Abstract: Accelerating product updates and introduction is still the main means to increase the sales of SAIC's own brands
Wen | Guo Yu
Editor| Zhao Cheng
After experiencing the twists and turns of a 13% decline in export volume in 2020, 2021 is regarded as a key node for car companies to go to sea. CICC's research report pointed out that in 2021, the first year of the outbreak of Chinese brands going to sea, "we are optimistic that China will become a global automobile manufacturing base, and it is expected that the proportion of exports in production will continue to increase, possibly exceeding 30%." ”
In 2021, the export sales and growth rate of Chinese automobile brands hit the highest record in 10 years, with exports of 2.015 million vehicles, doubling year-on-year, exceeding 2 million units for the first time. Saic Motor, which dominates in The export of Chinese brands, exceeded 697,000 units last year, with a growth rate of 78.9%, and saic MG and SAIC Maxus brands have made breakthroughs in Europe, the Americas and other regions.
In 2022, SAIC motor also plans to launch the MG brand EH32 in Europe first, which is a model specially developed by SAIC for the European market. Caijingqiche (ID: caijingqiche) understands that the product will be designed for European standards, and hopes to achieve global quality in terms of safety, environmental protection and durability.
"This car is a fist product of SAIC Group to integrate local advantageous resources and target the global market." After global market research, mg EH32 will be equipped with innovative technologies such as exclusive electric vehicle architecture, intelligent cockpit, intelligent driving, etc., to benchmark global safety standards. Yu De, assistant to the president of SAIC, general manager of SAIC's international business department and general manager of SAIC International, said that after the European debut, the car will also be listed in other markets, including China.
Although SAIC's overseas sales already account for one-third of China's auto exports, latecomers are also catching up. For example, Chery exported more than 269,000 vehicles in 2021, an increase of 136.3% year-on-year; Great Wall Motor exceeded 140,000 units, an increase of 103.7% year-on-year, and the growth rate exceeded that of SAIC Motor.
Automobile export involves supply chain, production, logistics, sales, service and other links, not only sales competition, but also system dispute.
"SAIC has a very complete vehicle system, parts system, service trade and financial system overseas, and we will give full play to the overall systematic cooperation of SAIC Motor Group." Yu De told Caijing Automobile (ID: caijingqiche).
However, compared with the bustle of overseas markets, SAIC is facing a dilemma in the domestic market. Although the wholesale sales of 5.464 million vehicles in 2021 have allowed SAIC to maintain the first place in China for 16 consecutive years, the sales of joint venture brands have declined year after year, and the reality that independent brands are in the low-end market cannot be ignored.
SAIC's overseas sales increase by 78.9%
MG's sales in Europe tripled
"For every three Chinese cars sold overseas, one is made by SAIC." Saic Motor summed up the results of its overseas business in 2021.
In 2021, SAIC's overseas sales reached 697,000 units, an increase of 78.9% year-on-year, covering more than 80 countries and regions. In the overseas market ranking of domestic car companies, SAIC has ranked first for six consecutive years.
SAIC MG and SAIC Maxus are the main brands of SAIC Overseas, with MG focusing on passenger cars and MAXUS focusing on commercial vehicles. CaijingQiche (ID: caijingqiche) learned that in 2021, MG brand delivered 470,000 vehicles worldwide (including China), not only ranking first in China's single-brand overseas sales, but also ranking in the top ten in single-brand sales in 17 overseas countries. In 2021, the MAXUS brand will sell more than 52,000 units overseas, and its overseas business will reach 51 countries and regions.
Europe, Australia and New Zealand (Australia and New Zealand), the Americas, the Middle East, ASEAN and South Asia, six 50,000-vehicle markets, are saicid's main areas of development. In europe, the MG and MAXUS brands sold more than 70,000 units, the Australian and New Zealand markets sold more than 65,000 units, and the Americas sold 71,000 units. Among them, MG's sales in continental Europe tripled year-on-year in 2021.
