As automakers in the US and Europe scramble to come up with more affordable electric cars, a little-known Chinese automaker named Zhidou has lowered the bar again with a cute micro EV called Rainbow. Price: $4,400, with a discount for early-bird buyers that drops the sticker to an unbelievable $3,850, according to CNEVpost.com.
Zhidou’s achievement is even more remarkable considering the Geely-backed company nearly went bust just five years ago.
After being recapitalized in December, Zhidou — or ZD as it’s known locally — is relaunching on the eve of the Beijing Auto Show with its pastel-colored Rainbow microcars, which will square off in China against the Wuling Hongguang Mini.
The debut of the Rainbow in the Chinese market should add fuel to the ongoing discussion in Europe and North America over the lack of affordable EVs. Context: The average price of a new battery electric vehicle in the US last year topped $50,000.
Detroit-based automakers Ford and General Motors are hustling to bring less-expensive EVs to market, but are unlikely to crack the $25,000 price point any time soon. Lower-priced lithium iron phosphate (LFP) batteries licensed or sourced from China could help lower costs.
European automakers Volkswagen and Stellantis have invested in Chinese partners — VW in Xpeng, Stellantis in Leapmotor — specifically to help develop more affordable electric cars, initially for China and eventually for global markets.
Meanwhile, the debate continues over whether Tesla should or should not pursue Elon Musk’s long ballyhooed plan to develop and build a $25,000 EV. The big question is whether the company can come up with the right combination of cost-saving technology, from battery packs to vehicle assembly, to make any money at that price point.
The debut of the Rainbow will add a new wrinkle to that discussion.
felixstrategy.com 
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