Author: Feng Jingang

Introduction

As SAIC passenger cars reach the milestone of 100,000 cars sold, this means that SAIC passenger cars become the fourth largest source of sales for SAIC group, following SAIC-GM-Wuling, SAIC Volkswagen, and SAIC-GM. Considering the trend of joint venture downscale and independent brand upgrading, the future of SAIC passenger cars is incalculable.

As independent brands gradually move to center stage，SAIC, as the first joint venture automaker, also pivots its strategy onto SAIC passenger cars. As a result, the top-level layout for SAIC passenger cars is gradually being unfolded within SAIC.

On October 29, SAIC passenger car’s original R brand was officially renamed as “RisingAuto” and began operating independently. The independence of RisingAuto means that in the high-end market of new energy vehicles, SAIC will now form a dual-brand pattern of IM and RisingAuto. Combined with SAIC passenger cars’ inherent layout in traditional low-end markets, SAIC independent brands will achieve full coverage in the new energy vehicle market.

With complete new energy vehicle market coverage and dual-line drive in domestic and foreign markets, SAIC’s top-level layout for its independent sector is basically outlined. When the strategy has become clear, tactical execution becomes SAIC passenger car’s top priority, which directly reflects the team’s combat effectiveness as well as SAIC passenger car’s future prospects.

Fortunately, SAIC passenger cars are showing improvement: after exceeding 100,000 cars sold in October, they continued to sell more than 100,000 cars in November. This year, cumulative sales have reached 695,000, which is a 25% increase year-over-year. Achieving this impressive sales record in the context of chip shortages and ongoing epidemic challenges is not easy, nor is it simple.

As SAIC passenger cars stand firm on the milestone of 100,000 cars sold, this means that SAIC passenger cars become the fourth largest source of sales for SAIC group, following SAIC-GM-Wuling, SAIC Volkswagen, and SAIC-GM. Considering the trend of joint venture downscale and independent brand upgrading, the future of SAIC passenger cars is incalculable.

Introduction of “New Car Manufacturing” to achieve rapid growth

Exceeding 100,000 cars sold in a month is an impressive feat that most people associate only with the “big three” domestic Chinese automakers – Geely, Great Wall, and Changan – showing how difficult it is to achieve. Today, however, SAIC passenger cars continue to break the 100,000 monthly sales mark, which indicates that they are already on par with the “big three” domestic Chinese automakers. Moreover, this achievement also reflects the rapid development of SAIC passenger cars.

So, why has SAIC passenger cars developed so rapidly? What is the secret behind it?

In fact, it’s straightforward: New Car Manufacturing has been introduced.# New Car Manufacturing: User-centered with Co-creation as the Key

The term “new car manufacturing” no longer exclusively refers to start-up companies in the automotive industry. Rather, it refers to a new way of manufacturing cars that focuses on users and utilizes co-creation as a means of production. This approach is applicable to both new energy vehicles and traditional fuel vehicles. SAIC Motor believes that relying on “closed-door” production methods is no longer accepted. Instead, it is necessary to sit next to users and truly listen to their needs.

Change is effective.

According to sources, from development to launch, SAIC Roewe iMAX 8 took one and a half years of cooperation and co-creation with users. Many changes were made based on users’ feedback. Now, one year since its release, iMAX 8 has sold over 23,000 cars and has entered the top 5 of MPV sales over 200,000 yuan.

The key to iMAX 8’s success and SAIC Passenger Car’s fast growth lies in satisfying users’ needs by acquiring feedback from them.

Interestingly, besides extending “new car manufacturing” to manufacturing methods, SAIC Passenger Car is also aligned with “new car manufacturing” in marketing.

Recently, SAIC Passenger Car launched a new “fuel-powered new force” car model, the MG ONE. Sun Yijiong, the Deputy General Manager of SAIC Passenger Car, introduced that MG ONE is the only car under 200,000 yuan that uses high-precision maps for advanced intelligent driving and the only car under 150,000 yuan with the Qualcomm Snapdragon flagship 8155 chip. It is also the first car featuring the “Loongson Intelligent Cockpit System”.

