Subaru 360 (Ladybug)

At The Incredible Shrinking Man we are interested in cars as a manifestation of the things we want and are unwilling to let go off. Much as our desire, cars have increased in size. But not in Japan. For decades, the Japanese Kei car class (from keijidōsha, meaning “light automobile) has demonstrated how strict regulatory constraints can limit size while driving maximum efficiency. Kei cars are strictly regulated by the Japanese government regarding their external dimensions and engine size in exchange for significant tax, insurance, and parking benefits.The absolute pioneer of this segment is the Subaru 360, introduced in 1958. Engineered to provide affordable transport in post-war Japan, this model conformed precisely to the legislation of its time: a total length under three meters and a two-cylinder 356cc engine. The advantages of its design philosophy are now more relevant than ever. Manufacturing requires up to 40% fewer raw materials. This directly translates into lower production costs and a significantly reduced ecological footprint. For the end-user, this structural downsizing has concrete financial benefits. The low vehicle weight results in minimal fuel consumption and reduced emission levels. Additionally, owners benefit from lower fixed running costs, including reduced road taxes and favorable insurance premiums. In many Japanese cities you cannot buy a car without proving you have a parking space. Small parking spaces are a lot easier to find.

Kei cars are not yet considered profitable outside Japan and therefore are only part of the Japanese domestic automobile market. I guess that depends on what you consider as profitable, plus this may be about to change.