China’s Wuling Electric Car Bestseller Brings Only $ 14 in Profit

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The Chinese hatchback Wuling Hong Guang MINI EV now bears the title of not only the cheapest electric car, but also the best-selling in the world. At the same time, this model can hardly be called profitable.

The best-selling electric vehicle in China last year was the recently unveiled Hong Guang MINI EV, which is manufactured by General Motors and its Chinese partner Wuling. According to some forecasts, the automaker could sell up to 400,000 copies of the compact city electric car this year.

The demand for the model is due to its attractive price – just over 4 thousand dollars. This is a great marketing ploy, but the profit is not high at all. According to Chinese media reports, GM and Wuling make a profit of 89 yuan from each unit sold. This is about $ 14, or just over a thousand rubles. If GM and Wuling did not see the benefit in something else, then the electric car would clearly cease to be produced.

The partners decided to make money not on high prices, but on the number of cars sold. If the circulation of the electric car really reaches 400,000 cars, then the proceeds from such a number of cars sold will amount to almost $ 5.5 million. The figure, of course, does not pretend to be a record, but the automakers are clearly satisfied with everything. Another reason why GM and Wuling are not worried about the profitability of the Hong Guang MINI EV is the desire to get preferential treatment from local authorities.

As in America, Chinese automakers receive loans for sold electrified cars and lose them to less environmentally friendly ICE models.

Any remaining positive credits by the end of the year can be sold to other brands. Such transactions are actively practiced by Tesla. Each such loan costs about RMB 3000.

Each Hong Guang MINI EV earns two positive points for GM and Wuling, so perhaps the value of a small electric car is different for them.

The Hong Guang MINI EV mini electric car debuted in the summer of 2020. It is equipped with a 17.4 hp electric motor. and a 9.2 kWh or 13.8 kWh battery. With a smaller battery, the electric car will travel about 120 km without recharging, and with a top-end battery, its range grows to 170 km. The maximum speed of the battery citycar is 100 km / h.