New Energy Concept （ID：xinnengyuanqianzhan） original

Recently, the People's Court of Yancheng Economic and Technological Development Zone decided to accept the pre-reorganization application of HuaRen YunTong (Jiangsu) Technology Co., Ltd., the parent company of HIPHI.

As a result, HIPHI officially entered bankruptcy reorganization. Coincidentally, Guangdong Evergrande New Energy Automobiles and Smart Automobiles, subsidiaries of Evergrande Motors, have also been applied for bankruptcy reorganization.

How did HIPHI and Evergrande Motors gradually fall into this situation?

To put it bluntly, it's all because of sales.

In 2021, HIPHI sold a total of 4,237 vehicles, 4,349 vehicles in 2022, and 4,829 vehicles from September to December 2023.

Evergrande Motors' market performance has been even bleaker since its inception. As of December 31, 2023, only 1,389 Hengchi 5 vehicles have been delivered.

It is worth noting that automakers like HIPHI and Evergrande, which sell less than 1,000 vehicles per month, are not uncommon. According to the Owner's Guide data, as of July 2024, there were as many as 170 new energy vehicle models with sales below 1,000 units.

Generally speaking, most of these models have limitations in market positioning, brand recognition, and after-sales service, which restrict and affect their market performance.

Seeing this, many consumers may wonder who is buying these "niche vehicles." "New Energy View" interviewed several car owners to hear their thoughts.

It should be clarified that the "niche vehicles" we refer to are not luxury brands like Rolls-Royce, Ferrari, Lamborghini, etc., which are out of reach for most consumers.

1. Some buy them as 'jewelry,' while others are deceived into buying them as 'pies in the sky'

Mr. Wang (a pseudonym) from Beijing purchased a HIPHI HiPhi X in April 2022. At the time, he already had two cars in his household: a Mercedes-Benz G550 4x4² and a Land Rover Range Rover. Always wanting to own an electric vehicle, he stumbled upon the HIPHI HiPhi X in a parking lot and fell in love at first sight.

Photo/HIPHI HiPhi X

Source/Internet screenshot of New Energy View

"I went to the HIPHI store with my wife. I thought the price of less than 700,000 yuan was quite reasonable, but my wife hesitated, thinking the brand was too new," Mr. Wang's wife (a pseudonym) recalled. "My husband explained that cars are like jewelry and can't be used forever. So spending six to seven hundred thousand yuan on such a cool toy seemed like a good deal."

In fact, there are many consumers like Mr. Wang who compare cars to 'jewelry.' They share a common trait: they come from wealthy backgrounds. This is precisely the target audience for high-end niche models like HIPHI HiPhi X and NIO's EVTOL U8, as not everyone can afford to spend hundreds of thousands of yuan on a 'toy.'

This is similar to when Tesla's Model X first entered the Chinese market in 2016, with its target audience characterized by wealth and a love for adventure, as owning a blue-plate electric vehicle required substantial financial means.

Within the niche vehicle owners, there is another group who, though not necessarily wealthy, are passionate about staying on top of trends. For them, being unconventional and expressing their individuality is paramount.

Zhang Zhang (a pseudonym), an independent fashion designer, drives an AVATR 11. She told "New Energy View," "Compared to popular cars like the Model Y, I prefer niche models that are less likely to have duplicates on the road. As it turns out, every time I drive out, I feel like the coolest person on the street."

Photo/AVATR 11

Source/Internet screenshot of New Energy View

However, not all niche vehicle owners are willing participants. Some consumers, lacking a clear understanding of new energy vehicles and brand knowledge, are deceived by salespeople into purchasing niche models and now regret their decisions, calling themselves "suckers."

"When I bought it, the salesperson told me it was a joint venture between Volvo and Geely, offering high value for money. Later, I found out it was a niche model. Now, I just hope the manufacturer can stay afloat until I'm ready to upgrade," said Xiao Sun (a pseudonym), owner of a Polestar 2.

2. The troubles of niche vehicles

Customers complain, and manufacturers worry.

In today's automotive market, where new energy vehicles are gradually becoming mainstream, no manufacturer wants their products to be labeled as 'niche.'

To expand their niche vehicle markets, new energy brands like NIO, Hyperion, and AVATR have pulled out all the stops.

For example, NIO joined the price war in February this year with its niche models NIO S, NIO GT, and NIO AYA, offering discounts ranging from 5,000 to 22,000 yuan across the board. Hyperion launched a lifetime free charging service to boost sales, while AVATR refreshed and upgraded its entire lineup this year.

