In the rural outskirts of Hiroshima, a Japanese startup named KG Motors is making waves in the electric vehicle (EV) industry with its ultra-compact, single-seat mibot. Priced at just $7,000 (¥1 million), this battery-powered one-seater has already secured over half of its 3,300-unit production goal in pre-sales, positioning it to outpace even Toyota in Japan’s EV market by March 2027, according to Bloomberg.

A Compact Solution for Japan’s Narrow Streets

KG Motors targets a niche often overlooked by larger automakers: the need for small, affordable EVs in Japan’s rural and urban settings. The mibot, standing under 4.9 feet (1.5 meters) tall, is designed to navigate Japan’s narrow streets, which larger vehicles struggle to traverse.

Founder and CEO Kazunari Kusunoki emphasizes this practicality, stating, “Cars are simply too big. Seeing so many big cars traveling Japan’s narrow streets — that’s where this all began for me.”

With a range of 62 miles (100 kilometers), a top speed of 37 mph (60 km/h), and a five-hour charging time, the mibot prioritizes efficiency over luxury.

This design aligns with Japan’s growing demand for compact vehicles, especially kei cars, which have historically dominated the market. In 2023, kei cars accounted for 55% of Japan’s EV sales, with Nissan‘s Sakura leading at 23,000 units sold in 2024. However, the mibot undercuts the Sakura’s price by half, making it an attractive option for budget-conscious buyers.

Japan’s $7,000 Single-Seat Ev Sparks A Revolution In Compact Mobility

Technical Simplicity Drives Affordability

The mibot’s engineering focuses on minimalism to keep costs low. Unlike conventional gasoline or hybrid vehicles, it uses fewer parts, consisting primarily of a battery, motor, and sparse electronics within a monocoque chassis on four wheels. This streamlined approach reduces production expenses, allowing KG Motors to target a price point of $7,000 before taxes.

The company plans to begin production in October at its new factory east of Hiroshima, with the first 300 units delivering to customers in Hiroshima and Tokyo by March 2026, and the remaining 3,000 shipping nationwide. Despite its simplicity, the mibot meets practical needs in rural areas with limited public transport.

Kusunoki highlights this necessity, noting, “In rural parts of the pays, public transportation systems are in shambles. This might be hard for someone living in Tokyo to understand but at some point, it becomes necessary to have one car per person, not per household.”

Industry Trends and Competitive Landscape

Japan’s EV market has lagged behind global trends, with EVs comprising only 3.5% of vehicle sales in 2023, compared to the global average of 18%, per Bloomberg data. Major players like Toyota, which sold 2,000 EVs in 2024, have adopted a multi-pathway approach, prioritizing hybrids over full EVs.

Kusunoki critiques this mindset, saying, “Toyota said EVs aren’t the only solution, and, because it’s Toyota, Japanese people assume it must be true. A large number of people in Japan seem to believe EVs won’t be popular.”

KG Motors aims to challenge this perception by proving that smaller, affordable EVs can meet consumer needs.

Competitors are taking notice. BYD plans to launch a fully electric kei car in Japan by late 2026, while Hyundai introduced the Inster, a $20,000 (¥2.9 million) EV, earlier this year. Globally, compact EVs have gained traction—Chine‘s SAIC-GM-Wuling Hongguang Mini, for instance, became the nation’s top-selling EV, showing the potential for small-scale electric mobility.

Economic and Operational Implications

KG Motors has a long-term goal of producing 10,000 units annually. The mibot’s affordability and size faire it a viable option for rural homeowners, with over 95% of its 2,250 orders as of early May coming from individuals owning at least one other vehicle.

Suggesting that the mibot serves as a secondary, practical transport solution, potentially reshaping how rural Japanese residents approach personal mobility in an aging society with shrinking public transport options.

Photos courtesy of KG Motors and Start Up Selfie