Estonian start-up stories by Toivo Tänavsuu
In: Companies
30 Dec 2009
An Estonian company ZEV Motors is striving to develop one of the most efficient electric cars in Europe and to sell at least 50-100 of them in Europe over the next couple of years. The arrival of the so-called “e-cars” is only a matter of time according to the enthusiastic owners of ZEV, Teet Randma and Meelis Merilo.
“It’s difficult to make a breakthrough with electric cars in Estonia, because to Estonians the car is a status symbol, and not the most economical means of transportation,” Randma says. “But in a few years the price of a litre of petrol will be 2 euros – then attitudes will change!”
A pioneer in Estonia
A pioneer in the electric car industry, ZEV has taken the initiative, aiming to become the representative for many internationally known brands, as well as boldly developing its own products – in other words, the Estonian e-car industry!
The first prototype of the Estonian electric sports car, the ZEV Seven, was launched in 2008. In early November this year Randma and his business partner Merilo, who owns the legendary electric Pobeda, presented the Seven at the 2009 Electric Motor Show in Helsinki. Different transportation solutions were presented there, from e-bicycles and e-scooters to the few electric cars currently sold on the European market. The Estonians’ Seven, which is yet to go into production, was (remarkably) one of only three cars to leave the show powered by its own engine. Others, including Tesla Roadster (co-funded by Estonian venture capitalist Steve Jürvetson) and the Norwegians’ Th!nk City were ”pushed” out of there.
While the renowned Tesla Roadster costs upwards of approximately 64 000 Euros (plus taxes), the ZEV Seven basic model comes in at a third of the price.
Not a family car
The Seven is not a family car, but a kit car. The engine of the 5-gear manual two-seater vehicle is manufactured in the USA and the basic model uses eight lead batteries which take about 8 hours to charge, when connected to a standard 220V plug. Depending on the speed at which you drive, the batteries last for 50-90 kilometres and the journey hardly costs a thing (in the city the energy cost is 10 cents/km). It can even reach speeds of 120 km/hr.
So a Seven-trip from Tallinn to Tartu can’t be done yet on a single charge cycle – that would require expensive lithium batteries with a higher energy capacity and a quick recharge – cause it’s unthinkable to recharge the batteries during that journey, as it would take a full 24 hours for that.
An extension cord should always be carried in an electric car – you could ask to plug in the cord when stopping at a cafe, for example. Ok, that does sound a bit stupid though.
Lotus 7 clone
The men from ZEV have done all the electric works, but the bodywork was created by Valter Teppan’s company, Võidusõidutehnika AS. The bodywork is similar to that of the Lotus 7, designed by Colin Chapman in 1957. When designing the chassis of the car, the specifications given in Ron Champion’s book “Build Your Own Sports Car for 250 Pounds” were used to make the car more comfortable for the driver, and more sporty.
Many Russian Lada parts have been used in the Seven prototype, including the tachometer, swivels, steering shafts and brake discs (all new, not from the junk yard!). The yellow leather trim may be flashy, but the assembling quality is poor, to say the least. All of the comfort fittings have been removed from the basic model to keep the price low.
No orders from Estonia thus far
Randma says that the first model has been deliberately made with certain features as optional extras. “First and foremost, it is a driver’s car, additional accessories will be added according to the client’s wishes.” For example sun-roof, extra batteries, trunk space, stereo etc can be ordered.
The first order will most likely be delivered to Finland, because in Estonia the number of genuinely interested people can be counted on the fingers of one hand. At the moment, people are more interested in converting internal combustion motor vehicles to electric power. No electric cars are offered in Estonian car dealerships since the market for the Tesla, Th!nk, Reva or other electric cars is too small.
Urmas Roosma, an Estonian farmer who produces and sells electricity from his hydroelectric plant in the district of Halliste, has paid ZEV almost 10 000 euros to convert his Volkswagen Golf to run on electricity. This enables him to commute to his workplace in the town of Viljandi, 25 kilometres away, almost free of charge. “Oil consumption will come to an end,” he claims. “In five years there will be many electric vehicles in Estonia.”
Adaption to EU standards in progress
The adaptation of the ZEV Seven to European standards is in progress: the first step is registration in Estonia, followed by the acquisition of a European certificate.
“Once we obtain this, the European market will be within our reach,” says Randma, who believes that the certificates for sale and production can be realistically acquired during 2010.
This is because the car is classified as a four-wheeled motorcycle, which means the costs of the tests required are significantly lower than those for cars. The empty weight for these vehicles must be below 400 kg for passenger transport, and below 550 kg for cargo. Both vehicle classes are planned for production. Registration of the vehicle with the Estonian Road Administration authority was supposed to happen in 2009.
Have they lost their touch with reality?
