After Changan Automobile, another microcar company began to shift its focus to the field of passenger cars. Former mini vehicle overlord Changan Automobile was overtaken by SAIC-GM-Wuling because of distracted passenger vehicle business. After Changan Automobile got a firm foothold in the passenger vehicle field, it began to tilt resources back to the micro-vehicle field. Begin again.
Into the mid-size car
Last week, SAIC-GM-Wuling’s director of administration and public relations, Cai Yaxi, told CBN reporters that the company’s passenger cars are currently concentrated in the A00 class market and will be planned to develop into a higher class of passenger vehicles in the future. This is the first time that SAIC-GM-Wuling has clearly stated that it plans to enter the higher-level passenger car market.
The further development of the sedan is a long-standing dream for SAIC-GM-Wuling. When celebrating the 50th anniversary of the establishment of Wuling last year, it was reported that it was going to launch a mid-level car, but it was repeatedly denied by the official of SAIC-GM-Wuling.
At present, SAIC-GM-Wuling only Spark Spark [Summary Picture Forum] A A00 sedan product, the price of 40,000 to 60,000 yuan, because of its hanging Chevrolet standard, after Shanghai General Motors had hoped to include the product into its Chevrolet brand, resulting in SPARK's plan to introduce new products was temporarily crushed. At present, the sales volume of SPARK Le Chi is about 30,000 cars a year.
For SAIC-GM-Wuling, the further development of the sedan business needs to deal with two aspects. One is to position the micro-vehicle business. The entry into the sedan certainly will affect the mini-vehicle business. There is also how to deal with the relationship with General Motors. GM's limousine business in China is basically complete. SAIC-GM-Wuling wants to use common technology to develop the limousine business. How to deal with potential conflicts of interest between products will be the key.
The development of the sedan business is a choice for every micro-car company. The former mini-car companies such as Chang'an, Changhe and Hafei have embarked on the road to the development of cars. Changan has even been overtaken by SAIC-GM-Wuling because of its focus on the development of the sedan business and its inability to take into account the mini-vehicle business. At present, only Changan Automobile has a firm foothold in the passenger car business. Others have failed without exception.
SAIC-GM-Wuling further developed the sedan business and gave Changan Automobile a chance to re-invent the micro-vehicle sector. The hegemony of mini vehicles can repeat the history of the year and it will be of concern.
The suspense of micro-vehicle overlords
Under the stimulation of the automobile to the countryside, the micro-car market has seen rapid growth. Before the annual growth rate of the market was only about 10%, this year's growth was as high as 50%, becoming the industry's growth point of the explosion.
Although many companies have entered the mini-vehicle market this year, they are basically maintaining the competition between SAIC-GM-Wuling and Changan Auto, which together account for nearly 80% of the micro-vehicle market share. According to the data provided by the manufacturers, sales of SAIC-GM-Wuling reached 613,000 units in the first seven months of this year, an increase of 54% year-on-year. Chang'an Automobile's sales volume is about 410,000 units, which represents a year-on-year growth rate of more than 60%. The two companies respectively raised their sales targets to 800,000 and 600,000 vehicles.
Jia Xinguang, an automotive expert, said that the greatest contribution of the car to the countryside lies in the fact that all companies are aware of the importance of channel sinking and have extended their channels downwards. For mini vehicles, the core competitiveness lies not in the products but in the channels. Changan Automobile also began to replicate the superiority of SAIC-GM-Wuling in the channel. There is no difference in the competition between the two parties.
This year, Changan Automobile was successfully selected as the “Big Four†in the industry, and the scale effect of the mini-vehicle business was outstanding. At present, Changan Automobile continues to invest resources in the field of micro-vehicles and seeks to further scale, putting pressure on SAIC-GM-Wuling. Last month, Changan invested 2.5 billion yuan to build a new mini vehicle base in Chongqing Yuzui. Not only that, its two bases in Hebei and Nanjing are also accelerating their expansion. According to the planning of Changan Automobile, after three years, the production capacity of the three bases will double, and the total production and sales volume will exceed 2 million, of which micro-vehicle production capacity will reach 1.3 million to 1.5 million, which will surpass SAIC-GM-Wuling.
Chang Dayong, vice minister of marketing at Chang'an Automobile Co., Ltd., told CBN reporters that when Changan Automobile started developing its car business, energy and resources were inevitably transferred to the car business, which affected the micro-vehicle business to a certain extent. After several years of development, Benben [Review Photo Forum] and Yuexiang [Review Photo Forum] have already established a foothold in the market and can achieve self-sufficiency, so that more resources will be devoted to the micro-vehicle business.
However, SAIC-GM-Wuling, which is a leading micro-vehicle company, will not lose the micro-vehicle hegemony. Wuling Automobile has just completed the second phase of the Liuzhou Western Plant, forming the three major production bases of the Liuzhou Western Plant, Eastern Plant and Qingdao Plant. The production capacity will also reach 1 million.
A more difficult microcar competition is already coming.
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