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

America is known as the land of big cars and even larger SUVs, but Donald Trump has an idea that could change that.

The president wants to bring to the United States small vehicles, like those we typically see on Japanese streets, in the form of small hatchbacks and pickup trucks 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 II as economical transportation in its crowded cities. They have also become popular throughout Asia.

Despite Trump’s enthusiasm for small cars, U.S. importers and drivers aren’t sure they’re a viable option in the vast country.

Among the hurdles are whether manufacturers can keep prices low, make vehicles safe enough, and whether Americans who love big cars can be persuaded to downsize.

After a visit to Japan, Trump said in an online post in December: “I have just agreed to manufacture TINY CARS in America.”

“These cars of the very near future are inexpensive, safe, fuel efficient, and simply amazing!!! Start building them now!”

His proposal represents a shift that would eliminate a long-standing rule banning American-made small vehicles.

While there are indeed some Kei cars in the United States, they are rarely seen and must be at least 25 years old to be able to legally drive on American roads.

Business account manager Neve Bergeron bought her yellow turbocharged 1997 Suzuki Cappuccino three years ago after being inspired by a Japanese street racing manga series.

Like most Kei cars, it’s so small that two cars can fit into a standard parking space.

“I fell in love with that car and knew immediately I had to get one,” said Bergeron, a member of a local group of enthusiasts from Maryland and Washington, D.C. called the Capital Key Car Club.

“It’s a little bit silly… it’s definitely a conversation starter. You get a lot of looks when you’re driving around town,” she said. “I just feel happy about it.”

But although she loves the small coupe, she doesn’t recommend it as a daily car.

“It’s fun to drive but it’s not exactly what I would call safe,” Bergeron said. “On the highway next to the big trucks, you definitely feel vulnerable.”

For the same reason, Andrew Maxon, founder of the Capital Kei Car Club, drives his small Autozam az-1 coupe “like a motorcycle” – always assuming that other vehicles, especially trucks, haven’t seen him.

US Transportation Secretary Sean Duffy said so, acknowledging that small cars “probably won’t” be a good fit on US highways.

Duffy told CNBC Business News that these cars could be a “great solution” for people who drive in cities.

The key to Trump’s enthusiasm for small cars is the promise of lower prices.

A US Department of Transportation spokesperson told the BBC that this move will help Americans buy vehicles that meet their needs, whether electric, gasoline-powered, or in the form of a “minivan or small truck.”

But it is not yet clear whether American manufacturers will be able to manufacture small cars at prices lower than current sedans.

Car prices in the United States have not yet returned to pre-pandemic levels after a global shortage of computer chips was one of the factors driving up prices.

At the same time, American families faced rising costs of living.

Carmakers have also warned that Trump’s tariff policies could cause prices to rise further, while ending subsidies on electric cars will also mean drivers will have to pay more for some cars.

Hyundai Chairman Chung Eui-sun warned in his New Year message that geopolitical conflicts, trade tensions and heightened competition this year could cause problems “we have long worried would become a reality” in the auto industry.

This year, new vehicle sales in the United States may fall below 16 million vehicles, according to research group Cox Automotive, due in part to concerns about pricing as well as declining demand for electric vehicles. She added that low-income drivers in particular are expected to feel the pressure of “protracted inflation” and rising prices for new and old cars.

It is unclear how many car companies will respond to Trump’s call.

Stellantis, owner of Fiat, said it will begin selling the Topolino, a small car with a top speed of less than 30 mph (48.3 km/h), to the United States in the coming months.

A Stellantis spokesman said the company is “always looking for opportunities to adapt our product range to meet our customers’ needs” and give them the choice of cars “they want at prices they can afford.”

Nissan told the BBC that it will evaluate its production line based on demand. Mitsubishi said it has no current plans to bring its Kei vehicles to the United States.

Major carmakers in Kyi, such as Toyota, Honda and Suzuki, said they had no information to share when contacted by the BBC.

Auto investor Steve Greenfield doesn’t think Trump’s announcement will matter much.

He said modern Kei cars would not meet U.S. safety regulations, and automakers would have to make huge investments to redesign them to meet U.S. standards. Doing so would “negate the cost and efficiency advantages,” Greenfield added.

In the past, small car manufacturers struggled to break into the American market.

Kei cars could make sense in crowded urban areas, “but for most use cases in the United States, these small cars will not be a viable option,” Greenfield said.

In 2019, Smart, owned by Germany’s Mercedes-Benz and China’s Geely, withdrew from the United States due to slow sales as drivers preferred larger cars.

If the fate of smart cars shows anything, “there may not be much demand for small cars” other than by enthusiasts, Greenfield said.

That seems to be the case among most American customers who buy Kei cars, said Mo Soleil, an importer at Tokyo Motors DC in Maryland.

Imported Kei vehicles cost between $6,500 for an old pickup truck or over $10,000 for a Kei fire engine or truck.

Nearly three-quarters of the cars imported by his family-run company are “modern” vehicles such as small coupes – statement pieces that are very popular in Events such as enthusiast meetings.

Trucks and vans are also very popular among some drivers who want to use them on golf courses or on farms, Soleil added.

“[Trump’s] “The announcement was free advertising for us because more people were starting to learn about Kei cars,” Soleil said.

“But despite that, I think people in the United States are very accustomed to big cars. This will continue to be a niche market.”