Toyota Motor announced it will introduce a special small pickup truck, known as the "Kei Truck," to the U.S. market in the latter half of 2027 under the new brand Scion by Toyota. Sales will initially target business customers and fleet operators. The company plans to invest $34 million to set up an assembly line in Indiana, supporting President Donald Trump's policy promoting domestic production of affordable small vehicles to address record-high vehicle prices.
Toyota Motor North America launched the new brand Scion by Toyota and revealed its first model, the KEI-01, a special compact multipurpose pickup truck or "Kei Truck," scheduled to enter the U.S. market in the second half of 2027. The launch events took place simultaneously in Ypsilanti, Michigan, and Frisco, Texas.
The KEI-01 is a compact pickup developed from the concept of Japan’s kei cars, popular for their economy, agility, and versatility. Toyota stated this model will offer American customers a new choice for a compact, affordable multipurpose vehicle without the need for the large pickups commonly favored in the U.S.
The KEI-01 features a 3-cylinder 660cc gasoline engine, a continuously variable transmission (CVT), and four-wheel drive. It has a top speed of about 40 kilometers per hour, measures approximately 3.35 meters in length and under 1.5 meters in width. The vehicle is right-hand drive and designed to meet federal safety standards for low-speed vehicles.
Highlights of this model include a cargo bed that can fold open on three sides for easy loading, an extended cabin with a high roof, adjustable and sliding seats, and storage space behind the seats. It also includes air conditioning and heating systems to ensure usability in all weather conditions.
The truck can carry a maximum load of 600 pounds (approximately 272 kilograms) on its bed and features selectable four-wheel drive modes with locking capability, suitable for use on rough terrain, mud, and snow.
Toyota said that initially, the KEI-01 will be sold through a pilot program targeting commercial fleet customers and organizations using vehicles in their fleets. Dealers will be selected from Toyota’s existing network to handle sales before considering limited retail availability depending on market demand and performance.
Production will begin at Toyota’s Indiana plant in the second half of 2027. The company plans to invest $34 million and expects to create about 50 new jobs to establish the assembly line, along with upgrading production systems and logistics infrastructure.
Toyota stated the KEI-01 is suitable for small business operators, farmers, transport and delivery companies, as well as municipalities, universities, and large company campuses needing small, economical, and agile utility vehicles.
In addition to the KEI-01, Toyota unveiled two concept vehicles: the SxS Concept, a compact off-road vehicle developed with North American engineers featuring a hybrid four-cylinder turbo engine with over 300 horsepower and a quiet electric-only drive mode; and the BKE Concept, a prototype focused on personal mobility combining compact size and versatility for outdoor activities.
This launch also marks the revival of the Scion brand, which Toyota discontinued in 2016, now repositioned as a platform for experimenting with innovations and future mobility concepts, allowing the company to develop vehicles differing from its traditional approaches.
Toyota’s move coincides with President Donald Trump’s encouragement for automakers to produce small Japanese-style kei cars domestically. Trump stated after his 2025 visit to Japan that he wants these small vehicles to be manufactured within the United States rather than just imported.
The small vehicle market is gaining interest as new car prices in the U.S. continue to rise. Kelley Blue Book data indicates the average price of new vehicles sold in October reached a record $51,109, while pickups averaged $67,912.
Meanwhile, many affordable vehicles priced under $25,000 have been discontinued, reducing affordable options for consumers.
Currently, those wanting kei pickups in the U.S. mostly import used vehicles from Japan. Laws allow importing cars that do not meet U.S. safety standards if they are at least 25 years old.
Toyota is the first automaker to announce plans to produce kei pickups directly in the U.S., expected to offer consumers a small, affordable, and versatile vehicle option amid the large and increasingly expensive American pickup market.
Other automakers are also eyeing the small vehicle market. Ford plans to develop the Fathom EV electric pickup targeting a price under $30,000, while Slate Auto and Telo are working on electric pickups comparable in size to a Mini Cooper for the U.S. market.
/sourceToyota/Business Insider/Reuters