Based on the successful conclusion of the 13th Five-Year Plan in 2020, SAIC Group officially released the international business strategic goals of the 14th Five-Year Plan: overseas annual sales strive to jump to the 1.5 million vehicle mark; key overseas regional markets such as Europe achieve profitability; in 2025, sales in the European market reached 300,000 vehicles, and new energy vehicles account for 70% to 80%. Overseas business creates new profit points and creates huge growth space
In 2020, SAIC Group achieved overseas sales of 390,000 vehicles, a year-on-year increase of 11.3%. Under the epidemic, it overcame many difficulties to achieve counter-trend growth, exceeding one-third of the total overseas sales of Chinese auto companies, and ranked first in the country for five consecutive years. Among them, the MG brand "selled" 230,000 vehicles overseas, winning the championship of China's single export brand for two consecutive years, and its sales were twice that of the second place. In developed European countries, SAIC's own brands MG and MAXUS sold more than 40,000 vehicles, setting a record for the highest historical record for Chinese auto companies.
In the future, it is expected that the sales volume of China's automobile market will be around 30 million vehicles, while the sales volume of the global automobile market will reach about 100 million vehicles. For the enterprising Chinese automobile brands, the more magnificent overseas market has gigantic space for growth. During the 14th Five-Year Plan period, SAIC will shift from focusing on domestic business to focusing on both domestic and overseas development. It is expected that overseas sales will reach 1.5 million vehicles, accounting for about 15% of SAIC Group's overall sales, and the average annual compound growth rate is expected to exceed 30%. In 2025, SAIC Europe's sales will strive to exceed 300,000 vehicles, of which new energy vehicles account for 70-80%, achieving full coverage of entry-level to medium and high-end products. Not only that, during the 14th Five-Year Plan period, SAIC will enter a profit period in key overseas regional markets such as Europe, and will gain a lot of rewards.
has a unique "full industrial chain going overseas" to build a solid foundation
In the past, Chinese automakers usually only do trade but not business when going overseas. They achieved a small amount of exports with the "gap method" of "shooting one shot and changing one place". This short-term behavior of "selling only without paying attention" has been denied by the market. As the only automobile company in China that has a systematic, planned and established "going out" system, SAIC has built a global market-oriented automobile industry chain integrating R&D, marketing, logistics, parts, manufacturing, finance, etc., providing excellent localized products and services to consumers around the world. "Full industrial chain overseas" has become a solid foundation for SAIC to quickly expand its overseas business and will also provide support for other Chinese auto brands to go global.
At present, the company's products and services have entered more than 70 countries and regions around the world, and will soon form multiple "50,000-level" overseas markets such as ASEAN, the Middle East, and Europe. SAIC has established three R&D and innovation centers overseas, including London, Silicon Valley and Tel Aviv, as well as four production bases and KD factories in Thailand, Indonesia, India and Pakistan. Its subsidiary Huayu Parts has 95 production and R&D bases overseas; Anji's overseas full value chain automobile logistics business covers nearly 40 countries, and has opened four self-operated international routes in Southeast Asia, Mexico, South America and West and Europe; overseas diversified financial companies provide auto finance loans and insurance services.
The two "killers" of new energy and intelligent networking have become differentiated competitive advantages
During the 13th Five-Year Plan, SAIC invested nearly 60 billion yuan in independent research and development, forming innovative technological advantages such as new energy and intelligent networking, and actively spilling overseas to create differentiated competitiveness. In mature markets, SAIC takes electric vehicles as its entry point. In 2020, independent brands MG and MAXUS new energy vehicles were sold in Europe, with sales exceeding 25,000 vehicles, ranking among the top in the segmented markets of the United Kingdom, Norway, the Netherlands and other countries. The revenue through carbon emission points trading was more than 40 million euros. In emerging markets, SAIC focuses on the implementation of intelligent networking technology. The "i-Smart" intelligent networking system has been used in more than 30 overseas models, with more than 100,000 activated users. It is highly sought after by consumers in countries and regions such as India and ASEAN. It will also be promoted to markets in developed countries in the future. In terms of product quality, MG EZS became the first pure electric small SUV in Euro NCAP history to receive a five-star safety evaluation. MG HS won the "Double Five-Star" safety rating in Europe and Australia, and won a good reputation worldwide.
Create a unique and warm brand overseas
Create a "century-old store" not only requires a complete network and excellent products, but also a brand as support. In different countries and cities, and among the extremely different customs and habits, we should considerately discover the real needs of users and provide corresponding services. SAIC's goal is to be a brand that is "personal and warm". For example, during the epidemic, a special "lawn delivery" service was launched to realize one-on-one home delivery. For example, intelligence is by no means the same "voice sunroof", but there are a lot of differentiated needs in terms of the environment and atmosphere in the car. Italian consumers like to enjoy music in cars, German consumers prefer quiet driving environments, and South American consumers prefer to accept the bustle and hustle and bustle. Based on accurate user insight, strong core technology and considerate service awareness, the "personality and warmth" brand will enter the lives of overseas consumers faster.
While striding overseas, we must also integrate overseas, do charity, and actively root ourselves in the local community. This is also an important step in SAIC's brand building. In India, we support the resumption of classes for girls out of school; in South America, we support the development of social sports; in Europe, we donate anti-epidemic materials and provide anti-epidemic vehicles as soon as possible. SAIC is also an excellent citizen overseas.
During the 13th Five-Year Plan period, overseas business has become an important new growth pole for SAIC. During the 14th Five-Year Plan period, SAIC will insist on promoting the new four innovations of "electromotion, intelligent networking, sharing, and internationalization", focus on overseas markets, empower overseas businesses with technological advantages, promote cross-border operations through coordinated industrial chains, and accelerate the improvement of overseas profitability. By 2025, SAIC will strive to reach the top five new levels of global automobile companies, become a trillion-level automobile industry group with global competitiveness and international brand influence, and build a world-class automobile company. With greener, more convenient and smarter travel services and products, it will create a better automotive life for global consumers.
Author: Wang Xiang
Picture: Zhang Yichen
Editor: Xu Jinghui
