Listed companies in the relevant industry chain reap dividends.
Source: SAIC-GM-Wuling
China's electric vehicle "dark horse" sales continue to soar. The Hongguang MINI EV, which has only been on the market for more than 4 months, sold more than 33,000 vehicles in November, an increase of 39.27% from the previous month. In comparison, Tesla sold 12,000 vehicles in China in October this year. The
Hongguang MINI EV is an A00-class pure electric model launched by SAIC-GM-Wuling on July 24, 2020. It has a guide price of 28,800 yuan and a cruising range of 120-170km. The monthly sales volume reached 7,348. Subsequently, this small car continued to maintain its sales growth trend, and in September and October 2020, it continuously topped China's new energy vehicle retail sales list.
Future Auto Daily Drawing
According to data officially disclosed by SAIC-GM-Wuling, of Hongguang’s MINI EV sales in November, more than 96% were purchased by individual car owners. Based on monthly sales calculations, on average, more than 1,100 individual users buy Hongguang MINI EV every day. According to relevant statistics, among the users of Hongguang MINI EV, 90% of car owners travel within 30km every day, and 85% of car owners drive less than half an hour in a single trip. The
A00-class pure electric vehicle is an upgraded model of the low-speed vehicle. The Hongguang MINI EV represents an important development direction of the A00-class pure electric market, which is also being released.
According to statistics from the Advanced Industry Research Institute (GGII), China's low-speed vehicle sales in 2019 were about 1.28 million (5 million units in possession), of which the annual sales of A00-class pure electric models were only 232,000. If it is assumed that 1/10 of low-speed vehicles will be converted to pure electric vehicles, 128,000 new vehicles can be added each year, driving sales growth of 55%.
CICC pointed out in a report released not long ago that the hot sales of Wuling Hongguang MINI EV in the third quarter of 2020 will bring the sales of A00-class vehicles back to 25%.
In addition, Hongguang MINI EV, which chose a low-price competition strategy, quickly opened up the demand in the third and fourth-tier markets. Northeast Securities analyzed in the report that the leading factor for Wuling Hongguang's phenomenal performance is the price-performance ratio, and the price is only 1/2 of the competing models. Specifically, the low-profile version of Hongguang’s MINI EV is only priced at 28,800 yuan. For comparison, Chery eQ is priced at 59,800 to 68,900 yuan. Wang Binggang, head of the national new energy vehicle innovation project expert group, said that micro, economical vehicles can better meet the travel needs of low- and middle-income groups and are in strong demand in third- and fourth-tier cities and rural markets. At present, the low-end market where micro electric vehicles are located is in a blue ocean of competition.
CICC is optimistic about the low-speed electric vehicle market with an annual capacity of one million, and it is expected that Wuling Hongguang MINI EV will continue to sell well and may contribute 150,000 units in increments. In addition to selling cars from OEMs, listed companies in the Hongguang MINI EV industry chain are also reaping dividends. According to calculations by Caitong Securities, if the annual sales of Hongguang MINI EV can climb to 600,000 in the future, the annual revenue of multiple supporting suppliers will increase by 30%-60%.
author | Zhang Yi
editor | Zhouyou
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