Source: Electrive, Microlino

The LEVA EU member has stated that it is considering moving production of its Microlino outside of Europe, due to a lack of support in the region for light electric vehicles. The Swiss brand has stated that is considering China as a relocation option due to its production incentives.

Micro’s Ouboter family, who created the Microlino, have invested approximately 70 million Swiss francs (approximately EUR 75 million) into the vehicle’s development and manufacturing to date, producing nearly 4,800 units at their facility in Turin, Italy. However, they have reported feeling disadvantaged in comparison with traditional carmakers, noting that their expectations of support from European authorities have not materialised.

According to the company, current European regulations pose significant challenges for vehicles classified in the L7e category, which includes its microcar, Microlino. Unlike larger electric cars, L7e vehicles do not qualify for subsidies, CO₂ credits or tax incentives in most European markets. They are, however, subject to import duties. Additional complications arise from inconsistent classifications: in Switzerland, for instance, the Microlino is registered as a small motorbike but treated as a passenger car for import purposes.

Another inconsistency, is that while light electric vehicles do not qualify for government benefits, bulkier, heavier-weighted electric cars (including SUVs) that take up more space on roads receive support from the government, such as carbon-emission policies and trading schemes, as well as subsidies.

The founders argue that these regulatory inconsistencies hinder the competitiveness of light electric vehicles and contribute to rising production costs. By contrast, they estimate that manufacturing in China could cut their production expenses by approximately 50%.

“If Europe doesn’t act, production will no longer take place here in future,” founder Wim Ouboter told Swiss media, highlighting that China offers government subsidies and substantially lower manufacturing costs that could make relocation appealing.

Earlier this year, India was also explored as a potential production base, though China’s financial incentives appear to be more advantageous. The consideration of a move comes shortly after the company unveiled a new variant of its compact electric model at the Brussels Motor Show.