Trump's Surprise Answer to Vehicle Affordability: 'Cute' Tiny Cars -- WSJ

Dow Jones12-14 01:00

By Ryan Felton

After a recent trip to Japan to talk about trade and economic investments, President Trump returned with a rather surprising takeaway: a love for Japan's pint-size vehicles.

These so-called kei cars are small, fuel-efficient vehicles that are roughly 30% shorter than a Toyota Camry and about as wide as Smart cars. They are also cheaper. Popular models such as the Nissan Roox and Honda N-BOX start at just over $10,000 in Japan.

"They're very small, they're really cute, and I said, 'How would that do in this country?'" Trump told reporters last week.

One possible sign the vehicles could win over carbuyers: More Americans have been importing older kei cars and trucks in recent years, charmed by their striking appearance and utility.

Andrew Maxon, founder of the Capital Kei Car Club in the Washington, D.C., Maryland and Virginia area, said kei cars have grown in appeal among Americans because they are eye-catching and practical, carrying quirky names such as the Daihatsu Midget and the Suzuki Mighty Boy. Maxon's club, launched in 2021, has about 100 active members and hosts monthly car meets around the region.

"If they started selling kei cars or kei trucks or something like that in the U.S., if they could maintain the relative size, the relative efficiency, and the relative simplicity, I think they could do it," he said.

Trump's embrace of kei cars comes as the administration is trying to address affordability. With the average price of a new car exceeding $50,000, many Americans can't afford to buy one.

Transportation Secretary Sean Duffy told CNBC last week that the National Highway Traffic Safety Administration was in the process of "clearing the deck" to let companies build kei-size cars. Kei cars don't meet the NHTSA's current crash standards. A spokesperson declined to comment on what the ongoing effort entailed.

"Duffy is working to ensure Americans can afford the car that fits their family's needs, whether gas-powered or electric," the spokesperson said, adding that manufacturers are required to meet federal safety standards for crashworthiness and passenger protection.

NHTSA could amend some safety standards to exempt newer kei cars, or make a new category of vehicle to regulate the tinier vehicles, former NHTSA officials said.

The bigger issue is that U.S. automakers have tried tinier cars before, and they didn't take off.

Just over a decade ago, Toyota's Scion brand began selling the tiny iQ car, Daimler's Smart turned heads with the aptly named two-seater called the Fortwo, and Fiat set U.S. sales records with the 500. Those vehicles are roughly the same length as kei cars in Japan, though slightly wider.

"American consumers continue to be attracted toward larger vehicles," said Mickey Anderson, a Nebraska car dealer who sold those three small models during the 2010s.

Sales of subcompact cars -- such as the Honda Fit -- have collapsed by 86% in the past decade, according to data from industry-research firm Cox Automotive. Last year, only 88,500 subcompacts were sold, less than 1% of total vehicle sales. Subcompacts in the U.S. are slightly larger than kei cars and the closest comparable segment to the Japanese mainstay.

So far, automakers have offered little in response to Trump's overture.

Ford declined to comment. A GM spokesman said the company has no product news to announce but noted that it currently offers six models with starting prices below $30,000.

Japanese automakers Toyota and Nissan said they would be open to new types of vehicles in the U.S., as long as consumer demand was there.

Fiat, owned by global carmaker Stellantis, recently said it would bring its minuscule all-electric Topolino to the U.S. in 2026. The timing of the announcement is unrelated to Trump's remarks, a Fiat spokeswoman said.

But the vehicle meets the president's idea of tiny. Topolino translates to "little mouse" in Italian, and its small powertrain can only crank up the vehicle to 28 miles an hour.

Write to Ryan Felton at ryan.felton@wsj.com

 

(END) Dow Jones Newswires

December 13, 2025 12:00 ET (17:00 GMT)

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