Despite Japanese carmakers being on track to increase profit, many have realized they are not in the clear yet as the supply of semiconductor chips continues to be slow.
Japan’s top carmakers are on track to increase profit, buoyed by higher vehicle prices on the back of robust demand that’s making up for Covid-related factory halts and chip shortages. Even so, most of them appear to realize they’re not in the clear just yet.
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Push to go electric could make Japan’s cheap microcars extinct
Shiho Takezawa and Tsuyoshi Inajima
Bloomberg
Tokyo Japan’s kei cars, known for their affordability and small engines, face a potentially existential threat as the country leans on automakers to go electric as part of its net-zero emissions goal.
Kei means “light” in Japanese, and the category makes up about a third of new domestic automobile sales. They’re a popular means of transportation outside of major cities, used by farmers and families that need multiple vehicles to get around.
Cheap to buy and own, keis are mainly manufactured for the home market, with engines limited by law to 660 cubic centimeters (40 cubic inches).