Japanese subsidies for eco-cars expired in September, and analysts predicted a hard landing due to pulled-forward sales. In a way, this happened, but the fall was not as hard as expected. In September, sales on all automobiles in Japan were down 3.4 percent. This month, they are down 5.7 percent. The fall would have been harder, would it not have been cushioned by the resilience of a Japanese oddity, the Kei car.
Sales of regular vehicles were down 9 percent in Japan, with Honda taking the biggest hit of Japan’s big three. This according to the Japanese Automobile Dealer Organization JADA. You may read elsewhere that the Japanese car market is down by that number, but it is not. A full 37 percent of Japanese auto sales do not show up in this statistic.
Sales of that Japanese foible, the mini vehicle, or Kei car, actually were up slightly, 0.5 percent to 133,790 units, the Japan Mini Vehicles Association says. The 0.6 liter midget mobiles have seen an amazing resurgence recently. 1.7 million Keis were sold in Japan through October. Sales in the segment were driven by Honda’s N-Box. In September, nearly 20,000 units changed hands. The car received support from the N-Box +, and today from the N-one, a retro-styled Kei that took its cute cues from the N360, the first mass-produced Honda Kei, which was introduced in 1967.
| Total vehicle sales Japan October 2012 | ||||||
| Manufacturer | Oct ’12 | Oct ’11 | YoY | YTD ’12 | YTD ’11 | YoY |
| Daihatsu | 44,605 | 52,589 | -15.2% | 588,333 | 448,044 | 31.3% |
| Hino | 2,876 | 2,794 | 2.9% | 34,917 | 27,724 | 25.9% |
| Honda | 43,891 | 46,661 | -5.9% | 650,257 | 421,146 | 54.4% |
| Isuzu | 3,621 | 2,937 | 23.3% | 49,844 | 33,617 | 48.3% |
| Lexus | 3,128 | 4,308 | -27.4% | 37,528 | 36,328 | 3.3% |
| Mazda | 13,163 | 15,279 | -13.8% | 191,377 | 162,963 | 17.4% |
| Mitsubishi | 10,120 | 10,137 | -0.2% | 121,570 | 125,994 | -3.5% |
| Mitsubishi Fuso | 2,555 | 2,931 | -12.8% | 29,124 | 21,289 | 36.8% |
| Nissan | 44,522 | 46,856 | -5.0% | 574,326 | 491,404 | 16.9% |
| Subaru | 10,780 | 12,278 | -12.2% | 148,426 | 129,085 | 15.0% |
| Suzuki | 46,439 | 45,288 | 2.5% | 582,282 | 457,921 | 27.2% |
| Toyota | 117,308 | 124,053 | -5.4% | 1,427,315 | 937,861 | 52.2% |
| UD Trucks | 707 | 855 | -17.3% | 7,593 | 6,638 | 14.4% |
| Other | 15,618 | 14,145 | 10.4% | 194,384 | 165,433 | 17.5% |
| Total | 359,333 | 381,111 | -5.7% | 4,637,276 | 3,465,447 | 33.8% |
Consolidating regular cars with Keis, the big picture looks like this. The market is 5.9 percent lower than in October 2011. Despite a little, and less than expected weakness in September and October, both Honda and Toyota have grown their sales by more than 40 percent through October. Toyota’s group sales including Daihatsu and Hino are up 45.1 percent.
Import brands up 10% in a total market that’s down 6% (or 9%, depending on how you count). A terrible closed market, isn’t it?
If you document that same point with raw numbers instead of clouding it through percentages, your argument loses a lot of its weight …
Good choice of pic – I like how Honda decided to look back to the N360 for inspiration for the new N-One. Simple, logical, unfussy, and a hint of cute. Too bad it doesn’t have hood-mounted side mirrors.
Pedestrian protection rules are tough …
I’ve always felt that kei-cars were irrelevant to the rest of the world. They’ve always been a regulational anomaly; limited in dimensions, limited to 660cc and 64 hp, built cheap, often unattractive.
However, I think the Honda N-One could be a great basis for an affordable world car. One of the things that Honda is proud of in this car is that it acceleration of the 660cc turbo is equivalent of a 1.3L Honda Fit while still getting 63 mpg (JC08). Its 1,800lb curb-weight can be thanked.
In addition the car is quite handsome in a retro sense. Its the closest thing Honda can have to a Mini, VW Bettle, or Fiat 500 retro-chic rival.
Clearly, for export to the world, a larger engine (800c or 1L) and foreign factory would be needed (Mexico, Thailand, India, etc). Honda has an opportunity to make truly handsome affordable car. With the right unneeded pork removed, like the LCD touch screen, complex turbo-660cc with CVT, etc. This car could be sold for less than $10k with the right configuration. It would be an ideal car for emerging markets like SE Asia, India, as well as congested developed world countries like Europe.
Don’t forget. The wildly popular Maruti Alto is Kei car based. And many of Japan’s neighbors go gaga over secondhand Keis. Small. Cute. Cheap to buy and incredibly cheap to run… What’s not to like?
Suzuki and Daihatsu already export or co-build cars overseas with bigger motors. Honda has the chance to do the same, if ever they wanted to.
I think its probably the best car Honda makes now. When automakers stick with what they do well in their home country I feel you get the best results. So sure they should bring it over..
I’d imagine the problem is crash worthiness though.. If it isn’t – well it could be a cool small car especially with like a 100hp engine (hopefully a turbo for the torque).
God, that Honda is cute!
I wish we could import those as lawn-toys.