Kei car

Kei car is the smallest category of Japanese expressway-legal motor vehicles. The term kei is a shortening of kei-jidōsha, (kanji: 軽自動車), which translates to English as “light vehicle” (pronounced [keːdʑidoːɕa]).

With restricted dimensions and engine specifications, owners enjoy lower tax and insurance rates, leading to a lower overall ownership cost. In most rural areas, they are also exempt 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. Kei cars are favored by both the elderly and younger demographics, including youths and young families, due to their affordability and ease of use.^[1]

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 of 3.4 m (11.2 ft), width of 1.48 m (4.9 ft), height under 2.0 m (6.6 ft), and engine displacement under 660 cc (40.3 cu in). A "gentleman's agreement" between Japanese automakers and lawmakers also set a maximum power output of 64 PS (63 hp; 47 kW).

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 reduce their market dominance, Japan increased taxes on the category by 50% in 2014.^[2][3][4] Despite this, in 2018, seven of the ten top-selling models were kei cars, including high-roof models with sliding doors such as the Honda N-Box, Suzuki Spacia, Nissan Dayz, and Daihatsu Tanto.^[5]

For exports, the vehicles are generally too small and specialized to be profitable.^[6] 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, with upgrades to increase its width, has also gained significant popularity outside Japan.

Nearly all kei cars have been designed and manufactured in Japan, but some exceptions exist. A version of the European-built Smart Fortwo was briefly imported and officially classified as a kei car with modifications to reduce its width. In addition, the British Caterham 7 160 and the Polish Polski Fiat 126p (Maluch)^{[citation needed]} also received such classification.