"New Troika" Helps SAIC "Outperform the Market"

Saicutical Motor Group Co., Ltd. (hereinafter referred to as "SAIC Motor", 600104.SH) recently released the March 2022 production and sales report, showing that in the first quarter of this year, the group's total vehicle sales reached 1.2206 million units, an increase of 6.8% year-on-year.

For comparison, data disclosed by the China Association of Automobile Manufacturers on April 11 showed that in the first quarter of this year, the mainland automotive industry sold a total of 6.509 million vehicles, an increase of 0.2% year-on-year. This also means that SAIC's sales in the first quarter of this year have significantly "outperformed the market".

"While actively preventing and fighting the epidemic, the company has achieved 'outperforming the market' in production and marketing, and has also focused on the needs of the Shanghai area, providing customized vehicles for epidemic prevention and anti-epidemic, and the majority of employees have also fought the epidemic with one heart and widely participated in various volunteer services." SAIC motor said.

The relevant person in charge of SAIC Motor Told China Business Daily that in the first quarter of this year, SAIC's own brand, new energy vehicles and the "new troika" in overseas markets performed well, and the joint venture continued to maintain a stable and good development trend. "In particular, SAIC Volkswagen's sales in the first quarter of this year increased by 33% year-on-year, and the main models such as passats and Tiguan continued to sell well."

Sales performance was in line with expectations

As a leading listed car company in China, SAIC Motor's major vehicle companies include SAIC Passenger Cars, SAIC Maxus, Zhiji Automobile, Feifan Automobile, SAIC Volkswagen, SAIC-GM, SAIC-GM Wuling and Nanjing Iveco.

According to the data, as of 2021, SAIC Motor's vehicle sales have remained the first in China for the 16th consecutive year, the sales of independent brands have occupied "half of the country" for the first time, the sales of new energy vehicles have ranked first in China, and overseas sales have ranked first in China for 6 consecutive years.

In the first quarter of this year, SAIC Motor sold a total of 1.2206 million vehicles. Specifically, SAIC Volkswagen sold 331,200 units, up 32.97% year-on-year; SAIC Motor Passenger Car sales were 194,200 units, up 33.68% year-on-year; SAIC-GM-Wuling sold 326,100 units, up 5.65% year-on-year; SAIC Maxus sales were 51,300 units, up 11.51% year-on-year.

Zhang Xiang, dean of the New Energy Vehicle Technology Research Institute of Jiangxi New Energy Technology Vocational College, told reporters that SAIC's sales in the first quarter of this year mainly relied on the contribution of joint venture car companies, and the proportion of sales of independent brands was not high.

However, the reporter noted that saic motor's autonomous sector is accelerating the pace of "upward breakthrough". Among them, the new models launched by SAIC And Feifan Automobile, which are innovative and built by SAIC, have received widespread attention from the market.

According to the data, zhiji automobile's "new world driving control flagship" zhiji L7 Pro equipped with the "cloud pipe terminal" integrated intelligent car solution has officially announced the price, and recently started batch delivery. In addition, Feifan Automobile's "extremely intelligent high-end pure electric SUV" Feifan R7 prefabricated mass production car has also been successfully rolled off the production line.

At the same time, for new energy vehicles, one of the "new troikas", SAIC Motor is also vigorously laying out. During the "14th Five-Year Plan" period, SAIC Motor plans to invest 300 billion yuan in the field of new energy and intelligent and connected vehicles to promote innovation and transformation.

In the first quarter of this year, SAIC Motor's new energy vehicles also achieved "quantity increase and quality increase". According to the data, SAIC's sales of new energy vehicles exceeded 192,000 units, an increase of 27.73% year-on-year; among them, the penetration rate of SAIC's own brand new energy vehicles has reached 26.7%.

It is understood that SAIC-GM-Wuling Hongguang MINI EV family new member "Street Bully" Hongguang MINI EV GAME BOY blindly ordered more than 30,000 orders for 30 days; SAIC Volkswagen "ID. Electric Family" 2022 model was newly listed, upgraded with intelligent parking assistance, door opening warning, pre-collision safety system, emergency assistance and many other intelligent functions; the whole series of intelligent vehicle connection system 4.0 functions were further expanded, adding remote viewing of vehicle status, vehicle trip report, charging statistics, charging statistics, etc. Features such as battery care mode and predictive maintenance.

