Exposure of the five platforms to SAIC's own brands

SAIC, which is committed to building its own brand into a core competitiveness and international competitiveness, is playing a big card. Following the listing of the Roewe W5 in early August, several models of its own five branded product platforms will be launched in succession. This is also SAIC Motor Co., which has worked hard for the past five years. It initiated the group-type charge for the Chinese auto market for the first time. After the new vehicles are listed, SAIC's own brands will complete the strategic layout of China's major auto market segments. These products that are innovatively researched and developed based on the introduction of foreign advanced technologies can be recognized by the market. This is not only a test of the “SAIC model” but also a touchstone for whether China’s own brand vehicles have reached a new height.

Exposure to the five platform models At the end of this year or early next year, in addition to the just-listed Roewe brand SUV model W5, the SAIC Passenger Vehicle will also launch at least three new models including the Roewe or MG brand including the next-generation Roewe 750. According to information obtained by Times Weekly reporters, in addition to the next-generation Roewe 750 from the B-class platform, the other two new models are the new Roewe 550 A-class platform and the MG5 A-class platform, which will impact China with a new look. The major automotive market segments.

When interviewed by reporters, Chen Zhixin, executive vice president of Shanghai Automotive Group Co., Ltd. and general manager of SAIC Motor Co., Ltd., revealed that SAIC Passenger Cars will have 4 new products and 5 medium-term models during the “12th Five-Year Plan” period. Modified products are put on the market. At present, SAIC Motor has formed five major product platforms. In addition to the above three platforms, there are A0-class vehicle platforms and SUV platforms. There are still a number of models under development for these platforms.

As the high-end model of SAIC's own brand, the next-generation Roewe 750 has completely freed itself from the constraints of Rover's old technology and is the product of its new B-Class platform. It is entirely a two-vehicle model except the name, which is the same as the new Regal of Shanghai GM. The picture forum and the new LaCrosse [review picture forum] are exactly the same. The next-generation Roewe 750 is a masterpiece of SAIC Passenger Vehicle. The interior of the SAIC Passenger Vehicle is called the "Minister's Car." It is the main model of its entry into the mid-to-high-end mainstream car market, and whether its own brand can stand in the high-end market. A touchstone of stability. So far, there is not yet a self-branded mid-to-high-end model that can compete on the same stage as foreign brands.

A number of new technologies are about to be recognized in the industry. SAIC's own brands are the best independent brands in China's major automobile groups. Based on its acquisition of assets of Rover, the SAIC Auto Group will continue to build partnerships with multinational companies such as Volkswagen and GM. "China's auto strong self-owned brand with core competitiveness and international competitiveness" has achieved independent innovation and won a good reputation and brand image. This strategy is called "Shangqi Mode" by the industry. In 2010, sales of Roewe and MG brands reached 160,000 units, an increase of 77% year-on-year. SAIC Motor has invested 23 billion yuan for its own-brand passenger vehicles.

According to Zhang Juehui, chief engineer of SAIC Motor Corporation and deputy director of Shanghai Automotive Technology Center, it is different from the reverse development of some self-owned brands on models of foreign brands on the basis of gourd paintings and minor repairs. The needs of those who design close to the market, close to the user's new products. "The model development period of SAIC Passenger Vehicle is 45 months," said Zhang Juehui.

According to industry sources, for a car company that has been established for only 5 years, 45 months is a long time, but this is basically the same as the product development cycle of international mainstream car companies. This shows that SAIC is really down to earth in building its own brand.

It is reported that the double-clutch gearbox independently developed by SAIC is expected to be put into production next year and is currently undergoing reliability experiments. The 1.0-1.4 small-displacement engine jointly developed with GM is scheduled to be put into production in September 2014. In particular, the 1.0L engine is fully synchronized with European technology, and its large-displacement engine will use the world's leading direct injection boost technology from 2.0-2.4L. The application of these technologies will further enhance the quality of SAIC's own-brand vehicles.

Short-term benefits test "Shangqi Mode"

However, for SAIC Passenger Vehicles, although a number of new cars of good quality are in a centralized listing period, the short-term changes in the market also make it face significant pressure.

Since the beginning of this year, the growth rate of China's auto market has slowed down significantly, especially for its own brands. In the first half of the year, sales of cars increased by 8.02% year-on-year, but self-owned brands only increased by 5.07%, and market share dropped by 0.87%.

Toyota, Honda, Nissan, and other well-known brands of popular models have lowered their prices and brought pressure on their own brands. SAIC Passenger Cars is no exception.

In general, listing a new car in the market environment is not only conducive to a good product price, but also very easy to create a good sales performance and form a good market reputation.

However, the sudden slowdown in the growth rate of the market made SAIC Passenger Cars, which intends to focus on the release of innovation achievements over the past five years, somewhat unprepared.

“As the market environment changes, sales of SAIC Passenger Vehicles in the first half of the year will be 20,000 to 30,000 less than planned. We value short-term sales but value long-term growth,” said Chen Zhixin.

However, even if there are long-term development prospects, SAIC passenger cars still have to create a beautiful start for these new cars, because its success is also an important test of the “SAIC model”. If the new car still meets the expectations of the industry in a bad market environment, it means that the “Shangqi Model” has passed the “incubation period” and entered the growth period. How to take this crucial step is a good one. SAIC needs to show great wisdom.

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