Whether electric car or petrol engine: small cars are in crisis – these are the reasons

Those looking for an affordable small car with electric drive will be disappointed with German manufacturers: in addition to the Cityflitzer e.Go, VW e-Up, Opel Corsa e and the two-seater E-Smart, VW and Co. hardly anything offered. There is also no small electric car from the market leader Tesla. The American manufacturer focuses on large and expensive electric cars that generate a lot of profit.

An absurdity, according to the German automobile ADAC: “The German car manufacturers have almost completely withdrawn from the segment and are currently leaving it to European and increasingly Chinese manufacturers,” writes ADAC Technology President Karsten Schulz in a guest article for the “Welt am Sonntag “. – and calls for more effort.

In fact, some cheap, small electric cars have already disappeared from the market, such as Mitsubishi i-MiEV, Seat Mii Electric and Škoda Citigo. The latter not because there was not enough demand for them, but because they apparently made little profit.

Whether electric or combustion engine: small cars in crisis

The reason for the reluctance to buy small, affordable cars is quite simple: The batteries are still very expensive. Depending on the model and size, prices are between 7,000 and 28,000 francs – for that money you could buy a new car with a combustion engine. Since customers are very price sensitive, especially in the small car segment, large profit margins are not possible.

That is why the corporations are cutting back in other areas: the ADAC testers often confirmed that the cheapest e-cars were of mediocre quality or short range.

A problem that also affects small cars with petrol or (rarely) diesel engines in a similar way: they are becoming increasingly unattractive to car manufacturers. Increasingly strict emission standards and regulatory requirements for safety systems are driving up production costs and lowering profit margins: Who would spend CHF 30,000 or more on a small car?

This has consequences: “It is noticeable that German manufacturers are removing many basic models with weak engines and little equipment from their range and instead rely on more expensive and better equipped variants,” says ADAC.

More small e-cars from 2025

However, one consolation remains: the selection of small e-cars will steadily improve in the coming years. VW confirmed this week that they will build a 23,000 euro electric car. The electric entry-level car is to appear as a “small car and sporty crossover variant” and will complement or replace the VW Polo and VW T-Cross in the future.

They plan to launch four electric small car models by the middle of the decade, VW said earlier. In addition to the VW ID.2, there will be another model from VW and each an electric small car from Skoda and Seat/Cupra. The range will be at least 350 to 400 kilometers. “This is currently the psychological sales threshold,” VW brand boss Thomas Schäfer said in July this year.

Tesla is also planning a new model that will be smaller and cheaper than the Model 3. When asked by a private investor this week, Tesla CEO Elon Musk said he couldn’t give an exact launch date yet, but that the project would “the primary focus would be of the new vehicle development team”.

As batteries become more powerful, battery prices fall and e-cars can be produced more cheaply in larger quantities, more and more small e-cars of almost all brands are likely to hit the road from 2025.

According to the ADAC, it is important to pay attention to the range: the Hyundai and Kia models are currently frontrunners in small cars, about 400 kilometers is possible with one battery charge.

These small electric cars are currently available (selection)

(dpa/t-online/ccn/oli)