A Large Market for Small Cars: Mini EVs Have Taken Off in China
In recent years, China has become the largest market for the automotive industry, especially electric vehicles (EVs). Among the emerging EVs, there have been two distinct trends. We have seen a ton of automakers coming out with large SUVs, while another cohort has gone the other direction, producing adorable mini EVs.
Why Have Mini EVs Taken Off in China?
There are many reasons why the mini EV has become popular in China. The first one is that cute cars have always been more accepted in Asia.
Secondly, the pandemic has made public transportation unattractive. The fear of inevitable close proximity has forced more people to choose the sealed and isolated automobiles to get around. When you take a look at the core consumer of these tiny cars, they are young millennials and Gen Z consumers who live in a city and have typically relied on public transportation to get around. According to the Financial Times, 65% of young Chinese people are considering purchasing a car and leaning towards small compact vehicles.
Besides trying to avoid public transportation, living in a city in China means traffic and parking are major headaches. So more and more young people, especially younger female buyers, are choosing compact vehicles over the full-size SUV’s and sedans because they are easier to drive and park.
These mini EVs are also typically very affordable, which is appealing to young, single people.
But Would People Look Down on You For Driving a Cheap Car?
In a very “face” driving society such as China, you may think that people would look down on people who drive these mini EVs, assuming they can’t afford a bigger and better car. But that is not the case. Why is that?
Well, to avoid this occurring, automotive manufacturers are making compact vehicles that are full of personalities, so it does not give people the perception of a cheap car, instead, people are buying the car to show off their individuality, to be part of an in-group, a trend.
This is similar to Mini Cooper, Fiat 500 and Smart. Although they are not expensive cars, but because of the design and color scheme, people typically see those cars as trendy and cool vehicles to have. Same with these cute Chinese mini EVs.
Consumers are Buying Mini EVs Online
Another interesting trend is that majority of the cute car buyers are buying cars online. According to a Forbes article, young consumers between the age of 18 to 24 are purchasing vehicles online, accounting for 23% of the total vehicle sales in China.
Young consumers are very comfortable purchasing things online and many of them don’t like the experience of haggling over a car price at a dealership. What’s more, electric vehicles are simpler than the internal combustion engine vehicles, there are no engine displacement and transmission types to choose from. This reduces the need to test drive or even see the vehicle in person before purchase.
Three Popular Mini EVs in China
Ora Good Cat R3
The ORA brand was established under its parent company Great Wall Motors in 2018. The brand was created to appeal to younger consumers. The most popular model is the ORA Good Cat R3. With its retro styling, it is reminiscent of the classic Porsche 911. The R3 seats 5 and is able to cover 311 miles (501 km) on a single charge with its 143 hp motor. It was revealed in July 2020 and had over 5,000 orders within the same month.
Wuling Hongguang Mini EV
The Wuling Hongguang Mini EV is already well known in the china market. It rose to fame around July 2020. It is manufactured by the joint venture of SAIC, GM and Wuling. This all-electric city car became an instant hit among all generations, especially young female consumers. Hongguang Mini EV sold more than 200,000 vehicles within the first 200 days, setting a global sales record for new energy vehicles. With its instant success, the company decided to add more color choices to the model, also adding a convertible version to further entice young trendy consumers.
Baojun E300
Another interesting brand that is also under the SAIC-GM-Wuling joint venture is the Baojun brand. The vehicle debuted in January 2020 and quickly became a popular choice amount young trendy buyers with its futuristic and robotic look. The Baojun E300 can conquer 190 miles (305 km) on a single charge and has 150 Nm of maximum torque. It has a top speed of 100 kilometers per hour and supports DC fast charging.
The Future of the Mini EV is Bright in China
Recently the Chinese government has been expressing increasing support for larger EVs as it would prefer to have China become known for its electric SUVs rather than its cute cars. But that is unlikely to stop the growth of this industry.
In my opinion, China’s small car industry will continue to take off rapidly, like BMW’s Mini and Mercedes’s Smart. In China, there is already a cult following of these small cars developing as well as a large aftermarket industry allowing owners to further customize them and fully express their personalities.
