(Yicai Global) June 24 -- Hozon Auto has set itself the short-term goal of shifting 10,000 new energy vehicles a month by keeping prices moderate and thus staying competitive with conventional fossil fuel-powered autos, the Chinese electric car startup’s chief executive officer told Yicai Global.

The firm’s long-term goal is to sell 400,000 to 500,000 EVs a year by 2025, Zhang Hong said.

Hozon, which prices its vehicles at below CNY100,000 (USD15,400), saw sales surge almost seven-fold last month from the same period last year to 4,500 units, ranking third in the country. Only Nio and Xpeng Motors did better, delivering 6,711 and 5,686 units respectively.

One month’s sales figures are not conclusive, Zhang said. Hozon can only say it is better than its rivals if its sales at least triple the competition.

So long as the company can make a profit and provide users with quality service, it can afford to charge less than CNY100,000 per car, he said. At the moment Hozon has three models on sale for this price, while other brands cost several times that amount. A China-made Tesla Model 3, for instance, sells for upward of CNY300,000.

Hozon plans to develop another model in one to two years’ time which it will be priced between CNY100,000 and CNY200,000 with a monthly sales target of around 5,000 to 10,000 units, he said. At the moment electric cars in this price range are not competitive, he added.

Jiaxing, eastern Zhejiang province-based Hozon secured CNY3 billion (USD463.3 million) in D round financing in April, led by antivirus software developer 360 Security Technology.

“360 Security has the same goal as Hozon which is to make smart electric vehicles for the mass market,” Zhang said. “360 Security will bring better resources and technologies as well as an internet-based mindset to the firm.”

Editors: Tang Shihua, Kim Taylor