However, the fact that these 170 niche new energy vehicle models still failed to sell more than 1,000 units in July indicates that the manufacturers' efforts to revamp and reduce prices have not yielded sustained benefits for their niche vehicles, and in some cases, have even backfired.

Currently, affected by their numerous niche vehicles, new energy brands like WM Motor, AITO, ENOVATE, and Lifan have already faced bankruptcy. On August 13, 2023, Faraday Future (FF), founded by Jia Yueting, successfully delivered its 13th vehicle, but its future remains uncertain. Meanwhile, niche brands like Polestar and Hyperion may face similar restructuring fates as HIPHI, Hetron, and Evergrande if they fail to develop popular models.

Photo/Faraday Future

Source/Internet screenshot of New Energy View

An undeniable fact is that niche vehicles not only cause headaches for automakers but also bring certain troubles to our car owners.

Specifically, due to poor sales, accessory manufacturers are reluctant to produce large quantities of niche vehicle parts, leading to scarcity and increased repair times and costs for owners.

At the same time, the limited revenue generated by niche new energy brands may not be sufficient to support their after-sales service guarantees, compromising the benefits received by owners.

Yue Xin (a pseudonym), owner of a Hyperion GT from Nanjing, says, "Girls are easily swayed by flashy features. My Hyperion GT developed a creaking noise in the right rear door during driving within two weeks of purchase. I visited four 4S stores, but none could fix it. It's been frustrating."

Photo/Hyperion GT

Source/Internet screenshot of New Energy View

Regarding Yue Xin's troubles, Xiao Sun (a pseudonym) commented, "Compared to me, she's lucky. At least the 4S stores have good service and offer free repairs, even if they couldn't fix it. I had to pay for my own repairs."

According to Xiao Sun, his Polestar 2 suddenly broke down after driving over 20,000 kilometers. He immediately contacted Polestar's after-sales service, which diagnosed a faulty high-voltage coolant heater, requiring a repair cost of 17,000 yuan.

Photo/Polestar 2

Source/Internet screenshot of New Energy View

It is worth noting that while the majority of niche vehicle owners are unwilling participants, there are also those who are indifferent.

Many owners believe that survival of the fittest applies, and if an automaker fails, so be it. After-sales service would be convenient if available, but it's not a deal-breaker. It's just a car after all.

3. 'Jewelry' cars are fine, but 'short-lived' cars are a no-go

In the vast and confusing new energy vehicle market, manufacturers will undoubtedly claim that their products are the best. However, not every consumer can afford to treat a car as 'jewelry' with room for error.

Therefore, most consumers are cautious when purchasing a car, hoping to find one that meets their needs and causes little hassle. Unlike real estate, cars depreciate quickly, and buying a low-sales model entails greater risk of depreciation.

So, how can consumers avoid buying 'short-lived' cars?

Firstly, as beginners in car purchasing, it's essential to educate oneself online before making a decision. However, why do they still get deceived? Often, beginners focus more on a car's appearance, interior, features, range, and price, while experienced buyers prioritize battery, motor, electronic control, and intelligence. A good new energy vehicle must excel in these four areas.

For example, NIO sources most of its battery cells from Contemporary Amperex Technology Co., Limited (CATL) and employs a dual-motor drive system. Its Banyan 3 intelligent system, set to be rolled out to users by the end of August, offers 4D comfortable navigation without the need for GPS, making it available everywhere.

Photo/Banyan 3 launch - Smart Warehouse Application

Source/Internet screenshot of New Energy View

Secondly, test drives offer the most intuitive way to understand a car's performance and comfort. During a test drive, consumers should consider factors such as handling, infotainment system, and seat comfort.

Lastly, remember to compare prices and services from multiple sources to avoid impulsive purchases due to salesperson's persuasive tactics.

Salespeople often use various tactics to sell their brand's cars, such as claiming the current price is the lowest or offering limited-time discounts and gifts. Consumers must remain calm and analyze these offers rationally, avoiding the temptation of small benefits.

If you're indecisive, following the crowd might be a good option. Best-selling models like Tesla Model Y, LIXIANG L6, and NIO ES6 offer more comprehensive accessories, advanced technology, and better after-sales service compared to niche vehicles.

Photo/Tesla Model Y

Source/Internet screenshot of New Energy View

For those seeking individuality, "New Energy View" reminds you that blindly purchasing niche vehicles is not advisable. Research thoroughly, considering factors such as battery, body structure, and contract details. Some niche vehicles are excluded by ordinary consumers not just because of their unconventional designs but also due to inconsistent quality and inadequate automaker services.

In summary, whether you're a trendy individual or a practical consumer, exercise caution when purchasing a new energy vehicle. Don't let a fleeting infatuation lead to costly regrets.