The Big Case for Little Cars: Introducing the Neighborhood Electric Vehicle

Battery electric vehicles present an emission-free option for traveling by car, and are transforming the way people think about mobility. 
In particular, neighborhood electric vehicles point to the numerous ways that battery electric vehicles are changing the relationship between accessible mobility and the environment.

What are battery electric vehicles?

Battery electric vehicles are powered by electricity from an external source that is stored in the car’s battery. Because these vehicles are entirely powered by electricity, they present significant benefits for the environment. For example, in addition to dramatically cutting down on CO2 emissions, they also cut down on fuel and maintenance costs.
The California Clean Vehicle Rebate Project has categorized these cars as zero-emission vehicles, rendering them eligible for significant government rebates. As California’s rebate policy illustrates, governments are heavily subsidizing these vehicles as an environmentally friendly alternative to traditional gas vehicles. Because of this government support, battery electric vehicle development is occurring at a healthy pace. The market has made visible progress in recent years, creating a burgeoning market for electric vehicle batteries.

Some of the leading battery electric vehicles are the BMW (ETR:BMW) i3, the Ford (NYSE:F) Focus Electric, the Mitsubishi (NYSE:MTU) i-MiEV, the Nissan (OTCMKTS:NSANY) LEAF and the smart fortwo elector drive. Tesla Motors (NASDAQ:TSLA), Kia (KRX:000270) and Chevrolet (NYSE:GM) are also industry leaders, respectively producing the Model S, Soul and Volt battery electric vehicle models.

Neighborhood electric vehicles: built for the urban environment

One downside of battery electric vehicles is that they have to be recharged more frequently than conventional cars. According to the BCAA, current battery electric vehicles can travel between 140 and 180 kilometers between charges, whereas gas cars can travel 500 kilometers between fill ups. However, that doesn’t significantly detract from the utility of battery electric vehicles.
Recently improved electric vehicle batteries should increase these distances to 300 to 400 kilometers per charge, but many users aren’t concerned about this increased autonomy. The BCAA calculates that the average Canadian drives only 30 kilometers per day, making current battery electric vehicles perfectly equipped for normal city driving. Indeed, a subset of electric battery vehicles, termed neighborhood electric vehicles, are directly targeting these inner-city drivers.

According to the California Energy Commission’s Consumer Energy Center, neighborhood electric vehicles are small vehicles weighing 2,200 pounds or less that are designed for low-speed use in urban neighborhoods. Neighborhood electric vehicles can travel no faster than 25 miles per hour, and are restricted from traveling on roads with significantly higher speed limits.
Some neighborhood electric vehicle producers are Cruise Car, a company that sells low-speed, hybrid solar-electric vehicles, MIROX, which produces Oka Nev Zev neighborhood electric vehicles that are based on the Soviet VAZ-1111 Oka model, and Columbia ParCar, which has extended its golf cart business into neighborhood electric vehicles. These companies, along with other electric battery vehicle innovators, are changing the way people think about transportation within urban centers.
 

Related reading:
What is Cleantech Investing?
Top Regions for Cleantech Investing