SAIC crosses behind 4 million vehicles

Today, the 4 millionth car produced by Shanghai Automotive Industry Group this year turns over to the owner. This car is a new Roewe 750 hybrid that has just entered the market. So far, Shanghai Automotive Group has become the first automobile company in China that has annual sales of over 4 million vehicles. More importantly, in 2011, which was generally regarded as a “recession” of the domestic auto market, SAIC achieved a far greater increase in production and sales than the national average.

Why does SAIC still have a lot of momentum in the Chinese auto market when it enters an inflection point and some car companies are struggling? What does the huge scale of 4 million cars mean? Looking to the future, does SAIC still rely solely on quantitative growth?

Hu Maoyuan, chairman of SAIC, stated that 4 million vehicles won't come by easily this year. It is a comprehensive test of SAIC's core competitiveness and a new starting point for transformation and development.

In the year of the marathon, 4 million vehicles were actually the only ones, which was only 420,000 more than last year.

In a critical look, the figure is narrowing compared to the absolute increase of 8.9 million vehicles in the previous two years. However, the statistics from the National Passenger Vehicle Market Information Association show that: From January to November, the national automobile market increased by an average of 2.7%, which is less than 1/10 of the same period of last year; SAIC Motor's production and sales increased by 11.9%, which greatly exceeded the national average growth rate. .

This is comparable to the 100-meter sprint. When everyone runs a marathon, the advantage of the leader is obvious.

“It is no longer possible to return to high growth in 2010.” SAIC-related officials said that when the market is not good, it is precisely when testing the company’s core competitiveness. “Only when the tide ebbs, do you know who is nude.” 400 Behind the huge scale of 10,000 cars, where is the core competitiveness of SAIC? This year, Shanghai Volkswagen, Shanghai GM, and SAIC-GM-Wuling all achieved a scale of production and sales of one million vehicles. From the Volkswagen Tiguan that does not need to be discounted, the Chevrolet series that came from behind, and the 14,000 Po Chun that sold for more than three months, the current popularity of each car of SAIC comes from its strong localization planning and R&D capabilities. "At present, SAIC has a full-automobile and parts R&D team consisting of 14,200 people. It has turned several times more than five years ago and has basically had the R&D capability for complete cars and key parts and components," said Hu Maoyuan.

Competitiveness can best appear in difficult situations. In the production and sales of 4 million SAIC cars this year, the contribution of independent brands is not large. However, looking at the national auto industry, the slowdown in growth rate is a major reason for the sudden decline in self-owned brands. SAIC's joint venture brand went up, but its own brand did not fall. At present, Roewe 550, 350, MG6 and MG3 have formed a fist combination. In Anting Shanghai, Pukou, Nanjing and Birmingham, England, SAIC has built a “multinational force” with independent brand R&D. This year, the share of SAIC's own brand in the overall passenger car market remains basically unchanged, and the proportion of its own brand's overall market share has increased.

Half of Shanghai's auto production this year, half of SAIC's 4 million cars are not produced in Shanghai.

This is the latest link in SAIC's national strategy. In recent years, SAIC has promoted its cross-border business strategy and participated in the strategic restructuring of the domestic auto industry. It has completed eight major vehicle bases including Yizheng Shanghai Volkswagen 5, Guangxi SAIC-GM-Wuling, Shenyang-GM Shanghai Beisheng and Nanjing Xinnan Auto.

Of the 4 million vehicles, will there be a difference in the level of production between Shanghai and Shanghai? If there are differences, how come 4 million sales?

South-South cooperation over the past four years can dispel doubts. In the four years, SAIC and Nanjing Automotive fully cooperated and merged into one: during the financial crisis, Shanghai area prudently invested, but the second phase of Pudong Base, Nankou, investing 2.57 billion yuan was started on schedule; Roewe and MG were the two largest brands with the largest batches The fastest-growing A-class vehicles are all produced in Nanjing. The business expansion has left 14,000 Nanjing employees without a job; (down to the 6th edition) (up to the first edition). During the financial crisis, employees in Shanghai did not increase or Less labor, but Nanjing Auto's employees continue to increase their salaries. The average annual growth in the four years is 10%.

Sincerely for real money. The vehicle production of SAIC Nanjing Base increased from 100,000 units to 400,000 units; sales revenue rose from 10 billion yuan to 40 billion yuan, which is a four-fold increase in four years. Among them, Nanjing Fiat, which was once close to the close, took a profit after the Shanghai Volkswagen took over, and turned to a profit. The output tax of Nanjing Iveco, which had been struggling, increased more than 1 times; the company’s once-daily business contracted, and the loss was nearly RMB 60 million. The components business segment restructured into Donghua Company after cooperation with South Korea, and achieved profitability and loss increase in 2010.

In the national layout, the SAIC replication model is even more innovative:

SAIC-GM-Wuling created the first domestic micro-customer market in less than five years, and GM Global also went to Wuling to learn the “low-cost, high-value” model. In August of this year, SAIC-GM-Wuling’s Baojun brand went public and explored a new path for the joint venture’s own brand, which has become a fast-growing dark horse among its own brands.

More than 400,000 vehicle loans were purchased this year, and more than 400,000 vehicles were credited for consumption.

Loans to buy cars are common in developed countries and new in China. This 400,000 vehicles represents SAIC Motor’s determination to expand service trade.

In the developed countries, the auto industry's R&D and service profits are both high, and the intermediate manufacturing links are low, forming the famous “smile curve”. The domestic companies have long been the middle-high two-headed “cry face curve”.

Whether it can be "laughed" is the key to optimizing the structure and increasing the added value of auto companies. In recent years, SAIC has been implementing a unified operation of logistics businesses such as vehicles, parts, ports, and international logistics; post-market services such as auto finance, distribution retail, and used cars have flourished; and on-demand services such as ONSTAR, OnStar, and Internet of Vehicles represent the development direction. The industry has also started.

SAIC General Motors Financial Corporation, which is located in the high-end automotive service chain, operates in 246 cities across the country and has a balance of credit assets of more than 25 billion yuan, making it the best in the country. Since SAIC Finance began its auto finance business in 2007, its development momentum has been very rapid. As of the end of November 2011, the total assets of the wholesale business, the number of dealers covered, and the total amount of retail sales ranked second in the automotive finance industry.

SAIC's factories are built in all directions. Each brand's 4S shop is dotted and how it forms a network. At present, SAIC's Anji Automotive Logistics Co., Ltd. already has 5 million vehicles transportation capacity: 3,000 transportation carts, 10 transportation vessels, a dedicated terminal, and 350 trains are on standby at any time, not only supporting Shanghai Automotive, but also serving the national automobile. industry. Last year, 40% of the entire vehicle logistics in China was undertaken by Anji Logistics.

In 2010, SAIC's service business revenue exceeded 40 billion yuan, an increase of 230% from the end of the "Tenth Five-year Plan," and a 635 percent increase in profits. The return on net assets rose from 1.7% to 14%. The scale of service trade and competitive strength are leading the domestic counterparts, and the increase in benefit is much higher than the increase in scale. SAIC's “smile mouth” has started to rise.