After MG, SAIC Motor increased the international market, can Zhiji s technology go to sea?

Mondo International Updated on 2024-02-27

Text: Chen Liang. Edit |Zhao Cheng.

Going overseas has become the focus of SAIC to consolidate its current achievements and find new growth points in its performance.

In 2023, SAIC Motor will sell 5.02 million vehicles, of which overseas sales will account for 24%. Unlike other auto groups, SAIC Motor sold 330,000 units in the European market, of which pure electric sales were second only to Tesla.

Being able to achieve such results in the birthplace of Hyundai is thanks to the MG brand. As the leader of SAIC Motor's overseas expansion, MG sold a total of 840,000 units worldwide, of which more than 230,000 units were sold in the European market.

Figure Enterprise. In the face of such achievements, Zhao Aimin, Secretary of the Party Committee and Deputy General Manager of SAIC International, maintained a cautious and optimistic attitude, he told Caijing Auto (ID: caijingqiche) that in the process of global electrification trend, in the case of global economic fluctuations, the consumption trend is not as ideal as expected, and the development of automobiles in the direction of high-end electrification is slowing down, and even has a downward trend.

At the Geneva Motor Show held today, SAIC Zhiji and MG jointly unveiled two independent brands, including the world premiere Zhiji L6 and MG3 HEV, a total of 10 intelligent and electric new cars, which will be used as a landmark product of "technology going to sea" to actively demonstrate the strength of China's intelligent manufacturing to Europe and even the world.

As a new brand, how to rely on SAIC and use successful experience to create a new overseas model has become the proposition of Liu Tao, the head of Zhiji.

Liu Tao, co-CEO of Zhiji Automobile, told Caijing Auto (ID: caijingqiche) that driving control, intelligent cockpit, intelligent driving, and three-electric technology will form the core product competitiveness of Zhiji, so that overseas users can experience the world's leading high-end Zhidian scientific and technological strength from China, SAIC, and Zhiji.

Having said that, in order to really sell well, Zhiji still needs to pass the "three passes": brand pass, product pass and ** pass.

Learn to see through consumer needs

The reason why SAIC was able to successfully go overseas and let overseas sales feed back the group's sales was due to the acquisition of the MG brand that year.

MG is a car brand from the United Kingdom that has been established for 100 years. Such a brand with a long history and endorsement by many European celebrities is a household name in the European market. In 2007, SAIC Motor took it into its pocket, which also gave SAIC a strong fulcrum for globalization.

As we all know, it is extremely difficult for a new brand to break into mature markets such as Europe, North America, Japan, and South Korea. In addition to the competition from local brands, the ability of global automakers to cultivate is also firmly attractive to local consumers.

Therefore, MG's natural brand advantages and SAIC's technology accumulation have allowed SAIC to successfully enter overseas markets, especially developed countries.

In terms of total volume, SAIC Motor will sell 120 vehicles overseas in 202380,000 units, a year-on-year increase of nearly 20%, with 92% of independent brands and 24% of new energy vehicles. In terms of regional markets, SAIC Motor sold 360,000 units in the American market and 330,000 units in the European market.

Figure Enterprise. The MG brand has been a major contributor to these results, with 840,000 units sold in 2023, accounting for more than a quarter of the sales in the European market. Zhao Aimin believes that MG's long-established brand advantages and dealer network advantages help MG brand development.

Of course, insight into the needs of European consumers is also an advantage for the success of MG brands. Under the wave of electrification, the MG brand does not blindly emphasize pure electric vehicles, but looks at the needs of European consumers.

Caijing Auto (ID: Caijingqiche) has learned that the MG3 Hybrid released at the Geneva Motor Show is such a product.

At the beginning of the MG3 HEV project, the overall plan was rejected by the SAIC President's Office. Zhao Aimin's team found through research that many brands in the European market have suspended their research and development in small and medium-displacement vehicles due to their own costs, technology and other problems, but with the slowdown of electrification in Europe, this market has become a blank market. The launch of the MG3 Hybrid fills this market just right.

MG's flexible development and brand advantages allow MG to continue its presence in Europe. It is reported that in 2024, the global annual sales of the MG brand will hit the 1 million mark, of which new energy vehicles account for nearly 30%, and SAIC's European vehicle manufacturing base has also started site selection.

Make catfish in the Red Sea market

Compared with MG, the Zhiji brand is a new brand and has not established a well-known reputation in the global market for the time being; At the same time, its channel network is also in a very preliminary stage, so how to go overseas and take root overseas has become the task of Zhiji to go overseas.

At the Geneva Motor Show held today, Zhiji Auto announced that this year will be the first year of the IM Zhiji brand's overseas expansion, and released all four models in Geneva.

How will the four models be implemented? Liu Tao told Caijing Auto (ID: caijingqiche) that in 2024, Zhiji L7 and LS7 will be launched in emerging markets such as Mexico, the Middle East, South America, and Southeast Asia; In 2025, Zhiji LS6 and L6 will enter the global market.

At the same time, Zhiji will rely on the channel advantages established by SAIC, especially MG, to establish its own brand awareness. According to Caijing Automobile (ID: Caijingqiche), SAIC Motor will adopt a "easy-to-use and excellent" approach to the MG dealer system to screen dealer stores that operate Zhiji, and at the same time establish a shared space between Zhiji and MG. Currently, dealers in the Middle East, Mexico and South America markets are showing strong interest in the Zhiji brand.

In addition, Zhiji goes overseas with more emphasis on technology and consumer habits. Compared with Chinese consumers, overseas consumers do not have such a strong demand for gorgeous smart screens and smooth voice interaction, and how to make a car easy to drive is the core demand of overseas consumers.

Figure Enterprise. Therefore, Zhiji has strengthened its technical output in driving control, and strengthened the technical improvement of energy replenishment efficiency, battery life, and power consumption to improve the driving ability of electric vehicles.

In addition, intelligent ability will also become a necessary factor to make the car easy to drive. For example, on the narrow roads in Europe, Liu Tao**, Zhiji's intelligent blind spot monitoring, one-key AI welt, one-key tracking, and one-key escape functions will make European consumers feel the convenience of driving.

In order to make intelligence a powerful tool for Zhiji to go to sea, it is reported that Zhiji's intelligent driving partner Momenta has set up a branch in Europe, and has conducted model training on European road conditions, European traffic regulations, European driving habits and data, and has made a lot of layouts in Europe for Zhiji's intelligent driving.

Whether Zhiji's set of overseas combination punches can play an effective role, the best of the product is equally important.

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