April 26, 2024

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[THE INVESTOR] Amid growing popularity of electric vehicles, ultra-compact EVs are emerging as a new form of transportation due to mobility on congested roads as well as their affordability, industry watchers said Sunday.

“Ultra-compact EVs have been mentioned as the next generation mobility for drivers living in clustered cities for quite a while now. The latest trend that began in Europe has recently landed in Korea,” said Kwon Soon-wu, an analyst of SK Securities.

“However, due to legal constraints in Korea, it seems like ultra-compact vehicles will mostly be used for deliveries and short-distance rides for now.”

Renault Samsung Motors` ultra-small electric vehicle, the Twizy. (Renault Samsung Motors)

Leasing the trend in Asia is China, with US-based auto giant General Motors having rolled out Baojun E100 ultra-compact EV there for $5,300 earlier this month. The number of small electric vehicles, including electric bikes and electric motorcycles, totaled 280 million units in China, data compiled by the state-run Korea Trade-Investment Promotion Agency showed. This means that one in five Chinese own an electrified compact vehicle.

Although Korea is a late-comer to the trend, ultra-small EVs are quickly garnering popularity.

Pre-orders for 1,500 units of Twizy ultra-compact EV made by Renault Samsung Motor, the South Korean unit of French carmaker Renault S.A., were sold out within a month last May, according to the company.

The two-seater EV that weighs 450 kilograms is 2,335 millimeters long, 1,233 millimeters wide and 1,451 millimeters tall.

The original price tag of Twizy is 15 million won ($13,167), but it can be purchased for a minimum 4.2 million won with 5.7 million won subsidy from the Ministry of Environment and subsidies given by each provincial government.

On full-charge that takes about three and a half hours, Twizy can run for 60 kilometers at speeds of up to 80 kilometer per hour.

But Twizy and other low-speed EVs have been banned on expressways following the National Police Agency’s refusal to categorize low-speed EVs as compact vehicles, a major set back for ultra-compact EV makers and owners for now.

Regarding the matter, the spokesperson of Renault Samsung said, “We are waiting for the government to release a new classification of vehicles in September.”

Semisysco, a local display panel maker, is also eyeing for a piece of the expanding market.

The company’s ultra-compact EV, dubbed D2 will be offered at local retail store E-mart in Starfield Goyang, Gyeonggi Province, the company said.

Produced in China, D2 is equipped with air conditioning and heating systems and has a driving distance of some 150 kilometers on full charge.

Official launch of D2 is expected to come between October and November after it passes government authorization. 

By Kim Bo-gyung / The Korea Herald (lisakim425@heraldcorp.com)