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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

Honda's new City hints in India at US-bound Fit sedan [w/videos]

While car buyers on these shores may think of the Civic or Accord as the prototypical Honda sedan, in the Asia and Oceania regions, it all comes down to the City. Based on the Honda Fit, the City is a compact sedan that's currently sold in 55 countries around the world, and now Honda has revealed the newest version.
Standing essentially as a Fit sedan (much as the Vezel debuted as a Fit crossover), the new fourth-generation Honda City is as wide as the hatchback on which it's based, but stretches longer on a lengthened wheelbase and sits lower. Power comes from a 1.5-liter inline four in either gasoline or diesel form, mated to an unspecified transmission that we'd have to assume is either a manual or a CVT.
Styling looks familiarly Honda, and while it may be hard to tell from the few stock, detail and live reveal images the Japanese automaker has provided us with thus far, it appears slicker form than other compact hatchback-based sedans like the Ford Fiesta or Mazda2. Fortunately IndianAutosBlog has uploaded a couple of videos from the reveal, which we've included below along with the press release.

Honda Vision XS-1 Concept looks like a sportier Vezel [w/video]

We've talked a lot about the Honda Vezel over the past few months, as the Autoblog staff is looking forward to the Fit-based CUV. It's a handsome little vehicle, that we think will do quite well when it finally arrives in the US market. That said, it's not a particularly exciting vehicle to look at.
Along with the appearance of the Mugen-tuned Vezel at the Tokyo Auto Salon, though, a new concept that's being shown by Honda today at India's Delhi Auto Expo has us hopeful for a Vezel that looks a bit more assertive. It's called the Vision XS-1 Concept, and it's a seven-passenger (yes, seven) crossover that features minivan-style sliding doors. It sports Honda's "Exciting H Design," which is the same design philosophy used by the stylists that penned the new Fit. Unfortunately, at the moment, Honda has provided exactly zero details about what powers its new concept.
As a concept for the Indian market, which is home to some of the tightest, most congested roads on the planet, the stylish XS-1 is meant to demonstrate that Honda knows a thing or six about building compact vehicles. In that regard, we think it's a spot-on piece of work. Let us know what you think of it in Comments, but first, have a look up top for a gallery of images and then scroll down for a brief video and the official press release from Honda.