This $4,500 electric car is reportedly outselling Tesla's Model 3 in China

 

State-owned Chinese automaker SAIC Motor is reportedly massively outselling Tesla in the country with its electric vehicles that sell for just 28,800 yuan ($4,465).

SAIC Motor sold 25,778 Hong Guang Minis in China in January, compared to 13,843 sales of Tesla's Model 3, the BBC reported, citing data from the China Passenger Car Association (CPCA).

China, which is the world's largest car market and accounts for more than a fifth of Tesla's revenue, is ramping up its efforts to boost electric vehicle sales as it tackles the country's pollution problem.

The four-seat Hong Guang Mini, which has top speeds of 62 mph and an estimated cruising range of 120 miles, is being made as a joint venture between SAIC Motor, Liuzhou Wuling Motors, and General Motors.

© Costfoto/Barcroft Media via Getty Images The Hong Guang Mini comes in four colors. Costfoto/Barcroft Media via Getty Images

Its sales could make it the second-best-selling electric car in the world after Tesla's Model 3, the BBC reported.

The cheapest version of Tesla's Model 3 in China costs more than eight times than the Hong Guang Mini's entry-level model.

Tesla began selling its 249,900 yuan (just under $39,000) Shanghai-made Model 3 vehicles in December 2019.

The company is trying to make a more affordable electric car.

In September, CEO Elon Musk said the company would make a $25,000 "fully autonomous" electric car in three years.

The head of Tesla China said the company's Shanghai research and development center, where it will develop the vehicle, would be running by the end of 2021.

Tesla started deliveries of its Shanghai-made Model Ys in January after reducing the pre-order price by 30%.

The Hong Guang Mini isn't Tesla's only rival in China.

As demand for electric vehicles has grown in the country, thanks in part to generous government subsidies, Chinese start-ups Nio, Li Auto, and Xpeng all announced surging sales in 2020.

Nio and Xpeng have both said their sales doubled in 2020 compared with 2019, and Li Auto sold 32,624 cars in 2020, its first full year of trading.