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A Wuling MINI EV car on display at the Auto Shanghai show on April 19, 2021. Photo: Reuters

Mini EVs steal the limelight at Shanghai Auto Show as China’s young drivers look for an affordable car

  • The Hongguang Mini EV Cabrio, a two-seater convertible, generated a buzz of excitement and is seen as a potential game changer in the world’s largest automotive market
  • ‘Low-priced battery-powered cars with fancy designs have struck a chord with young people in China,’ said Gao Shen, an independent analyst
A very small electric car built by General Motor’s mainland Chinese venture has become a very big hit at the 2021 Shanghai Auto Show.
The Hongguang Mini EV Cabrio, a two-seater convertible, generated a buzz of excitement and is seen as a potential game changer in the world’s largest automotive market, after the success of other diminutive electric vehicles (EVs) in recent months.

Hundreds of journalists flocked to the exhibition hall set up by SAIC-GM-Wuling during the show’s opening day on April 19, playing a guessing game as to how much the new car would cost. Camera flashes lit up the stand as the compact car with a manually retractable roof took centre stage.

It is the latest model to emerge from GM’s three-way partnership with SAIC Motor and Wuling Motors, following the bestselling Hongguang Mini EV which sports a price tag of just 28,800 yuan (US$4,437).

“Low-priced battery-powered cars with fancy designs have struck a chord with young people in China,” said Gao Shen, an independent analyst in Shanghai. “They no longer salivate over the oil-guzzling marquees with a big horsepower, but can be impressed by some small EVs which offer value for money.”

The carmaker has yet to disclose the price for the new convertible EV.

Analysts said it would attract thousands of buyers if it were to be priced at around 100,000 yuan, far higher than most other small, battery-powered models.

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More than half of the 33 new electric cars approved by the Ministry of Industry and Information Technology this month are mini cars, which typically sell at about 30,000 yuan.

The new entrants to the EV market reflect vehicle assemblers’ attempt to expand their market shares in the low-priced EV segment.

“Over the past two years, all eyes have been on EVs retailing at more than 200,000 yuan because drivers were skeptical about the range and quality of small battery-powered cars,” said Peter Chen, an engineer with car component company ZF TRW. “But the growing manufacturing might of the mainland’s vehicle assemblers, and the [decline in] the cost of electric batteries have added lustre to the mini EVs, which will eventually lead to a large volume of sales.”

The Hongguang Mini EV that has been on sale since last summer is a three-door car that can go as far as 170 kilometres on a single charge. It recorded sales of 270,000 units in 270 days.

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In comparison, Tesla delivered about 140,000 Model 3s in the whole of 2020.

“We thought that the cost of a battery in a small EV could make it more expensive than an ordinary ICE (internal combustion engine) car,” said Dong Yanjun, a visitor to the Shanghai auto show on Monday. “The price of the Hongguang Mini EV looks very attractive now and the cars are cute. I want to own one when sales start.”

UBS predicted in a research report last month that carmakers would be able to achieve margin parity between traditional cars and electric-powered vehicles by 2025 amid falling battery production costs.

SAIC-GM-Wuling is taking on a raft of rivals including Great Wall Motor, whose Ora-branded small electric cars are about 20,000 yuan more expensive than the Hongguang Mini EV but have longer mileage.

The country’s largest manufacturer of sport-utility vehicles delivered 45,000 Ora Hei Mao EVs in 2020, making it the second-bestselling mini EV in mainland China, trailing only the Hongguang Mini.

JAC Group’s SOL brand is also raising its ante in the mini EV segment, buoyed by customers’ mounting interest.

Its E20X model with a starting price of 39,800 yuan aims to grab market share from Hongguang Mini cars.

An engineer with JAC who asked not to be identified said that the Hefei-based carmaker was impressed by the strong sales of Hongguang Mini cars. JAC is now seeking to churn out better products with a higher price tag to woo young drivers.

“Many youngsters, hoping to save more money for home-buying, are considering inexpensive mini EVs rather than high-end vehicles such as BMWs,” said Eric Han, a senior manager with the business advisory firm Shanghai Suolei. “The existing mini EVs are more than enough to meet their transport demands.”

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