With the rapid development of the new energy sector, an increasing number of rivals are entering the race. Changan, previously considered a follower in the new energy area, has finally shown its trump card: Changan Deep Blue SL03. This model entered the new energy market with a completely new brand image, design concept, and market positioning, and it has received widespread media appreciation for its superior product strength. What is even more astonishing is that, with a modest price starting at 168,900 yuan, it has achieved a stunning outcome of over 10,000 orders within half an hour of its release.
In comparison to this appealing model, the Changan Deep Blue SL03 hydrogen-electric version has sparked considerable interest in the market at a price of 699,900 yuan. The identical model costs four times more because of the varied power systems. What is the secret to this? Is Changan’s price of 699,900 yuan a marketing effort to attract attention or a clear indication of its technological strength? Let us solve the enigma surrounding this “high-priced assassin” and discover the truth behind it.
The price is higher than the world's mainstream hydrogen-electric vehicles
For Chinese consumers, hydrogen fuel cell vehicles are both familiar and strange. Despite the introduction of mature models like the Toyota Mirai and Hyundai NEXO to the market and their widespread use in public transport in some cities, hydrogen fuel cell vehicles remain unfamiliar and distant in the Chinese market due to the limited number of users who have driven them.
Several Chinese independent companies, including Changan CS75 FCV, Dongfeng Hydrogen Boat e·H2, and GAC Aion Aion LX Fuel Cell, have already researched and developed hydrogen fuel cell models prior to the launch of the SL03 Hydrogen Electric. Drawing a direct comparison to the SL03 Hydrogen Electric, however, is difficult because most of these vehicles are still in the exhibition and testing stages, and the price remains undisclosed.
However, examining external markets reveals that the Toyota Mirai and Hyundai NEXO carry prices of approximately 550,000 yuan and 430,000 yuan, respectively. In comparison, the SL03 hydrogen-electric variant is clearly more expensive, making promotion in the domestic market more challenging.
Although hydrogen fuel cell vehicles have numerous advantages, such as cleanliness and high efficiency, they are currently difficult to employ in the Chinese market due to their expensive pricing and inadequate energy replenishment infrastructure. As a result, for vehicle firms like Changan SL, lowering production costs and increasing public acceptance while maintaining technological innovation will be a significant issue in the future.
Is there a significant expense hidden behind the sale price?
Because of its expensive pricing, the Changan Deep Blue SL03 Hydrogen Electric Edition has sparked widespread interest in the market. In terms of product strength, it boasts a 62% hydrogen-to-electricity conversion rate, 0.65 kg/100 km hydrogen consumption, less than 10% performance degradation over 10,000 hours, and a total endurance of 730 km. Despite their widespread use in the global market, these indicators have not yet achieved the highest level. When compared to competitors such as the Toyota Mirai and Hyundai NEXO, the SL03 Hydrogen Electric Edition outperforms in some areas, but there is still a difference.
So, why are the prices so high? On the one hand, each vehicle incurs substantial R&D expenditures due to its lack of mass production, leading to a premium price. Changan SL, on the other hand, appears to be interested in gaining market attention through a high pricing approach. At the same time, also building a brand image for the SL03 Hydrogen Electric Edition in the hydrogen fuel market.
In truth, incidents like Changan Deep Blue SL03 Hydrogen Electric Edition, product strength and price do not fully match, are prevalent among domestic brands. These models frequently generate traffic and attention through high pricing techniques, which is unique in marketing communication.
Consumers, on the other hand, are primarily concerned with the product’s performance. The market demand and user experience will determine whether the SL03 hydrogen-electric version can truly gain market recognition with its unique technology and performance. As a result, while the symbolic significance of the SL03 hydrogen-electric version outweighs its market value, we anticipate that it will demonstrate its distinct advantages in future market competition and inject new life into the hydrogen fuel industry.
Will hydrogen fuel cell vehicles gain popularity in the short term?
Hydrogen fuel vehicles are unlikely to enter the mainstream market in the near future, but Changan Deep Blue has released the SL03 hydrogen-electric version, which is inextricably linked to policy orientation. The “Medium- and Long-Term Plan for the Development of the Hydrogen Energy Industry (2021-2035),” issued by China’s National Development and Reform Commission, clearly defines the goal of large-scale application of hydrogen energy in transportation and establishes specific indicators for the number of hydrogen-fueled vehicles. Changan Deep Blue is responding to this policy appeal by laying out three technology paths to fully occupy the new energy market: pure electric, long-range, and hydrogen-electric. Among these, the SL03 hydrogen-electric version, as a strategic product for long-term development, keeps up with legislative changes and demonstrates the company’s diverse layout and forward-thinking vision in renewable energy.
However, hydrogen fuel cell vehicles have not yet become widely employed in China, owing to numerous technical hurdles. First, while the scale of hydrogen refuelling station buildings in China is already significant, uneven distribution and insufficient refuelling pressure make it impossible to fully capitalise on the endurance advantages of hydrogen fuel cell vehicles. Second, the shipping and storage costs of hydrogen are considerable, and there is a problem with hydrogen loss in hydrogen storage tanks, which raises the cost of use. Therefore, China primarily uses hydrogen fuel cell vehicles for public transit on short-distance fixed routes.
We must address the aforementioned technical impediments and financial difficulties to encourage civilian usage of hydrogen fuel vehicles. This includes enhancing the construction and operating efficiency of hydrogen refuelling stations, developing more efficient hydrogen transportation and storage technologies, and lowering hydrogen loss rates in hydrogen storage tanks. Only by making advances in these areas will hydrogen fuel vehicles be able to meet market demand and achieve widespread promotion and adoption.
Changan Deep Blue has not only proved its innovative strength and market layout in the field of new energy by releasing the SL03 Hydrogen Electric Vehicle, but has also gained significant knowledge for the future development of hydrogen-fueled vehicles. We expect hydrogen fuel vehicles to play a more significant role in the future, offering more options and convenience for people’s transportation as technology advances and the industry matures.
Although pure electric vehicles have overcome the technical barrier of a thousand-mile range, issues such as long recharging times and cumbersome recharging facilities continue to impede their rapid development and become insurmountable impediments. Despite this, experts continue to view pure electric vehicles as the optimal solution for the large-scale deployment of new energy vehicles and clean travel.
In contrast, hydrogen fuel cell vehicles have not yet demonstrated the ability to outperform pure electric vehicles; hence, they are now second in the battle. However, numerous automakers are still actively developing hydrogen-fuel cell cars. The objective is simply to demonstrate technical strength and research and development results, which is also true for the Changan Deep Blue SL03 Hydrogen Electric Edition. However, the Changan Deep Blue SL03 Hydrogen Electric Edition uses its high price as a gimmick to draw attention, akin to a high-end bespoke coat that is both eye-catching and mysterious in its true value.
