The "dumbbell-shaped" characteristics of the new energy vehicle market are becoming more pronounced, with a steady stream of new models expected to further intensify market differentiation.

Cai Lian She (Shanghai, reporter Xu Hao) reports that the domestic new-energy vehicle market is increasingly showcasing a "dumbbell-shaped" pattern, with strong momentum at both the high-end and low-end ends—a trend that has become even more pronounced following the robust sales of Tesla's China-made models and SAIC-GM-Wuling's MINI EV.

"These new energy vehicle models at both ends of the price range have minimal reliance on subsidies, driven primarily by market demand." According to Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), recent hit new products have primarily targeted second cars and commuter vehicles, reflecting the auto market's trend of stable growth at a high level.

The "hit" new products Cui Dongshu refers to include the Model 3 and Model Y produced at Tesla's Shanghai Gigafactory, the SAIC-GM-Wuling MINI EV at the bottom of the price range, and the Great Wall Ora, also in the A00 segment. Data shows that among the top five pure electric vehicle sales in the first quarter of this year, the Hongguang MINI EV and Ora R1 are micro or small electric vehicles, while the Tesla Model 3/Y and BYD Han EV are B-segment or above. In the entire pure electric market, sales of both high- and low-end electric vehicles saw strong growth in March. Wholesale sales of A00-class electric vehicles reached 67,000 units, accounting for 40% of the pure electric market. A-class electric vehicles accounted for 20% of the pure electric market, reaching a low point in recent years. Wholesale sales of B-class electric vehicles reached 52,000 units, accounting for 31% of the pure electric market.

Against these market trends, the numerous new models launched at the just-concluded 2021 Shanghai Auto Show will undoubtedly further expand the "dumbbell-shaped" market. In the high-end market, with the hot sales of new car manufacturers such as NIO and Li Auto, as well as models like the BYD Han, the high-end new energy vehicle market has become a coveted niche for many domestic brands. These include Dongfeng's Lantu, BAIC New Energy's ARCFOX, Zhiji, a joint venture between SAIC and Alibaba, and the upcoming high-end smart car brand from the joint venture between Changan, Huawei, and CATL. In terms of price range, the first products launched by these brands have repeatedly approached the price ceiling of domestic new energy vehicles. "Small batches will be delivered by the end of the year, with larger quantities not expected until the first quarter of next year," a BAIC insider revealed regarding the Arcfox Alpha S Huawei HI Edition, which launched on the eve of the Shanghai Auto Show. "Current order numbers are strong." As a high-end smart electric brand under BAIC New Energy, the Arcfox Alpha S Huawei HI Edition is equipped with Huawei's autonomous driving technology and HarmonyOS, and uses three LiDAR sensors. Officially, it boasts 1,000 kilometers of hands-free autonomous driving in urban areas, and its price tag exceeds 400,000 yuan. Also breaking the 400,000 yuan mark is SAIC Zhiji's first new car, the Zhiji L7, with a pre-sale price of 408,800 yuan and expected deliveries in the first quarter of 2022. The second model, the LS7 SUV, will be delivered in the third quarter of the same year. Lantu's first new car, the Lantu FREE, is available in both an extended-range electric and a pure electric versions, with pre-sale prices of 313,600 yuan and 333,600 yuan, respectively.
If these brands are driven by the mission of leading independent brands to high-end sales, then at the other end of the market, smaller models are tasked with shouldering the responsibility of achieving sales. Since its launch, the Hongguang MINI EV has seen soaring sales, becoming a phenomenon in the new energy vehicle market and inspiring numerous new energy vehicle brands to follow suit.
Leapmotor and Nezha Auto, emerging car manufacturers, have each launched a refreshed model. Leapmotor launched the 2021 Leapmotor T03, priced between 59,800 and 75,800 yuan; Nezha Auto has released a women's version of the Nezha V. Just before the auto show, Sihao's Sihao E10X officially launched, priced between 39,900 and 75,900 yuan. Meanwhile, Baojun New Energy, also under the SAIC-GM-Wuling brand, launched the Baojun KiWi EV, a rebranded version of the new E300. Judging by the vibrant color schemes of these new models, they all target the Hongguang MINI EV. Wang Qiang, Deputy General Manager of Changan New Energy Company and General Manager of the Marketing Service Center, believes the micro electric vehicle market has enormous potential for growth. "This market segment has a scale of approximately 600,000 vehicles, accounting for over 30% of the electric vehicle market, and has a long-term growth trend. In the future, this segment is likely to reach 1 million vehicles." "Currently, major automakers' products are gradually penetrating the micro electric vehicle market, and their economies of scale and low-cost advantages will become more prominent. In the future, more major automakers will inevitably increase their launches of entry-level products." Cui Dongshu further stated, "The national policy of bringing cars to the countryside encourages further expansion of the A00-class market. The demand for personalized short-distance travel in small and medium-sized cities and county and township markets is growing stronger. Coupled with the arrival of an aging population, micro electric vehicles have enormous room for development in the future."

From Sina Auto

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