Posts Tagged ‘K-cars’

Annals of Cheap: Eco Rent-a-car

Monday, September 22nd, 2014

All you need to know: Sign outside Eco Rent-a-car office in Ota advertising prices

All you need to know: Sign outside Eco Rent-a-car office in Ota advertising prices

Since selling our car some years ago we’ve made do with public transportation, bicycles and our own four feet to get around, even after we moved out of the city. It hasn’t been as much of a hassle as you might think, but, then again, we’re easy about such things. Still, once in a while you need a car.

Several weeks ago we had to go to Ota in Gunma Prefecture to do some research. Ota is the home of the manufacturer Fuji Juko, whose most famous product is Subaru automobiles. Our mission in Ota would take us to two locations, and since we don’t have a car we had to play out our itinerary beforehand to make sure we would be able to get around. Getting to Ota from where we live wasn’t a problem at all. From Kita Senju in Tokyo, which is convenient from where we live, we caught the Tobu express train to Ota and got there in about an hour.

Our first destination in the city itself was on another local Tobu train line that connected to Ota Station, but there is only one train an hour. That station is 5 km from Ota Station, so walking was not a desirable option. The bus system also seemed dodgy, which is often the case in towns where large car makers are the main source of employment. Sometimes you can rent bicycles near a station, and they usually cost between ¥1,000 and ¥2,000 for two hours or so, but usually it’s a place that receives a lot of tourists, which doesn’t describe Ota at all.

We considered taking a taxi and estimated that the first leg of our trip would cost at least ¥3,000. When we were finished with our research at that location, we would have to call another taxi to take us to our second destination. Of course, when you order a taxi in Japan by phone they tack on an extra fare segment. We figured it might cost ¥5,000 to get to the next place, so that would already be ¥8,000 even before we found a way to get back to Ota Station for the return trip home.

So we decided to rent a choinori (short drive) car and almost accidently came across Eco Rent-a-car, which we’d never heard of but happened to have an office right at Ota Station. Much more interesting than the location, however, was the price: ¥980 for three hours. Was that right? There had to be some sort of catch, even if it was for the smallest model, a mini-car (k-car, in Japanese). You even got a 5 percent discount if you reserved online, so we did. Naturally, all the cars Eco provides, including an electric model, are made by Subaru.

CONTINUE READING about Eco Rent-a-car →

Special K: Mini-cars come of age in a maxi-world

Sunday, January 26th, 2014

Thinking inside the box: Honda's N-WGN

Thinking inside the box: Honda’s N-WGN

The nationwide used car dealer, Gulliver, recently set up a new venture called Gulliver Minicle, which deals only in kei-jidosha, often referred to as minicars in English, though here we like to call them K-cars, which make up a separate class of automobile. The engine displacement can’t be more than 660cc, and they were developed in the ’60s and ’70s for people with limited incomes.

When K-cars first appeared the engines were as small as 360cc, and have always been a point of contention for the U.S. automobile industry, which describes them as a “non-tariff trade barrier” because taxes for K-cars have been much less than they are for regular cars and thus are deemed as being unfair competition for infamously larger American cars — though it should be noted that U.S. automakers have tried to sell compacts in Japan.

K-cars have always had one glaring drawback. Because the engine is so small, they have to be light, and that means they are less safe. Consequently, families don’t buy them; or, at least, they didn’t until recently.

Gulliver’s launch of a retail entity that only sells used K-cars shows that there must be a viable market, since K-cars are already cheap and Japanese people aren’t big used car buyers. So far there is only one Minicle, in Morioka, and it has about 50 cars on display divided into three sizes: S, M and L, like apparel.

According to an article about the store in the Asahi Shimbun, there really isn’t much difference in the sizes, but the designations appeal to women, who are now the main target demographic for K-cars. There is even a play space in the store where kids can relax while mom is shopping for new wheels.

Gulliver is already planning Minicle stores in Hokkaido, Tohoku, Kyushu and the San’in region, and by 2018 expects to have about a dozen throughout Japan, mainly in the vicinity of regional capitals and not so much in the big three metropolitan areas.

In December, the Japan Light Motor Vehicle and Motorcycle Association estimated that 2.1 million K-cars would be sold in Japan during 2013, a new record. In contrast, sales of all other cars amounted to about 3 million. So while sales of minicars increased by 4.8 percent over 2012, sales of other cars decreased by 5.3 percent.

As a portion of all car sales, Ks increased by 2.4 points to 39.3 percent. The only other automotive sector that showed more growth was foreign (read: German) cars, whose sales increased by 9 percent, also a record. And in terms of production by Japanese automakers, 40 percent are now K-cars.

The obvious reason for the popularity of minicars is their price, but they’ve always been cheap. It’s their reason for existing in the first place. Some say that people bought them last year because the K-car tax is set to be eliminated sometime this year, but a more likely reason is increased safety and functionality.

More than a year ago, Daihatsu started selling a new version of its Move model that uses sensors to automatically reduce speed when it gets too close to the car in front of it. Though it’s offered as an option at ¥50,000, more than 80 percent of the buyers order it. In succession, similar options were added by Suzuki to its popular Wagon R model, for ¥42,000, and by Honda to its N-WGN model.

A Honda representative told Asahi that since 64 percent of K-car drivers are women, this option was incorporated specifically to attract them. A good portion of K-cars are bought as second cars, for shopping and shlepping the kids around. In the past, these women bought compact cars, but they’re switching over to Ks.

Nissan and Daihatsu have upped the ante by also offering windshields that cut ultraviolet rays, something else women demand. In addition, K-cars now have much roomier interiors than in the past and larger cargo areas. In truth, there isn’t much difference, performance-wise, between a K and a standard compact.

Which is why the U.S. is even angrier than before, because that makes the so-called trade barrier even higher to scale. Due to regulations and consumer sentiment, K cars aren’t marketable in America, and the Big 3 automakers aren’t going to manufacture them only for one market, but that could be changing. India seems ravenous for K-cars and Suzuki is quickly setting up factories and joint ventures on the sub-continent.

Some experts say that the U.S. Trade Representative’s gripe about Ks is actually a means of keeping pressure on other sectors, generating leverage to open Japan’s agriculture and insurance markets more, for example. Also, it gives the American government an excuse to maintain its own tariff to protect the U.S. truck market from low-priced Japanese imports.

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