Title: Lingtu Automobile Launches New A00 EV Model: Baizhi Daxiong
SAIC-GM-Wuling has not produced a five-door four-seat Hongguang MINI EV, but another company has. That company is Lingtu Automobile, which has been silent for a while.
In August, the 347th batch of vehicle announcements and declarations issued by the Ministry of Industry and Information Technology included a new model, which looks just like “magic car” Hongguang MINI, except that it has two more doors and is slightly larger. The new product launched by Lingtu Automobile is Baizhi Daxiong.
Based on its understanding of the markets in fifth- and sixth-tier cities and townships and current automotive policy background, Lingtu Automobile specifically developed the strategic model, Baizhi Daxiong.
Its mission is to accomplish what the Hongguang MINI EV, which has sold more than 300,000 units, has not been able to do – satisfy the market demand for low-speed electric vehicles after they were regulated. The Hongguang MINI EV performs well in second- to fourth-tier cities, but fifth- and sixth-tier cities and townships require an economical, easy-to-use and large-capacity vehicle.
Baizhi Daxiong believes that it is the one that everyone has been waiting for.
A00 has room for further development, but the Hongguang MINI EV is at its peak
Electric cars are hot, and the hottest are A00 pure electric cars.
According to the most recent insurance data, cumulative sales of new energy passenger cars exceeded 1.4 million units from January to August, more than double the same period last year.
The proportion of A00 pure electric vehicle sales is rapidly increasing. By the end of 2020 and the beginning of 2021, A00 has captured nearly 40% of the pure electric vehicle market for passenger cars. As of August 2021, A00 pure electric vehicles still have a 38.1% market share.
The rapid rise of A00 owes much to SAIC-GM-Wuling’s Hongguang MINI EV, which has dominated the market since deliveries began in June 2020. The monthly sales reached as high as 34,700 units, and total sales have surpassed 300,000 units, accounting for nearly half of the entire pure electric A00 market.
However, Hongguang MINI EV monthly sales have remained around 30,000 units and are unable to break through.
Does the A00 market have such limited space?
The answer is, of course, no.From a trend perspective, the market share of new energy vehicles has reached 17% for a single month, and pure electric vehicles account for more than 80% of new energy vehicles. The rapid increase in market share signifies that electric vehicles have crossed the nurturing period and entered a period of rapid growth. Consumers have accepted electric vehicles as a category, and early adopters are leading more people to experience electric vehicles, creating a ripple effect that continues to spread.
Therefore, the overall market for electric vehicles will grow rapidly, and A00, as the main vehicle type, will also experience a significant increase in production and sales.
Looking specifically at the A00 pure electric passenger car market, this round of the A00 pure electric market is divided into two markets.
Firstly, the short-distance travel market in first-and second-tier, and third-and fourth-tier cities. Consumers in this market have certain purchasing power and are drawn to micro electric vehicles for their appearance, personality, and ease of driving and parking.
Secondly, it is the upgrade demand from the previous low-speed electric vehicle market. This group of consumers is price-sensitive and desires a certain level of loading capacity as compared to the previous low-speed electric vehicles.
In these two markets, the demand of the high-to-mid-end market has been better met, with new products emerging, and both new and old forces starting to pay attention. For the lower-level low-speed electric vehicle market, the Hong Guang MINI EV initially harvested a batch of orders with its unique position at the same price point.
However, the Hong Guang MINI EV’s two-door passenger cabin is relatively small, and its loading capacity is limited compared to the previous mainstream low-speed electric vehicles. Thus, the Hong Guang MINI EV did not capture the second wave of purchases in the low-speed electric vehicle market. SAIC-GM-Wuling’s response strategy was to launch the Macaron version, aim for a higher positioning, and try to please young consumers in tier-one, tier-two, tier-three, and tier-four cities.
But for the low-speed electric vehicle upgrade demand, SAIC-GM-Wuling did not adjust accordingly. The current monthly sales of over 30,000 Hong Guang MINI EVs are impressive, but when the low-speed electric vehicle market was booming, the annual sales volume was almost 2 million. If half of them can be converted into micro passenger car users, there will be 1 million annual sales.
Clearly, the demand has not yet been satisfied.
BZ Bear: Hong Guang MINI with Two Extra Circles
The market yearns for good products,
In the latest batch of car announcements from the MIIT, there are 14 micro pure electric vehicles applying for approval and hoping to gain a further foothold in the short-distance travel market.
Among them is a model that can be called the “large Hong Guang MINI EV”–the YGM7002BEVB from Lingyun Automobile.The market news also confirms the new product. In August, the YGM7002BEVB was released under the brand “Bai Zhi New Energy” with product and investment information released on public accounts and video platforms.