In addition to MG and MAXUS, SAIC also has 29 new energy independent brands such as Zhiji, Feifan, Roewe and Wuling, covering MINI, sedan, SUV, WAGON, MPV, VAN, Truck, Roadster and other models. "This is our strength to do overseas." Yu De said.
▲ Assistant to the President of SAIC Group, General Manager of International Business Department of SAIC Motor Group, General Manager of SAIC International Yu De
China's auto exports are moving off the low-price route. Yu De told Caijingqiche that the current Chinese cars are not inferior to their competitors in terms of technology or quality. "Even in terms of innovative technologies, such as the new electric intelligent network track, our technology still has advantages. Therefore, now our car in the overseas market can completely win the recognition of users with technology and quality, and there is no need to fight for price. ”
Based on last year's overseas achievements, SAIC set a goal for its overseas business in 2022: First, this year's SAIC group's overseas sales target is to exceed 800,000 vehicles, of which the MG brand strives to reach 500,000 to 600,000 vehicles; second, the channel in the European market should exceed 1,200 dealers.
Zhang Liang, deputy general manager of SAIC's data business unit and chief digital officer of SAIC Motor Passenger Vehicles, told Caijingqiche that it hopes to become one of the top ten single brands in the world in the next few years. In addition, Zhang Liang announced that MG will launch a high-end sequence and pure electric new energy sub-brands during the year, thereby supporting the needs of different overseas countries and supporting the development of domestic new energy.
In addition to selling cars, SAIC's overseas business also involves supply chain, logistics, services, financial system and other links.
For example, Anji Logistics, a subsidiary of SAIC Motor, has become the world's first auto parts and vehicle logistics enterprise. Anji Logistics operates 6 international routes in Southeast Asia, Mexico, South America and West, Europe, etc., and its distribution network covers more than 100 countries overseas, with an annual shipment volume of up to 10 million vehicles.
The construction of the system comes from the experience of localization of joint venture brands. Yu De told Caijingqiche (ID: caijingqiche) that both SAIC Volkswagen and SAIC-GM have gone through a very long stage of localization, almost 20 years. "We have a lot of experience in this area, and with the gradual development of overseas operations, we will also bring this experience to some countries and regions overseas." Not only the supply chain, the supplier, but also the service system and the financial system, we will consider it together. ”
Independent brands still need to break through
SAIC motor has set itself a small goal: in 2025, it plans to achieve sales of more than 2.7 million new energy vehicles, accounting for no less than 32% of SAIC's vehicle sales. In other words, SAIC's total sales target for 2025 is not less than 8.44 million vehicles.
To achieve this sales target, SAIC's joint venture brands (SAIC Volkswagen, SAIC-GM, SAIC-GM-Wuling) and independent brands (MG, Roewe) need to exert efforts and seek breakthroughs in the field of new energy.
However, compared with the bustle of overseas markets, some of SAIC's brands are slightly embarrassed in the domestic market.
The first is the joint venture brand dragging its feet.
SAIC Volkswagen, which contributes significant profits to SAIC, is experiencing a year-on-year decline in sales. From 2018 to 2021, its sales were 2,065,100 units, 2,001,800 units, 1,505,500 units and 1,242,000 units, respectively. The decline in sales directly led to a decrease in profits. In 2018, SAIC Volkswagen achieved a net profit attributable to the mother of 28 billion yuan, which was 20 billion yuan in 2019 and decreased to 15.5 billion yuan in 2020. In the first half of 2021, it was only 2.9 billion yuan.
Putting aside the lack of core factors, insisting on the three-cylinder engine and continuous complaints about quality problems, SAIC-GM is also experiencing a similar fate. Since 2017, when it reached a high of 2 million units, sales fell to 1.3316 million units in 2021, comparable to 1.3927 million units sold in 2012.
