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Trump champions micro-vehicles for American roads
US President Donald Trump has proposed introducing compact Japanese-style cars to the American market, aiming to offer affordable and fuel-efficient alternatives to larger vehicles. The plan faces skepticism from automakers and safety experts.
What are Kei cars?
Kei cars, or kei-jidōsha ("light vehicles"), emerged in post-war Japan as a practical solution for crowded urban areas. These tiny hatchbacks and vans, roughly half the size of a Ford F-150, became popular across Asia for their efficiency and low cost. In the US, however, they remain rare, with most legally drivable models over 25 years old.
Enthusiasts embrace novelty, but safety concerns persist
Nevi Bergeron, a business accounts manager and member of the Capital Kei Car Club, owns a 1997 Suzuki Cappuccino-a turbocharged two-seater inspired by Japanese street racing culture. While she calls it a "conversation-starter," Bergeron admits the car feels vulnerable on highways alongside trucks. "It's fun to drive, but I wouldn't call it safe," she said.
Andrew Maxon, the club's founder, treats his Autozam AZ-1 like a motorcycle, assuming larger vehicles won't see him. US Transportation Secretary Sean Duffy echoed these concerns, telling CNBC that micro-cars may not suit American freeways but could work for city driving.
Cost and demand remain key hurdles
Trump's proposal hinges on affordability, with a Department of Transportation spokesperson calling it a way to help Americans access vehicles that fit their needs-whether electric, gas-powered, or "mini-vans or micro-cars." Yet car prices in the US remain elevated post-pandemic, and automakers warn that tariffs and the end of EV subsidies could further inflate costs.
Hyundai Chair Chung Eui-sun cautioned in a New Year's message that trade tensions and competition could disrupt the industry. Cox Automotive projects US new car sales may dip below 16 million this year due to high prices and waning EV demand, particularly among lower-income drivers.
Automakers cautious about US market potential
Fiat's parent company, Stellantis, plans to introduce the Topolino-a small car with a top speed under 30 mph (48 km/h)-to the US market soon. A spokesperson said the company aims to offer "cars customers want at prices they can afford." Meanwhile, Nissan and Mitsubishi are assessing demand, while Toyota, Honda, and Suzuki declined to comment.
Industry investor Steve Greenfield dismissed Trump's announcement as unlikely to gain traction. He argued that modern Kei cars would need costly redesigns to meet US safety standards, eroding their cost advantages. "For most use cases in the US, these small cars simply won't be viable," he said.
Niche appeal and past failures
Mo Sulai, an importer at Tokyo Motors DC in Maryland, said 75% of his Kei car sales are "novelty" vehicles like tiny coupes, popular at enthusiast events. Mini vans and trucks also attract buyers for golf courses or farms. While Trump's announcement boosted awareness, Sulai doubts the market will expand beyond a niche. "Americans are used to big cars," he said.
Past attempts to sell small cars in the US have struggled. In 2019, Smart (a joint venture between Mercedes-Benz and China's Geely) exited the market due to slow sales, as consumers favored larger vehicles. Greenfield suggested demand may remain limited to hobbyists.
