Liux’s Brave Investment in Sustainable Microcars to Rival Chinese Competitors

Cities across Europe are experiencing a shift towards smaller vehicles. As the popularity of microcars grows, charming Italian ‘yoghurt pots’ are giving way to compact electric vehicles (EVs) from China. The iconic ultra-compact car brand Smart has relocated its production to China as part of this trend.

Spanish startup Liux envisions carving out its own space in this competitive landscape by launching a compact electric vehicle centered on sustainability.

Building on the success of the Swiss Microlino, Liux is set to introduce its upcoming microcar, known as the Liux Big. The name “Big” is somewhat ironic; while it’s small enough to park perpendicularly to the curb, it also highlights the ambitious nature of a team that often opts for unconventional approaches.

“The concept of a European car is virtually non-existent,” remarked Liux co-founder Antonio Espinosa de los Monteros in a conversation with TechCrunch. Given that his startup’s vehicles are already garnering attention for being “made in Spain,” his viewpoint was surprising and illuminated the firm’s priorities.

Though Liux’s batteries are not sourced from Europe, they can be charged at home using energy from solar panels. The design allows for easy maintenance while addressing the rapid obsolescence often seen in modern vehicles. Moreover, its exterior is made from a groundbreaking linen-based biocomposite intended for future recycling.

“David and I agree that recycling isn’t just a concept confined to a laboratory. While anything can be recycled in a lab, the true recyclability of a material hinges on how it is constructed,” Espinosa clarified. “Maintaining the integrity of materials and ensuring components are usable for a second life is vital in the building process.”

Espinosa’s dedication to “authentic circularity” is rooted in his previous venture, Auara, a Spanish B Corp that sold natural mineral water in both recycled and recyclable bottles. Following a successful acquisition by a larger company, he and Sancho decided to embark on a new venture with Liux.

In terms of vehicle innovation, Sancho has been at the forefront, concentrating on creating low-emission designs. His specialization is in engineering electric vehicles that rival petrol-powered models. Before joining Liux, he created the Bóreas, a hybrid supercar unveiled at the 24 Hours of Le Mans in 2017. After parting ways with prior associates, he teamed up with Espinosa to launch Liux.

Liux’s first prototype, the Animal, showcased their combined expertise: It was a fully electric five-seater made predominantly from recycled or plant-based materials. However, after presenting the SUV to the public in 2022, they pivoted, realizing a smaller vehicle would have a better chance of passing homologation.

Fast-forward to 2026; Liux has successfully obtained Europe-wide homologation for the Liux Big, which they plan to launch in the first half of the upcoming year. Currently, the company boasts a team of 65 employees and is making strides to increase production across three facilities in Spain.

One of these facilities is in Azuqueca de Henares, about an hour’s drive from central Madrid, where TechCrunch conducted its visit.

Liux’s Azuqueca plant, though small, follows Toyota’s “lean management” principles and focuses exclusively on the final phases of production, as explained by Beatriz Belda González, the production manager and a Spanish engineer with prior experience at BMW in Munich. She asserted that the company’s production capability could potentially reach 20,000 vehicles per year by 2030.

While it’s too soon to gauge demand, over 7,500 people have joined the waitlist for the Liux Big. Signing up is free, and this list has helped the startup assess its prospective consumer base. The typical profile includes city dwellers aged 55 to 60, leading Liux to anticipate that the Liux Big will often be used as a secondary family vehicle.

This may temper expectations that microcars could replace traditional car ownership, but Espinosa admits that Liux must be strategic in its endeavors. By remaining flexible, the startup is open to collaborating with businesses that operate B2B fleets or contribute to making its vehicles autonomous.

Espinosa envisions the Liux Big having a positive effect on the market by offering a more sustainable and affordable alternative. The startup hasn’t yet finalized pricing but plans to keep it below €18,000 — roughly $21,000 — prior to any potential EV subsidies. This positions it at the higher end of the microcar price spectrum, but Liux aims for it to provide exceptional value.

Celso Fernández Llorens, head of R&D at Liux, emphasized the significant constraints on weight and size within this category. He believes that most microcars tend to be quite similar, despite European regulators differentiating between ultralight L6e four-wheelers and the slightly heftier L7e models. Nevertheless, Liux has cleverly navigated these regulations to optimize its L7e homologation.

By making a series of strategic choices, the startup has successfully integrated a 260-liter trunk into the vehicle. Their primary goal has been to ensure drivers feel like they are at the helm of a real car, not a two-wheeler. This is essential for safety, as Sancho reiterated: a lightweight vehicle should not compromise its structural integrity or stability during turns.

While their category doesn’t require crash tests, Liux has taken the initiative to test and showcase the Liux Big’s agility, braking, and handling capabilities. Some of these features were demonstrated to TechCrunch during a brief test drive of the prototype’s off-road version.

Currently, the primary model will offer two battery options: 15 kWh and 20 kWh, with a cargo variant also in development. Given Sancho’s impressive background, the appeal of creating a supercar still exists. Recently, the company stated on LinkedIn that it aims to be more than “just a one-car brand.”

At the outset, however, Liux intends to utilize the €16 million it has raised to date (approximately $18.5 million, including European funding) to launch the urban version of the Liux Big in partnership with dealerships throughout Europe.

The showroom where we met is an early look at Liux’s future sales experience, as the brand manager, Ana Terrado Leyva, explained. She emphasized the use of textile screens, 3D models displaying the Liux Big’s three color variants — two more than the Ford T — and a linoleum floor inspired by linen. These design choices are part of Liux’s strategy to distinguish itself from its Chinese competitors.

Perhaps the idea of a European car isn’t entirely mythical.