London Daily

Focus on the big picture.
Thursday, Nov 05, 2026

Chinese £3,200 budget electric car takes on Tesla

Chinese £3,200 budget electric car takes on Tesla

A budget electric vehicle (EV) selling in China for $4,500 (£3,200) is now outselling Tesla's more upmarket cars.

The compact car is proving a big hit for state-owned SAIC Motor, China's top automaker.

The Hong Guang Mini EV is being built as part of a joint venture with US car giant General Motors (GM).

Last month sales of the budget electric car in China were around double those of Tesla, which was questioned this month over safety issues there.

While the $4,500 Hong Guang Mini is the most popular model, there is an upgraded one with air conditioning for just over $5,000. The cars are being marketed as "the people's commuting tool".

The joint venture partnership, SAIC-GM-Wuling, is known as Wuling locally.

Car experts have said that while it clearly lags well behind Tesla when it comes to its battery, range and performance, its convenience and low price have made it one of China's bestselling "new-energy" vehicles.

Having launched last year, the basic model has a top speed of 100km/h (62mph) and can accommodate four people at a squeeze.

"China's government is serious about pollution reduction and becoming the global lead in adopting and promoting innovation of electric vehicles," Shaun Rein, managing director of the China Market Research Group, told the BBC.

"We remain very bullish on the adoption of budget EVs like the Hong Guang Mini to higher end ones like NIO and Tesla."

To promote EVs, the Chinese government offers license plates for free and they are guaranteed. In many cities, it can take months, if not years, to get a license plate for a petrol engine through various auction systems.


Taking on Tesla


The Hong Guang Mini EV saw sales of 112,000 for the second half of 2020, ranking second behind Tesla's Model 3 which are made in its Shanghai factory.

Earlier this month five Chinese regulators summoned Tesla over quality and safety issues at its plant. China is Tesla's largest market after the US.

For January, Hong Guang Mini sales outstripped Tesla almost two-to-one. It is now believed to be the second-best-selling electric model worldwide behind the Model 3.

The tiny, all-electric EV sold 25,778 models in China in January according to the China Passenger Car Association (CPCA). This compares to 13,843 for the Tesla Model 3.

But high-end electric vehicles have still been performing well with Tesla more than doubling its sales volume in China last year.

The Model 3 sells for about $39,000 (£27,000) in China factoring in price cuts due to its local production.

The Hong Guang Mini EV could make an appearance outside China, as Wuling has said it plans to export the EV overseas.

"China has so many makers of small and cheap electric vehicles, however most of them are low-quality and low-speed products that do not appeal to a wide market, said Sam Fiorani, at Auto Forecast Solutions.

"The Hong Guang Mini is the first time a major company has stepped up with a simple EV that targets buyers looking for a real car."

Reports have linked Wuling to a Latvian automaker who could sell a version of the car in Europe. However, the price is likely to be twice as high due to European environmental requirements.


