If you’ve visited a European city in recent years, you’ll have noticed more and more microcars dotting the streets. Once a niche concern in places like the Netherlands, microcars have become a chic way for the environmentally conscious to cruise around urban environments.

Like the Vespa in Rome or bicycles in Amsterdam, microcars are becoming a key part of European culture.

But as they flood the streets, it’s interesting to think about where they come from, with many of the brands and vehicles being relatively new. This led us to wonder about where all these vehicles are coming from.

To put that another way, are Europe’s microcars actually European? And does that matter?

Europe’s place in the microcar world

To begin with, let’s actually test our theory that microcars are uniquely popular in Europe.

One of the tricky things about microcars is that they’re hard to fully define, with different countries having different legal definitions.

For the purpose of finding out how Europe operates, we’ll use how microcars are registered on the continent. Basically, in the EU, there are two major categories: L6e, which are light quadricycles, and L7e, which are heavy quadricycles.

The data we have concentrates more on the L7e. Unsurprisingly, Europe dominates the global L7e quadricycle market. Western Europe accounts for around 72% of global demand, and roughly 55% of fleet operators across the world use this type of vehicle. In Europe as a whole, 64% of micro-EV registrations fall under this L7e category.

When it comes to the countries that use L7e vehicles in Europe, these are dominated by France (30–35%), Italy (20–25%), and Spain (15–20%).

That solves that: when it comes to microcars (and specifically L7e vehicles), Europe dominates. It’s not just a gut feeling, the stats back it up.

So… where are these microcars made?

To understand where L7e microcars are made, we need to do a little bit of creative data analysis and back-of-the-napkin maths. So take this all with a pinch of salt.

Basically, in 2024, Europe’s combined production of L7e quadricycles reached an estimated 15,987 units. Following on this logic, over 420,000 L7e quadricycles were registered globally in that same year, with Europe accounting for 64% of these registrations, as we’ve discussed.

What this means is, roughly, there were 268,800 L7e microcars registered in Europe during 2024. If we then remove how many of those were made in Europe (the aforementioned 15,987), we can estimate that the bloc imported 252,813 of the vehicles.

While we should be flexible with the precise numbers, it’s clear that the lion’s share of Europe’s microcars come from outside of the continent.

What’s going on?

One way of looking at this situation is through the lens of a company that manufactures much of its microcars in Europe: Microlino.

The Swiss company makes stylish vehicles that are becoming increasingly popular around Europe. They’re playful, electric, and attractive, and are part of a new wave of microcars experimenting with the form. On top of this, around 80% of Microlino parts are made in Europe, the majority of which come from Italy.

Despite Microlino’s success, the company is under increasing pressure and is considering moving its manufacturing to China. This is reportedly down to the lack of EU subsidies and high manufacturing costs. The company behind Microlino, Micro Mobility Systems, points towards the fact it spent around CHF 70 million producing about 4,800 units in Turin, all without the tax breaks that bigger EVs receive.

And that plays a huge role in this. It’s estimated that producing the Microlino in China would be about 50% cheaper when incentives and investments are taken into account.

It’s tough to look past that when you’re a company and deciding between making your microcar in Europe or beyond.

The crux of the microcar matter

Fundamentally, it’s cheaper to manufacture electric vehicles in China. The country is the largest global car producer and a major supplier of EV components, especially batteries. On top of this, China’s EV supply chain is in a league of its own, so much so that there isn’t much of an alternative.

It’s little surprise then that the majority of microcars are made in the country. But does it matter?

Well, for the EU, yes, it absolutely does. The governing body is not only trying to boost EV usage with schemes like Regulation No 168/2013, but it’s also trying to increase production of EV components. Take, for example, the €1.8 billion Battery Booster Fund, which aims to bolster battery creation inside Europe. The EU is also trying to streamline access to the materials used for making these components as the world shifts away from oil with the Critical Raw Materials Act (CRMA).

Fundamentally, the EU sees clear benefit to producing more microcars and similar vehicles inside the bloc, the problem is just whether this can make a dent in China’s dominance. The country is far enough ahead with its supply chain, factories, and access to materials that it can offer similar vehicles for a much lower price.

For cash-strapped consumers, price is of the utmost importance, so it’s unlikely that many Europeans will be driving European microcars.

All this could change, of course. The EU is betting on it. But for now, Europe’s microcars will continue to be made in China.

Image Credits: Pexels