The micro-car boom reaches Europe
February 27, 2023City Transformer, an Israeli firm, has recently chosen the site for its European manufacturing facility. Meanwhile, in France, the Kate startup is unveiling a new model.
The European market is set to be inundated with micro cars in the near future. Following in the footsteps of Asia, especially Japan with its “Kei car” (which makes up 40% of registered vehicles in the country), European brands are now targeting a growing demand. The popularity of the Citroën Ami and Renault Twizy serve as good examples of this trend, and the emergence of Kate, a startup launched by entrepreneur Thibaut Elzière, offers promising prospects.
The current dominance of French micro car manufacturers is expected to be short-lived, as an Israeli startup named City Transformer has recently emerged and is now launching a €47 million fundraising campaign, according to an announcement from the company on Monday. Reportedly, the company has already chosen a site for its production facility on the continent, with plans to manufacture 15,000 units annually. However, City Transformer has not disclosed any further details regarding the location at this time.
Conversely, we have already gained insight into the first micro car model that is set to hit the market. Its size has been approved for distribution in both the European Union and Great Britain. It is notably compact, boasting a turning radius of only 1 meter. With an electric power source, the micro car can travel up to 180 kilometers on a single charge.
There will be two driving modes available: one designed for city driving and the other focused on “performance”. The latter mode implies a top speed of up to 90 km/h. Although this speed may seem modest, it is important to consider the size and weight of the vehicle, which is comparable to the battery of a Tesla Model 3, weighing in at only 450 kg, as reported by Reuters.
A strategy of opposition
All emerging micro car manufacturers seem to be following a similar strategy, which contrasts with that of traditional automakers who produce larger, heavier, and more expensive models. Asaf Formoza, the Executive Director of City Transformer, questioned the necessity of maneuvering a two-ton, 600-kilogram car battery around town, stating:
“Is there any reason why someone like you or me needs such a vehicle?”
Earlier this month, Thibaut Elzière, a French entrepreneur, made a comparable remark while promoting Kate, his new micro car brand that resulted from the acquisition of Nosmoke. He characterized the new brand as
“technology serving simplicity and intuitiveness, without any unnecessary frills or overcomplication, as if you have always known how to operate it. A return to the basics.”
It is important not to confuse these micro cars with vehicles that do not require a license and cost less than €10,000. The pricing for these micro cars suggests that they will likely cost upwards of 15,000 or even €20,000. City Transformer’s initial model is expected to cost €16,000 excluding taxes, while Kate’s current model (which was acquired from the Nosmoke brand) is priced at €24,590.