"Saic-Volkswagen ID. series will continue to exert efforts this year. In addition, SAIC-GM Cadillac has also launched a new new energy vehicle platform, and SAIC-GM-Wuling electric vehicle sales are still hot. Therefore, from the current development trend, we are very optimistic about the development of SAIC's new energy vehicle sector. Zhang Xiang said.

For SAIC's sales performance in the first quarter of this year, The Beijing Capital Securities Research Report pointed out that its sales performance was in line with expectations. In the joint venture sector, SAIC Volkswagen recovered significantly in the first quarter of this year, and the increase in 2022 has potential. "Since 2022, SAIC Audi A7 has begun to be delivered, Q5 e-tron has been released, SAIC Volkswagen has replaced Lingdu L, the new Weiran has been listed, the ID series has been switched to 2022 model, and the mid-term redesign of Langyi has been released." In addition, in the autonomous sector, SAIC Passenger Vehicles has surpassed the industry, and high-end new energy vehicle brand products have accelerated their landing.

Overseas markets are growing rapidly

"For every three Chinese cars sold overseas, one is made by SAIC." In 2021, SAIC Motor's overseas sales have ranked first in China for 6 consecutive years. Entering 2022, SAIC Motor still maintains a "high-speed growth" trend in overseas markets.

According to the data, in the first quarter of this year, the overall sales volume of SAIC's "export and overseas bases" exceeded 171,900 units, an increase of 44.9% year-on-year. "Overseas performance continues to lead." According to the Beijing Capital Securities Research Report, the global sales of the MG brand reached 135,000 units in the first quarter of this year, ranking among the top 10 single brands in 18 countries around the world, such as Australia, New Zealand, Saudi Arabia and Qatar.

"The MG brand has a great influence in overseas markets, and SAIC Motor uses mg's brand influence to export domestic cars overseas." For now, SAIC's overseas exports have been successful. Zhang Xiang said.

In fact, SAIC motor has established an automotive industry chain integrating R&D, marketing, logistics, parts, manufacturing, finance and used cars for the global market, with products and services in more than 80 countries and regions around the world, and has formed six "50,000-car" regional markets in Europe, Australia and New Zealand (Australia, Singapore), the Americas, the Middle East, ASEAN and South Asia.

In February this year, SAIC Motor announced that the target of overseas sales in 2022 will exceed 800,000 vehicles, of which the MG brand strives to reach 500,000 to 600,000 vehicles, or even higher. In addition, SAIC Motor will also fully focus on the European market, its own brand MG and SAIC Maxus MAXUS sales in Europe is expected to reach 120,000 units, Europe will take the lead in promoting to SAIC Group's first "100,000 vehicle class" overseas regional market.

The reporter noted that in the face of the hot demand for new energy vehicles in Europe, SAIC Motor will launch new energy vehicle products such as "global car" MG EH32 in 2022, and expand marketing service outlets to 1200. It is worth mentioning that the MG EH32 is the first "global car" of China's automotive industry built by SAIC Motor with the integration of global superior resources.

Yu De, assistant to the president of SAIC, general manager of SAIC International Business Department and general manager of SAIC International, once said: "MG EH32 is a new electric vehicle tailored for Europe, with a length of about 4.2 to 4.3 meters, using SAIC's best vehicle architecture, which is also the first time that SAIC has applied the latest architecture in overseas products. ”

Behind saic's outstanding overseas sales performance, it is inseparable from the support of its strong, safe and efficient global supply chain system, and cross-ocean logistics is an extremely important part of it. According to reports, saic motor anji logistics co., LTD. (hereinafter referred to as "anji logistics") distribution network covers more than 600 cities in China and more than 100 overseas countries and regions.

It is worth noting that on January 17 this year, SAIC Motor and China Shipbuilding Group formally signed an agreement that Jiangnan Shipbuilding (Group) Co., Ltd., a subsidiary of China State Shipbuilding Group, will "tailor" two ocean-going automobile carriers (ro-ro ships) for Anji Logistics to meet the growing export business needs of SAIC Motor and other independent and foreign brands in China.