The Future of Affordable City Cars: European Kei Cars
In recent years, the automotive industry has seen a shift towards larger, heavier cars equipped with more safety features. As a result, the future of affordable city cars is now uncertain. Small cars, which were once a common sight in our cities, have become an endangered species, leaving those in search of an affordable new car with limited options. However, Renault Group CEO Luca de Meo has proposed a solution inspired by Japan’s kei cars – small urban vehicles – that could potentially revolutionize the European market.
De Meo believes that a European version of kei cars could not only provide affordable mobility but also help eliminate older, more polluting cars from European roads. He envisions cross-manufacturer cooperation, similar to the model used by Airbus, to create electric European kei cars. According to de Meo, this collaboration could generate a growth surplus of £500 million in annual GDP and create 10,000 jobs. Although talks with Volkswagen for a joint venture on a cheap small electric car fell through, Renault plans to reveal a sub-£17k Twingo in 2025, and VW aims to put their ‘ID 1’ into production by 2027.
De Meo’s vision for the future of affordable city cars revolves around going back to the fundamentals of the industry: mass development of small cars for urban travel and last-mile deliveries. To make electric cars more accessible, he proposes offering benefits such as reserved parking spaces, cheaper parking, and reserved charging points. His plan specifically targets the middle-class buyers who have been priced out of the new car segment due to steadily increasing prices.
One of the key challenges in producing affordable electric city cars is achieving a high production volume. Engineering cooperation between rival car manufacturers is crucial in reducing costs. To make this possible, the range of these cars would need to be around 110 miles in the summer, which is well above the average daily use of 30 miles. Renault plans to use a development of the new AMPR Small architecture for their Twingo, with a 40% reduction in costs achieved by simplifying the platform and reducing the number of parts. Collaboration with Google is expected to further cut software costs.
Renault has sought advice from a Chinese firm to ensure the profitability of the Twingo and its platform. Collaboration between brands is seen as essential for success. The platform’s operating system software would be simplified, allowing for a wide range of bodystyles, including longer wheelbase versions for small delivery vehicles and five-door versions for family use.
De Meo highlights the environmental benefits of small cars, stating that their impact is 75% lower than larger models. To further reduce the environmental impact of electric cars, de Meo emphasizes the importance of reducing the amount of lithium used in batteries. Lithium is a significant cost factor, with the cost of lithium in a typical EV battery equivalent to the factory price of a combustion engine. Alternatives such as lithium iron phosphate (LFP) and sodium ion batteries are being explored to address this challenge.
In conclusion, the future of affordable city cars may lie in European kei cars inspired by Japan’s small urban vehicles. The vision put forth by Renault Group CEO Luca de Meo centers around mass development of small electric cars for urban travel and last-mile deliveries. By reducing costs and offering benefits such as reserved parking spaces and cheaper charging, de Meo hopes to attract middle-class buyers who have been priced out of the new car market. Collaboration between car manufacturers and the use of alternative battery technologies will be crucial in making this vision a reality.