The formula for success of Chinese electric vehicles

Hit the customer's psychology

During the early stages of electric vehicle development, the Chinese electric vehicle industry giants showed superiority in understanding customer needs.

In the period of 2019-2020, the Chinese electric vehicle market was still new, electric vehicles were still a new technology, completely unfamiliar to consumers. However, in just a few years, hundreds of domestic car manufacturers developed in the billion-people market. Electric vehicle models were diversified from design to price. However, consumers were not yet ready to spend a large amount of money on a new type of green vehicle.

And Wuling car company has correctly identified consumer tastes in this period, with the Wuling Mini EV model quickly becoming the center of attention, attracting attention not only in the domestic car market but also globally.

HongGuang MinEV becomes the world's best-selling mini electric car for 3 consecutive years.

According to data from JATO, HongGuang MinEV is the world's best-selling mini electric car for 3 consecutive years (2020, 2021, 2022), which is a testament to Wuling's success.

After the initial phase, from 2022 to now is the boom time for Chinese car manufacturers. As consumer tastes lean more towards green cars, confidence in electric cars is also strengthened, at the same time they are willing to spend more money on green vehicles equipped with leading technology.

Seizing the opportunity, Chinese electric car giants have continuously launched low-cost car models, but are equipped with technology that is not inferior to models from Europe.

Thanks to that, they received tens of thousands of orders in a short period of time. For example, the BYD Seagull EV model had more than 10,000 orders after 24 hours. Or recently, the Xiaomi SU7 model received a record number of more than 80,000 orders after 24 hours of opening for sale.

Low-cost car strategy

Low prices have long been associated with the success of the Chinese auto industry, transforming from a large car importer to the world's number 1 auto exporter, surpassing Japan since 2023.

When the country's auto market was not yet fully developed, the government was generous with dual subsidy packages, for both manufacturers and consumers. For electric car manufacturers, their products will be exempt from taxes, helping to make the selling price of electric cars very good.

Typically at this time, the Wuling Hongguang Mini EV model not only minimizes safety and comfort options, manufacturing costs to reduce prices, 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 at a mere $5,000 each, creating a frenzy with 1.3 million units sold.

Nowadays, the government no longer subsidizes manufacturers much. But new electric car models from China still keep their selling price lower than their value, thanks to the loss compensation from the manufacturer itself.

Xiaomi SU7 is successful partly due to its low price policy.

A typical example is the model that is "making waves" in the domestic market - Xiaomi SU7. According to Reuters citing a report by research organization Citi Research, Xiaomi is currently facing a loss of up to nearly 10,000 USD for each new SU7 electric car.

However, this is still an "acceptable" loss for a Chinese technology giant that is just starting to enter the auto industry.

The selling price of only 29,900 USD for the basic version of SU7 (equivalent to about 705 million VND) is nearly 4,000 USD cheaper than its direct competitor, Tesla Model 3, while the engine performance is advertised as surpassing the Model 3.

Despite its low price, the Xiaomi SU7 is still fully equipped with modern technology, which is considered an achievement of Xiaomi. Something that long-standing "pure car" manufacturers do not have.

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