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Electric & new energy vehicles
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Do electric cars have the range to go the distance in China’s rural towns and villages as they battle for buyers’ hearts and wallets?

  • The average budget among car buyers in rural China mostly clustered around 50,000 yuan, according to a May survey by China EV 100
  • With that budget, they require a driving range of between 100 kilometres and up to 300 kilometres

Reading Time:6 minutes
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Illustration by Perry Tse/SCMP
Daniel Ren,Pearl LiuandJi Siqi

This is the first of a three-part series on the push for electrification in the world’s largest vehicle market, looking at the challenges of selling so-called new energy vehicles in rural China where manufacturers must balance between performance and price in a market of limited charging infrastructure.

An assembler of cheap compact cars and minivans running on internal combustion engines has emerged as the unlikely victor – at least for the time being – in the vicious battlefield of the world’s largest market for electric vehicles.

SAIC-GM-Wuling Automobile, a three-way partnership involving China’s largest state-owned carmaker and General Motors, delivered 30,000 units of its Hongguang Mini EV all-electric minicar in August and September, beating the sales by larger and much better-capitalised competitors, from Tesla to Volkswagen, as well as the technology start-ups piling into the market to make cars: Xpeng, LiAuto and Nio.
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Its secret: a driving range of 170 kilometres (105 miles) on a single charge, customer service that helps buyers get easy access to permits, and charging stations nationwide – all for a price that’s about one ninth of what it costs to buy a Shanghai-made Tesla Model 3.

“It is advisable for carmakers to work closely with local governments to facilitate [support services such as] number plates, access to parking and charging, and offer customers preferential electricity tariffs,” to support the growth of new-energy vehicles (NEVs), said SAIC-GM-Wuling’s marketing director Zhou Xing, adding that the robust sales data underscores the importance of working with local authorities. “A sound ecosystem is important in third- and fourth-tier cities as well as rural areas.”

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A Hongguang Mini EV made by SAIC-GM-Wuling Automobile. The three-door all-electric compact car can run for 170 kilometres on a single charge, retailing for 28,800 yuan. Photo: General Motors
A Hongguang Mini EV made by SAIC-GM-Wuling Automobile. The three-door all-electric compact car can run for 170 kilometres on a single charge, retailing for 28,800 yuan. Photo: General Motors
No one is suggesting for a moment that anyone willing to spend 249,900 yuan on a Model 3 would trade down to a Hongguang, or that a customer with a 28,800 yuan (US$4,283) budget can afford a Tesla.
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