Wuling presented the Hongguang Mini EV in July 2020. Until January, it had sold around 160,000 units. The company believes it will sell more than 400,000 units of the Hongguang Mini EV in 2021. If it achieves that number, it will need only two years to overcome the Tesla Model 3 as the best-selling EV in history. Yet, Wuling would make only RMB89 in each Mini EV it sells. That’s equivalent to $14.
The information came from Xcar and was translated to English by CarNewsChina. Even speaking about really high sales volumes, selling 560,000 units of the Mini EV would represent a profit of just $7.8 million. You are more than welcome to wonder what is in there for Wuling.
Luckily, both outlets quickly clarified why the Mini EV pays off for Wuling: carbon credits. Each Mini EV represents two carbon credits for Wuling. A carbon credit in China is worth RMB3,000 ($464), making the quadricycle make more money to Wuling in these credits than it does in terms of pure trade.
Making the same math we did with profits, 560,000 Mini EV units would represent $259,8 million in credits for the Chinese manufacturer. That’s more or less the same amount of money Tesla makes in each quarter with these rules in the US.
Apart from these financial results, there’s another advantage the small car brings to Wuling: brand recognition, locally and abroad. The Chinese carmaker became world-famous after the Mini EV beat the Model 3 in sales in its home market more than once. Price has nothing to do with how popular it is: there are cheaper EVs available, and they do not sell as much as the Wuling.
While we wait on a study to explain why Chinese customers fell in love with it, European buyers will soon be able to drive an improved version of it thanks to the FreZe Nikrob. Costing €9,999 in Latvia, it will have the largest battery pack (13.8 kWh) and a range of 200 km, as well as some structural reinforcements to comply with European safety demands.
Luckily, both outlets quickly clarified why the Mini EV pays off for Wuling: carbon credits. Each Mini EV represents two carbon credits for Wuling. A carbon credit in China is worth RMB3,000 ($464), making the quadricycle make more money to Wuling in these credits than it does in terms of pure trade.
Making the same math we did with profits, 560,000 Mini EV units would represent $259,8 million in credits for the Chinese manufacturer. That’s more or less the same amount of money Tesla makes in each quarter with these rules in the US.
Apart from these financial results, there’s another advantage the small car brings to Wuling: brand recognition, locally and abroad. The Chinese carmaker became world-famous after the Mini EV beat the Model 3 in sales in its home market more than once. Price has nothing to do with how popular it is: there are cheaper EVs available, and they do not sell as much as the Wuling.
While we wait on a study to explain why Chinese customers fell in love with it, European buyers will soon be able to drive an improved version of it thanks to the FreZe Nikrob. Costing €9,999 in Latvia, it will have the largest battery pack (13.8 kWh) and a range of 200 km, as well as some structural reinforcements to comply with European safety demands.