Sceptics agree that the enthusiasts behind ZEV may be part of the “engine of progress”, but with their ambitious plans they may have lost touch with reality. How can they compete with major manufacturers who are investing hundreds of millions of dollars in development? Also, the Estonians are going to have a hard time procuring batteries in an already insufficient market.
Electric cars in Estonia number less than a dozen at the moment. There are believed to be no more than 6 or 7 cars powered 100% by electricity in the country. However, the men from ZEV Motors believe that it’s only a matter of time before e-cars come into mass use.
From the point of view of electronics, some challenges have been overcome but others are yet to be resolved. A personal electric car can be charged at home, in the garage, with a 220V plug, but for longer journeys, so as not to “become stranded”, a recharging network needs to be developed, with equipment that enables fast charging (about 30 minutes).
Countries have Grand Plans regarding networks
Car manufacturers are seeking national support for the development of a recharging network. Sweden is the frontrunner in the field, with many established 400V recharging stations. In Portugal, there are plans to install numerous recharging stations along the Lisbon-Porto highway by 2011.
Lead batteries are slowly being replaced by the more resilient and quicker to recharge lithium batteries, which enable longer journeys to be made. They also cost more (four times as much as lead batteries, though their lifespan is also four times longer) and after 100-150 kilometres, the danger of “becoming stranded” still remains. The possibility to exchange batteries, instead of recharging them, is still quite unlikely for private users because this requires substantial investment. However, this may be possible in industries which use fleets of cars (e.g. taxi companies).
Another serious argument for postponing the purchase of an e-car is the poor selection on offer. New electric cars are not widely available and most have two seats and little trunk space. Older manufacturers like Nissan, Mitsubishi and others are still showing concept cars. The “pioneers” – the Tesla Roadster and Th!nk City, presented at the Helsinki Show, as well as the electric Smart car and the British hit Reva – are not suitable as family cars because they fall into the category of extremely expensive sports cars or “highway-speed vehicles”. Tesla is launching a five-seater family car, the Tesla Model S, which is going into production in 2011. This will be a step forward because the car can cover 480 km in one trip and doesn’t cost over 60 000 euros like the Roadster, but half the prices (about the same as an E-Class Mercedes-Benz).
Current e-cars are too small and expensive
The 450,000 Kroon Th!nk City, which is popular in Scandinavia, is barely big enough to fit a grown man behind the wheel. Rear seats are entirely absent. This vehicle is a city car through and through.
Electric cars are 50-100% more expensive than the average car. Still, Randma claims that the investment in an e-car will pay for itself in six years. This is mainly because it is very cheap to drive – to travel 100 km it costs about 0,6 euros, which “translates” into 0.7 litres of petrol per hundred kilometres.
The propagation of e-cars in Estonia is being held back by the commercial banks, which do not offer lease options for them.
Estonia – probably the worst market for e-cars in Europe?
Teet Randma says that Estonia is probably the worst market for electric cars in Europe.
The only benefits are free parking in Tallinn and permission to drive in the pedestrian areas of the Old Town. And, unfortunately, there is only one recharging station, located at the Tallinn City Council building. The situation is different in other countries like Norway, which offer tax benefits, subsidies, the use of public transport lanes etc.
In addition, the Estonian market is small and lacking in incentive schemes. The sale of new electric car brands in Estonia is an unlikely prospect. The producers of “e-highway speed vehicles” like Th!nk are focusing on Great Britain, France and other bigger markets where the demand is higher.
ZEV Motors already sells electric scooters and ATVs and is trying to break new ground in the European market with both its own models and Chinese electric cars. One of them – a small vehicle called the ZEV Smiley – Randma drives himself. On a single charge it can drive 85 kilometres (35 during winter) and its top speed is only 55 km/hr. It’s likely that, in the near future, such vehicles will be available in Estonia for less than 6000 euros. The new model also has a European certificate in China, enabling unlimited sales in the European market.
ZEV fully supports the ambitious but rather utopian “Electromobile Estonia 2020″ plan developed by the Ministry of Economic Affairs, according to which in 11 years 100,000 electric cars could be “zooming around” Estonia.
“Everyone wants to drive big expensive cars, but oil is running out and the environment is polluted, so what are the alternatives?” asks Randma.
Cars that drive on liquid gas? The price of gas is linked to the price of oil and gas is also a limited resource; it is slightly more environmentally friendly, but still causes CO2 emissions.
There is still a very long way to go before a solar-powered car becomes a reality. A hydrogen car is basically an electric car which runs on hydrogen heating elements instead of batteries. And a car that runs adequately on nuclear power has yet to be invented. What we are left with is electricity…
“It is a question of priorities: it should be a priority for Estonia at present to keep as much money as possible in the country, but highway transport takes billions out of Estonia in fuel costs each year, causing significant damage to the economy on top of the health damage created by pollution,” says Randma.
