SAIC's Five Year Plan for MG & Roewe

SAIC own brand five-year plan: production of seven hundred thousand cars per year

December 24, Sina car in the "SAIC-Nanjing cooperation, the third anniversary conference" was informed that, in 2015, SAIC will form a production and sales of more than 6 million cars, of which passenger cars for their own brands to develop the completion of 700,000 units, and strive to reach the target of one million units.

700,000 is conservative?
In the country "big four" (SAIC, FAW, Dongfeng, Chang'an) Automotive Group plans for 2015, SAIC's sales volume can be said to form the most, but in the self-passenger car (MG Roewe and MG), the SAIC to FAW is inferior.

It is understood that not long ago at the "first brand FAW million cars off the assembly line self-celebration", the FAW President Xu said in 2015, FAW will form its own brand production and sales of 2 million, of which passenger cars will reach 1.2 million in terms of production scale (FAW Xiali and FAW Car of the 600,000).

The SAIC is only 700,000 in 2015 the scale of production and marketing, it seems a bit conservative. But analysts said SAIC FAW independent than passenger cars, particularly Xiali started to late, although the three bases (Shanghai port, Pukou, Yizheng) design production capacity of 500,000 or so, but this year's production and sales of only 160,000, "to achieve 70 million units, and strive to one million target, SAIC these five years there are many way to go.

Half of the tendency to self-investment
Although the 5 years, independent of total passenger cars in the SAIC is not an advantage, but in the next 5 years, SAIC has more than half of the investment will tend to autonomy.

In mid-December, the Shanghai Automotive (600104.SH) completed a private placement, nearly one billion yuan fund-raising, and independent project became the largest beneficiary of billions. Of which 5.531 billion yuan investment project to the passenger; 1.1785 billion yuan investment to commercial projects; There is also some money into the dual-clutch automatic transmission and other key parts of projects.

SAIC things in accordance with Hu Maoyuan, the idea of self-financing of the project has become a major investment in the next five years, areas, and this will become an investment template. During the "anniversary conference on South-SAIC cooperation", the SAIC decided in the next five years, the project to re-invest 10 billion yuan in Nanjing, the formation of one million capacity, including its own brand Pukou base of 300,000 units will be formed capacity. SAIC insiders, Pukou base of investment will account for more than half of the total investment.

With further investment in SAIC on autonomy, its own origin of the product planning has a new adjustment. Which Pukou base will change from the original A-class platform into the AO, A, B mixed platforms, in addition to the original of the Roewe 350 and MG7, will also import the MG3 and MG370, the state bases will also be transferred from the Yizheng Roewe 750 ; Yizheng base will be transferred out of the Roewe 750 will be imported in the second half of next year, code-named "Roewe W5" the SUV; Shanghai port base models are temporarily remain unchanged.

MG Lord Roewe outside the main
Entering the "second five" critical moment, SAIC market position of its own brand also made to readjust. Hu Maoyuan introduced, starting in 2011, the Roewe brand will hit the domestic market, while the MG will start to hit foreign markets.

Hu reasoned that, as a century-old brand, MG club members in many foreign markets, therefore, MG main foreign markets are more basic. It is understood that the production base in Shanghai's MG6 will be exported to UK in the first half, including a sedan and a hatchback. SAIC will be using GM's sales network sales in the UK these two models.

But analysts believe that MG is a main foreign markets are also quite upset, "co-operation from the South since the end of 2007, MG and Roewe brand positioning is quite similar, although the SAIC on the MG brand positioning has changed, so biased in favor of personality, movement, passion, but the market result is poor. In this self-SAIC sold 160,000 passenger cars.

Even so, Chih-Hsin Chen, general manager of SAIC passenger view, MG and Roewe brand differentiation has been opened, MG just need more market knowledge and time. To this end, SAIC will the original sale of the two brands together dealers, have begun to separate sales. It is understood that this part of the dealers in the country, about 100, concentrated in the third and fourth tier cities. SAIC's plan is to separate the end of next year, after the separation of newly opened stores were taken to sell, or a single brand.

Although the expansion of the next five years SAIC dealer there is no clear plan, but MG Lord, Roewe, industry analysis, the network may increase the Roewe faster. And this trend has emerged today, the two stores into a 1:2 ratio this year from last year's nearly 1:3.

Recently, at the Guangzhou Auto Show, SAIC vice president Jiang Jun passenger said in an interview, the Roewe SUV will be launched in the first half. Meanwhile, Jiang Jun, released the same day last year, sales data on own-brand passenger cars last year, SAIC will exceed 160,000 annual sales figure, an increase of more than 78%. This year (2011) sales target of 200,000, which will be accounted for 150,000 Roewe while MG would account for about 60,000.

"This year's Beijing auto sales could drop more than 50%"

Reporter: Do you have car sales this year to see how the trend?

Jiang Jun: the first quarter of this year, CPI is estimated to reach their annual maximum; blowout late last year brought in some markets is likely to overdraft in the first quarter of this year's market will bring about significant effect. We expect overall sales this year, the Beijing market could fall more than 50% likely level of consumption from 800,000 down to 300,000 to 400,000. If other large and medium cities in China to follow Beijing's policies, then this will result in not a small impact on the overall domestic car market. There is also a very important factor, that is the U.S. dollar falling to increase international oil prices.

Reporter: So you are in China the growth of the auto market to see how?

Jiang Jun: auto market this year, up about 14% to 15%. Relative growth rate of 37% over last year, this estimate may be a bit too conservative. SAIC's sales this year, the overall target of 2 million. MG brand sales will be roughly estimated more than 60,000, the Roewe brand sales are expected to more than 150,000.

"In three or four-tier cities, net sales adjusted to double"

Reporter: This year you have any change in the sales network?

