Under-US$5K Chinese EV seeks entry into Japan’s minicar market

Under-US$5K Chinese EV seeks entry into Japan’s minicar market

Initial market surveys see potential demand among caregivers and small businesses.

The Hong Guang MiniEV has been the top-selling electric vehicle in China since July 2020. (Wikipedia pic)
TOKYO:
The Chinese maker of the Hong Guang MiniEV, one of the world’s most affordable electric vehicles, is looking for a niche in the Japanese market ahead of a possible rollout here next year.

Billed as an “alternative to walking,” the four-seater went on sale in July 2020 and was the top-selling EV brand in China for 25 months straight through September.

The Hong Guang MiniEV has already been exported to Europe. Its manufacturer, SAIC-GM-Wuling Automobile, is next eyeing Japan, where it will face off against a wide selection of mostly gasoline-powered minicars.

Plans are to have the Hong Guang MiniEV start at ¥650,000 (US$4,400) in Japan.

This is less than half the price of Japanese-made minicars, said Sun Feng, president of Tokyo-based Apatech Motors, which was hired to do market research for SAIC-GM-Wuling.

Chinese-made electric trucks and buses have entered the Japanese market in recent years. This coming January, BYD will launch an all-electric sport utility vehicle in Japan. These EVs have sought to replace conventional commercial and passenger vehicles.

“There’s a completely different kind of interest in the Hong Guang MiniEV,” Sun told a logistics industry event in Tokyo on Oct 18.

The roughly six-month market survey found a small-town real estate firm that would be willing to provide the Hong Guang MiniEV to each employee free of charge. Buying the cars would cost less than what it spends compensating employees for commuting expenses, along with providing company vehicles for business use, according to Sun.

Others see the Hong Guang MiniEV as suited for those providing care to older adults. At the lowest end, the Hong Guang MiniEV can travel 120km on a charge – enough for short trips. These applications approach those of the electric micromobility vehicles developed by such companies as Toyota Motor.

SAIC-GM-Wuling has sold close to 900,000 Hong Guang MiniEVs in China. The company has begun the process for obtaining certification for the car in Japan. It expects the car to be allowed on public roads in the spring of 2023.

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