SAIC: Strategies for own-brand growth

New Indonesian and Thai plants for Wuling and MG brand production

2016/02/22

Summary

SAIC Group's unit sales The SAIC Motor Group is the leading passenger-car and commercial-vehicle OEM in China. The Group has several affiliated brands, such as joint ventures (JVs) with non-Chinese OEMs like SAIC Volkswagen (with Volkswagen AG) and SAIC GM (with General Motors). Other group members include SAIC GM Wuling, which builds Wuling- and Baojun-brand vehicles; and SAIC Motor Passenger Vehicle, which builds MG- and Roewe-brand vehicles. This report focuses on the brand operations of SAIC's Chinese passenger-car brands.

 
 The SAIC Group sold 5.86 million units in 2015, which is a 5.0% year-over-year (y/y) increase. It is projected that the Group will aim for sales between 6.4 and 6.5 million units in 2016. While SAIC VW's and SAIC GM's unit sales have been decreasing, those of SAIC's own independent brand vehicles have been growing, with a 12% y/y increase to 1.98 million units in 2015.

 Baojun's 730 MPV and 560 SUV were both big hits with consumers. Their sales increased 2.8 times y/y to 500,000 units in 2015. Sales of MG's SUV, the MG GS, have also been robust, increasing 31.1% y/y to 72,000 units.


 As a result of fierce competition from non-Chinese brands, SAIC's strategy for its own brands is to differentiate them, by launching SUVs and MPVs, which have proven to be popular in the Chinese market and introducing new powertrains.

 Moreover, investments in new-energy vehicles (NEVs), which have seen increasing sales in China, are to be expanded. SAIC announced plans to invest CNY 20.0 billion invest by 2020 and have annual sales of Chinese brand new-energy vehicles (NEVs) to 200,000 units.

 SAIC is also expanding overseas, and is planning to build plants in Indonesia and Thailand. It plans to develop and launch models jointly with GM, which will be sold not only in China, but also in Brazil, India, and Mexico.

SAIC Group affiliated passenger-car brands

SAIC-GM-Wuling  A JV between SAIC, GM and Liuzhou Wuling Motors Co Limited that builds Wuling and Baojun passenger cars, and some commercial vehicles. It mainly builds low-cost MPVs and micro vans.
SAIC Motor Passenger Vehicle  Builds Roewe and MG vehicles. It mainly sells sedans and competes with non-Chinese brands.
SAIC Maxus Automotive Co., Ltd.  Builds MPVs for the Maxus brand, and small buses. Formerly SAIC Motor Commercial Vehicle
SAIC GM  JV with GM
SAIC VW  JV with VW

SAIC Group's unit sales (wholesale base)

2008 2009 2010 2011 2012 2013 2014 2015
Passenger
cars
SAIC own-brand 580,478 1,006,939 1,218,204 1,309,785 1,492,918 1,655,695 1,771,467 1,983,728
SAIC GM 444,756 708,356 1,012,057 1,185,585 1,363,532 1,542,558 1,723,939 1,724,976
SAIC VW 490,087 728,238 1,001,357 1,165,827 1,280,008 1,525,008 1,725,006 1,805,633
Passenger-car total 1,515,321 2,443,533 3,231,618 3,661,197 4,136,458 4,723,261 5,220,412 5,514,337
Commercial vehicles 163,148 201,924 249,022 234,548 294,950 350,077 363,287 349,160
Total 1,678,469 2,645,457 3,480,640 3,895,745 4,431,408 5,073,338 5,583,699 5,863,497

(Provided by MarkLines Data Center)