Electric MINI has significantly reduced prices, market analysis of pure electric compact cars.
Produced by Zhineng Auto
MINI China officially announced that the prices of its new electric MINI COOPER and electric MINI ACEMAN have been reduced to RMB 148,800 and RMB 163,900 respectively, a decrease of RMB 41,000 and RMB 46,000 compared to their launch prices in July and August this year.
The sudden price reduction applies to all previous customers, even those not covered by the "100-day price protection" policy. MINI China will provide cash compensation for the price difference.
This price adjustment also includes changes in product strategy: MINI has discontinued the original entry-level model, lowering the starting price while upgrading the vehicle configuration. Calculated based on the same configuration, the actual price reduction for electric MINI models ranges from RMB 57,000 to RMB 70,000.
Let’s take a look at the pricing of these A0 and A00-class pure electric compact cars and explore the development of this market segment.
Part 1
Analysis of the Pure Electric Compact Car Market
As a personalized luxury brand under BMW Group, MINI has not performed well in the Chinese market.
Since 2019, its sales have declined from 34,100 units to 18,200 units in 2023. Faced with declining sales, MINI has accelerated its electrification efforts to revitalize its position in the Chinese market through new energy models.
According to the plan, the MINI brand will stop launching fuel-powered models by 2025 and is expected to fully transition to a pure electric brand by early 2030.
BMW Group and Great Wall Motor jointly established Spotlight Automotive Co., Ltd., responsible for the production and R&D of MINI electric vehicles. Despite strong backing, these two electric models have received lukewarm responses in the Chinese market.
MINI's competitor, the smart brand under Mercedes-Benz, has quickly launched several electric models through its partnership with Geely Auto and achieved good market performance. The smart #1 sold 2,358 units in September, ranking second in the small pure electric SUV market.
Looking at the monthly sales of all compact cars and small SUVs, BYD's Yuan Up (16,018 units), Seagull (47,915 units), Dolphin (15,290 units), and Wuling's Bingo (24,036 units) dominate the sales rankings.
In fact, among the current players in the compact car market, BYD and Wuling stand out the most. Geely's Xingyuan also shows potential by further lowering the price of high-configuration products.
Part 2
Pure Electric Compact Cars Are Getting Cheaper
In the era of fuel-powered cars, FIAT, Smart, Mini, and Suzuki had their own niches in the compact car market. But why are "premium compact" electric cars struggling to sell?
Due to cost constraints, these cars are priced relatively high with low configurations, resulting in poor cost-performance ratios. Whether it's the Zeekr X, smart brand, or MINI COOPER, the cost of compact cars is not fundamentally different from larger vehicles, making it difficult to significantly lower their prices.
BYD and Wuling have made many considerations in their product strategies. For them, pure electric compact cars are primarily aimed at boosting sales volume, achieving cost optimization by making trade-offs in range.
In fact, fuel-powered compact cars have been replaced by larger SUVs. Therefore, launching pure electric compact cars priced above RMB 150,000-200,000 does not align with the demands of mainstream Chinese consumers for space and cost-performance. These cars cater to niche markets with limited audiences.
These compact cars were originally intended as secondary family vehicles. However, with a sluggish consumer market, rising prices driven by hybrid and extended-range electric vehicles, and a shrinking entry-level market, consumers either lack purchasing power or are holding off due to ongoing price wars. The demand for secondary family cars has declined this year.
Affected by price wars and the low pricing of newly launched models, there are many alternatives in the same price range. Another reason is that electric versions lack some of the unique features of their fuel-powered counterparts, making it hard to justify their prices.
Overall, pure electric compact cars face competition from even cheaper A00-class models, which start at just over RMB 20,000 in China. Against this backdrop, it is indeed challenging for pure electric compact cars to differentiate themselves through trade-offs.
Summary
MINI's price reduction is undoubtedly aimed at enhancing competitiveness. The Chinese auto market has become less sensitive to brand premiums, and pure electric compact cars do not command such premiums.
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