Japan-China Collaboration Targets EV Market with Kei Car by 2027

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A new electric vehicle brand, spearheaded by a collaboration between Japanese automotive entities and the Chinese automaker Chery Automobile, is set to make its debut in the Japanese market. The initiative, launched by Yokohama-based EMT Co., plans to roll out its first model, a compact electric kei car, in 2027 under the newly minted EMTA brand. This move targets Japan’s critical vehicle segment, which is known for its popularity among consumers.

The joint venture features a consortium of companies including Autobacs Seven and Anest Iwata from Japan, alongside Chery Automobile and a battery manufacturer among other partners. The strategy involves designing and manufacturing the vehicle in China, while planning and marketing efforts will be conducted in Japan. The company aims to incorporate cutting-edge digital technologies in its vehicles, such as wireless software updates, smartphone integration, and capabilities for automated driving.

Kei cars hold significant sway in Japan, accounting for over a third of new vehicle sales, which makes them an appealing target for electric vehicle initiatives. These vehicles are typically used for short-distance travel, diminishing the importance of driving range concerns. EMT is also evaluating the potential of utilizing select Autobacs stores as retail outlets and foresees the introduction of three more electric vehicle models by 2029. Future ambitions include potential manufacturing operations in Japan and market expansion overseas.

The announcement arrives amid escalating competition within Japan’s kei electric vehicle market. Chinese automaker BYD is set to introduce its Racco kei EV tailored for the Japanese market, while Nissan Motor has broadened its Sakura series by adding a more affordable model. In parallel, Suzuki Motor is positioning to launch a kei EV within the current fiscal year, and Honda Motor is in the process of developing an electric variant of its widely popular N-Box model, slated for a 2028 release.

The increasing number of entrants into the market underscores the growing momentum of Japan’s small electric vehicle sector. Automakers are vying to capture the attention of budget-conscious urban commuters, reflecting a broader shift towards sustainable mobility solutions in densely populated areas.

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