President Trump issued a surprise proclamation in yesterday’s announcement on fuel economy regulations.
On Wednesday, kei car and truck enthusiasts across the country received an unexpected announcement from President Donald Trump: Clear the way to make these small Japanese vehicles legal to own and drive everywhere in the United States. To make that happen, he tasked Secretary of Transportation Sean Duffy to change current regulations prohibiting kei vehicle sales in America — a move that seemed to surprise even the secretary himself.
So, why is this happening? Trump’s decision apparently came about after his recent trip to Asia. During that diplomatic exercise, he described kei vehicles as “cute”, and thought the regulations curbing their sale in the United States was “silly”.
For those who aren’t steeped in ‘keijidosha’ (light vehicle) lore, here’s what you need to know. These vehicles have, legislatively, been baked into the Japanese automotive landscape since 1949. The country’s regulations have changed over time, but since 1998 the rules governing what constitutes a kei vehicle boils down to certain size, weight and powertrain requirements. To qualify as a kei vehicle, any car or truck must be no larger than 3.4 meters (134 inches) long, 1.48 meters (58 inches) wide and 2 meters (79 inches) tall. They also cannot have an engine larger than 660cc, nor can they carry more than 350 kilograms (770 pounds) of weight, at least without potential penalties.
Compare that to something ‘small’ Americans buy today like, say, a Honda HR-V. By comparison, the HR-V is an battleship, measuring out a full four feet longer and more than a foot wider than your typical kei model. That said, Japanese automakers have made creative use of the available space over the decades, creating vans, trucks and even sports cars within that tiny footprint.
But…there’s a catch (because of course there is)
For Japanese buyers, there are major cost and logistical advantages to having a kei vehicle over something larger. Space is at a premium, especially in urban areas, and Japan’s government taxes individuals and businesses accordingly. Kei vehicles carry a far cheaper tax bill than bigger vehicles, and you also don’t necessarily present proof that you have somewhere to park it (a parking certificate) that you do in larger vehicles, especially in rural areas.
However, while that all tracks in cramped and crowded Japan, there are a few reasons you haven’t been able to hit your local Toyota or Honda dealership to buy one here. Federal safety regulations are the main sticking point with importing and registering kei vehicles. Imagine a tiny kei truck like our Honda Acty, shown above, going up against a Ford Super Duty truck in an accident. As a result of Americans’ love for huge SUVs and trucks, the feds as well as many state governments have been reluctant, to put it mildly, to allow these cars on our roads.
Then there’s a sticking point within Trump’s announcement itself. The administration notes kei vehicles must be manufactured in the United States in order for automakers to actually sell them here. Even dialing out the regulatory hurdles, companies retooling to build such vehicles here, not to mention the Big Three either scrambling to get in on the action or crying foul that they can’t build a small vehicle and sell it affordably to American buyers, will take considerable time.
And while we’re talking about American buyers, there’s the public’s appetite for kei vehicles beyond die-hard enthusiasts and space or budget-conscious individuals. There’s a reason the Big Three no longer sell small vehicles, by and large: Demand is low and profit margins are already razor thin. Shifting regulations could open a door down-market for interested buyers, but as always, we’ll have to wait and see how this actually plays out in practice.
