Kei car

Suzuki has just revealed its game-changing plan to tackle Chinese carmakers.  The brand delivered its ‘Technology Strategy 2026 for 10 Years Ahead’, as it targets a faster and cheaper future for buyers.  Suzuki is one of many carmakers feeling the effects of rapid Chinese growth of BYD, Chery and more, with Australia still playing an important role for it.  Suzuki said it will cater the cars it offers to buyers based on broader market-dictated considerations in Australia. The Japanese brand said there are unique circumstances for each region surrounding fuel conditions and the state of infrastructure development.  This means the optional powertrains and set-ups vary between regions.  Australia only accounts for about five per cent of Suzuki’s sales, with the brand confirming it will primarily be hybrid- and petrol-powered Down Under.  Petrol-powered cars, and from next year some hybrid-powered cars, incur fines for brands under the New Vehicle Efficiency Standard (NVES), but Suzuki will continue to back those set-ups here.  Suzuki will also continue to lean into its Indian production facilities, as part of its plan to build cars close to the markets they are sold.  It currently builds less than three million units in India annually, but will accelerate production to four million units per year from 2030.  Australia receives the Jimny XL compact 4WD, Fronx small SUV and recently-introduced eVitara electric SUV from India.  Suzuki hopes this will help the company boost development efficiency by 30 per cent and production efficiency by 50 per cent compared to 2020.   Suzuki also announced it will launch its e Sky electric Kei car in 2027 as the brand’s first of its next-generation EVs.  It will launch in Japan in late 2026 as the latest of a new wave of long-range small EVs and will rival the BYD Racco. Its 310km range (WLTC) will rank among the best of the Kei car segment, including the Racco’s record-breaking 320km.  It boasts an efficiency rating of 97 Wh/km, compared to the Tesla Model Y’s 100-plus Wh/km, for example.  The car is capable of adding 50km of range in only five minutes, and weighs just 1030kg all up.  Suzuki has not confirmed the e Sky’s Australian future, but it’s expected to launch in the UK, another right-hand drive market, some time in 2027.   Suzuki is working on some new set-ups for its cars heading into the future.  It is developing a new electric motor called “e 4WD” that can be used across all sizes of cars.  In smaller cars, it produces 70kW, while in bigger cars it can produce as much as 130kW.  Suzuki also said the motor does not use rare-earth metals, making it more sustainable and cheaper to produce.  The brand is preparing a small hybrid-powered car that will employ what it describes as a “REEV light”. Like other range-extender cars, Suzuki’s variant will use the engine to generate electricity and an electric motor to drive the wheels.  Suzuki is developing a new turbo-charged engine for markets like India that still require petrol- and diesel-powered cars.  It will be highly-efficient and deliver powerful driving, according to the brand. 

BYD is exporting its budget electric car formula globally.  The brand has its sights on affordable EV markets in Europe and other markets, with technology from its Racco kei car forming the basis, according to a report in Nikkei Asia.  The Racco launched in July 2026 as BYD’s first attempt to break into Japan's very popular kei car segment, and its already got strong early demand.  Kei cars are common in Japan, representing an affordable and practical electric car option for compact roads with limited parking room.  BYD is looking to adapt the Racco's efficient ‘X-Pack’ battery unit to tackle Europe’s new M1E mini-car segment in the next few years.  The Chinese carmaker will avoid pricey development costs by adopting the Racco's technology for the new European segment. The X-Pack is made up of key electrical parts integrated into a single battery unit fitted under the car’s floor to make the unit more compact.  The up to 36kWh Blade battery boasts a quoted driving range of 320km, making the Racco the first kei car with a driving range exceeding 300km.  It also features 100kW fast charging, with an estimated 10 to 80 per cent charge time of roughly 20 minutes.  This efficient and practical set-up makes it perfect for buyers seeking a cheap electric car for urban driving. The European Union’s ‘M1E’ electric car classification requires cars to be less than 4.2m long (compared to 3.4m with Japanese kei cars).  Carmakers who build models under M1E could be eligible for subsidies, with the EU eager to combat imported competition with locally built cheap EVs. Chinese carmakers have been plagued in Europe by tariffs on imported vehicles, as the EU seeks to address alleged foreign government subsidies pricing out local brands.  BYD is planning to open a manufacturing plant in Hungary before the end of the year, so building its new mini-car there could make sense. The BYD Racco was effectively ruled out for Australia by the brand’s executives, because it was solely built for the Japanese market.  Kei cars usually don’t comply with Australian Design Rules (ADRs). The Racco would require extensive reengineering to achieve adequate side-impact crash protection and rectify other safety concerns. The Honda Super-One is sold in Australia, spawning out of the N-One kei car to become substantially longer, wider and taller than its sibling. It also incurs a noticeable price hike on its smaller Japanese-only inspiration, demonstrating the prohibitive nature of conversion for budget-focused manufacturers.   It is expected cars built under the M1E classification will be valid under ADRs here because Europe and Australia derive design rules from similar principles.  This could open the door for a European-built BYD mini-car to hit Aussie showrooms in the future.  It would need to be built in right-hand drive and satisfy the business case to be a sufficiently cheap competitor Down Under.

