The Chinese City Betting Everything on Tiny Cars

Editor’s Note: Nearly seven in 10 new energy vehicles sold globally are tied to China, driving shifts in industries and trade at home and abroad. This is the third article in a five-part series exploring China’s electric vehicle boom — and the people building, driving, and fixing its future. Read Parts One and Two.

GUANGXI, South China — Electric cars didn’t change Liuzhou. They built it. Far from China’s megacities, this small, tier-3 city in southern China is better known for its famous “snail rice noodles” than cutting-edge technology.

Yet, on these narrow streets, compact four-seater EVs — most notably the Wuling Hongguang Mini EV — are everywhere. Priced at just over 30,000 yuan ($4,100), families depend on them, tourists rent them for quick trips, and even the police patrol silently in these pint-sized electric cars.

In a city of just 4 million, Liuzhou already boasts 214,000 EVs — roughly one for every 18 residents. This rapid adoption has pushed EV sales to make up 56.1% of all passenger vehicle sales in the city, the highest in China, surpassing even the country’s largest cities.

In the first half of last year 2024 , 21,755 new EVs were registered, a 26% year-on-year increase, setting a new record for both total EV numbers and new registrations. Supporting this surge is a web of over 21,000 charging stations, woven into alleyways, shopping districts, and residential neighborhoods.

For Liang Yuqi, a 33-year-old resident, her two-seater Baojun E100 — known locally as “xiao E,” or “little electric cars” — is the perfect fit for daily errands and her 20-kilometer commute to work. “Charging costs me about 150 yuan a month. Fuel would be 10 times that, so it’s a huge saving for us,” she tells Sixth Tone.

Narrow roads and scarce parking spots used to be constant headaches, but her compact EV slips through traffic and fits into spaces no traditional car could. For longer trips, her family still relies on a fuel-powered car, an increasingly common setup among households in Liuzhou.

Far from a well-designed master plan, Liuzhou’s pivot to EVs stemmed from a mix of practical needs, local experimentation, and a bit of luck.

In 2014, Baojun Auto, a brand under the SAIC-GM-Wuling (SGMW) joint venture, began developing the Baojun E100 — a compact, two-seater electric car designed to bridge the gap between electric scooters and full-sized vehicles.

The potential was clear. “We observed traffic at intersections throughout an entire day, counting how many people were in each car. Over 90% of cars on Liuzhou’s streets carried just one or two people,” Si Hang, SAIC-GM-Wuling’s director of brand and marketing, tells Sixth Tone.

The E100 offered a lightweight, low-cost alternative, with a modest 160-kilometer range and compact design ideal for dense urban environments.

Liuzhou, home to SAIC-GM-Wuling, was the natural testing ground. The automaker was already an economic anchor and major employer in the city, aligning corporate ambitions with local government goals.

Around the same time, local authorities were grappling with mounting traffic congestion, pollution, and economic stagnation. After the E100’s launch in 2017, the government rolled out a suite of policies. “Liuzhou led in adoption, supported by favorable government policies, parking spaces designed specifically for compact EVs, and convenient charging infrastructure,” Si explains.

The measures weren’t perfectly synchronized, but together they made owning an electric car the most practical choice in Liuzhou. The shift pushed monthly EV sales to 27% by 2020, surpassing the national target of 25% by 2025.

Following the E100’s success, Wuling introduced the E200 and, eventually, in 2020, the Hongguang Mini EV — a model that would become a national phenomenon.

“We aimed to make the Mini EV affordable even without relying on government subsidies. Our goal was to provide customers with a reliable, cost-effective, and high-quality electric car,” Si tells Sixth Tone.

Since its launch, cumulative sales have exceeded 1.4 million units, making it one of China’s best-selling electric vehicles.

Across China, other smaller cities are now racing to replicate what Liuzhou achieved: blending government policy, local manufacturing power, and affordable technology to drive electric adoption.

From Jinhua, a small city in eastern Zhejiang province, to Hefei, the capital of eastern Anhui province, and across the eastern coastal province of Shandong, smaller cities are rolling out subsidies, charging networks, and buyer incentives — all aimed at kickstarting their own EV ecosystems. 

Cui Dongshu, secretary general of the China Passenger Car Association, asserts that China’s EV boom has also helped boost local economies. He underscores the crucial role of local governments, calling the “Liuzhou model” a prime example of effective policy, infrastructure, and market alignment. “It created a favorable environment for EV growth and offers a successful blueprint worth promoting globally,” says Cui. 

But in Liuzhou, interest in EVs is often simply a matter of personal preference. Across the city, many double as canvases for creativity, wrapped in cartoon characters, slick patterns, and vibrant colors. “Users started personalizing their cars on their own, and it quickly became a trend,” says Si.

In response to rising demand, the automaker introduced customizable wraps, offering cartoon designs, bold colors, and tailored finishes. “It’s not just about aesthetics — it’s about making the car feel personal,” says Yang Yuwei, a Wuling sales executive.

The trend has rippled outward. Yan Tao, who runs one of the many car film and customization shops that have sprouted across Liuzhou, says EV owners make up about 70% of his customers. “During peak months, we service up to 70 cars, and wait times stretch over weeks,” he says.

The boom is also reshaping Liuzhou’s small businesses. Xie Weihao started his rental company, “No.1 Travel,” with just three EVs in 2023. Today, his fleet has grown to over 30 vehicles, 60% of which are electric. “Tourists want something affordable and easy to drive,” says Xie, who promotes his business on the popular lifestyle app Xiaohongshu.

Next, Xie plans to open rental branches in nearby tourist hubs like Guilin, catering to visitors eager to explore the Guangxi Zhuang Autonomous Region in compact EVs.

Additional reporting: Guo Yishun and Wen Ming; editor: Apurva.

(Header image: Mini EVs on Liuzhou’s roads. All photos by Wu Huiyuan/Sixth Tone)