Are Americans ready to embrace tiny 'cars'? These companies think so
Automotive companies are exploring the U.S. market for electric low-speed vehicles (LSVs) as a solution to rising vehicle costs. While these small vehicles are popular in Europe and Japan, their success in the U.S. depends on regulatory changes and consumer adoption for short-distance travel.
Why it matters
The shift toward micromobility and LSVs could reshape urban transportation and address affordability issues in the automotive sector.
The next big idea in the U.S. automotive industry may be small.
A growing number of companies, including auto giant Stellantis , are betting Americans are ready to embrace smaller, less expensive vehicles amid yearslong affordability concerns for the U.S. auto industry.
But the vehicles aren't technically "cars." They're electric low-speed vehicles, or LSVs, that are essentially a step above a traditional golf cart but below a typical light-duty car or truck sold in the U.S.
"We have seen the popularity of many different form factors of electric, small low-speed vehicles continuing to grow," Keith Simon, co-founder and CEO of Waev, which owns several LSV brands such as ex-Polaris brand GEM, told CNBC. "I think it's evident by the number of new entrants across many different vehicle types. There's a lot of new players. … It's been growing significantly."
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