Chinese automakers are disrupting the traditional pecking order in China’s EV sector with affordable electric vehicles that offer smart features at lower prices.
Middle-income consumers in China are becoming increasingly budget-conscious, favoring electric vehicles with smart features at lower prices.
The rise of Geely’s Galaxy and Xpeng’s Mona 03 has disrupted the traditional pecking order in China’s EV sector. These two models, priced around 150,000 yuan (US$20,580), have gained popularity among young, middle-income consumers who prioritize affordability over premium features.
Geely Galaxy is a subsidiary of Geely Group, a Chinese multinational automotive manufacturing company.
Founded in 1997, Geely has grown to become one of the largest automakers globally.
The company acquired Volvo Cars in 2010 and Lynk & Co in 2016.
Geely's innovative approach focuses on electric vehicles (EVs), autonomous driving, and mobility services.
With a presence in over 160 countries, Geely Galaxy continues to expand its global footprint through strategic partnerships and investments.
Value-for-Money Vehicles
Eric Han, a senior manager at Suolei, an advisory firm in Shanghai, notes that ‘young, middle-income consumers favor electric cars with smart features like autonomous driving systems and voice-activated control technology, but they normally choose the cheapest models due to concerns about the economic outlook and their own job prospects.‘ The Galaxy and Mona 03 are seen as value-for-money vehicles, offering performance comparable to premium models at a fraction of the cost.
Mona 03: A Strong Rival to Tesla’s Model 3
The Mona 03, a midsize, fully electric sedan priced between 119,800 yuan to 159,800 yuan, has reported over 15,000 deliveries in January. Equipped with an advanced driving-assistance system and a range of at least 515km, the Mona 03 is seen as an equal to Tesla’s Shanghai-made Model 3, which carries a price tag of 227,500 yuan for its basic edition.
The XPeng Mona 03 is a fully electric crossover SUV developed by Chinese automaker XPeng.
It features a sleek design, spacious interior, and advanced technology.
The vehicle is powered by dual electric motors producing 544 horsepower and 640 Nm of torque.
With a range of up to 300 miles on a single charge, the Mona 03 offers an eco-friendly alternative for daily commutes.
Its top speed is electronically limited to 155 mph.
Galaxy: A Rising Star
The Galaxy, Geely’s mass-market EV brand, sold over 93,545 units last month, up 130% from the previous year. With prices around 150,000 yuan, the Galaxy has lured thousands of buyers away from Tesla’s Model 3 and Model Y vehicles.
China’s EV Market: A Growing Trend
The entire mainland EV market reported sales of about 900,000 units in January, up 31% from a year earlier. China is the world’s largest automotive market, with pure electric and plug-in hybrids accounting for around 60% of global sales. The country’s EV penetration rate surpassed 50% in July, making it an attractive market for manufacturers.
The China automotive market is one of the largest and fastest-growing in the world.
In 2020, over 28 million vehicles were sold in China, accounting for more than a quarter of global sales.
The market is driven by government incentives, urbanization, and increasing disposable income.
Chinese brands such as Geely and Great Wall are gaining popularity globally, while foreign brands like 'Volkswagen' and 'Toyota' continue to dominate the market.
Electric vehicle (EV) sales are also on the rise, with 'China' being one of the leading markets for EV adoption.
Incentives and Discounts
Car manufacturers have continued to offer steep discounts, including interest-free loans, to attract buyers. This trend is expected to continue as the competition for market share intensifies.
