ACEA Calls for Europe to Create Its Own Kei Car Law for Small Urban EVs

The Nissan Sakura was voted Japan’s Car of the Year for 2022-23

European automotive lobby group ACEA is advocating for the implementation of special regulations for small electric vehicles (EVs) that are designed for urban environments, similar to Japan’s renowned kei car segment.

What are Kei Cars?

Kei cars, short for keijidosha, are a specific category of vehicles in Japan that are regulated by the government to be small in size and have a maximum engine displacement of 660cc. These regulations aim to encourage car manufacturers to design vehicles that are more suitable for cramped urban areas.

Luca de Meo, Renault Group CEO and ACEA president, highlighted the kei car as an ideal example of what can be achieved in terms of urban-centric EVs. He presented a new manifesto to persuade lawmakers to ease some of the stringent European Union regulations that are forthcoming.

The Benefits of Small Urban EVs

In this proposed new category of small electric cars, ACEA suggests offering reduced purchase taxes, lower road tolls, easier access to city centers, and exemption from regular parking restrictions. Currently, car manufacturers face complex regulations that apply equally to both small and large cars, resulting in increased size, weight, and cost. De Meo argues that producing cars that meet these regulations is no longer profitable, and it is time to focus on creating vehicles tailored to specific urban needs.

Renault recently unveiled its new Twingo, a small EV that will be available for purchase in 2026 at a cost of under €20,000 (approximately £17,250). In the proposed kei car class, battery sizes could be smaller or even restricted to keep costs low and allow customers to choose a car that suits their needs.

De Meo emphasized that smaller batteries are sufficient for urban travel, citing the average journey profile of the Dacia Spring, which covers 19 miles a day at an average speed of 16mph. He also criticized the ecological impact of large batteries, referring to them as an “ecological disaster.”

Success of Kei Cars in Japan

Japan’s kei car segment has grown to represent around 40% of the country’s car market. While there are exceptions such as the Honda Beat, Honda S660, and Suzuki Cappuccino, most kei cars are miniature people carriers like the Honda N-Box, which is Japan’s best-selling car as of October this year.

China has also seen success with small electric city cars due to the introduction of more sophisticated models. Examples include the Wuling Hongguang Mini EV, Wuling Bingo, and Geely Panda Mini.

Challenges Faced by European Car Makers

European car makers have largely exited or are planning to exit the city car sector due to rising regulatory costs and difficulties in reducing CO2 emissions in combustion-engined models. Models such as the Seat Mii, Skoda Citigo, Ford Ka, Vauxhall Viva, Peugeot 108, and Citroën C1 have been discontinued.

While the transition to EVs addresses the CO2 issue, the high cost of batteries limits the availability of affordable options. ACEA believes that by restricting battery sizes and reducing regulatory burdens, car makers can create affordable EVs that are financially viable.

Creating a Sustainable Future

Implementing a category for small, lower-cost EVs would help car manufacturers reduce their CO2 emissions and meet the goal of ending sales of combustion-engine cars by 2035. De Meo emphasized that this approach demonstrates the industry’s commitment to proposing solutions rather than defending positions.

Currently, some European countries allow the use of small “quadricycles” without a license, although they have speed limitations. For example, the Citroën Ami has a maximum top speed of 28mph.

De Meo also highlighted that an estimated 20-25% of Renault Group engineers are currently focused on meeting regulatory requirements in the European Union.

In conclusion, ACEA’s proposal for a kei car-like segment for small urban EVs aims to address the specific needs of urban environments while reducing regulatory burdens and costs for car manufacturers. By creating a more favorable environment for affordable EVs, Europe can move closer to achieving its sustainability goals.