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China launches affordable electric car: New version of the best-selling electric car arrives with four doors, a revamped design and an impressive price tag of just R$42 – around US$6,9 in direct conversion, offering great features and technology from GM.
The supercompact electric car market in China is expanding at a surprising rate, but the public is already demanding a high level of equipment and more space at a low price in stores. With this in mind, the cheap electric car is in stores starting this week: Wuling Hongguang Mini EV, the fourth generation of GM's electric car that costs US$6,9, the equivalent of R$42 in direct conversion.
A little history of the cheap electric car in the automotive market
A few years ago, the Wuling Hongguang Mini EV arrived stealing the show, standing out as an affordable alternative to luxury electric cars. With attractive prices and a design inspired by Japanese kei cars, the small, cheap electric car in China won over the public, even surpassing the Tesla Model Y in sales.
However, the scenario has changed drastically, with a significant drop in sales of GM's electric car. In 2023, 237.863 units were sold, in contrast to 404.823 units in 2022. However, recently, China's Ministry of Industry and Information Technology (MIIT) released new patent photos of the cheap electric car in China.
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The images show a more refined design and slightly larger dimensions, with a length of 3.256 mm and a wheelbase of 2,19 meters. The updated version also comes with a four-door option, increasing its appeal to families and users who need more space.
Can GM's new electric car outperform the previous version?
Despite the improvements, China’s new low-cost electric car faces significant challenges. A design update and the addition of new features are always welcome, but it’s unclear whether this alone will be enough to revive sales.
GM's new electric car has a 40 horsepower engine and a top speed of 100 km/h, maintaining its urban vehicle profile.
The 16,2 kWh battery combining lithium iron phosphate offers 205 km of autonomy in test cycles in China. However, it is quite sufficient for urban travel and there are versions with 120, 170 and 215 km depending on the version.
It is worth mentioning that, with the end of many subsidies for small and less powerful vehicles, the Wuling Hongguang Mini EV faces tough terrain. In China, cars that travel less than 200 km or do not exceed 100 km/h do not qualify for the same tax incentives as other higher range and higher speed electric vehicles.
Furthermore, the safety reputation of the previous model, which did not have airbags or robust bumpers, could harm its acceptance in the market. Examples in China include the Changan Lumin Corn, with prices starting at R$37 and BYD Seagull which costs around R$51 thousand. (converting the currency directly and without considering Brazilian taxes)
Importance of GM's electric car for the brand
For GM, which has a partnership with Wuling, the success of the low-cost electric car in China is crucial. The American brand has struggled in the Chinese market and needs a model that can turn its fortunes around. While the new Mini EV has potential, it still struggles against more robust and well-established competitors.
In conclusion, the Wuling Hongguang Mini EV brings improvements and new features that may attract consumers, but it faces a competitive and demanding market. It will be interesting to see how this model performs in sales and whether it will be able to win back the Chinese public.
