Keis were not allowed to be driven any faster than 40 km/h until the mid-1960s, when the kei speed limit was increased to 60 km/h (37.3 mph). The small exterior dimensions and engine displacement reflected the driving environment in Japan, with speed limits in Japan realistically not exceeding 40 km/h (24.9 mph) in urban areas. This goal influenced Japanese automobile manufacturers to determine how best to focus their product development efforts for the smaller cars, or the larger "national car". In 1955, the Japanese Ministry of International Trade and Industry also set forth goals to develop a " national car" that was larger than kei cars produced at the time. These included the 1955 Suzuki Suzulight and the 1958 Subaru 360, the first mass-produced kei car, finally able to fill people's need for basic transportation without being too severely compromised. In 1955, the displacement limit increased to 360 cc (22 cu in) for both two-stroke and four-stroke engines, resulting in several new kei-car models beginning production in the following years. Originally limited to a displacement of only 150 cc (9 cu in 150 cm 3) (or just 100 cc for two-stroke engines) in 1949, dimensions and engine size limitations were gradually expanded (in 1950, 1951, and 1955) to tempt more manufacturers to produce kei cars. To promote the growth of the car industry, as well as to offer an alternative delivery method to small business and shop owners, the kei- car category and standards were created. The kei-car legal class originated in the era following the end of World War Two, when most Japanese could not afford a full-sized car, but many had enough money to buy a motorcycle. Kei cars are often available with forced-induction engines, automatic and continuously variable transmissions, front-wheel drive and all-wheel drive. Keis have also been subject to other restrictions, such as lower speed limits, including a warning chime that goes off if being driven too fast. Japanese government regulations limit the physical size, engine power, and engine displacement of kei cars. Kei cars feature yellow license plates, earning them the name "yellow-plate cars" (black numbers on yellow background for private use and yellow numbers on black background for commercial use) in English-speaking circles. Nearly all kei cars have been designed and manufactured in Japan, but a version of the German-made Smart was briefly imported and officially classified as a kei car, and since then, the British Caterham 7 160 has also received such classification. Kei cars are not only popular with the elderly, but they are also popular with youths, especially younger families because of their affordability and ease of use. Notable exceptions exist, for instance the Suzuki Alto and Daihatsu Cuore, which were exported consistently from around 1980. In export markets, the genre is generally too specialized and too small for most models to be profitable. Isuzu is the only current Japanese automobile manufacturer that has never offered a kei-sized vehicle for either private ownership or commercial trucks and microvans. In 2018, seven of the 10 top-selling models were kei cars, including the top four, all boxy passenger vans: Honda N-Box, Suzuki Spacia, Nissan Dayz, and Daihatsu Tanto. Kei cars have become very successful in Japan, consisting of over one-third of domestic new-car sales in fiscal 2016, despite dropping from a record 40% market share in 2013, after the government increased the kei-car tax by 50% in 2014. In most rural areas they are also exempted from the requirement to certify that adequate parking is available for the vehicle. These regulations specify a maximum vehicle size, engine capacity, and power output, so that owners may enjoy both tax and insurance benefits. The kei car category was created by the Japanese government in 1949, and the regulations have been revised several times since. These vehicles are most often the Japanese equivalent of the EU A-segment (city cars). Similar Japanese categories exist for microvans, and kei trucks. Kei car (or keijidōsha, kanji: 軽自動車, "light automobile", pronounced ), is the Japanese vehicle category for the smallest highway-legal passenger cars, with restricted dimensions and engine capacity.
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