New Japan-China EV Brand to Innovate Electric Kei Cars by 2027

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A collaborative effort between Japanese automotive enterprises and Chinese automaker Chery Automobile has initiated a new electric vehicle (EV) brand, targeting the Japanese market, with the inaugural model set for launch in 2027. The Yokohama-based company, EMT Co., unveiled the EMTA brand with plans to introduce a compact electric kei car, a crucial segment in Japan’s automotive industry.

The project is a joint venture that includes Japanese companies Autobacs Seven and Anest Iwata, along with Chery Automobile, a battery producer, and other partners. EMT Co. has disclosed that while the planning and marketing of the kei EV will take place in Japan, the vehicle’s design and manufacturing will be conducted in China. The vehicles are expected to feature advanced digital capabilities, such as wireless software updates, smartphone integration, and automated driving functionalities.

Executives highlighted that kei cars constitute over a third of new vehicle sales in Japan, making this segment a strategic entry point for electric vehicles. These cars are predominantly used for short-distance daily travel, which minimizes concerns about driving range. The company is considering leveraging selected Autobacs stores as sales outlets and has ambitions to introduce three additional EV models by 2029. Future strategies include potential manufacturing operations in Japan and expansion into international markets.

This announcement surfaces amidst a competitive environment in Japan’s kei EV market. Chinese automaker BYD is gearing up to release its Japan-centric Racco kei EV, and Nissan Motor has broadened its Sakura lineup with a more affordable version. Concurrently, Suzuki Motor intends to launch a kei EV within the current fiscal year, and Honda Motor is preparing an electric variant of its popular N-Box model, slated for a 2028 release.

The surge of entrants into the market underscores a growing momentum in Japan’s small electric vehicle sector as carmakers vie to captivate cost-conscious urban consumers. With the introduction of the EMTA brand and the strategic focus on kei cars, the partnership aims to carve a niche in a rapidly evolving automotive landscape.

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