Category Archives: globalization

Tata Developing Electric Nano For Western Markets

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Tata Motors is developing an electric powered version of their Nano. The gas powered Nano will hit the Indian market later this year, and with a price tag of $2,000 will be the cheapest car in the world. However, for Western markets, the company wants to sell an alternative fuel vehicle. To this end, Tata Motors acquired a majority stake in Miljo Grenland Innovasjon last year. The Norwegian company specializes in electric car technology. The low speed electric Nano will be targeted towards urban and gated community market segments. Tata is also working with MDI Enterprises on a compressed air powered version of the car, which will also be a low-speed vehicle. Learn more

BG Autmotive Looking For Manufacturing Sites

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A local news story reports that Philadelphia based BG Automotive is looking for manufacturing sites in the Boston area including Bridgewater, Taunton, Fall River and New Bedford. The facility will be for mass production of their C100 neighborhood electric vehicle and employ about 150 people per shift. The company is looking for a site for a 60,000 – 100,000 square foot facility and is currently seeking funding.

Since the vehicle’s parts are imported and most of the activity at the facility would be assembly the company expects vehicle production could begin in as little as four months once a facility is found. The chassis and body of the vehicle are imported while components like the motor, controller and batteries are manufactured in the U.S. Delivery of the first vehicle is expected to be in April or May of 2009 according to the company’s website.

Another news source also states that

The company is planning to develop six facilities in the next 24 months for a total production of about 100,000 vehicles by year-end 2010.

I thought these latter figures were quite aggressive so I placed a call with BG Automotive and was able to speak with Barry Bernstein, the founder of the company.

He confirmed that the company is looking to develop six facilities with the ability to produce around 15,000 vehicles each annually. While our estimates of the LSV market size the market at less than 10,000 vehicles a year, Bernstein noted that interest in their vehicle has been higher than expected with over 44,000 people signing up on their website. No deposit is required to sign up initially but as the actual production date moves closer a deposit is required.

Bernstein also noted that the facilities will be designed to easily switch over to highway-speed electric vehicle production which is in the company’s long term plans. Besides Massachusetts, the Philadelphia based company is also looking to place facilities close to major LSV markets including California, Georgia, Texas, Northern Florida, Pennsylvania and the Tennessee – Kentucky area. They are applying for loan guarantees and other support from both federal and state agencies but will be able to scale down their facilities if they cannot garner this support. Bernstein expects to have more information on their site selection in about two weeks.

Tanfield To Form Joint Venture For Smith Electric Vehicle Production

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Tanfield is forming a joint venture with Smith Electric Vehicles US Corporation (SEVUS) to produce electric vehicles for the North American market.  The UK based Tanfield is the parent company of Smith Electric Vehicles.  According to the post at greencarcongress.com

Tanfield will licence Intellectual Property Rights (IPR), brand and all existing sales and sales enquiries in North America to SEVUS, in exchange for a 49% equity stake in SEV US Corp and per-vehicle royalties. As a majority (51%)-owned US company, SEV US will be eligible for US government funding and other benefits.

Production of the vehicles is expected to begin in 2009.  Tanfield has scaled back from their plans to develop, on their own in the US, a major production facility  with a capacity to produce 10,000 vehicles a year.  North America remains the largest potential market for their commercial vehicles.

Japanese Firm Exhibits Electric One-Seater

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Prototype T10 Minicar

Prototype T10 Minicar

Takeoka Jidosha Kogei Ltd exhibited a prototype of their upgraded electric minicar at the Interational Automotive Electronics Technology Expo in Tokyo Japan last week.  The minicar, currently named T10, is expected to be available in Japan sometime in 2009 and will be priced above $9,520, the cost of their current model in the market, the Milieu R.

The T10 is slightly longer, wider and higher than the Milieu R and is powered by four 12 volt batteries.  The top speed is 55 km/h and the range is 50 km/hr.  Curtis Instruments provides the controller for the vehicle.  Learn more

Valmet To Manufacture Luxury Golf Car For Garia

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Valmet Automotive has won a contract to engineer and manufacture a luxury golf car for Garia A/S of Denmark.  Production will begin in the third quarter of 2009 and the vehicle is expected to be on the market in 2009.

Garia Golf Car

Garia Golf Car

Total production is expected to be a “few thousand” per year in the next few years.  Valmet reports that it is investing two million euros and committing 50 people to the project.  A test fleet is already in use at a golf course in Denmark.  The electric golf car will be introduced at PGA Las Vegas in late August and then in the Middle East.

In April of 2008 Garia, which was founded in 2005 to build high end golf cars, opened sales offices in the U.S. with plans to have 15 to 20 dealers within a year.  The company is targeting the luxury golf car segment in Florida, Georgia, California and Arizona.

