Japanese Startup Disrupts Electric Car Market with Affordable Model

A Japanese startup, KG Motors, is shaking up the electric vehicle landscape with a compact, budget-friendly car. Priced at approximately 120 million Indonesian Rupiah, the innovative Mibot is challenging conventional EV norms in a market still warming up to electric alternatives.

The Mibot’s Impact

KG Motors, based near Hiroshima, is making waves with its single-seater electric car, the Mibot. The company aims to invigorate the electric vehicle market with this inexpensive, compact car. The Japan Times reported that 3,300 Mibot units are slated for consumer delivery by March 2027, with half of them already sold. This success has placed KG Motors ahead of Toyota, which sold roughly 2,000 cars in 2024. In a nation where electric vehicles are not yet commonplace, KG Motors is seeking to dispel the myth that bigger is always better.

“These cars are too big,”

—Kazunari Kusunoki, Founder and CEO

Kusunoki explained that seeing large cars on Japan’s narrow streets inspired the car’s development.

Technical Specifications and Pricing

The Mibot measures less than 1.5 meters in height, providing a range of up to 100 km on a full charge. It takes about five hours to charge, and its top speed is 60 km/hour. The Mibot’s price is around 1 million yen before tax, which is about Rp. 112 million. Including tax, the price is approximately Rp 123 million. This is significantly lower than the Nissan Sakura, Japan’s most popular electric car.

Market Dynamics and Future Plans

Domestic and international automakers are still struggling to make a significant impact in Japan’s electric car market. Electric vehicle sales account for a mere 3.5% of total sales, or around 140,000 units. For instance, BYD sold only 2,223 cars in Japan in 2024, a fraction of the 4.3 million vehicles it shipped globally.

Toyota, on the other hand, adopts a multi-path approach toward a greener future, avoiding a singular technology focus. Kusunoki noted that, “Toyota says EV is not the only solution and therefore Toyota, Japanese people think it must be true. Many people in Japan seem to believe EV will not be popular.”

Japan is lagging in the worldwide trend of electric vehicle development. Yet, the Kei Car, or tiny car, has a special place in the hearts of Japanese citizens. Electric Kei Cars have started to dominate the domestic electric car market. The Nissan Sakura’s sales are strong, presenting a potential opening for KG Motors.

KG Motors plans to ship 300 cars to Hiroshima and Tokyo before the end of March next year. Another 3,000 units will be distributed nationwide. While KG Motors anticipates initial financial losses, they expect to reach a turning point in the second phase and plan to produce around 10,000 units annually. A recent report by the International Energy Agency indicates that global electric car sales are predicted to reach 14 million by 2025, demonstrating rapid market expansion (IEA 2024).