London Daily

Focus on the big picture.
Friday, Jun 26, 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
Robert Jenrick Defends £5 Million Donation to Nigel Farage Amid Political Scrutiny
Plymouth Museum The Box Wins 2026 Art Fund Museum of the Year Award
UK Government Faces Backlash Over Plans to Use Former Military Sites for Asylum Accommodation
Labour Party Faces Pressure Over Cabinet Stability as Senior Figures Clash on Policy Direction
Heathrow Airport Forecasts Passenger Decline in 2026 as Costs and Climate Disruption Mount
UK Energy Regulator Approves Expansion of Long-Duration Storage to Boost Power System Resilience
Crown Estate Reports Third Consecutive Year of £1 Billion Profit as Debate Over Royal Finances Intensifies
Teenager Charged With Murder in Wales Following Death of 14-Year-Old Boy
Nottingham University Hospitals Maternity Failures Trigger Calls for Public Inquiry Into Patient Safety
EasyJet Rejects £4.9 Billion Takeover Offer From Castlelake but Keeps Door Open for Further Talks
Record Heatwave Triggers UK Transport and Infrastructure Strain as Heathrow Revises Passenger Forecast Downward
Ofgem Approves Sixteen Long-Duration Energy Storage Projects to Strengthen UK Grid Stability
Labour Government Faces Internal Tensions Over Cabinet Decisions and Net Zero Policy Direction
British Food and Drink Exports Fall to Decade Low Amid Trade Friction and US Tariffs
Great Britain Grid Operator Spends £10 Million to Stabilize Electricity Supply During Heatwave Demand Surge
UK Parliament Committee Calls for Urgent National Adaptation Strategy as Extreme Heat Strains Public Infrastructure
Record-Breaking Heatwave Pushes England’s National Health Service to Critical Incident Status as Hospitals Struggle With Surge in Emergencies
UK Government Launches Review of Voluntary National Insurance Contributions System
UK Planning Inspectorate Reports Key Infrastructure and Planning Milestones in Annual Review
UK Government Reviews Travel Expense Reimbursement Rates for Employers and Employees
Civil Nuclear Constabulary Launches National Digital Memorial for Officers Killed in Service
UK and US Expand Collaboration on Nuclear Fusion Research and Workforce Exchange
Environment Agency Secures £275,000 Enforcement Deal with Anglian Water Over Permit Breaches
Independent Inspector Flags Ongoing Failures in UK Home Office Border Case Management
UK Government Considers Zero VAT Rate on Land for Social Housing Development
Bank of England Reports Sharp Drop in Emissions and Warns on Climate-Driven Financial Risk
Consumer Confidence in the UK Falls at Fastest Quarterly Rate Since 2022
UK Borrowing Costs Rise Sharply on Gilt Markets Amid Fiscal and Political Concerns
UK Government Plans Legislation to Bring British Steel into Public Ownership
UK Government Secures £210 Million Nuclear Fuel Deal to Support Ukraine Energy Security
London Ambulance Service Reports Record Emergency Call Volume Amid Severe Heatwave
United Kingdom Faces Record June Heatwave as Temperatures Hit 36.7°C in Somerset
UK Financial Services Reform Debate Intensifies Over Ministerial Regulatory Powers
UK Energy Price Cap Rise Expected to Keep Inflation Above Target Through 2026
UK Biohacking and AI Wellness Trends Drive Surge in Personal Health Monitoring
UK Social Care Sector Sees Workforce Shift as Overseas Recruitment Masks Domestic Labour Decline
Nuffield Trust Warns UK Health Budgets Remain Vulnerable Despite Record Spending Levels
UK Coal Pension Surplus Debate Returns to Parliament as Reform UK MP Seeks Clarity on Distribution
UK MPs Consider E-Petition Calling for NHS Newborn Screening for Spinal Muscular Atrophy
UK Parliament Debates E-Petition Calling for Inquiry Into Pro-Israel Influence in Politics
UK Economy Grew 0.6 Percent in Q1 2026 but Business Sentiment Weakens Over Geopolitical Risks
UK Financial Services Bill Enters Lords Committee Stage With Expanded Ministerial Powers
UK Armed Forces Bill Advances With Plans for Defence Housing Service and Drone Defence Measures
UK Treasury Proposes Higher Electricity Generator Levy and Updated Mileage Allowance Rules
UK Parliament Debates Health Bill Amid Persistent GP Access and Patient Satisfaction Concerns
UK Financial Sanctions Regulator Signals Faster, Intelligence-Led Enforcement Strategy
British Chambers of Commerce Warns Business Confidence Crisis Is Dampening UK Investment
UK Parliament Debates Carbon Budget Order as Pressure Mounts on Net Zero Delivery
UK Energy Price Volatility Reinforces Pressure for Faster Electrification of Economy
UK Defence and Aerospace Strategy Gains Momentum as Keir Starmer Pushes Industrial Cooperation in Berlin
×