LIUZHOU: Since last July, a little-known automaker in China’s southwest has dominated the world’s largest electric car market, outselling bigger players and even Tesla Inc. almost every month with a tiny, bare-bones EV that starts at just US$4,500 .
It’s an eyebrow-raising target, but even before the Hongguang Mini, Wuling had a track record for producing winners in a market that’s defining the new era of driving. At 35, he jokes he’s the elder statesman of the group whose age averages around 27. Slogans like"Young and Eager" are splashed across the walls of Wuling’s headquarters in Liuzhou, a city that’s embraced EVs alongside the company with 30% of all car sales electric last year, the highest rate in China, according to WAYS Information Technology.
It’s also how they landed on one of the car’s key selling points - besides its rock-bottom price point: Hongguang Mini drivers are able to customise their vehicles in a way that’s not possible elsewhere. She’s pimped her Hongguang Mini to resemble it, spending around 15,000 yuan to cover the car’s interior with brown velveteen and studding the roof with lights that sparkle at night.
Outside of Liuzhou, EV penetration in China is still only around 6% and competition is fierce. Tesla may be the name that resonates loudest, particularly in larger cities like Beijing and Shanghai, where its first Gigafactory is located, but a host of newer, local entrants from Nio Inc. to Xpeng Inc., Li Auto Inc. and WM Motor are crowding in.
The carmaker saw revenue of US$9.9 billion from its China auto joint ventures in first-quarter results out last month, up from US$4.3 billion for the first three months of 2020. Many of Wuling’s suppliers have also set up manufacturing bases in Liuzhou, which has helped cap costs further. It’s a model that’s being replicated by car companies in other cities and provinces across China, flattering for Wuling but challenging too as the price of rivals’ cars come down.