Are Americans ready to embrace tiny 'cars'? These companies think so

Key Points:

• U.S. automotive companies, including Stellantis, are increasingly focusing on electric low-speed vehicles (LSVs), small and affordable vehicles positioned between golf carts and traditional cars, as a response to affordability concerns and changing consumer lifestyles.
• LSVs are street-legal vehicles limited to 25 mph, equipped with basic safety features but not airbags, and are typically used for short-distance travel, often within closed communities; they offer a lower-cost alternative to traditional electric vehicles, often starting around $15,000.
• The global micromobility market, which includes LSVs, is projected to grow significantly from $160 billion in 2022 to $340 billion by 2030, with North America’s share expected to rise from $20 billion to $35 billion over the same period.
• New market entrants like Chip Motors and Stellantis’ Fiat brand are targeting urban and coastal markets such as Miami with models like the Chip life utility vehicle and the Fiat Topolino, aiming to expand consumer acceptance of micromobility options in the U.S.
• While LSVs currently represent a small niche and are viewed largely as recreational or secondary vehicles rather than primary transportation, industry leaders see potential for growth as consumer demand evolves and regulatory environments adapt.