Tesla (NASDAQ: TSLA) is facing stiff competition in China, its largest market for electric vehicles (“EVs”) after North America. The EV company has been the leading electric vehicle company globally for a while now, selling thousands of battery electric vehicles (“BEV”) across the United States, Europe, and China. However, the nascent EV industry has attracted plenty of companies that are giving Tesla a run for its money, especially in China, the world’s largest electric vehicle market.
The Hong Guang Mini EV, a compact $4,500 EV developed by SAIC Motor, has proven a big hit in China. Last month, the budget EV saw sales that were close to double what Tesla sold in the same period in China. It is being developed in the country as part of a joint measure between SAIC Motor, a state-owned company that holds the distinction of being the top automaker in China, Liuzhou Wuling Motors, and American automaker General Motors Co. (NYSE: GM).
While the most popular model of the budget electric vehicle is the $4,500 version, customers can upgrade to a $5,000 model with air conditioning. In the first month of the year, customers in China bought 25,778 units of the Hong Guang Mini EV compared to the 13,843 Tesla Model 3’s bought in the same period, says the China Passenger Car Association (“CPCA”).
To achieve this affordable price, SAIC Motor and GM had to make sacrifices. With a top speed of only 62 mph (100 km/h), the Hong Guang Mini EV barely compares to Tesla in terms of battery range as well as performance. Due to its convenience and low price tag, customers do not mind missing all the frills a Tesla EV would have, making the budget EV one of the top selling “new-energy” vehicles in China.
Quite small in size, the Hong Guang Mini EV can fit up to four people, although it may feel a little cramped with a driver and three passengers. Compared to the $39,000 drivers would have to fork over for a Tesla Model 3, the mini EV costs almost nothing and depending on your daily mileage, can easily be your daily use automobile. Wuling, as the SAIC-GM-Wuling partnership is known in China, has said it has plans to start shipping the compact EV overseas.
Sam Fiorani from Auto Forecast Solutions notes that, although China has plenty of automakers who produce small and cheap EVs, their low speed and overall low quality make them unappealing to the wide market. The Hong Guang Mini EV is the first EV that is small, cheap, and functions much like a real car would. If Wuling eventually starts exporting the mini EV to Europe, it may be more expensive due to environmental requirements across the continent.
Meanwhile back on U.S. soil, the Firefly ESV made by ev Transportation Services Inc. is making big inroads into the last-mile urban delivery segment due to, among other features, its payload of 1,100 pounds. This is remarkable hauling power compared to other similar vehicles.
NOTE TO INVESTORS: The latest news and updates relating to ev Transportation Services Inc. are available in the company’s newsroom at https://ibn.fm/EVTS
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