Japan’s carmakers, on a global expansion spree, are seeing margins increasingly squeezed in their home market as consumers turn to cheaper, more fuel-efficient minicars.

Nissan Motor, Japan’s second biggest carmaker, said on Monday it planned to sell 2,500 of its new Pino minicars a month in Japan, taking advantage of growing demand for cars with engine sizes of 660cc or less. The model, built by Suzuki Motor, a mini-vehicle specialist, will be Nissan’s fourth minicar. It will sell at Y861,000-Y1.15m ($7,000-$9,550).