5 Responses to BIG STORY: Presenting The first Estonian Electric Roadster – ZEV Seven (2 VIDEOS!)
Andrus
December 30th, 2009 at 8:17 pm
“It’s difficult to make a breakthrough with electric cars in Estonia, because to Estonians the car is a status symbol, and not the most economical means of transportation,” Randma says.
WRONG. Problem is that the cost to buy a decent EV(and an open top ZEV is far from decent) is too high. If I want an effective city car there are plenty of alternatives with gasoline or diesel engines.
Another problem with EV’s is our climate. During winter the range will go down 3-4 times. (This is what happened to Mini E test cars in the New York area).
Luis Barragan
December 31st, 2009 at 2:08 am
@Andrus if people don’t care, the government won’t move a finger to approve laws that may incentive the development of a EV in Estonia.
For sure Estonia is tough place to be green and eco friendly considering that most of the country doesn’t care about it and most are dreaming of getting a Hummer.
Kudos to ZEV, it takes some guts to be a pioneer in a hostile environment.
Wendy Loo
December 31st, 2009 at 7:14 pm
(Please re-post this as a community service)
Less than 20 car companies (The ATVM people say there were tons of applications but only a handful were car companies) applied for $25 BILLION DOLLARS in taxpayer money managed by a certain smug group of people at DOE in order to get loans to make green cars for Americans. This was not all of DOE that did bad things, just a private cadre of men.
There was enough money to help every single one of the car companies that applied. The administrators applied their interpretations of the law in order to benefit the large lobby group-related firms and avoided every one of the “politically unconnected “independent American companies.
The amount of lobby and influence money spent by each awardee is in direct ratio to the amount of money awarded. Pay-to-play was the process.
The smaller companies, due to lower overhead, could have dramatically more productive results with the money than the large burdened companies yet the money was given out based on political career advantages for the administrators rather than the technology advantages for Americans.
The way the ATVM people set it up (Google “Siry says stifles innovation” for more), the smaller applicants were prevented from getting outside investor funding.
All of the people that reviewed the applications had political and financial connections to GM, Ford, Chrysler and the large Detroit recipients.
Each of those smaller American companies had technology and resources that presented a powerful economic threat, if they got the loans, to the large politically connected companies that did receive funds. The big car companies wanted the small companies cut-out at all costs.
The Section 136 law was written to provide first-come-first serve funding but when the small companies got their applications in first, while the big ones arrogantly felt that they did not even need to apply because it was already pre-staged for them, the ATVM officials changed the rules in order to remove the first-come-first-serve standard of the law in order to cut out the smaller independents.
Some of the companies that have gotten money have backed out of making the electric cars they said they would make. But they still get to keep the money.
The Section 136 Law was created by the lobbyists for GM, Ford & Chrysler when they saw that they were about to go bankrupt and wanted to tap into additional taxpayer dollars by claiming the money was going to be used for electric cars in order to win rapid support for Section 136 by tugging at heartstrings. In retrospect, the money mostly went to gasoline car projects. Multiple public hearings have already shown the sister loan guarantee program to have been a failed program via intentional delays, the head was fired and replaced & massive complaints have been filed by many.
Some of the companies that got the money have already wasted more money than other companies applied for as their total request.
Some of the companies that got taxpayer loan money are not even American companies and/or are doing their manufacturing offshore with non-American employees. Thus, the ATVM process has cost American’s jobs.
Those who got the money had to fill out little, or no, paperwork, went through little, or no, review and were connected to the DOE people who gave them the money and shepherded them through the process. Those who they wanted to keep out were forced to jump through more hoops, were slow-tracked in review and had made no political deals via hired law and lobby firms that the big companies has used to conduit “influence”.
The decision about who would get money was made in 2008 by a private group who then pretended there was a lengthy review throughout 2009 but in fact, the money was pre-wired for a select few.
All of the things that the rejected small companies (who did not pay lobby fees) were rejected for, were the same things that the insider big companies were doing. In at least two cases, big companies who were in violation of Section 136 rules were guided by reviewer-insiders to change their whole business structure in order to become suddenly “compliant “with section 136 while smaller companies received no such “help”.
Andrus
January 1st, 2010 at 9:57 pm
@Luis
People do care and if you really think most people want a humvee you are very wrong.
Question is does the EV make sense in our climate or not? The cost is too high and also the range problem(especially during winter) is something that will not make it family’s only car.
I personally think extended range EVs(like Chevy Volt) have a bigger future as their range is not limited.
….current EVs are more of a status symbol just like Hummer to some people.
$100k Tesla Roadster might be green, but how green is it really? Do we know how “green” is the production of all the parts, batteries, the electricity you use to charge the battery pack … etc?
elektritsaabtasuta.blogspot.com
January 25th, 2010 at 7:48 am
Obama about renewable energy:
http://www.wepower.us