Fuel-powered car new forces, advanced intelligent driving, Qualcomm Snapdragon 8155 chip, intelligent cockpit…these new buzzwords frequently mentioned in the new force market are now the strengths of SAIC Passenger Car. While focusing on new car manufacturing, mastering flow passwords, and paying attention to both focus and monetization, MG ONE pre-sales have sold over 3,000 units in only 7 days.

Based on this new and tested car manufacturing concept, SAIC Passenger Car is no longer hesitant about the new energy market. Instead, it has opted to develop QiRui Automobile as an independent brand, competing with other new forces.

Thanks to the effective manufacturing method, the traditional new energy cars of SAIC Passenger Car have also regained vitality. In November, SAIC Passenger Car’s new energy vehicle deliveries reached 15,000, with the total deliveries of new energy cars reaching 143,000, a YoY increase of 159%. Over 40,000 new energy vehicles have been exported overseas, with sales topping the list in many segmentation markets, including the United Kingdom, Norway, and Sweden.

Learning from “new car manufacturing” and having a stronger ability to integrate resources than new forces, SAIC Passenger Car is the best example of “New Strength” as it becomes an international brand.

Becoming a multinational brand is a must for the growth of independent brands.Previously, cross-border brands were exclusively foreign brands, and weak Chinese domestic brands could only survive in China. However, in order to further strengthen their position, domestic brands must go abroad and become cross-border brands. This is a necessary step on the path to growth.

In 2015, SAIC, as the first Sino-foreign joint venture automaker, realized the need to strengthen its international business and decisively accelerated its overseas strategy. On November 10th of the same year, SAIC unveiled two new cars, the SAIC Maxus G10 and the SAIC MG GS, at the Dubai Motor Show. This participation in the Dubai Motor Show can be said to be the starting point of SAIC’s overseas strategy.

In response, Yang Xiaodong, the then general manager of SAIC International Business Department, said, “This is not an isolated event, but the launch of a series of overseas marketing initiatives by SAIC. We want to accumulate experience through the Dubai Motor Show, train our team, and lay the foundation for a series of future overseas exhibitions.”

Compared to other domestic brands that have rushed into overseas markets, SAIC passenger cars have had a much smoother journey, as its two domestic brands, Roewe and MG, have a very good international foundation.

From the results, SAIC passenger cars have indeed lived up to expectations. After a 13-year effort, they have become the champion of Chinese car exports. In November, SAIC passenger cars exported more than 49,000 vehicles, up 62% year-on-year and 39% month-on-month, setting a new record. From January to November, the total export volume reached 245,000 vehicles, surpassing last year’s total export sales.

In terms of market penetration, SAIC passenger cars have entered 66 countries and regions and are leading in many sub-markets. From January to October, SAIC passenger cars sold 35,000 vehicles in Australia and New Zealand, ranking ninth in the overall market, up 8 places from the previous year. In the South American passenger car market, SAIC passenger cars are ranked fifth, becoming a popular Chinese car brand there.

In terms of products, SAIC passenger cars provide a new mobile travel experience for global users with their independently developed new energy and intelligent internet-connected technologies. Compared to traditional fuel vehicles, SAIC passenger cars’ forward-looking layout of intelligent electric vehicle products undoubtedly has more strategic significance.

While BYD, Nio, Xpeng, Aiways, and other brands are rushing into the European market, since the beginning of this year, SAIC’s MG and Roewe brands have sold 46,000 new energy vehicles in developed European countries such as the UK, France, Germany, the Netherlands, and Sweden, becoming the Chinese new energy brand with the highest export volume.

Whether it is for its extensive global layout, its presence in important markets such as Europe, Australia and New Zealand, and South America, or its advantage in the future smart electric vehicle market, the international performance of SAIC passenger cars is outstanding. With its dual line of effort at home and abroad, SAIC passenger cars have actually become a cross-border brand, laying a solid foundation for further growth.

This article is a translation by ChatGPT of a Chinese report from 42HOW. If you have any questions about it, please email bd@42how.com.