05:52 17-01-2026

Microlino electric microcar may close or relocate to China

Swiss Microlino project struggles with weak European EV demand and high costs, potentially moving production to China. Learn about challenges and market impacts.

The Swiss Microlino project, which produces a compact electric microcar, faces potential closure or relocation of production to China. Company head Wim Ouboter revealed this in an interview with Swiss media.

He noted that demand for electric vehicles in Europe has been weaker than expected, and environmental priorities have become less clear. The situation is further affected by EU discussions about possibly allowing new fossil-fuel internal combustion engine cars after 2035. Although the Microlino, classified as an L7e vehicle, is not formally subject to these rules, it still suffers from the overall market cooling.

Ouboter acknowledged that sales could be higher, but the price remains steep: in Germany, the Microlino starts at €17,990 (1.65 million rubles). The company cannot offset costs with more expensive models, and major leasing firms avoid the microcar due to difficulties in assessing its residual value.

Additionally, the Microlino is excluded from several support programs because the L7e category does not qualify for subsidies. Production currently takes place in Turin, but high European costs may force a shutdown. In contrast, China has offered production at an existing factory along with investment.