Although its own brands accounted for more than the joint venture brands for the first time in total sales in 2021, reaching 800,700 units, accounting for 52.3% of the total, they are still in the low-end market.
According to the China Automobile Association, in the past year, MG's two best-selling models, the MG 5 and MGZS, were priced between 67,900 yuan and 112,800 yuan. The two best-selling models in Roewe are the Roewe i5 and roewe RX5, priced between 67,900 yuan and 103,300 yuan.
In addition, the MG brand, which has repeatedly achieved results overseas, has not been able to sell well in the domestic market.
SAIC's statistical method of SALES of MG brands is generally presented in the form of the sum of domestic and foreign sales and the growth rate of domestic sales, and does not publish the specific figures of sales in the domestic market. For example, in 2021, the global delivery volume of MG exceeded 470,000 units, and domestic retail sales increased by 56.9% year-on-year. According to Interface News, from 2019 to 2021, MG's domestic sales will be 159,000 units, 70,000 units and 160,000 units, respectively. According to this calculation, the proportion of DOMESTIC and foreign MG sales in 2021 is about 1:2.
The MG brand has been positioned as a "civilian sports car" since the last century, and so far, there is no second brand. Therefore, while ensuring positioning, it also achieves brand upwards, which has become the key to the breaking of the MG brand.
At present, it seems that the launch of new cars is an important means for mg brands to achieve sales targets. In 2021, the MG brand launched a number of models. In April last year, the world's first pure electric supercar e-sports cockpit MG Cyberster unveiled, launching a crowdfunding co-creation of the mass production model; in May last year, mg brand launched the official transformation performance car MG6 XPOWER that can be legally on the road; a month later, mg brand launched a dual-appearance design model MG ONE; on August 12 last year, the third generation MG6 PRO was launched; in December, MG ONE was officially launched.
In the past, the MG brand has always had the problem of weak product lines. In 2020, the main models of the MG brand are only MG 6, MG ZS, and MG HS. At present, the MG brand has formed a sedan camp with MG 5 and MG 6 car series, as well as an SUV camp composed of MG ZS car series, MG HS car series, MG pilot car series, and MG ONE.
Although the product matrix has been gradually formed, at present, the hot sales models of the MG brand are mainly the entry-level model SUV MG ZS and the sedan MG5.
According to the China Automobile Association, in 2021, the cumulative sales of MG ZS will be about 142,000 units, the cumulative sales of MG 5 will be about 106,000 vehicles, and the sales of the two models will account for about 55.5% of the total sales of MG. From the price point of view, the price range of these two models is in the lower and middle range of MG's product matrix. Among them, the price range of MG ZS is 78,800 yuan to 112,800 yuan, and the price range of MG 5 is 67,900 to 104,900 yuan.
"The practice of squeezing in a pile of people is not suitable for MG. MG wants to express a new category that conforms to the new integration of young people's fashion trends, sports performance and scientific and technological expression. MG attaches great importance to the thinking of supplies to achieve brand expression. Zhang Liang has publicly stated: "MG in the follow-up models in the intelligent network and intelligent driving including software upgrade capabilities, intelligent vehicle accessories and other aspects will be more advanced, more intelligent, will be the technology tide to open up the territory of the strong, accelerate the landing of the new brand strategy." ”
It is worth mentioning that the MG ONE is considered to shoulder the brand's upward responsibility, which is the first new compact SUV built on the SAIC SIGMA super architecture and the first original model on the SIGMA super architecture. Starting from MG ONE, the MG brand will enter the era of architecture car manufacturing.
According to the data, the SIGMA architecture is a flexible combination of modules that can achieve full coverage from compact to mid-to-high-end models. In addition, MG ONE is equipped with Qualcomm Snapdragon 8155 chip and a new intelligent driving solution, which will effectively enhance the competitiveness of MG ONE's products.
According to the China Automobile Association, the MG ONE model has been sold in about 12,000 units since its launch in December last year.