Kei car

Kei car is the smallest category of Japanese, expressway-legal motor vehicles. 'Kei' is diminutive for kei-jidōsha, (kanji: 軽自動車), "light automobile" or "compact automobile" (pronounced [keːdʑidoːɕa]). With restricted dimensions and engine specifications, owners benefit firstly from lower taxes and insurance rates which lead to a lower overall cost of ownership. And in most rural areas, importantly, they were also exempted from the general Japanese shako shōmeisho (車庫証明書) parking-space ownership requirement to legally buy a motor vehicle at all,^{[citation needed]} as street parking is generally restricted in Japan. Japan's carmakers also make microvans and kei trucks within this legal category.

The kei category was created by the Japanese government in 1949, to stimulate both car ownership and growth of Japan's car industry. The regulations were revised multiple times until 1998, but since October 1998, the law consistently specifies a maximum vehicle length, width and height under 3.4 m (11.2 ft), 1.48 m (4.9 ft) and 2.0 m (6.6 ft) respectively, and engine displacement under 660 cc (40.3 cu in). A 'gentleman's agreement' for a maximum power of 64 PS (63 hp; 47 kW) was reached between Japanese automakers and lawmakers.

Kei cars have been very successful in Japan since the 1960s, consisting of over one-third of domestic new-car sales in fiscal year 2016, after dropping from a record 40 percent market share in 2013. To lower the market share of kei cars, Japan increased taxes on the category by 50% in 2014.^[1][2][3] In 2018, seven of the 10 top-selling models were nonetheless kei cars, including the top four, all boxy passenger vans: the Honda N-Box, Suzuki Spacia, Nissan Dayz, and Daihatsu Tanto.^[4]

For exports, the vehicles are generally too small and specialized to be profitable.^[5] Notable exceptions exist, for instance the Suzuki Alto and Daihatsu Cuore, which have been exported consistently from around 1980. The export version of the Suzuki Jimny has become very popular, both in and outside of Japan. Kei cars are both popular with the elderly, but also with youths and younger families because of their affordability and ease of use.^[6]

Nearly all kei cars have been designed and manufactured in Japan, but a version of the German-made Smart Fortwo was briefly imported and officially classified as a kei car, and since then, the British Caterham 7 160 also received such classification.