In the realm of electric vehicles (EVs), Japan is witnessing a groundbreaking shift as the 11-foot-long Nissan Sakura emerges as the country’s best-selling EV, outperforming global heavyweight Tesla. The $13,000 “Kei car” is proving to be a game-changer, captivating the attention of Japanese drivers.
According to data meticulously compiled by Bloomberg, the Sakura, a $13,000 minicar jointly crafted by Nissan and Mitsubishi, has taken the lead as the best-selling electric car in Japan this year. Impressively, it accounts for nearly half of all EVs sold in the country thus far in 2023, further buoyed by government subsidies.
A Year of Triumph
The Sakura made its debut last year, swiftly rising to prominence and securing the title of Japan’s Car of the Year in 2022. Its compact 11-foot frame offers a commendable 180-kilometer range on a single charge, with a top speed of 130 kilometers per hour.
In 2023, the Sakura has significantly outperformed its rivals, including Tesla, which holds sway in the Western EV market. Notably, Tesla’s Model 3, though boasting an impressive 658-kilometer range on a single charge, grapples with the intricacies of parking and maneuvering in Japan’s tight urban spaces.
The Sakura isn’t the sole luminary in Japan’s Kei car revolution. Companions such as the Honda e, Mitsubishi eK X EV, and Daihatsu Tanto FunCross are equally captivating the market. These compact wonders offer a diverse array of features, including touchscreen technology, heated seats, and even semi-autonomous driving capabilities.
Global Impact and New Frontiers
This surge in Kei car popularity has created a challenging market for Tesla, prompting price cuts for its Model 3 and Y electric cars in Japan. Furthermore, the Chinese EV juggernaut, BYD, backed by Warren Buffet, is making inroads in Japan, posing a formidable global challenge to Tesla.
Kei cars are deeply ingrained in Japanese culture, particularly in regions with limited public transport options. In a fascinating twist, their cousins, Kei trucks, have been gaining traction in the United States in recent years. Models such as the Suzuki Carry and the Daihatsu Hijet, measuring 11 feet in length and costing as little as $5,000, have become popular for diverse applications, including ranch work, deliveries, and even as beekeeper wagons.
The Kei truck craze has even inspired US manufacturers to venture into the world of compact vehicles. EV startup Telo, for instance, recently unveiled a mini cooper-sized pickup priced at $50,000.
While the Sakura’s ascent signifies a shift in Japan’s EV landscape, it also highlights the nation’s relative lag in the global transition to electric vehicles. Battery-powered EVs and plug-in hybrids represented only 2% of vehicles sold in 2022. Nevertheless, Japan’s historical focus on crafting small and efficient cars, dating back to the post-World War II era, continues to shape the market.
Government Support and Efficiency
The Japanese government plays a pivotal role in supporting the Kei car industry, extending subsidies for their purchase and offering exemptions from specific taxes and regulations. Kei cars harmonize seamlessly with Japan’s urban environment, excelling in easy parking and maneuvering in tight spaces.
Moreover, these vehicles are renowned for their fuel efficiency, a significant asset in a nation where gasoline prices remain consistently high. As the global EV landscape evolves, Japan’s embrace of the Kei car exemplifies a shift towards cost-effective, eco-friendly, and nimble vehicles that align with urban demands and resource-conscious drivers.
