Nissan has entered Japan's subcompact (tiny city car) market with the MOCO, a vehicle actually built by Suzuki, which also supplies some models to Mazda.

Nissan is offering the MOCO in both two- and four-wheel drive forms and the 2WD version meets Japanese ULEV standards for preferential taxation.

Engines are a 658cc twin cam variable valve timing unit or an intercooled turbocharged version and all have a column lever-controlled four-speed automatic transmission with full-time all wheel drive on 4WD models.

Nissan also plans a version with a slide-up front passenger seat for buyers with physical handicaps.

Prices start at 1,003,000 yen ($US7,600) and the monthly sales target is 4,000 units.