Breaking News: Could Japan’s Kei Cars Solve Europe’s EV Crisis?

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Europe’s electric vehicle transition stalled last year as governments scaled back incentives, and buyers hesitated due to high prices and unreliable public charging infrastructure, Automotive News said. 

A research group in France believes the way to fast forward Europe’s journey to decarbonize mobility is for Europe to permit Japanese-style kei cars, according to Automotive News. 

Japanese-style kei cars are known for their affordability and sustainability; according to Capital One, they are also extremely efficient and popular in Japan, although they are becoming more popular throughout the U.S.

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“Soon after the end of World War II, the Japanese government established tax and regulatory breaks to encourage citizens to buy and drive very small cars. Known as kei jidōsha or light automobiles, kei cars became incredibly popular in Japan, particularly after the introduction of the diminutive Subaru 360 in 1958,” Capital One said.

To read more about Japanese kei cars, click here. 

The researchers think that a kei category, specifically in Europe, would provide a push for EV sales and put Europe back on an “efficient, realistic and sustainable trajectory of decarbonization,” according to Automotive News. 

According to the researchers, affordable, sustainable electric vehicles will aid European automakers to reach their CO2 goals without impacting profitability as well as supply a defense from Chinese competition. 

The proposal for “European Regulations for an Affordable, Sustainable Battery Electric Vehicle” was published in October 2024 by Tommaso Pardi of ENS Paris-Saclay, Marc Alochet of Ecole Polytechnique, Bernard Jullien of the University of Bordeaux and Samuel Klebaner of the Sorbonne University Paris Nord, Automotive news said.

According to Interac Network, Japanese kei cars make up around a third of car sales throughout Japan, with a steady increase to be seen. 

“Japanese K-Cars also have excellent fuel efficiency, and as a result of this, qualify for lower taxes, reduced registration fees, and lower insurance premiums too,” Interac Network said. 

Read more on gasoline prices here.

If proposed regulations were to be inherited this year, the market for affordable, sustainable electric vehicles could reach up to 3 million in 2028, Pardi said. 

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