Chery has announced its latest sub-brand, and its got sights sets on the hugely popular Kei minicar segment in Japan. EMTA will launch in the second half of 2027 and feature a fully-electric lineup. A Kei car will come first, followed by a hatchback and SUV, with a larger model also in the works down the track. It is clear at this stage EMTA’s cars will specifically target the Japanese market, but the brand is considering overseas expansion. Kei cars have to meet strict rules, which restrict dimensions and power outputs. Chery has not shied away from adding a crowd of sub-brands in Australia. Omoda Jaecoo is already here, with Lepas, iCaur and Freelander scheduled to arrive over the next 12 months. A spokesperson for Chery Australia said there were no plans for any models under the EMTA name to launch in Australia. There have long been calls for Kei minicars to be introduced in Australia, with their cute proportions turning heads and the increasingly busy streets of capital cities requiring smaller vehicles.  The news comes after Chinese rival BYD announced it is planning to launch its Racco Kei car in Japan in the middle of this year. The Kei car has been a strong segment in Japan for many decades, with it suiting the packed traffic conditions of city streets.  There are several roadblocks in the way of these cars launching Down Under, but it mainly comes down to failing to meet Australian design standards and likely low safety scoring.  Currently Chery exclusively offers SUVs across its lineup, so a Kei car would certainly provide some more variety.  Chery Australia confirmed it was reviewing plans for its QQ hatch to launch Down Under as a small car option, with momentum gathering for a 2027 launch.

Australia is getting short changed on some of the world’s cheapest electric cars. High fuel prices are pushing people who never would have looked twice at an EV to consider the zero-emissions tech, but Australia is missing out on some of the most affordable electric cars. China is rife with circa-$10,000 electric cars that provide decent driving range and fast charging in a small and cheap package. The latest model to launch in China is Wuling’s next-generation Hongguang Mini EV, which is priced the equivalent of about $9000. It is a mini four-seater that has a claimed driving range of more than 300km — calculated on the more generous Chinese test cycle — thanks to a super low energy consumption of 8.9kWh per 100km. DC fast charging allows you to top the battery up to 80 per cent in about half an hour. It is very little, measuring 3268mm long, 1520mm wide, 1575mm tall and has a wheelbase — the distance between the front and rear wheels — of 2190mm. That put its in Japanese 'Kei Car' (city car) territory, and its single electric motor makes only 30kW. The Hongguang Mini EV isn’t alone, there is a booming market in China for this type of vehicle. The QQ Domi from Chery was revealed last year. It is a pint-sized electric hatchback measuring just 3.7m long and 1.7m wide, which is just bigger than a Kia Picanto but smaller than a Suzuki Swift. Its nearest EV competitor would be the larger BYD Atto 1, which is called Seagull in other markets. In China it launched at the equivalent of about $13,000. Chinese cars are usually 20 per cent more expensive here than the home market, which would mean it could lob in at about $16,000. Chery’s QQ3 is another budget friendly EV, which is priced to the equivalent of $14,000. It has a circa 300km driving range, and is much bigger than the Wuling. There is a choice of either a 58kW and 90kW electric motor. Chery has been testing one of its QQ models Down Under as part of its global development. The Chinese brand’s Australian Chief Operating Officer Lucas Harris is very interested in something from that range. “I think having a very small and then a small hatchback would be a game changer,” said Harris. “I think there’s a huge amount of potential in those segments, and at the moment I think those segments are a little bit stale and not that interesting. “So if we could bring something like the QQ, I think it’d be a huge amount of opportunity,” he said. There is one thing standing in the way of these tiny cheap electric cars… Australian Design Rules (ADRs). Mitsubishi recently considered its little eK X EV Kei Car for Australia but it wouldn’t meet safety regulations and it would be too expensive to bring it up to scratch with ADRs. "The reality is that the car meets Japanese safety regulations. The reality is that it does not meet ANCAP five star, and will not meet ANCAP five star. We'd probably get three stars," said former Mitsubishi's Australian CEO Shaun Westcott back in 2024. The Hongguang Mini EV only has two airbags and electronic stability control in its safety arsenal, which doesn’t cut the mustard here. It also lacks side impact protection, which means it won’t meet ADRs. This same rule forced Lexus to axe the IS sedan and Nissan to discontinue the GT-R.

