Daily Management Review

Israel's City Transformer's Small EV Targets Europe's Urban Markets


Israel's City Transformer's Small EV Targets Europe's Urban Markets
City Transformer, an Israeli electric vehicle (EV) startup, plans to begin production of its small urban CT-2 model in Western Europe by the end of 2024 and will soon launch a Series B funding round to raise $50 million, the company announced on Monday.
Asaf Formoza, CEO of the company, told the media that the company, which has so far raised $20 million, has chosen a factory in Western Europe for an initial annual production of 15,000 vehicles but cannot yet reveal its location.
Formoza added that the additional funds raised by the startup should help accelerate series production.
In "city mode," the CT-2 has a range of 180 kilometers (112 miles) and is 1 meter (3.28 ft) wide. It is already approved for use in the European Union and the United Kingdom. This makes it narrow enough for four of them to fit into a standard car parking space, according to Formoza.
However, in "performance mode," the EV's wheel base expands to 1.4 meters, doubling its top speed to 90 kilometers (56 miles) per hour.
According to the company, the EV can seat two people in tandem and could be used for last-mile delivery or other businesses.
The CT-2 weighs 450 kilograms (0.5 ton), which is less than the weight of a Tesla Model 3 battery.
"Is there a reason a person like you or me needs to maneuver in the city in a two-ton car and 600 kilograms of battery?" Formoza said.
The CT-2 will cost 16,000 euros ($17,400) before taxes, and Formoza claims that by shifting away from smaller cars, major carmakers have made room for startups like City Transformer.
"The B (small car) segment is vanishing because carmakers make more on SUVs, so there's going to be a huge void that us and others will look to fill," he said.
Formoza added that City Transformer is lobbying the EU for subsidies for smaller EVs like the CT-2 that are currently available for larger models.