Honda has increased its stake in Yachiyo Industry — the manufacturer of its Life and Zest kei cars — to 51.14%. Previously, they held a 34.5% share. Higher fuel prices have resulted in a greatly increased demand for mincars, which receive special tax considerations from the government and combine fuel-efficiency, excellent use of space, and fairly surprising levels of equipment in remarkably compact packages at competitive prices.
This year has seen the introduction of a passel of new and/or redesigned kei cars in Japan from just about every marque, each exceeding initial sales projections almost without fail. The additional investment in Yachiyo by Honda is a very strong indicator that the auto giant doesn’t see demand slowing down anytime soon.
Kei cars are restricted to 660cc engines, which produce around 52 horsepower in normally-aspirated form and 64 horses (the maximum allowable in this class) in turbo guise. They are generally offered with a choice of 2WD or 4WD drivetrains as well.
Related Items:
- Third place is sweet: Suzuki overtakes Honda in Japanese market
- O Kei! Suzuki Cervo bows in Japan
- Daihatsu Sonica: Small and stylish for Japan
- Everything’s O-Kei: New Daihatsu Move introduced in Japan
- Spawn of eK: New Nissan Otti released in Japan
- Brought to you by the letter Kei: Mitsubishi’s new eK Wagon and eK Sport
- Mitsubishi i Hello Kitty edition “in the metal”
- The ultimate kei? Mitsubishi i Hello Kitty “Princess Kitty” edition
- Subaru Stella has Japanese housewives and moms in mind
- Stellar Sales for Subaru Stella
- Mitsubishi releases the i Limited in Japan
- Honda readies ZEST minicar
[Source: Mayuko Ota, Marketwatch]