Jiang Jun: the construction of channels in the network, while Shanghai Automotive in the first and second tier cities continued to supplement the construction of new outlets; the other hand, we are focus on promoting the third and fourth tier cities in the network layout . Previously, in the third and fourth tier cities, and MG Roewe and net sales by the way, but after a year of practice, we found that in three or four-tier cities are more willing to accept the differences of the two brands, so we adjusted accordingly Now with Roewe, MG brand dual exhibition sales, a service system model, which actively promotes the successful layout of the Shanghai Auto third and fourth tier cities.

patpending wrote:so MG didn't make the 36,000 in 2010 but the target is 60,000 for 2011 with the new MG3.

UK sales are a rounding in that order of magnitude!

In addition SAIC LDV, from the Wuxi base commercial vehicle project, to be put on the market during 2011, LDV's wide-body passenger vehicle, which constitutes 1 million scale. This project will also bring new opportunities for SAIC commercial vehicle exports.

MG3, W5 are to be listed in the first half of the year

Phoenix Automotive sponsored the second "China Automotive Marketing Awards" held a grand ceremony.

The following is an exclusive dialogue between Phoenix Automotive and Shanghai Automotive Marketing Communications and Public Relations Department Deputy Director Tang Yuejin:

Phoenix Auto: Welcome to Phoenix car, wonderful life of this vehicle departure. This is the second Chinese auto marketing award sequential event, today we are fortunate enough to have invited guests in this award-winning, Shanghai Automotive Marketing Communications and Public Relations Director, Mr. Tang Yuejin, Hello...

Tang Yuejin: Phoenix's friends good afternoon.


Shanghai Automotive marketing communications and public administration Tang Yuejin, vice director of


Phoenix Automotive: We know that our MG CAR CLUB in this 2010 Chinese auto sales gains Awards Award for experiential marketing, can you talk about the award-winning feel?

Tang Yuejin: First of all thanks for the Phoenix Award awarded for experiential marketing, Shanghai Automotive. Shanghai Automotive implementing a differentiated market position, MG brand is a British brand, has 87 years of history, in 87 years of automotive design and service, the achievements of the many classic cars, once in the fifties and sixties changed the U.S. sports car culture. Shanghai Automotive as the MG brand owner, from the two aspects, one aspect is in accordance with the MG brand positioning - personality, temperament and creativity to create products. We can see that the designer of the car last year MG6 is a character of mid-size car, last year a very good market feedback. Guangzhou Auto Show we launched a wave of car personalization MG3, pay attention to personality, to build a boutique car aimed at 85-90 generation. MG also has a very strong brand image assets, the world's largest single brand MG CLUB, owners club. 2010 MG CAR CLUB birthday 80 years, Shanghai Automotive in Shanghai Tianma Circuit also held with the owners of interactive experience at the world. We want the experience of the MG brand that culture, China's car owners and consumers by way of experience to the Chinese market.

Phoenix Car: Just now you mentioned MG CAR CLUB, we know that MG in the UK has a very deep history of the brand. But the MG including Roewe in China still is a new brand, especially the brand reputation, reputation degree, last year we held a lot of wonderful activities, but in 2011 do we have any plans to increase brand awareness, reputation of?

Tang Yuejin: So, today was awarded to Shanghai Automotive Phoenix Award experiential marketing, in addition to the recognition of our previous work, we also believe in our future marketing efforts of the spur. Indeed host said, Roewe or not, for MG, in the first-hand experience to Chinese consumers, only 5 years. Therefore, we insist on experiential marketing, is not only concerned about a second-tier cities, while we have developed four lines market, Shanghai Automotive will be close to consumers, the distance to experience aspects, such as we participate in all the country's auto show and participate in the tour of hundred counties. There are also three or four lines caravan, the MG, Roewe, and local consumers through product up close to selling our products and brand strengths and the idea of culture, because our brand young, with experiential marketing way, this work is very tiring, but the results are better.

Phoenix car: in 2010 we saw a lot of MG, Roewe, many marketing in 2011 with the network plan?

Tang Yuejin: Yes, such as the influx of cars MG3 personality as a new generation of young consumers, the pursuit of spiritual values and products, we have to combine the charm, certainly in the introduction of relatively new field of Internet communication practices, to please the majority of users when a new concern MG3 personality tidal car listed. Made car manufacturers to give consumers more surprises.

Phoenix car: You've been mentioning MG3, can you tell us when the real in front of consumers? We heard there is a SUV to be available next year.

Tang Yuejin: These two cars will be listed in the first half certainly, just now mentioned the brand Roewe SUV is the urban professional SUV. The new wave of car MG3 will be personality in the first half, including the consumer experience to the young type of feeling, we will show in the listing process, this presence.

Phoenix Auto: Thank you, welcome always, I hope these two vehicles help the Shanghai Automotive car get better results, thank you.

Tang Yuejin: Thank you.

patpending wrote:what is "experience marketing(?)"? getting the cars to the people, targeting their inner values?

Windy wrote:

patpending wrote:what is "experience marketing(?)"? getting the cars to the people, targeting their inner values?

In China most people will choose a car or at least brand based on what is recomended by their family based on their experience, since few people have an MG no one is recomending them and so MGs are very hard to sell. One way to do it is to get people into the cars so that they experience them for themselves and then encourage them to make their own decission instead of leaving it to their family. Hence MG is visiting all the auto shows including the tour of 100 counties with slogans like "MG - be different" and also holding events where the potential customers get to ride in or even drive the cars. For the established brands there would not be much point in doing this.

patpending wrote:Anyone still have a link to a video?

Windy wrote:

patpending wrote:Anyone still have a link to a video?

The link still works for me, I guess you may have to use IE to view it?

mms://vod.tom.com/auto/mg/MG7teji.wmv