The formula for success of Chinese electric vehicles.

Hitting the right psychological chord with customers.

Throughout the early stages of electric vehicle development, the major players in China's electric vehicle industry demonstrated an advantage in understanding customer needs.

In 2019-2020, the Chinese electric vehicle market was still nascent; electric vehicles were a new technology, completely unfamiliar to consumers. Yet, within just a few years, hundreds of domestic manufacturers have emerged in the billion-person market. Electric vehicle models have diversified in terms of design and price. However, consumers are still not ready to spend a large sum of money on this new type of green vehicle.

And Wuling correctly identified consumer preferences at this time, with the Wuling Mini EV quickly becoming a focal point, attracting attention not only in the domestic automotive market but also globally.

The HongGuang MinEV has become the world's best-selling mini electric car for three consecutive years.

According to data from JATO, the HongGuang MinEV is the world's best-selling mini electric car for three consecutive years (2020, 2021, 2022), a testament to Wuling's success.

After the initial phase, the period from 2022 to the present has been a boom for Chinese car manufacturers. As consumer preferences shift towards green vehicles, confidence in electric cars is strengthened, and consumers are willing to spend more on green vehicles equipped with cutting-edge technology.

Seizing the opportunity, major Chinese electric vehicle manufacturers have been continuously launching affordable models that are equipped with technology comparable to those from Europe.

As a result, they received tens of thousands of orders in a short period of time. For example, the BYD Seagull EV model received over 10,000 orders in 24 hours. Or more recently, the Xiaomi SU7 model received a record number of over 80,000 orders in 24 hours after going on sale.

Low-cost car strategy

Affordable prices have long been associated with the success of the Chinese automotive industry, transforming it from a major car importer to the world's number one car exporter, surpassing Japan since 2023.

When the country's automotive market was not yet fully developed, the government implemented aggressive dual subsidy packages for both manufacturers and consumers. Electric vehicle manufacturers received tax exemptions, resulting in very competitive prices for their electric car models.

Typically, at this time, the Wuling Hongguang Mini EV not only minimizes safety and convenience options and manufacturing costs to reduce the price, but also takes full advantage of the Beijing government's subsidy policy for electric vehicles.

Thanks to government subsidies, the Wuling Hongguang Mini EV is priced incredibly low at just $5,000 each. This has created a sensation, with 1.3 million units sold.

Currently, even though the government no longer provides significant subsidies to manufacturers, new electric vehicle models from China still maintain low selling prices, below their value, thanks to losses covered by the manufacturers themselves.

The Xiaomi SU7's success is partly due to its low price point.

A prime example is the Xiaomi SU7, a model currently dominating the domestic market. According to Reuters, citing a report from Citi Research, Xiaomi may be incurring losses of nearly $10,000 per new SU7 electric vehicle.

Nevertheless, this is still an "acceptable" loss for the Chinese tech giant that is just starting to enter the automotive industry.

Priced at just $29,900 for the base SU7 model (approximately 705 million VND), it's nearly $4,000 cheaper than its direct competitor, the Tesla Model 3, while its engine performance is advertised as surpassing even the Model 3.

Despite its affordable price, the Xiaomi SU7 is still equipped with a full range of modern technologies, which is considered an achievement for Xiaomi. This is something that long-established "purely automotive" manufacturers have not been able to achieve.

Source: https://xe.baogiaothong.vn/cong-thuc-thanh-cong-cua-xe-dien-trung-quoc-19224041323283772.htm