As vehicle prices remain high, automakers and startups are increasingly investing in electric low-speed vehicles, or LSVs, as a more affordable transportation option for Americans, CNBC reports.
LSVs are small, street-legal electric vehicles that fall between golf carts and traditional cars. They typically start at around $15,000, far less than the nearly $50,000 average price of a new vehicle, and are designed for short trips on roads with speed limits of up to 35 mph.
They can also be charged overnight using a standard household outlet, making them less expensive and more convenient to own than many conventional electric vehicles that require specialized charging equipment.
Companies such as Waev, Chip Motors and Stellantis’ Fiat believe demand for these vehicles is growing, particularly for use in retirement communities, condominium developments and other settings where short-distance travel is common.
Interest in the market has also increased following President Donald Trump’s support for expanding U.S. regulations to allow more small vehicles, including European low-speed vehicles and Japanese Kei cars, on American roads. Industry forecasts suggest the broader micromobility market is poised for significant growth, with McKinsey projecting its global value to increase from about $160 billion in 2022 to $340 billion by 2030.
Fiat is introducing its Topolino microcar in Miami as a test of Americans’ interest in micromobility, while Chip Motors plans to launch its “life utility vehicle” with the long-term goal of adding autonomous driving capabilities.
Despite this optimism, analysts caution that LSVs remain a niche product. Most consumers are expected to use them as secondary or recreational vehicles rather than replacements for traditional cars used for daily commuting.
