Where lies the opportunity for the all-new electric MINI COOPER?

It's been a while since we last talked about MINI.

How long has it been exactly?

It seems like we rarely mentioned this brand after Great Wall and BMW jointly established Beam Automotive in 2018, due to the delay in launching new models. It wasn't until recently, when Mr. Yu Qian endorsed MINI's first domestically produced pure electric model, that some bystander chatter about the brand resurfaced.

On July 6th, BMW MINI unveiled its latest masterpiece, the all-electric MINI COOPER, crafted by Beam Automotive, a joint venture between BMW and Great Wall, marking another milestone for MINI in the field of electrification.

The term "milestone" is the official positioning. However, currently, the market buy-in rate for this claim is not high. Whether MINI's pure electric model can truly become a milestone remains to be seen.

Waking up early, catching up late

To say that Great Wall and BMW partnered early in electric vehicles would be an understatement. Unfortunately, this early bird didn't get the first worm.

Public records show that BMW and Great Wall signed a joint venture agreement in 2018, with Beam Automotive being BMW's first pure electric joint venture project, with a 50:50 shareholding ratio. Beam Automotive's mission is for BMW and Great Wall to jointly develop a new generation of pure electric vehicle platforms, producing not only BMW MINI electric vehicles but also Great Wall's own branded electric vehicles.

At the time, the industry used the phrase "everyone is happy" to describe this partnership.

BMW wanted to increase its market share in China, and localizing MINI's pure electric models was undoubtedly a win-win strategy. Great Wall also aimed to strengthen its new energy brand reputation with MINI, expand its product line, and venture into BMW and joint venture autonomous brands.

Meanwhile, BMW's strategy for the two joint ventures was also clearly outlined. BMW Brilliance continued to focus on the luxury brand BMW, with an emphasis on gasoline vehicles, while Great Wall BMW (Beam Automotive) manufactured MINI brand electric vehicles and future joint venture electric vehicles.

Overall, the joint venture advancement of Beam Automotive's most crucial purpose was to shoulder the electrification development of the MINI brand.

At the beginning of BMW's partnership with Great Wall, BMW stated, "China has become the world's largest electric vehicle market, and localizing MINI's pure electric models has become a crucial factor for MINI's continuous development."

However, there was also a rumor that Beam Automotive's first product might be a compact pure electric SUV model, not a MINI branded electric vehicle, with an expected production start in 2021 and a range of 500 kilometers.

Unfortunately, amidst the anticipation, NIO, XPeng, and Li Auto all stepped into the spotlight. Since the Beam Automotive project was launched in Zhangjiagang in November 2019, an unexpected situation arose. To put it bluntly, aside from the factory construction cycle, there was no other movement.

Everyone's necks were sore from craning, but no new actions were forthcoming.

As a result, many people shifted their attention from eager anticipation to Tesla, NIO, XPeng, and Li Auto on stage. Spectators also wanted to know what was happening.

It is understood that when Beam Automotive was first established, a significant amount of cooperation details had not been finalized. In other words, BMW's vision and Great Wall's intentions had not been aligned from the start.

Without a unified front, the project stagnated like a paused pendulum, gradually overshadowed by other events.

Last December, this five-year-old project took a substantial step forward by obtaining production qualifications. However, many people were unaware of this news as NIO's acquisition of its "birth certificate" overshadowed Beam Automotive's announcement.

By this time, the electric vehicle market had moved beyond the initial stage of expansion and into a phase where "not innovating means dying." To say that waking up early but catching up late is being polite is an understatement. In 2023, when production qualifications were obtained, MINI's sales in China dropped to 18,200 units, a nearly 40% decrease.

Data shows that MINI sold a total of 34,100 units in China in 2019, 28,700 units in 2022, and saw a sharp decline in 2023. Clearly, gasoline-powered vehicles, especially premium compact cars, are no longer selling well.

Without the support of electrification, MINI struggles not only to make further progress in the Chinese market but also to stabilize sales. This year, due to the brand's product iteration cycle, MINI's global sales performance has also been unsatisfactory.

BMW is anxious.

After all, it has been three years since BMW Group Chairman Oliver Zipse set the goal in 2021 that "MINI will launch its last internal combustion engine model in 2025, and by the beginning of 2030, all MINI models will be fully electric."

Moreover, what worries BMW even more is that Smart, MINI's competitor, acquired 50% of its shares by Geely in 2019 and has since transformed beyond microcars to seek breakthroughs in electrification. Data shows that Smart sold a total of 67,024 units in 2023, with 42,292 units sold domestically, accounting for 63%, and 24,732 units exported, accounting for 37%.

Smart's speed has indeed made MINI, which has yet to launch a new vehicle, feel "anxious at heart."

Fortunately, electric vehicles can finally be produced, marking the first step in MINI electric vehicles' "milestone journey."

Fighting an imaginary enemy?

In BMW's external promotions, MINI will become the first brand under BMW to achieve 100% electrification.

