How Europe’s EV makers shrank their product to challenge the bloated SUVs European carmakers are shifting back to producing smaller electric cars, a trend necessitated by narrow city streets and the need for more affordable EVs. Improved battery technology and reduced manufacturing costs are making these smaller vehicles viable, offering an alternative to larger, less efficient SUVs. This move also positions European manufacturers to compete with Chinese rivals entering the market.

• European carmakers are developing smaller, more affordable electric cars suitable for narrow city streets, moving away from larger SUV models.
• Technological advancements in batteries and reduced manufacturing costs are enabling the production of these compact EVs.
• The new Renault Twingo E-Tech exemplifies this trend, aiming to slow the dominance of larger vehicles and counter Chinese competition.
• Smaller electric cars are crucial for reducing road transport emissions, which account for about a fifth of EU emissions.
• Manufacturers like Renault, Citroën, Peugeot, Mini, Smart, Fiat, and Cupra are all introducing or planning new small electric models.
• Challenges in designing small EVs include packaging components efficiently and making them financially viable, especially with safety regulations and battery costs.
• Chinese manufacturers like BYD and Leapmotor are also entering the European market for small electric cars, with some, like Smart, having European designs but Chinese manufacturing.
• European manufacturers are pressured to hit emissions targets and face competition, with potential for increased local production due to EU ‘Made in Europe’ rules.