The Microcar Market Preparing for Boom by 2013
The top 10 vehicle manufacturers are already preparing for the “microcar race”, proven by the fact that more than 19 models are scheduled to launch over the next three years. At the 2010 Paris Motor Show and at the 2011 Geneva Motor over 30 models were unveiled. The focus towards alternate fuel driven vehicles avoiding congestion in city centers is expected to boost microcars sales.
“The development of megacities, alongside changing mobility trends and growing interest in urban vehicles with low emissions and low fuel consumption, has encouraged VMs to introduce microcars in Europe,” said Frost & Sullivan industry analyst Vishwas Shankar.
The major challenges regarding microcars production will be range anxiety and limited speeds, as 75% of microcars are expected to be battery-electric. Legislative controls are expected to pull down sales on long term, plus a rise of microcars costs is forecast, due to the addition of new components recommended by legislation.
Microcar manufacturers like Aixam Mega and Ligier Microcar are relatively new entrants in the electric microcar market.
“However in Europe, automakers like Renault, PSA Peugeot Citroen, Tata Motors and many more have announced their entry in the microcars segment with sub-A vehicles. There is an evident market demand in the electric microcars category.” Shankar said.