SAIC: Cultivating Global Markets, Focusing on Hydrogen Fuel Cell Vehicles
MG's and Wuling's first global NEVs, SAIC GM invests CNY 70 B for EVs
- Electrification/Connected: Promote industrialization of fuel cell vehicles and increase the proportion of NEV sales to 40% by 2025
- Internationalization: China's top exporter of finished vehicles, further expanding overseas with BEV global models
- Own-brands: More than half of sales, focusing on battery replacement and hydrogen energy, deepening NEV efforts
- Foreign equity joint ventures: SAIC VW to promote expansion of NEV production; SAIC GM to accelerate transition to electric vehicles
- Business overview: NEV sales volume is rapidly increasing, and investment in development as a percentage of operating revenue continues to rise
- SAIC Group's sales volume in China (ex-factory)
- LMC Automotive’s Production Forecast: SAIC Group’s light vehicle production in 2025 will be 2.77 million units
SAIC Motor Corporation Limited (SAIC Group) sold 5,365,000 vehicles in 2021, ranking first among China's automaker groups. Of these, 669,000 were commercial vehicles, 4,696,000 were passenger cars, and 709,000 were New Energy passenger cars. In the January-October period of 2022, the sales volume of the SAIC Group increased by 1.6% year-over-year (y/y) to 4,185,000 units. By 2025, the Group's share of New Energy Vehicle (NEV) sales is expected to reach 40%.
This report presents the major trends of the SAIC Group for the year 2022. In response to the trend of CASE technologies (Connected, Autonomous/intelligent, Sharing, Electrification), the SAIC Group has hastened the development of new energy intelligent connected car technologies and established the SAIC General Institute for Innovative R&D in March 2022. By integrating its affiliated technology centers and overseas innovation centers, the number of global R&D personnel will exceed 10,000 in the future. In August 2022, the SAIC Artificial Intelligence Laboratory (SAIC AI Lab) launched the high-level autonomous driving 2.0 technology architecture. Robotaxi 2.0, which uses this architecture, began operating in December 2022 in the Lingang district of Shanghai and Shenzhen. There are plans to build an unmanned driving fleet in collaboration with Pony.ai in the future. Z-ONE Technology Co., Ltd. (Z-ONE), a smart car development company under the Group, has agreed to strategic alliances with Horizon Robotics, OPPO, Qualcomm, and others in the areas of smart driving and smart cockpits.
The SAIC Group has seen a significant increase in NEV and overseas sales in 2022. According to the group's preliminary production and sales report, January-October 2022 NEV sales rose 44.0% y/y to 800,000 units, while exports and sales of overseas production units rose 46.1% y/y to 772,000 units. SAIC-GM-Wuling announced its new energy strategy, aiming to achieve 1 million NEV sales in 2023. The Wuling brand and the MG brand, which is under SAIC Passenger Vehicle, have released their first global models of NEVs and are focusing on developing the global NEV market. In addition, the SAIC Group is accelerating the promotion of FCV (fuel cell vehicle) commercialization, and has started commercial demonstration operations in August 2022. Although the sales volume SAIC VW, a foreign equity joint venture, has been declining in recent years, the sales volume of NEVs in 2022 grew rapidly and the company is promoting expansion of production capacity. The Shanghai Anting-based MEB plant is expected to reach a production capacity of 300,000 units in 2023. In addition, SAIC GM will accelerate its shift to electrification and invest a total of CNY 70 billion in the new technology fields of electrification and intelligent connectivity by 2025.
Chinese Market Q3 2022: SAIC, FAW, and Toyota Promoting FCVs (Nov. 2022)
2022 H1 China market: Sales Down to 12.05 Million Units, but NEVs Up 2.2 Times to 2.6 Million Units (Aug. 2022)
Chinese Market Q2 2022: Chinese Automakers Focus on Improving Production Systems for Drive Batteries (Jul. 2022)
Chinese Market Q1 2022 (1): SAIC, FAW, BYD, etc. accelerate development in battery and energy fields (May. 2022)
SAIC: Investing CNY 300 billion in smart EVs, transforming into a user-oriented high-tech company (Jan. 2022)
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