Trump greenlit tiny Kei cars but will Americans actually buy them?

7 hours agoOsmond ChiaBusiness reporterJason GarciaNevi Bergeron and her Suzuki Cappuccino mini sports car America is known as the land of big cars and even bigger SUVs but Donald Trump has an idea that could change that.The president wants to bring to the US tiny vehicles, like those commonly seen on the streets of Japan, in the form of mini hatchbacks and vans half the size of a Ford F-150 pickup truck.So-called Kei cars - short for kei-jidōsha, literally "light vehicle" - became popular in Japan after World War Two as an economical means of transport in its crowded cities. They have also become popular across Asia. Despite Trump's enthusiasm for micro-cars, importers and drivers in the US aren't so sure they are a viable option in the vast country.Among the obstacles are whether manufacturers can keep prices low, make the vehicles safe enough and if big-car-loving Americans can be convinced to downsize.After a visit to Japan, Trump said in an online post in December: "I have just approved TINY CARS to be built in America.""These cars of the very near future are inexpensive, safe, fuel efficient and, quite simply, AMAZING!!! START BUILDING THEM NOW!"His suggestion marks a shift that would undo a long-running rule barring small American-made vehicles.Tokyo Motors DCA mini Kei fire engine imported to the US from JapanWhile there are already some Kei cars in the US, they are a rare sight and have to be at least 25 years old to run legally on American roads.Business accounts manager Nevi Bergeron bought her turbo-charged yellow 1997 Suzuki Cappuccino three years ago after being inspired by the Japanese street racing manga series Initial D.Like most Kei cars, it is so small that two can fit into a standard parking space."I fell in love with that car and instantly knew I had to get one," said Bergeron, a member of a local enthusiasts group from Maryland and Washington DC called the Capital Kei Car Club."It's tiny and a bit silly... definitely a conversation-starter. You get a lot of glances when you drive around the city," she said. "I just feel so happy in it."But despite loving the petite coupe, she wouldn't recommend it as a daily runaround."It is fun to drive but it is not exactly what I'd call safe," Bergeron said. "On a highway next to big trucks, you definitely feel vulnerable."For the same reason, Capital Kei Car Club founder Andrew Maxon drives his Autozam az-1 mini-coupe "like a motorbike" - always assuming that other vehicles, especially trucks, have not seen him.US transport secretary Sean Duffy said as much, acknowledging that small cars would "probably not" be well-suited to American freeways.But these cars could be a "great solution" for people who drive in cities, Duffy said on business news channel CNBC.Smaller cars, smaller prices?Key to Trump's enthusiasm for small cars is the promise of lower prices.A spokesperson for the US transport department told the BBC that the move will help Americans afford vehicles that meet their needs, whether electric, petrol-powered or in the form of a "mini-van or micro".But it is yet to be seen if American manufacturers can build small cars at prices lower than existing sedans.Car prices in the US have yet to return to pre-pandemic levels after a global shortage of computer chips was one of the factors that drove up prices.At the same time, American households have faced a rising cost of living.Carmakers have also warned that Trump's tariff policies could further push up prices, while the ending of a subsidies on electric vehicles (EVs) also means drivers have to pay more for some cars.Getty ImagesSmall vehicle manufacturers, like Smart, have also tried to break into the US marketHyundai chair Chung Eui-sun warned in his New Year's message that geopolitical conflicts, trade tensions and growing competition this year could cause issues "we have long worried about to become reality" in the car industry.This year, new car sales in the US may fall below 16 million, according to research group Cox Automotive, in part due to concerns over prices as well as lower demand for EVs. In particular, lower income drivers are expected to feel the strain of “prolonged inflation” and the higher price of new and old cars, it added.It is unclear how many car companies will respond to Trump's call.Fiat owner Stellantis said it will start selling the Topolino, a small car with a top speed of under 30mph (48.3km/h), to the US in the coming months.A Stellantis spokesperson said the firm is "always looking for opportunities to adapt our product portfolio to meet our customers' needs" and give them the choice of cars "they want at prices they can afford."Japan's Nissan told the BBC it will assess its line up based on demand. Mitsubishi said it did not have any current plans to bring its Kei cars to the US.Major Kei carmakers like Toyota, Honda and Suzuki said they did not have information to share when contacted by the BBC.Getty ImagesA version of the tiny Fiat Topolino is set to go on sale in the US this year Car industry investor Steve Greenfield doesn't believe Trump's announcement will amount to much.Modern Kei cars won't meet US safety regulations and carmakers will need to make huge investments to redesign them to meet American standards, he said. Doing so would "defeat their cost and efficiency advantages", Greenfield added.In the past, manufacturers of small cars have struggled to break into the American market.Kei cars could make sense in crowded urban areas, "but for most use cases in the US, these small cars just simply won't be a viable option," said Greenfield.In 2019, Smart, which is owned by Germany's Mercedes-Benz and Geely of China, pulled out of the US due to slow sales as drivers favoured bigger vehicles.If the fate of Smart cars has shown anything, "there may not even be much of a demand for small vehicles" other than enthusiasts, said Greenfield.That seems to be the case among most US customers who buy Kei cars, said Mo Sulai, an importer at Tokyo Motors DC in Maryland.Tokyo Motors DCCar importer Mo Sulai with a Honda Acty microvanImported Kei vehicles cost anywhere from $6,500 for an old mini van or above $10,000 for a Kei fire engine or lorry.Nearly three quarters of the cars imported by his family-run business are "novelty" vehicles like tiny coupes - statement pieces that are popular at events such as enthusiast meet-ups.Mini vans and trucks have also been popular among some drivers who want to use them at golf courses or on farms, Sulai added."[Trump's] announcement was like a free advert for us because more people start to learn about Kei cars," Sulai said. "But even so, I think people in the US are so used to big cars. This will still be a niche market."