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Honda has revealed its latest new offering, a fully electric version of its N-One hatch. The retro-styled N-One has been a regular fixture of Honda’s Japanese domestic line-up since 2012, and the new electric version is designed to be the “Ideal EV for the Japanese market.” The boxy hatch, which is designed to fit into Japan’s strict Kei classification, is equipped with a large enough battery for a 270km driving range to the WLTC procedure, complete with vehicle-to-load and vehicle-to-home features. It maintains the combustion version’s retro exterior design (referencing Honda’s original N360 Kei car from the late 1960s) and has a very minimalistic and space-efficient interior design. Honda said the bonnet and the top of the instrument panel are lined up to improve visibility and accentuate the width of the car, while physical buttons and dials are intentionally maintained in the centre of the dash for ease of use. The N-One e’s bumpers are made from recycled materials discarded from other Hondas. In addition, a bio-resin is used for the dash cladding, and various plastics on the interior are made from recycled PET bottles. As a final touch, the floor carpet and insulation is made from recycled clothes sourced from Honda employees. Like other Kei-class vehicles, the exterior dimensions are small but the rear two seats offer enough room to seat adults, and they can also fold completely flush with the boot floor to maximise storage. The N-One e also scores the brand’s signature magic seats, which can fold up to the seat backs to suit taller objects. Full specifications, including elements like motor power, charging speed, and battery capacity  have yet to be revealed, but it would be unsurprising for them to match the related N-Van e which has already launched to the Japanese market. This would mean a 29.6kWh battery pack able to charge at 50kW on DC for a 30 minute charge time, or a 4.5 hour charge time on a 6kW AC connector. The vehicle-to-load or vehicle-to-home mode has a maximum  output of 1500W. The front-mounted electric motor in the N-Van is expected to be shared with the N-One e and produces just 47kW/162Nm. It features a single-pedal driving mode in both models. Sadly, despite it being built in right-hand drive, the N-One e is likely to remain a Japanese domestic market model. Strict safety standards and the cost to comply the cars for the Australian market generally make these models too expensive or otherwise uncompetitive. Mitsubishi recently evaluated bringing its equivalent EV, the eKX to Australia, but it shelved the idea after admitting that it would be “three star ANCAP or less” and that it was likely to cost more than $30,000 once the work had been completed to comply it for our market. Hyundai recently launched a compact electric city car, the Inster, which starts from $39,000, although it offers significantly more driving range, claimed at up to 327km, and has nearly double the electric motor output. BYD is also considering importing its affordable city-sized electric car, the Seagull, which could have a price-tag in the mid-$20k region. Honda is imminently set to announce new model plans for the Australian market, although its footprint has shrunk in recent years. Currently the Japanese brand offers the HR-V small SUV, ZR-V and CR-V mid-sizers, Civic hatch, and Accord sedan.

Japan is on a roll. Not since the heyday of the ’80s and early ‘90s has its car industry been so confident and progressive, taking wild chances when – in the past – things would have been played way too safe.