Meet the $7,000 mini EV that’s taking Japan by storm

It’s not a Toyota, Nissan, or a Honda, but this new mini EV is already a sensation. The mibot mini EV costs just ¥1 million ($7,000), or about half the price of Nissan’s Sakura, the top-selling EV in Japan.

Can the $7,000 mini EV jumpstart sales in Japan?

Japanese startup, KG Motors, is charging up Japan’s electric vehicle market with small, affordable “mobility robots.”

The company is preparing to launch a small, single-seat EV dubbed “mibot.” At just 2,490 mm (98″) long, the tiny electric car is about the size of a golf cart, but it’s perfect for getting around the city.

With its small, lightweight design and low maintenance costs, KG says the mibot is perfect for daily commutes. It offers a range of up to 100 km (62 miles) and a maximum speed of 60 km/h (37 mph).

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Although it may not seem like much with most new EVs nowadays launching with at least 300 miles (483 km) range, the mibot is designed for Japan’s tight city streets. KG Motors is out to prove that bigger isn’t always better, especially when it comes to travel.

The company’s CEO and founder, Kazunari Kusunoki, said (via Bloomberg), “Seeing so many big cars traveling Japan’s narrow streets – that’s where this all began for me.”

After opening reservations last fall in Japan, the mini EV secured over 1,000 applications in its first month. As of May, the company has received 2,250 orders, which is more than half of the 3,300 units it plans to deliver by March 2027.

At that, KG Motors would sell more EVs in Japan than the roughly 2,000 Toyota sold in 2024. After entering the market in just 2023, China’s BYD sold over 2,200 vehicles in Japan last year.

It’s no secret that Japanese car brands, including Toyota, Honda, and Nissan, have been among the biggest laggards in the shift to battery electric vehicles (BEVs).

“Toyota said EVs aren’t the only solution and, because it’s Toyota, Japanese people assume it must be true,” Kusunoki explained. Because Toyota said so, “A large number of people in Japan seem to believe EVs won’t become popular.” KG Motors is out to change that with the mibot mini EV.

The tiny cars, or “kei cars,” are the most popular segment in Japan, accounting for over half of all vehicles. Nissan’s Sakura was the best-selling EV in Japan last year, with 22,926 units sold.

The Sakura starts at ¥2.5 million ($17,000). When the mibot arrives early next year, it will start at ¥1 million ($7,000) before taxes.

According to Kusunoki, production is scheduled to begin in October, and the first batch of 300 mibot models is expected to be delivered in Japan by March 2026. The other 3,000 will be shipped internationally.

The company expects to take a loss on the first batch, but should turn a profit on the second. Following that, KG Motors plans to build around 10,000 mini EVs annually.

Electrek’s Take

Can the mibot spark EV sales in Japan? At just $7,000, the mini EV is already creating a buzz. Meanwhile, BYD and others are looking to take advantage of Japan’s slow transition.

BYD is developing its first mini EV (here’s a sneak peek) that’s already expected to be “a huge threat” for Nissan, Honda, and Toyota in Japan. It will start at around ¥2.5 million ($17,000) when it launches in the second half of 2026, or about the same price as the Nissan Sakura.

At least one Suzuki dealer is already sounding the alarm (via Nikkei), claiming that “Young people do not have a negative view of BYD. It would be a huge threat if the company launches cheap models in Japan.”

BYD sells four electric cars in Japan, including the Atto 3 SUV, Dolphin, and Seal. Last month, the company launched the new Sealion 7 midsize electric SUV, starting at 4.95 million yen ($34,500).

When the mibot and BYD’s electric kei car arrive, it will be interesting to see how they will impact EV sales in Japan. It might even turn up the pressure on Toyota and other Japanese brands to keep pace.