Therefore, the launch of the all-new electric MINI COOPER is seen as a crucial battle in MINI's transition to an electrification strategy. BMW aims for this model to be a "home run." The new car is priced between 189,800 and 266,800 yuan, 20,000 yuan lower than the pre-sale price announced at the Beijing Auto Show in April.

However, the industry remains concerned that the all-new electric MINI COOPER lacks sufficient appeal and competitiveness. The price is a double-edged sword, making it difficult to both outcompete rivals and attract consumers.

From every aspect, this is an authentic MINI model, with its signature round elements, rounded body contours, and iconic round headlights, revealing MINI's commitment to its classic design. Even the vehicle dimensions of the all-new electric MINI COOPER remain compact like its gasoline-powered counterpart, euphemistically described as "an interesting soul that doesn't want to grow up."

The only difference is its pure electric core. BMW's intention is not difficult to understand, continuing MINI's personalized brand positioning and breaking through the Chinese market with a pure electric approach.

Who are the competitors of the all-new electric MINI COOPER in the Chinese electric vehicle market?

Strictly speaking, spending 189,800 yuan on an electric compact car with a range of over 400 kilometers does not have direct competitors. Don't misunderstand; it's not that the all-new electric MINI COOPER has no rivals, but rather that it may be employing a strategy of "fighting an imaginary enemy."

From two perspectives:

Looking at MINI's old rivals from the gasoline-powered era, the situation for premium compact cars is not optimistic. "Competitors are falling one after another," with the Volkswagen Beetle discontinued and the Fiat 500 withdrawing from the Chinese market, while Smart has broadened its scope and embraced electrification. The sales issue of premium compact cars ultimately stems from the replacement of gasoline-powered vehicles by new energy vehicles, which is the general trend.

From the perspective of the electric compact car market, models such as BYD Seagull, Wuling Bingguo, and Geely Geometry have already established their market positions with prices around 100,000 yuan. Even Great Wall's Ora Good Cat has built a reputation in the 150,000 yuan market, while BYD Dolphin and Baojun Yunduo are striving to stabilize their positions.

So, where lies the opportunity for the all-new electric MINI COOPER?

Perhaps in its unique positioning. The all-new electric MINI COOPER highlights the labels of "urban go-kart" and "classic new toy," with youth, sports, and handling still at its core. The electric MINI COOPER combines modern eco-driving with the brand's typical driving pleasure, such as providing simulated sound effects to electronically replicate the sound excitement of internal combustion engines.

However, it is not irreplaceable.

At the same time, compared to electric compact cars from other brands, in the current era of intelligent driving competition, the MINI electric car offers OLED center consoles, digital "intelligent personal assistants," seven "MINI experience modes," a 0-100km/h acceleration time of 6.7 seconds, and other intelligent experiences... What word best describes them? Unremarkable.

Since 2023, Great Wall has transferred a large number of technical patents to Beam Automotive, including product design schemes, charging and discharging technologies, battery pack designs, etc. For example, the motor of the all-new electric MINI COOPER comes from Bosch Automotive Products (Suzhou), and the battery from SVOLT Energy Technology.

Theoretically, Great Wall's intelligent technology is also at the forefront, but judging from the brand elements maintained, the Chinese team may not have much say.

Don't misunderstand; it's not that the all-new electric MINI COOPER is devoid of merits. On the contrary, I have always admired MINI's appearance and brand. It's also evident that the all-new electric MINI COOPER represents a more open approach in BMW's product development.

However, it cannot be ignored that in the gasoline-powered era, the MINI brand belonged to a niche premium segment, and the electrified MINI retains this brand gene, which it cannot escape. Of course, it aligns with the aesthetics of existing owners.

As for whether the brand's tone can win over young people, there is still a question mark. From current feedback, public opinion is not too favorable, with the once-perceived premium MINI now appearing like an "old man's toy."

The term "old man's toy" is quite hurtful. To a certain extent, it also indicates that MINI, which has been late to the Chinese electric vehicle market for five years, has not accurately grasped the market demand.

Whether this premium compact car can achieve a breakthrough is a tough battle for both BMW and Beam Automotive.

Final Thoughts:

Just as MINI embarked on its electrification journey, bad news arrived.

The European Commission stated that if it fails to negotiate an effective solution with the Chinese government, tariff policies will be implemented from July 4th. Among them, SAIC Motor, Geely, and BYD, the three sampled Chinese automakers, will be subject to tariffs of 17.4%, 20%, and 38.1%, respectively.

Other Chinese automakers that "cooperated with the investigation but were not sampled" will be subject to a weighted average tariff of 21%, while those that "did not cooperate with the investigation" will be subject to the same 38.1% tariff as SAIC Motor.

Awkwardly, the all-new electric MINI COOPER started production relatively late, and Beam Automotive has not yet completed the European Commission's investigation, so it is classified as a company that "cannot cooperate with the investigation."

The all-new electric MINI COOPER is produced in a Chinese factory. If BMW wants to sell it in Europe, it must do so as an "imported" vehicle. In other words, the pure electric MINI has innocently become a victim and may face a maximum electric vehicle tariff of 38.1%.

Once the electric MINI encounters tariff barriers, BMW's electrification strategy is bound to be disrupted.

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