Toyota Adds First Tiny ‘Minicar’ to Japan Lineup

Daily News Article   —   Posted on September 27, 2011

(by Yuri Kageyama, YahooNews.com) TOKYO (AP) – Toyota is selling its first “minicar” in Japan as demand increases for the tiny vehicles which are popular for short commutes.

Toyota Motor Corp., Japan’s top automaker, launched the Pixis Space minivehicle manufactured by group company Daihatsu Motor Co., on Monday.

Minivehicles, or “kei,” are defined under Japanese regulations as having a maximum: length of 11.15 feet, width of 4.86 feet, height of 6.56 feet and engine displacement of less than 660 cc.

Taxes are lower for minicars, which now make up about a third of Japan’s annual vehicle sales.

Toyota is planning two more minicar models for the Japanese market, although it has not said when those will go on sale. Toyota is targeting annual minicar sales of 60,000 in Japan for all three models in total.

The Pixis Space starts at 1.12 million yen ($14,700).

Minicars are popular not only for the tax savings but also with people who use cars for short commutes or grocery shopping, as well as with those who don’t see cars as status symbols as did the older generation.

They are also easy to handle in Japan’s crowded streets, and some come in cute designs that appeal to Japanese consumers. With Toyota entering the sector, competition is expected to step up in minicars.

Nissan Motor Co., Japan’s No. 2 automaker, has a partnership with Japanese automaker Mitsubishi Motors Corp., under which Mitsubishi makes minicars for Nissan.

Honda Motor Co. already sells several minicar models in Japan. Honda sold 160,000 minicars last year, comprising about a quarter of its overall vehicle sales in Japan.

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Background

ON THE MINICAR IN JAPAN:

• The first mini dates back to poverty-stricken post World War II Japan as a[n old] car for those who couldn't afford "real wheels." They never really went away, but only recently became popular again, largely due to improvements in technology, styling and looser size restrictions on cars. Today's generation stretches the limits of engineering and styling, with models sporting four-wheel drive, satellite navigation, anti-lock brakes and even turbocharging.
• "They used to be sold as cheap cars," said Kurt Sanger, an auto analyst for Macquarie Research in Tokyo. "Now they are actually decent cars that just happen to have a wimpy engine in them."
• Minicar sales...have been climbing since 2004 and jumped 5.2 percent to a record 2.02 million vehicles last year. ...
• Price is a big factor. Minicars cost around just $10,000 and get tax breaks from the Japanese government. Then there's the savings from fuel efficiency that hits 47 miles a gallon — a boon in a country where gasoline sells at about $4.75 a gallon.
• They are popular in crowded cities because they are easy to park, and a hit in less affluent rural areas where public transportation is limited.
• Minis also pay cheaper registration fees and taxes than regular cars, noted Masa Ogawa, a managing director for J.D. Power Asia Pacific, an automotive consulting company. The basic flat tax on a minicar can run around $96 a year, compared with more than $830 for high-end performance cars.  ...
• Suzuki's Wagon R has not only been Japan's best-selling minicar for the past three years. It has been the country's best-selling car, period — even outselling Toyota's universally adored Corolla. (from msnbc.com)