How do they do it? While one of the main complaints in Europe about electric cars is that it’s impossible to build a compact, fully electric vehicle that is affordable and profitable, the Chinese prove the opposite. Latest example: Chery’s QQ Domi compact city car was launched in China at a starting price of 59,900 yuan, equivalent to approximately 6,600 euros.
For that money, you can pack five people into a microelectric vehicle that measures 3,720 mm in length, 1,700 mm in width, and 1,608 mm in height, with a 2,520 mm wheelbase. It features a 40 kW front-mounted motor that delivers 110 Nm of torque and has a top speed of 100 km/hour.
Two battery pack flavors
With the small 28.5 kWh battery, you’ll get a (CLTC) range of 305 km, which should be sufficient for urban traffic, where it’s primarily intended for. A larger, 39.33 kWh LFP pack adds 100 km of range but also increases the price by 10,000 yuan (approximately €1,200), still well under €10,000.
Shorter ranges in the city are compensated for by fast charging, which can bring the battery level from 30% to 80% in about 30 minutes. The most expensive version adds Vehicle to Load (V2L), offering to power tools or your laptop at higher ‘grid’ voltages if no plug is available.
The interior is sleek but frugal, offering a 7-inch digital instrument panel and a 10.25-inch floating central touchscreen. However, it provides most of the features you would expect in a more expensive car, including a rearview camera, park assist, voice recognition, and app-based vehicle control.
In China, the QQ Domi is to compete with the Leapmotor T03 or BYD’s popular Seagull city car. That one now sells for 55,800 yuan, or some 6,745 euros. In Belgium, for instance, the Seagull is sold as the Dolphin Surf with the base version starting at €21,290 with a 30 kWh battery and a (WLTP) range of 220 km.
BYD, China’s largest electric vehicle (EV) maker and exporter, fired a new shot in the price war in May by offering discounts on a series of models as steep as 34%. That wasn’t returned with thanks by everyone in China.
Sounding the alarm bell
As China’s electric vehicle price war intensifies, its top leaders have sounded the alarm with high-profile calls to halt excessive competition, known colloquially as ‘neijuan’ or involution, CNBC reported recently.
The China Association of Automobile Manufacturers took a veiled swipe at BYD without naming it, stating, “A certain automaker has taken the lead in launching significant price cuts and many companies have followed suit, triggering a new round of ‘price war’ panic.”
“Disorderly ‘price wars’ intensify vicious competition,” the association said, warning of further pressure on profit margins and consumer safety risks. It called for companies to abide by fair competition and not monopolize the market or ‘dump’ goods at prices below the cost of production.
Price war leads nowhere
The official newspaper of the Chinese Communist Party also showed scathing criticism. “The price war in the automotive industry leads nowhere and has no future. Disorderly ‘price wars’ squeeze profits across the chain, impacting the entire ecosystem and risking income declines for workers. In the long term, this ‘race to the bottom’ competition is unsustainable.”
The question remains how far you can push it as a car manufacturer without jeopardizing your business model and profit margins. In China, there are mixed views about the ongoing price war. At the same time, some warn of long-term risks, while others, such as BYD, view competition as fertile ground for innovation.
On the other hand, these bottom prices don’t necessarily stimulate Chinese buyers to spend more rapidly. On the contrary, as the second-hand EV market suffers from quickly depreciating resale values due to the falling prices of new EVs, people are postponing their purchases as uncertainty grows. It’s somewhat of a double-edged sword.
