Electric vehicles are poised to replace the conventional fossil fuel vehicles that dominate the roads in developed countries. Amid efforts to cut carbon emissions from transportation, EVs have emerged as a viable solution because they rely on rechargeable li-ion batteries rather than carbon-emitting combustion engines. However, electric vehicle adoption has proven to be slow, partly due to high purchase costs and insufficient charging infrastructure.
In territories such as China, however, automakers have made a killing selling mini-EVs for a fraction of the price of regular-sized electric cars. The Wuling Hong Guang MINI EV, for instance, sold nearly 400,000 units in 2021 and managed to surpass the Tesla Model Y by a wide margin. Smaller electric vehicles are much cheaper, with the Wuling MINI EV going for just $4,600 compared to the Model Y which costs a whopping $64,990.
A report from international mobility consulting company McKinsey Center for Future Mobility states that “minimobility” vehicles may be what the industry needs to bridge the gap between electric vehicles and micromobility. The center notes that certain European territories, especially France, have shown considerable interest in small three- and four-wheeled electric cars that can carry one or two people.
According to McKinsey, the market for small EVs could even reach $100 billion per year across North America, Europe and China, by 2030. The report stated that minimobility vehicles could provide an attractive transport alternative to urbanites because such vehicles would have lower space requirements and reduced emissions; they would also help to reduce congestion in urban areas.
In addition to being more affordable, minimobility vehicles are easier to manufacture, smaller, and more energy efficient, the report says. Since they are slower than conventional EVs, minimobility vehicles may also be safer than other transport options. Drivers will be able to sit, transport more cargo, and shelter from the weather, something conventional micromobility vehicles such as bicycles, scooters and mopeds simply cannot do.
In an interview, McKinsey coleader Kersten Heinke said that private purchases would make up the bulk of the burgeoning micromobility market. These vehicles would be more suited to travel on city streets at around 25 to 30 mph even though automakers could build them with the capability of going to 55mph, Heinke said. He added that governments would have to decide if people needed licenses to drive micromobility vehicles on and off-road.
It is now up to players in the EV space, such as ElectraMeccanica Vehicles Corp. Ltd. (NASDAQ: SOLO), to see whether it makes commercial sense for them to look into minimobility options or to focus on the usual cars motorists are used to driving.
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