Home Business China’s ultra-small electric car ‘Hongkwang Mini’ 5.01 million won… Need to strengthen price competitiveness in Korea

China’s ultra-small electric car ‘Hongkwang Mini’ 5.01 million won… Need to strengthen price competitiveness in Korea

by news dir

The ‘Wuling Hongkwang Mini’, which is the size of an ultra-small electric car, is popular in the Chinese electric vehicle market. It is increasing its market share in the local market based on its aggressive price competitiveness of at least KRW 5.01 million. It can be a threat when entering overseas markets including Korea, so it is advised that domestic ultra-small electric vehicles should also have price competitiveness.

According to an industry trend report published by the Korea Automobile Research Institute (Han Ja-yeon) on the 28th, the Wuling Hongkwang Mini, launched in July last year by SGMW, a joint venture between Shanghai Automobile (SAIC), Wuling Motors of China, and General Motors (GM) of the United States, is a sensational popularity in China. is looking for

Although it was released in the middle of 2020, it sold 137,000 units in the same year, ranking second in China and second in the world. In March and April, it ranked second in sales among passenger cars in China, including internal combustion engine vehicles. This is an unusual achievement, as the popularity of compact cars in China had previously been low.

The Woolling Hongkwang Mini is a compact (A segment) car in the form of a box car that has a high height to length and width. It is a compact car by domestic standards, but the output is comparable to that of a compact car. The dimensions are 2917x1493x1621mm and the wheelbase is 1940mm. The maximum motor output is 20kW, which is higher than the standard for ultra-small cars (15kW or less).

Ho Lee, senior researcher at the Hanjayeon Research Strategy Division, analyzed, “The main success factor is to break away from the negative image attached to low-priced cars by identifying the preferences of young people while having economical efficiency and practicality based on brand recognition in China.”

SGMW limited the driving distance to 120-170 km in consideration of the usage patterns of young people living in urban areas, such as short-distance commuting and outings. Although it is small, it provides a seat for four people, and the second row can be folded to load cargo. The motor is guaranteed for 8 years and 120,000 km, and it also includes functions such as remotely inquiring the condition of the car with a smartphone.

In response to the needs of the youth, the main target group, the price has been lowered to a minimum of 28,000 yuan (about 5.01 million won) by boldly removing unnecessary auxiliary functions. The highest specification is only 43,600 yuan (about 7.58 million won). Because the mileage is less than 300 km, it cannot receive subsidies for electric vehicles from the Chinese government, but it is cheap.

In comparison, the price of ultra-small electric vehicles in Korea is relatively high. Unlike China, in Korea, even ultra-small electric vehicles with short driving ranges can receive subsidies. Even if it is applied at 6.8 million won in Seoul standards, the models of domestic manufacturers lag behind in price competitiveness. The price before subsidy application is 15.7 million won for Cammsys ‘Sebo-C SE’, 17.49 million won for KST Electric’s ‘Mahib M1’, and 14.9 million won for Daechang Motors ‘Danigo’.

Senior Researcher Lee said, “In key segments, it can target advanced markets that are difficult for Chinese companies to enter, or play a leading role in advancing into the markets of underdeveloped countries at low prices.” “In order to maintain a certain level of quality while maintaining a certain level of quality, specialized know-how is required. . It is a unique competitive advantage that cannot be imitated by automakers that aim for high performance and high quality.”

By Park Jin-hyeong, staff reporter [email protected]

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