A00 Micro Car: Truly Strong Performance
On October 12th, the China Passenger Car Association (CPCA) released the analysis report of the national passenger car market in September, which showed that the overall trend of traditional passenger cars continued to decline, but the new energy passenger car market performed strongly, with wholesale and retail penetration rates both exceeding 20%. The most popular A00 micro-car in August maintained strong performance in September, with wholesale sales rising to 90,200 vehicles and market share reaching 30% for pure electric vehicles.
Since September last year, A00-level micro-cars have been experiencing high growth rates, even surpassing steady B-class cars. However, the 30% market share may not be the final point. After releasing the analysis report of the passenger car market last month, CPCA Secretary-General Cui Dongshu said that A00 electric cars still have great development potential in 2021, and the overall share may remain at about 40%.
Serious “Homogenization”
The “hero” that created the trend of A00 micro-cars has to be the Hongguang MINI EV, which debuted in July last year. Its explosive sales figures have made the micro-car market boil again. In September this year, Hongguang MINI EV sold a total of 35,169 vehicles, ranking first in China’s new energy vehicle market for 13 consecutive months. As of September this year, Hongguang MINI EV’s cumulative sales have exceeded 400,000 vehicles, equivalent to nearly a thousand vehicles sold every day.
The continued popularity of Hongguang MINI EV has made car companies realize that inconspicuous micro-electric cars can also make their brand stand out and even achieve impressive sales figures.
In the past two months alone, nearly 10 new or restyled micro-electric cars have appeared in the market, including the Sihao E10X Jimei Edition, Chery QQ Ice Cream, Baojun KIWI EV, and Redding Mango, as well as some less familiar ones such as Punk Dudu, New Special Young Light Small New, and Hongrui Xiaohu.
However, overall, most of these cars, except for their badges, look like “revised models” derived from Hongguang MINI EV, and this type of car continues to appear in the latest vehicle declaration issued by the Ministry of Industry and Information Technology.
As for the MINIEV from Dongfeng Xiaokang, we will not mention its appearance that reproduces the traditional “square box” style of micro-cars, even to the extent of copying its name. It is expected that its price will be similar to the Hongguang MINI EV in the future.
In addition, for other new models such as the New Techrules YOUNG GUANGXIAO XIN, Punkdoa, and Hongrui Xiaohu, although their unit prices have been lowered to the same level as the Hongguang MINI EV, it is likely that the sales pressure will be great due to their lack of novelty in appearance, lack of highlights in interior design, and lack of sincere configurations when salespeople attempt to sell these features.
Of course, in addition to homogeneity in appearance, price, and endurance among these “Hongguang MINI EVs”, they also begin to compete in the market in the direction of enlisting online celebrities and playing with new trends through marketing strategies.
Take the Hongguang MINI EV as an example. After the slogan “If Hongguang is not refitted, it is better to go down to the sea” went viral, a large number of vehicle owners began to create their unique “art pieces”. After all, the vehicle itself costs only thirty to forty thousand yuan, thus spending an additional two to three thousand yuan to decorate it satisfies one’s desire for modification. This is also a cost-effective business. According to the modified list shared by netizens, 300 yuan can lead to a pleasant mood improvement, 3,000 yuan can change the vehicle’s style dramatically, and 10,000 yuan can support hardcore modifications.
At the same time, from the perspective of the modified results, and the offline activities of Wuling’s official response to the Hongguang MIN EV, this model is extremely attractive to many girls. Therefore, with the rhythm of The Hongguang MINI EV appealing to young women, regardless of the car, both inside and out, it is first powder-coated with a color that appeals to them, like the sugar-coated version of the Lengpao T03, the Chery QQ ice cream peach joy version, the pink modified Kewei, Xiaomayi, and so on. Fortunately, there are clear differences in the color preferences between them, some being gentle and elegant, while others have fluorescent colors shining brightly.# How to view these “homogeneous” mini cars?
After the success of the Hongguang MINI EV, we now see many followers directly copying its appearance, pricing, and even battery life. Some car companies only reduce the configuration and price of their old models to re-enter the market, then openly claim direct competition with the Hongguang MINI EV after their new models are launched. For consumers, it’s not about which car offers better value for money, but rather, playing a game of “spot the difference” between these cars.
In contrast, Wuling has put in a lot of effort in mini cars, not only turning the E300 into a more technological KiWi EV, but also launching a mini swapping station and their own microchip. Even the convertible variant of the Hongguang MINI EV has entered road testing, making it more interesting than the other competing models that only benefit from minor upgrades to configurations and lower prices.
In fact, some radical figures believe that the bulk production of mini EVs at this stage is equivalent to producing industrial waste, which is detrimental to the development of autonomous driving, intelligent cabins, and other new technologies. Although this claim may be somewhat biased, it does make sense. A strategy based purely on low pricing can only drive sales of special and cheaper car models for so long.
As mentioned at the beginning, Cui Dongshu, the Secretary-General of the China Passenger Car Association, said that mini EVs still have a significant share of this market. Indeed, mini EVs have proven popular among young consumers due to their low purchasing barriers, small size, flexible use, and low cost of ownership. However, this does not mean that low prices should always require compromise.
Consumers hope for more personalized and technological mini EVs that offer new breakthroughs and upgrades in intelligent driving, intelligent cabins, and other features. We should not blindly fill the market with cheap mini cars to earn subsidies, as this is no different from the substandard mini cars made by Zotye and the three-liter elderly cars used in the pre-subsidy phase.
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.