Emerging in the late 1940s, kei cars were created to provide low-cost personal transportation during Japan’s postwar reconstruction.
Microcars could be driving on a street near you.
The affordability issue has also extended to the car market. At a time when the average price of a brand-new automobile is almost $50,000, the White House is seeking to offer motorists other affordable options.
Japan may have inspired President Donald Trump’s latest decision to allow U.S. manufacturers to produce tiny automobiles—also known as kei cars.
Administration Actions
Trump, speaking at a White House event earlier this month, expressed admiration for tiny cars after seeing them in Japan, comparing these models to the classic Volkswagen Beetle.
“They’re very small, they’re really cute,” Trump told reporters. “And everyone seems to think they’re good, but you’re not allowed to build them.”
He confirmed that he authorized Transportation Secretary Sean Duffy to “immediately approve the production” of these smaller vehicles, which are common throughout Malaysia and South Korea.
“So, you’ll be able to buy,” the president said.
In a Dec. 5 Truth Social post, Trump reiterated the charm of these miniature cars.
“Manufacturers have long wanted to do this, just like they are so successfully built in other countries. They can be propelled by gasoline, electric, or hybrid,” the president wrote.
“These cars of the very near future are inexpensive, safe, fuel efficient and, quite simply, amazing!!! Start building them now!”
In a Dec. 4 interview with CNBC’s “Squawk Box,” Duffy stated that if there is market support for low-cost microcars, he wants to afford U.S. manufacturers the opportunity to satisfy consumer demand.
While they might not be functional on freeways, the secretary noted that they could work in urban settings.
“If that’s where you drive, it could be a great solution for you,” he said. “And, by the way, much more affordable than other options that are on the market today.”
Terminating CAFE Standards
The president’s comments came as he moved to dismantle his predecessor’s fuel‑economy rules, formally scrapping the Biden administration’s Corporate Average Fuel Economy (CAFE) standards.
The original program required automakers to average 50.4 miles per gallon by 2031, but Trump’s rollback lowers the target to 34.5 miles per gallon over the next six years.
The White House estimates that the change will trim at least $1,000 from sticker prices and deliver about $109 billion in consumer savings over the next five years.
By Andrew Moran
