For most manufacturers, selling 20,000 vehicles a month is considered a success, but for Great Wall Motor's electric brand Euler, such sales mean a loss。This is Euler CEO Dong Yudong's explanation for the suspension of production of black cat and white cat small electric hatchbacks in the past two years.。

In an interview, Dong explained the decision and outlined the economic principles。Dong said that although the monthly sales of the Black and White Cat models of the Euler brand are around 20,000, the brand loses 10,000 yuan ($1,400) per sale.。He said the monthly loss of more than 200 million yuan ($28 million) was unsustainable for the brand.。

The cost of China's so-called three-electric system ms consists of batteries, motors and electronic control units, accounting for most of the vehicle cost。For black and white cat models, this can be as much as 90% of the cost, while batteries alone can account for 40% to 60%。

Judging by such sales figures, these two models seem to be successful, but their elimination also indicates the intensity of market competition。It also shows that it is difficult for companies to make profits as subsidies are reduced, especially for small electric vehicles.。It may also be further evidence of allegations by countries such as the European Union and the United States that China is not selling electric cars at their true cost.。This is not the first time there has been such an admission, according to people familiar with the matter, after Song Zhiping, president of the China Association of Listed Companies, said that the only new energy vehicle companies that are currently profitable are BYD and Ideal Auto.。

Euler Black Cat, originally known as Euler R1, was produced between 2019 and 2022。It is petite, with sizes of 3495, 1660 and 1560 mm (length / width / height), and a wheelbase of only 2375 mm。The white cat is only slightly larger, with sizes of 3621, 1660 and 1520 (length / width / hour) and a wheelbase of 2490 mm。The car will be produced from 2020. According to our information, sales may stop as early as 2022。

Editor's note:

Oddly, Tung only recently made these comments in an interview, as the production of Black Cat and White Cat ended years ago.。At the same time, he also made some counter-intuitive remarks, claiming that the next five years, the length of more than 4.Sales of 6-meter electric vehicles will decline in the next three to five years, and the number of A0-class cars will increase。Given that he now believes such cars are competitive, what that means is unclear。

Source: Fast Tech