For most producers, selling 20,000 cars of a model a month would be seen as a success, but in the case of Ora an EV brand from Great Wall Motor, such sales meant a loss. This was the explanation Dong Yudong, CEO of Ora, gave for the discontinuation of the Black Cat and White Cat small electric hatchbacks over the last couple of years.
In an interview, Dong explained the decision and outlined the economics. Although the Ora brand has had monthly sales in the region of 20,000 for the Black Cat and White Cat models, according to Dong, the brand lost 10,000 yuan (1,400 USD) with each sale. He says that the monthly loss was more than 200 million yuan (28 million USD) which was unsustainable for the brand.
The cost of what in China is known as the three electric systems, which consist of the battery, motor, and electric control unit, accounts for most of the vehicleβs cost. In the case of the Black Cat and White Cat models, this can be as much as 90% of the cost, while the battery alone can account for 40 to 60%.
From such sales figures, it would appear that the two models were successful, but their culling is an indication of the ferocity of the market competition. It also shows that with the decrease in subsidies, it is very difficult for companies to make a profit, particularly on small EVs. It is also perhaps further vindication for the charge from the EU and the US, among others, that China does not sell EVs for their true cost. It is also not the first such admission from a Chinese insider, we previously reported that Song Zhiping, president of the China Association of Listed Companies state that the only new energy vehicle companies that made a profit were BYD and Li Auto.
The Ora Black Cat, originally known as the Ora R1, was produced between 2019 and 2022. It is diminutive, measuring 3495, 1660, and 1560 mm (l/w/h) and having a wheelbase of just 2375 mm. The White Cat is only slightly bigger, measuring 3621, 1660, and 1520 (l/w/h) and having a wheelbase of 2490 mm. The car was produced from 2020, and according to our information, sales ceased possibly as far back as 2022.
Editorβs note:
It is strange that Dong only recently made these comments in an interview, seeing as the production of both the Black Cat and the White Cat ended a few years ago. At the same time, he made some counterintuitive comments, Claiming that in the next five years, sales of EVs with a length of more than 4.6 meters would decline and those of A0 size cars would increase in the next three to five years. What this means, given that he now believes such cars are competitive, is not clear.
Source: Fast Technology
