Toyota is introducing its Scion by Toyota brand, and the vehicle leading the charge is a truck so small it barely qualifies as one. The KEI-01, unveiled at simultaneous events in Ypsilanti Township, Michigan, and Frisco, Texas on Monday, is a four-wheel-drive pickup with a top speed of just 25 mph. Toyota plans to build it at its Indiana plant starting in the second half of 2027.
Toyota Motor North America introduced the new Scion by Toyota name and its debut vehicle at those twin events, according to the Toyota USA Newsroom. The automaker says the KEI-01 will be assembled at Toyota Motor Manufacturing Indiana, backed by a $34 million investment that is expected to add roughly 50 jobs. Business Insider frames the move as Toyota joining a broader industry bet that Americans are ready for cheaper, smaller alternatives to today's oversized pickup trucks.
Under the hood — or what passes for one on a vehicle this size — sits a 660cc three-cylinder engine paired with a continuously variable transmission and standard four-wheel drive, per the newsroom statement. Car and Driver reports the truck's top speed is limited to just 25 mph. Toyota says the KEI-01 is designed to comply with FMVSS No. 500, the federal safety standard covering low-speed vehicles, though that is the company's own description rather than an independent regulatory determination.
A Truck Measured in Inches, Not Feet
The KEI-01 measures just over 11 feet long and under 5 feet wide, with a bed payload capacity of up to 600 pounds, according to Toyota's newsroom release.
For now, don't expect to see one at a dealership showroom. Toyota's plan calls for initial fleet sales through Scion by Toyota dealers selected from its existing Toyota network, the newsroom statement says. The company has said it may consider expanding to limited retail sales later, depending on market conditions, customer demand, and operational considerations — but that remains a possibility, not a commitment.
Rising Costs Across the Auto Market
One thing Toyota has conspicuously not said is what the KEI-01 will cost. Motor1 reports there's no word yet on official U.S. pricing for the truck, and the gaps in Toyota's own materials leave plenty of open questions about how it will be marketed once fleet sales begin.
The KEI-01's introduction comes at a notable moment for the broader auto market. The average transaction price for a new vehicle in the U.S. hit a record $51,109 in October, according to Cox Automotive's Kelley Blue Book analysis — up 1.3% from September and 2.1% from a year earlier. Full-size pickup trucks fared even worse for buyers' wallets, averaging $67,912 in the same report, while vehicles priced between roughly $28,000 and $38,000 saw a 9.6% jump in sales volume year over year, suggesting demand is shifting toward less expensive options.
Used cars haven't offered much relief either. NPR reports the average used car now costs close to $27,000, 6% higher than last year, and more than a quarter of car buyers financed their purchases with loan terms of 84 months or longer over the past quarter, the outlet notes.
Imported Kei Trucks Offer a Cheaper, Older Alternative
For drivers who don't want to wait until 2027, kei trucks are already reaching American roads a different way.
Whether smaller vehicles can shift a market dominated by ever-pricier trucks remains an open question as Toyota prepares to build the KEI-01 in Indiana.
