Toyota set for US production of tiny ‘kei’ trucks admired by Trump, with a catch

Japanese carmaker Toyota announced plans to begin U.S. production of tiny “kei” trucks of the kind that roam the streets of Tokyo and have drawn the fawning admiration of President Donald Trump, but with a major catch.The truck, the Scion KEI-01, which will have a 660 cc three-cylinder engine and four-wheel drive, will be classified as a low-speed vehicle, with its maximum speed limited to just 25 miles per hour in order to meet federal safety standards. The equivalent model in Japan can go up to 87 mph.Toyota said it will assemble the trucks under Scion brand, which was discontinued in 2016, in Indiana, with production expected to begin in the second half of 2027. The $34 million investment is expected to create about 50 jobs. “In the U.S., interest in kei trucks has increased and we see an opportunity to meet diversifying customer needs with a capable, affordable, ultra-compact utility truck,” a spokesperson for Toyota told the Washington Examiner. “U.S. assembly brings the proven strengths of the kei truck closer to customers while supporting American manufacturing, investment and jobs.”The vehicle is just over 11 feet in length and under 5 feet in width and Toyota said it would be geared toward customers such as small-business owners, farmers, and ranchers.Toyota has not mentioned how many tiny trucks it plans to build or its price point, which auto experts said would play a vital role in whether consumers decide to make the purchase.Loren McDonald, the CEO and chief analyst at EV charging data firm Chargeonomics, told the Washington Examiner that the KEI-01 offers fewer capabilities compared to other competing vehicles like Ford’s Maverick truck or the all-electric Slate truck, making price a key factor in whether consumers will purchase the tiny truck.As an example of fewer capabilities, McDonald said a farmer and rancher would not be able to take the KEI-01 into town or to go to a market to pick up supplies.McDonald said it would be acceptable if the KEI-01 is priced around $18,000 to $20,000 and could be more appealing to niche consumers, such as some farmers or ranchers.“Depending on its price, it might not even be that attractive relative to some of the competing vehicles that have a lot more capabilities,” McDonald said.He added that Toyota “made it very clear it’s a low-volume, niche vehicle, but how low-volume and niche is going to depend on the pricing.”Trump asked domestic automakers to consider making tiny cars like those in Asian auto markets as a way to provide consumers with more affordable and fuel-efficient transportation options.Last December, the president said, “If you go to Japan, where I just left, if you go to South Korea, Malaysia, and other countries, they have a very small car, sort of like the Beetle used to be with Volkswagen,” calling the cars “really cute.”“And I said, ‘How would that do in this country?’ Everyone seems to think good, but you’re not allowed to build them,” he said, adding that he told Transportation Secretary Sean Duffy to approve production of such vehicles. The Department of Transportation did not respond to a request for comment.High diesel prices in recent months have been especially difficult for farmers.The KEI-01 has a smaller engine, but McDonald said if it is priced as high as $25,000, customers would likely prefer to purchase a vehicle that can be taken on the highway and have fewer limitations.IN FIRST FOR A GOP SENATOR, HAWLEY CALLS FOR DATA CENTER MORATORIUMFor years, tiny cars have struggled to work in the United States because of federal safety standards and a lack of consumer demand.“Americans just have not shown any appetite, especially in this century, an appetite for small cars,” McDonald said.