, such as this Honda N-One tend to have cute styling. Target market perhaps?

My thoughts on Kei cars

I've always been attracted to weird and wonderful cars. I have an appreciation for rarity and novelty but nowadays my admiration is attributed to car design and practicality.

As a younger man I had a number of cars which would generally be seen as 'boy racer cars'. Somewhere along the way, I bought a first generation Nissan Cube and to this day, after owning over 30 cars, its still high up on my list of favourites and in good company with cars like the Mazda MX-5 and Honda Civic Type R. The Cube isn't a Kei car but the design concept is similar; boxy and tall with small wheels and incredible practicality and interior design. When I was selling it and showing some prospective buyers, I found new cubby holes that I wasn't aware of! Amazing. I haven't owned another car quite like it. We rented a Suzuki Solio last year in Japan and it definitely gave me those Cube Vibes!

A major factor of the practicality of Kei cars and how they maximise the limited space, is that designers have figured out that most of the time you are not carrying both passengers and cargo. The mini MPV types, such as the Honda N-box and Suzuki Spacia have more legroom than a normal sized SUV but sacrifice boot space. If you need boot space with no passengers, fold the seats down and you've got a van. With the sheer number of giant SUVs and Double cab utes in the world today, how many realistically need to use all their seats plus boot/deck all at once? Its likely a rarity and in my opinion not often enough to justify an expensive giant planet-killing pedestrian-threatening monstrosity. 

Safety is definitely a factor. If you are regularly sharing roads with angry Ford Ranger drivers in a car much small than them you are more vulnerable, plain and simple. I just don't understand why long term, government's are not trying to shift the masses into small cars, as gas, electric or hydrogen they are much better for the planet and wallets.

Look at that legroom! Those seats recline and have footrests. Suzuki Spacia

Whenever I saw a Kei car come up for sale, even old classics like the Honda Beat, it was with some scepticism; With such a small engine it would be too slow, and the engine is probably going to blow up.

That's certainly not the case. Not all Kei's are created equal. Below is a breakdown on some powertrain configurations and my anecdotal comments:

• 660cc NA Auto - a 4 speed auto will chop and change annoyingly between 3rd and 4th when confronted with hills at speed, and one fitted with a CVT will be noisy due to high RPMs more often. Adequate for pottering around town.
• 660cc NA 5/6spd Manual - Plenty adequate. Won't set the world on fire but can move briskly when needed, unless fully loaded with 4 people or laden with cargo.
• 660cc Turbo (Auto or Manual) - A turbocharged engine moves a lightweight kei plenty quick with lots of low down torque. This be my preference particularly if taking passengers.

The Suzuki Spacia Base even converts to a mobile office

I personally own and daily drive a Kei Truck. It's a 2021 Suzuki Carry with a 5 speed manual gearbox. It only has 54hp, 9hp short of the maximum allowed, and I can tell you this handles my daily use around Auckland just fine, including motorway stretches and will happily sit at 100kph, with more in reserve. Its engaging and a joy to drive.

My initial concerns about power and durability have been thrown out the window. I have zero doubts that this thing could be abused to the moon and back and not even flinch. In Japan, Kei trucks get a hard life as work vehicles, and the Japanese have high expectations of their products so it's a rather good endorsement.

Hopefully this article has given you some insights into Kei cars, and perhaps even persuaded you to consider purchasing one in the future!

What are your thoughts on Kei cars? Do you own one already? Let me know in the comments.