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Rural areas see sales hike of Chinese electric cars despite safety concerns

蘋果日報 2020/12/15 15:07


Sales of electric cars in China has surged amid the government’s efforts to promote new energy vehicles in rural areas. Wuling Hong Guang Mini EV, whose prices start at 28,800 yuan (US$4,399), beats Tesla Model 3 as the country’s top seller, having sold 30,000 in November alone. Despite the dazzling numbers and affordability, the Chinese-developed electric vehicles have also raised quality issues.
Wuling Hong Guang Mini EV, first launched in July, targets consumers in third- or fourth-tier cities. Statistics showed a record sales number of 14,000 in the first month, once surpassing 2,000 in a day. It also broke the record of Tesla as the only vehicle in China to sell more than 30,000 in a month.
The buying spree was propelled by part of China’s bigger strategy to boost sales and revitalize the countryside. 24 domestic car makers have been offering various discounts for 61 models, alongside subsidies to villagers provided by local governments.
Speaking at an executive meeting of the State Council last month, Chinese Premier Li Keqiang also mentioned increasing and stabilizing car sales, and initiating a new round of car trade-in as part of the plan to unleash the consumption potential of rural areas.
With the support of the government, electric vehicles sales in China have reached 0.9 million this year as of October. 160,000 were sold in November alone, a 104.5% year-on-year increase. To some, the popularity of the Wuling Hong Guang Mini EV has proved that market recognition, instead of subsidies, is necessary for long-term success.
Yet, despite the success of individual models, Chinese electric vehicles continue to raise safety and quality concerns. Li Auto recently recalled nearly 10,500 Li ONE sport utility vehicles, after the control arm ball joint in the front suspension was found to be faulty. Weltmeister recalled 1,282 vehicles after the battery was revealed to be at risk of catching fire.
Victor Ng, former senior vice president of the Bank of America, casted doubt on whether the strategy can save China’s slowing economy, as he estimated that rural consumption can only be sustained for up to a year. After the pandemic, China will have to face competition from India and Vietnam as more foreign tech and textile industries move their factories away, Ng added.
Despite the affordable price of Wuling Hong Guang Mini EV, Clement Tsui from the Hong Kong Institute of Economics and Business Strategy said the model will not pose a challenge to Tesla, which has better quality and is a foreign brand.
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