Valmet has previously produced vehicles for Porsche and recently won a contract to produce the Fisker Karma hybrid vehicle.  Learn more

Vantage Vehicle International Introduces New Electric Vehicles

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Vantage Vehicle International has introduced four new electric vehicles, two utility mini-trucks and two vans. The LSVs have a top speed of 25 mph and a range of 55-65 miles. The vehicles operate on 72-volt systems using either six 12-volt batteries or twelve 6-volt batteries. The vehicle chassis are imported from China and the electrical components are installed in the company’s facility in Corona, CA.

Korean Manufacturer Offers New LSV

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CT&T, a Korea based electric vehicle manufacturer, has developed the e-Zone EV low speed vehicle (LSV).

The vehicle comes with a 72 volt electric motor which can be powered by one of three battery pack options, flooded lead acid with a range of 35 miles or two different lithium ion packs with ranges of 45 and 75 miles. The company is establishing an assembly plant in Fiji which will be able to produce up to 10,000 vehicles annually. For North America, CT&T reports it is building an assembly line in conjunction with Royal Laser Mfg. in Toronto, Canada with an annual capacity of up to 15,000 vehicles and a projected start date in March 2009.

In the US the vehicle will be marketed as the CT Series Micro Car by T3 Motion. The company is targeting the public safety and private security markets and has contracted for 4,000 vehicles from CT&T. The deal is reported to be worth $50 million or about $12,500 per vehicle. The company reports orders for 100 vehicles already.

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Rough Terrain UTVs: Is Electric Power Making Inroads?

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Electric ATVs to hit the market – Potentially an indicator of electric power making further inroads into rough terrain utility vehicles, a number of electric ATVs are expected to hit the market in the near future. Barefoot Motors is coming out with their Model One and All Electric Vehicles Unlimited signed an agreement to distribute three electric ATV models under the brand GEO in North and South America. They are manufactured in Italy.

Growing Market Still Attracting New Market Entrants

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Electrovaya enters vehicle arena – Electrovaya which develops lithium ion batteries announced it will be producing their own electric vehicle, a two-seater with top speed ranging from 25-45 and a range up to 120 miles. It will be called the Maya-300. The company states that the vehicle could be ready for market by later this year. The initial target market is fleets and the price point is expected to be in the $20,000 to $25,000 range with a longer term price target of under $20,000.

Philadelphia steel wholesaler Barry D. Bernsten has formed BG Automotive Group for the purpose of producing electric vehicles. Plans call form importing 4,000 cars from Asia and installing batteries and electric motors in them at a local assembly plant. The initial vehicles will be low-speed vehicles with plans to upgrade the vehicles the following year to highway-ready vehicles. The initial retail price is expected to be $16,000. Targeting urban commuters, students and vacation homeowners.

Kentucky Moves Quickly To Lure Electric Vehicle Production

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According to various news reports, ZAP and their partner Integrity Automotive announced that initial construction has started on a facility in Franklin, Kentucky for the production of electric vehicles. ZAP is a minority stakeholder in the venture. Randall Waldman, Integrity’s CEO expects production at the one million square foot facility to start in approximately one year with a work force of 1,250. While plans are still in the development stage, Integrity management states that the plant will make electric buses in addition to ZAP’s product line. A possible scenario is to have the facility replace all of the production from ZAP’s China facility. Management cited the logistics expense of shipping vehicles from China to California to the East Coast as a factor in building the facility. ZAP had previously made vehicles in the US but lower labor costs in China made manufacturing overseas more cost effective. Government incentives are making US based manufacturing more feasible.

Integrity Automotive is reportedly investing $125 million in the facility and quickly garnered government assistance which came from all levels including:

  • $84 million of tax-exempt industrial revenue bonds for construction of the plant from city an county governments
  • $48 million in tax incentives from the state based on the company’s commitment to create 4,000 full-time jobs within the first four years
  • An executive order from Kentucky’s governor permitting the use of low-speed vehicles on Kentucky highways with a posted speed limit of 45 miles-per-hour or less.

While the production will serve the global market, in some respects, the shifting of production from China to the US is a reversal of the globalization trend I have been seeing in the market in general. I followed up the story with a call to ZAP to understand more about the situation. According to ZAP, the venture came together very quickly and the details of what vehicles will be produced and how many are still being worked out. Like some other electric vehicle manufacturers ZAP is reporting strong sales increases. In the quarter ending September 30th, 240 vehicles were sold including 121 in September compared to just 80 vehicles in the 3rd quarter last year. Most of the vehicles are sold in the US to consumers as well as some municipalities and are primarily the Xebra truck model. The company has increased their headcount by 30% this year and recently opened up a $10 million line of credit to fund expansion. The company is also planning on adding an NEV to their product line.