Having worked in the low-speed electric vehicle market for more than ten years and also gained qualifications to produce passenger vehicles, Lingtu Automobile’s latest move for this market reveals their strategic thinking.
A comparison between Bai Zhi Da Xiong and Hong Guang Mini EV reveals Lingtu Automobile’s significant efforts.
It is clear at a glance that Bai Zhi Da Xiong is much larger than Hong Guang Mini EV. In terms of length, Bai Zhi Da Xiong is nearly half a meter longer and approximately 15cm wider. Although Hong Guang Mini EV is slightly taller, by less than 3 cm, this difference is barely noticeable.
Bai Zhi Da Xiong has a similar visual appearance to Japan’s K-Car when it is first seen. It appears small but is deceptively spacious.
The five-door Bai Zhi Da Xiong is larger than Hong Guang Mini EV with an extra 35cm on the wheelbase. This provides comfortable seating in the second row and ample room for passengers and goods. Bai Zhi Da Xiong’s dimensions are larger and include two extra doors with a large rear door.
Furthermore, it has a 450L trunk, which can be extended up to 1500L if the second-row seats are folded down.
Thirdly, it is designed with “four rounded corners.” This means that the upward vertical space on the body can be fully utilized, providing comfortable passenger seating and room for objects.
In comparison to many other competitors designed primarily for female users, Bai Zhi Da Xiong has a masculine appearance. It is suitable for family males living in small towns and cities, capable of carrying family members, tools, and even freight, making it an excellent option for both home and business use. Without a doubt, potential male users living in small towns and cities outnumber female users.
Of course, Bai Zhi Da Xiong also has many advantages typical of micro electric passenger cars. These advantages include exemption from purchase tax, a green license plate, and no restriction on driving. It is equipped with two options for a 10.36kWh/14.5kWh lithium iron phosphate battery, providing a range of up to 138 km/181 km.
The cost per kilometer is less than 4 cents, with an annual maintenance cost less than 10% of a fuel vehicle. It can be charged using standard household 220V power, and the three-system quality assurance is 8 years or 120,000 km.“`
With the limited cost range, BAIC BJEV has created differentiated features. In terms of driving performance, BAIC BJEV is equipped with a 29KW motor and a maximum torque of 110N.m, which is stronger than that of the Hongguang MINI EV; it is equipped with standard EPS, light and easy to handle at low speed and stable at high speed; the minimum turning radius is only 5m, which is convenient for passing through narrow road sections; it has a front MacPherson independent suspension and a rear trailing arm style non-independent suspension, which ensures stable operation. Inside the cabin, BAIC BJEV is equipped with a 9-inch suspended touchscreen.
How to Promote Electric Vehicles in Rural Areas
In addition to product quality, the sales channels of A00 pure electric passenger cars are also important considerations for the rural market.
If traditional distribution channels are used and low-income consumers are expected to buy cars in cities or even provincial capitals, this is unrealistic.
Currently, some institutions and companies are working together to promote the use of new energy vehicles in rural areas, but essentially, they are still promoting and selling cars in cities.
To replace low-speed electric vehicles, there must be channels to replace them. However, the primary dealership for many micro-electric vehicles is only at the city level, and secondary and tertiary dealerships are generally at the county and township levels. If the profit from selling cars is limited, county and township dealerships will not have the motivation to sell cars. This is also a challenge for traditional car companies to explore the sinking market.
To address this, BAIC BJEV has proposed the strategy of “large cats and bears, ground-level flight, and thousands of stores in thousands of counties.”
In addition to products that meet the needs of the target market, BAIC BJEV will also adopt an aggressive pricing strategy to make its products affordable to consumers in cities and towns below the fifth or sixth tier. Based on the price of Hongguang MINI EV’s mainstream product, which is priced at about RMB 32,800, BAIC BJEV’s products should be priced at the same level.
On the other hand, BAIC BJEV will also expand its sales network to cities and towns below the fifth or sixth tier, enabling target consumers to easily purchase cars and enjoy nearby services.
According to BAIC BJEV, they will release the BAIC BJEV bear at the 2021 Shandong Autumn Car Show. At the same time, they will also release the large cat designed for young women. In the future, on the basis of existing products, BAIC BJEV will also launch convertible cars, leisure cars, and small multi-functional electric SUVs and other product categories.
BAIC BJEV’s sales target has also been determined: 5,000 vehicles this year, 70,000 vehicles next year, and strive for 100,000 vehicles. Although the target seems ambitious, it is only a “small goal” compared to the huge demand for upgrading low-speed electric vehicles.
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This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.