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Japan Seeks to Squelch Its Tiny Cars
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Kei cars are the super small size cars in Japan. In 2013 40% of new cars sold in Japan were Kei cars, an astonishing fact! The kei car is smaller than a Toyota Prius or a Ford Fiesta. It goes to show the level of energy conservaion in Japan that makes the U.S. look like a gas guzzler even after recent fuel efficiency improvements. It also shows how ordinary Japanese are adapting to stagnation in wage growth and increasing part time employment of the last 2 decades.
The Kei super small cars in Japan with 40% of the market in 2013, and government efforts to discourage sales in 2014
06/08/2014
"Kei" cars are not being exported because of a lack of safety features. The kei cars are very popular in Japan to the point of taking 40% of new car sales in 2013. This hurts Japanese automakers in gaining the economies of scale in the home market for other larger cars. The government response is to increase taxes by as much as 50% to reduce the price differential with regular small cars and discourage sales.
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