Stellantis Exec Wants Europe to Adopt Cheap, Tiny, Japanese-Style Kei Cars

Miami Herald

14-06-2025

Though it may seem different today, more than half a century ago, American and European drivers were not as familiar with Japanese automakers and the types of cars they offered. Today, well-known Japanese brands like Honda, Toyota, and Nissan are primarily recognized in the West for their locally built compact cars, sedans, crossovers, SUVs, and pickup trucks. However, the situation is quite different in Japan.
In fact, the majority of vehicles on the streets in Japan are not Accords, Civics, CR-Vs, Corollas, Crowns, or Camrys; instead, many fall under a category of super-compact vehicles known as "Kei cars." These unique compact vehicles are an essential mobility solution for Japanese drivers navigating their roads, but recently, Stellantis Chairman John Elkann encouraged European regulators to consider adopting a similar concept.
On June 12, Stellantis Chairman John Elkann emphasized the urgent need for Europe to innovate and produce smaller, more affordable vehicles in the same vein as Japanese 'kei cars.' He pointed out that the high prices of current offerings, which he blamed squarely on excessively strict vehicle regulations, are hurting consumer demand for cars on the continent. During his remarks at the 2025 Automotive News Europe Congress, he pointed out that as recently as 2019, nearly 50 different models were sold in Europe with a price tag below €15,000 ($17,400); however, just a single model under that price tag exists these days.
Elkann suggested that Europe should look for inspiration from Japan, where tiny and cheap kei cars have long captured a significant market share. He even proposed that Europe's version of the kei car could be named the E-Car.
"There's no reason why, if Japan has a kei car, which is 40 percent of the market, Europe should not have an E-Car," Elkann said.
In Europe, Stellantis already sells electric microcars that are classified as quadricycles in some European countries, specifically the bubble-shaped Citroën Ami, Opel Rocks-e, and Fiat Topolino. These vehicles' sales in Europe show a strong market for affordable electric mobility. However, a large variety of cars are offered as kei-compliant vehicles in Japan, including off-roaders like the Japanese-market Suzuki Jimny, roadsters like the Daihatsu Copen, family cars like the Honda N-Box, and even utility-focused kei trucks like the Mitsubishi Minicab.
The 'Kei' in Kei car is short for a Japanese word called kei-jidōsha (軽自動車), which roughly translates to "light vehicle" in English. Kei cars are defined by maximum size and displacement restrictions, meaning they are only allowed to have a maximum length of about 134 inches, a width of about 58 inches, a height of about 79 inches, and a gas engine displacement of 660 cubic centimeters.
In Japan, Kei cars are seen as around-town vehicles for city-dwellers, as their size and engine restrictions help owners by guaranteeing much lower tax and insurance costs while freeing up much-needed road space. Elkann emphasized that small cars, like Stellantis's own Fiat 500, have historically represented the core of the European automotive industry and served as a symbol of affordable mobility for the masses. Unfortunately, increasing regulations that made cars heavier and more expensive have made them unprofitable to manufacture.
Some of the requirements for cars, ranging from small vehicles to SUVs, include safety features such as sensors that detect when a driver falls asleep and an SOS button. Elkann argues that features significantly increase the cost of vehicles primarily used for short city journeys. "We are going to face more than 120 new regulations by 2030" in Europe, he said. "If you look at our engineers, more than 25 percent just work on compliance, so no value is added."
Though the buying preferences of the American car-buying public may indicate that no Fiat, Citroën, or Alfa Romeo-branded European E-cars would make it on American shores, this story out of Europe shows that Stellantis is facing two different kinds of problems on two different continents with huge car-buying potential with two wildly different sets of preferences.
While we may be preoccupied with Ram Trucks and Jeep stuff, it is important to note that John Elkann and the incoming CEO, Antonio Filosa, are also responsible for keeping a significant number of Europe's car factories buzzing. However, in remarks at the same conference, Elkann said that Filosa was the right choice in an automotive industry with defined challenges in particular regions.
"The experience that Antonio had running Argentina, running Brazil, running South America, and recently running North America is very much in phase with how the world is going between regulations, tariffs, and how you ultimately navigate that constructively with political forces," he said.
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