Newsletter

Related Articles

0:00
0:00
Close
Department for Business and Trade Overhauls Protection Standards for Digital Animation and Moving Image Files
Intellectual Property Office Introduces Thirty-Month Grace Period for International Product Launches
Intellectual Property Office Targets Anti-Competitive Filings With New Powers to Verify Novelty Before Registration
Creative Industries Minister Ian Murray Praises Regulatory Reforms to Safeguard Small Businesses and Micro-Enterprises
Government Unveils Major Design Framework Overhaul to Protect British Creators and Boost Economy
Global Asset Management Reports Surge in British Dividend Payouts Driven by Strong Financial and Mining Sectors
HM Treasury Confirms Strongest Group of Seven Growth Figures as Fiscal Consolidation Plans Progress
Department for Energy Security and Net Zero Approves Construction of New North Sea Offshore Wind Hub
Northern Ireland Executive Finalizes Public Sector Pay Agreements Following Months of Inter-Agency Negotiations
Welsh First Minister Eluned Morgan Secures Cross-Party Support for Regional Clean Energy Infrastructure Bill
Competition and Markets Authority Launches Formal Investigation Into Dominant Artificial Intelligence Cloud Partnerships
United Kingdom Foreign Secretary David Lammy Concludes High-Level Diplomatic Mission to Washington and Ottawa
Scottish Government Announces Emergency Housing Investment Package to Address Escalating Urban Homelessness
Chancellor Rachel Reeves Finalizes Corporate Tax Adjustments Ahead of Upcoming Business Investment Summit
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected A&E Overcrowding
Bank of England Monetary Policy Committee Votes to Hold Base Interest Rate Steady at Four Point Seven5 Per Cent
UK Gross Domestic Product Expands by Zero Point Four Per Cent in Third Quarter Driven by Resilient Services Growth
Northern Ireland Executive Agrees on Multi-Year Public Sector Pay Restructuring Framework at Stormont
Department for Transport Confirms Acceleration of Electric Vehicle Charging Infrastructure Rollout Along Strategic Motorways
Welsh Government Announces Emergency Funding Package to Support Agricultural Sector Facing Severe Weather Impacts
High Court Rules in Favor of Environmental Coalition Over Government Carbon Reduction Plan Deficiencies
Office for National Statistics Reports Stable Retail Sales Growth Supported by Strong Digital Commerce Volumes
Scottish First Minister John Swinney Secures Cross-Party Support for Renewable Energy Export Expansion
National Health Service Digital Reports Major Breakthrough in Reducing Elective Waiting Lists Across England
Chancellor Rachel Reeves Outlines Infrastructure Spending Reforms to Boost Regional Economic Growth Across Northern England
Bank of England Holds Baseline Interest Rate at Five Percent Amid Persistent Core Inflation Pressures
House of Lords Advances Representation of the People Bill to Modernize Electoral Law Ahead of General Election
Financial Markets and Private Equity Assess Tax and Corporate Realignment Following Recent Chancellor Budget Adjustments
Justice Committee Warns Legal Aid Is a Service in Managed Decline Due to Inadequate Government Funding Responses
Royal Navy Intercepts Russian Intelligence Vessel and Warships Across Intensive North Sea Operations
Business and Trade Committee Slams Government Policy on China as Fragmented and Lacking Strategic Direction
Home Secretary Shabana Mahmood Softens Immigration Plans Following Intensive Cabinet Backlash Over Settlement Timelines
Automotive Industry Data Reveals Continued Acceleration in Battery Electric Vehicle Registrations Across British Dealerships
High Court of England and Wales Rules on Landmark Legal Challenge Regarding Local Government Housing Mandates
Department for Energy Security and Net Zero Approves Expanded Offshore Wind Infrastructure Along Scottish Coastline
Competition and Markets Authority Launches Broad Investigation Into Artificial Intelligence Infrastructure and Cloud Partnerships
United Kingdom and European Union Launch High-Level Preparations for Bilateral Defense and Security Summit in Brussels
National Health Service England Unveils Emergency Workforce Reforms to Alleviate Winter Accident and Emergency Pressures
Chancellor Rachel Reeves Finalizes Autumn Budget Adjustments to Meet Fiscal Rules and Fund Public Services
Bank of England Prepares for Interest Rate Decision Amid Rising Bond Yields and Inflationary Pressures
House of Lords Begins Detailed Legislative Scrutiny of Representation of the People Bill and Cyber Security Laws
Metropolitan Police Detain More Than Three Hundred Individuals Following Large-Scale Demonstration Outside London Embassy
Home Office Prepares Stricter Residency Rules Requiring Vulnerable Migrants to Wait Decade for Settlement Rights
Professional Mental Health Bodies Demand Statutory Regulation for Counsellors and Psychotherapists
National Grid Confirms Construction of Britain's Largest Electrical Substation to Power Teesside Data Centre
Prime Minister Keir Starmer Travels to Samoa for Commonwealth Summit Amid Debates on Economic Cooperation and Reparations
Home Office Implements Enhanced Digital Border Controls and Visa Processing Systems at Major Airports
Office for National Statistics Reports Stable Employment Participation Rates Across Regional Labor Markets
Department for Business and Trade Announces Strategic Partnership to Secure Critical Mineral Supply Chains
Scottish Government Unveils Regional Economic Development Strategy to Boost Advanced Manufacturing in Glasgow and Dundee
×