A small Japanese startup named KG Motors is making headlines in Japan’s electric vehicle (EV) market. The company has designed a very compact, one-seater electric car called the Mibot, which sells for just $7,000 (about ¥1 million).
This affordable and smart little EV is already winning hearts, especially in Japan’s busy cities where space is limited. KG Motors has already pre-sold 3,300 units for delivery by March 2027, which is more than the total EVs Toyota sold in Japan in 2024, According to data from Bloomberg.
The mibot is designed for short, everyday trips and fits perfectly into Japan’s narrow streets and small parking spots. It has a range of 62 miles (100 kilometers), a top speed of 37 mph (60 km/h), and can be fully charged in five hours using a normal 100V household plug, no special equipment is needed. The car also includes features like air conditioning and a small trunk, making it not just practical, but also comfortable for daily use.
Kazunari Kusunoki, the 43-year-old founder and CEO of KG Motors, shared the inspiration behind the mibot. “Cars are simply too big,” Kusunoki said. “Seeing so many big cars traveling Japan’s narrow streets, that’s where this all began for me.”
Japan has been slow to adopt EVs, with only about 2% of new car sales in 2023 being electric. Most people still prefer hybrid or gasoline-powered cars. Toyota, the country’s largest automaker, has taken a more cautious approach to EVs.
In 2022, Toyota’s former president spoke out against going fully electric. Even after a leadership change in 2023, the company continued investing in hybrids and other types of powertrains. This has made it difficult for EVs to grow in the Japanese market.
“Toyota said EVs aren’t the only solution and, because it’s Toyota, Japanese people assume it must be true,” Kusunoki said. “A large number of people in Japan seem to believe EVs won’t become popular.”
However, KG Motors believes that Japan is ready for a change, especially in rural areas where public transportation is weak. Kusunoki explained, “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 just per household.”
Production is set to begin in October 2025 at KG Motors’ new factory located east of Hiroshima. The first 300 units will be delivered to customers in Hiroshima and Tokyo by mid-2026, and the remaining 3,000 units will be shipped across Japan by March 2027. The company plans to scale up production to about 10,000 units per year after the first batch.
Despite its small size, the mibot packs a lot of technology. It includes over-the-air software updates, safety features, and a strong but lightweight body design. Videos on the company’s website show the mibot undergoing safety crash tests and driving smoothly through narrow streets and snowy roads.
“‘The mibot is a small mobility robot packed with surprises and fun in its small body,’” KG Motors writes on its website. “It can navigate even narrow roads with ease, turning everyday short rides into special experiences.”
The car’s simple structure just a battery, a motor, and basic electronics keeps production costs low. This also helps the company focus on quality while keeping prices affordable for consumers.
In Japan, kei cars (small, lightweight vehicles) have long been popular. The Nissan Sakura, a kei EV, sold nearly 23,000 units in 2024. But even that car costs twice as much as the Mibot. Foreign companies are also noticing the trend.
China’s BYD plans to release a kei-sized EV in Japan in 2026. Hyundai recently launched its Inster EV, which starts at ¥2.9 million, making it the cheapest full-sized electric car in Japan.
