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Why Japan's government is looking to curb its adorable kei car market

Each region around the world has its stereotypical vehicle. The US has the pickup and Europe the five-door hatchback; but in Japan, the kei car reigns supreme. These tiny cars are limited to just 660cc of displacement but they've also come with lower taxes to make them more affordable. To make of the most of their small size, they've often had quite boxy styling like the Honda N-One shown above, and because they're Japanese, they've often had quirky names like the Nissan Dayz Roox. However, if the Japanese government has its way, the future popularity of these little guys might be in jeopardy. The problem facing them is that Japan is an island both literally and figuratively. After World War II, the Japanese government created the class as a way to make car ownership more accessible. The tiny engines generally meant better fuel economy to deal with the nation's expensive gas, and the tax benefits also helped. It's made the segment hugely popular even today, with kei cars making up roughly 40 percent of the nation's new cars sales last year, according to The New York Times. The downside is that these models are almost never exported because they aren't as attractive to buyers elsewhere (if indeed they even meet overseas regulations). So if an automaker ends up with a popular kei model, it can't really market it elsewhere. The government now sees that as a threat to the domestic auto industry. It believes that every yen invested into kei development is wasted, and the production takes up needed capacity at auto factories. The state would much rather automakers create exportable models. To do this, it's trying to make the little cars less attractive to buy, and thus, less attractive to build. The authorities recently increased taxes on kei cars by 50 percent to narrow the difference between standard cars, according to the NYT. If kei cars do lose popularity, it could open the market up to greater competition from foreign automakers. Several companies complained about the little cars stranglehold on the Japanese market last year, but since then, imported car sales there have shown some growth thanks to the improving economy. Featured Gallery 2013 Honda N-One View 20 Photos News Source: The New York TimesImage Credit: Honda Government/Legal Honda Nissan JDM kei kei car

April 2014: The ramping-up-for-summer edition

Americans appear to be gearing up for further increases in US gas prices, as green-car sales last month had their largest year-over-year gains of 2014. Domestic customers bought almost 56,000 hybrids, plug-ins and diesels in April, marking a 2.6 percent increase from April 2013. Plug-in sales were particularly strong, jumping 41 percent from a year earlier, as sales of the Chevrolet Volt extended-range plug-in and Nissan Leaf and Tesla Model S battery-electric vehicles all showed gains. April's big winner among the automakers was Honda, moving 1,442 units of its newer Accord Hybrid And April's big winner among the automakers was...Honda? Yes, Honda, which has long operated in the advanced-powertrain shadow of fellow Japanese automakers Toyota and Nissan, came up big by moving 1,442 units of its newer Accord Hybrid. And while sales of the Civic Hybrid, CR-Z and Insight all fell, the Accord Hybrid drove Honda to boost its green-car sales by 78 percent from a year earlier to 2,839 units. Per usual, Nissan and Tesla also showed year-over-year gains. Nissan boosted Leaf sales by 7.8 percent to 2,088 units. And while Tesla won't release its first-quarter results until May 7, the California-based automaker would've increased Model S sales by 34 percent to 2,300 just by maintaining its fourth-quarter 2013 sales pace. Volkswagen and low-volume advanced-powertrain vehicle makers like Audi, Porsche and Daimler AG's Smart division also fared well in April. VW increased its diesel and Jetta Hybrid sales by 25 percent to 9,583 units. Audi's diesel sales quadrupled to 2,088 units. Smart sold 203 units of its newer Smart ED battery-electric vehicle. Such gains more than offset sales declines from General Motors, Ford and Toyota, though Toyota's April was less painful than previous months. GM's big mild-hybrid sales declines more than offset the 19 percent increase in Chevy Volt sales to 1,548 units and the sales of 491 Chevrolet Cruze Diesel vehicles. All told, GM's green-car sales declined 25 percent to 3,103 units. Fusion Energi Plug-in Hybrid sales doubled and C-Max Energi PHEV sales jumped 28 percent. Ford's green-car sales were down 12 percent to 7,554 vehicles. While Fusion Energi Plug-in Hybrid sales doubled and C-Max Energi PHEV sales jumped 28 percent, Fusion Hybrid sales were little-changed while C-Max Hybrid sales tumbled 50 percent to 1,586 units.

Subcompact Crossover Comparo Roundtable | Autoblog Podcast #599

This week, we've got a special episode of the Autoblog Podcast, wherein you'll hear the extended version of the roundtable discussion from our Subcompact Crossover Comparison. In it, Editor-in-Chief Greg Migliore is joined by Consumer Editor Jeremy Korzeniewski, Senior Editor, Green, John Beltz Snyder and Associate Editor Joel Stocksdale. After extensive testing (and filming) in Northern Michigan, our editors break down what they liked and loathed about the Honda HR-V, Hyundai Kona, Jeep Renegade and Kia Soul. Grab a cup of coffee with us, and enjoy. Autoblog Podcast #599 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: