SGMW has a channel edge, but also with competitors dropping channels in recent years gradually lost. As an advantage of SGMW four hundred fifty-six line market in recent years, many car prices through two outlets, and other forms of rural liaison constantly dropping.
August is already SGMW sales for the first three months of decline. This is quite a lot of research to be independent brand "star car prices" situation never encountered over the years. SGMW problem facing very serious.
According to the Association of Automobile Manufacturers statistics, in August this year, SAIC-GM-Wuling (SGMW) total sales of 145,180, down 4.7 percent from last year. In June this year, SGMW sold a total of 130,000 new cars, up by 148,000 last year, down 12%. In July, SGMW sales to 126,100, down 1.2%.
SGMW sales decline was caused by shrinking Weicheshichang recent years, annual mini-car more than 10% decline, leading to occupy 65% of the share Weicheshichang SGMW sales fell.
But another, more concern is that, from 2010 to enter the passenger car, with consumer upgrades timely transition SGMW, although passenger growth, but not increase income. This is a long-term development of car prices, it may need to rethink the business model on the mistakes.
SAIC released report shows that, although the first half of this year, SAIC-GM-Wuling total sales of more than 1.01 million, an increase of 2.7%, but net profit fell 1.7 percent compared with the same period last year.
In recent years, independent brands have go to the end, after breaking the original low-end positioning, sales and profits have achieved double harvest. The transition to commercial passenger vehicles, SGMW not to bring profitable growth.
Low mode snatch market
SGMW overall sales decline was mainly caused by the shrinking Weicheshichang. "Consumption upgrade, the overall decline in the micro car, micro-car market share as the first SGMW decline is inevitable." SAIC-GM-Wuling dealer said.
If the front passenger in accordance with the ideal trajectory line with the gradual expansion of passenger car sales in the future, even if the mini-car market shrinking, can be offset by the growth in passenger cars. Now, however, the situation does not seem so simple. SGMW passenger car brands a "increasing output without increasing" situation.
In "Take both supplier" strategy, SGMW 2010 onwards into the passenger car market, the proportion of its sales in the passenger car brand Baojun increasing. According to sales data released by the Federation of the first half of this year, a large contribution Baojun brand, sales of 331,100, an increase of up to 80.92%. However SGMW net profit attributable to parent company 25.16 million yuan, net profit fell by 1.7 percentage points compared to last year.
"SGMW increasing output without increasing, mainly as the road took SGMW passenger cars, invest in technology relative to some more, SGMW new products are developed by themselves, mainly to invest their profits in investment; the second reason is, SGMW's passenger car line is still a continuation of Weicheshichang features - high cost "auto industry analyst Zhong Shi said.
Although the "Take providers simultaneously" strategy, the SGMW changed product mix, however, is still concentrated in the main products sold 50,000 -7 million price range, the profit is still dependent on "puerile" mode.
After Baojun 630,560,730 passenger cars and other products, following September this year, Po Chun 310 again to the market price. This has a stylish, fully equipped, spacious and easy to use four bright spots economy car, in many configurations, are beyond the same level car, but the price is only 36,800 yuan to 49,800 yuan.
Including Baojun 560,730, including products in the market are playing "price" card. SGMW is a low-cost advantage, and even GM has to admit that the unique advantage of SGMW, GM will SGMW low-cost products imported into India, and import management experience of SGMW.
The consequences of "high cost" at the same time brings is: SGMW although attracted 14 million base disk users, but its brand affected. Although the launch of the joint venture products, but priced below 560 Po Chun Geely, Chery, Changan, Great Wall and other independent brands, especially in recent years, with the overall upgrade its own brand, SGMW and mainstream brand gap is more evident.
The upgrade allows the consumer market challenges faced by SGMW, from April this year, SAIC-GM-Wuling sales declined. In order to maintain high growth momentum this year, April 23, SGMW officially announced the price of all models, the maximum discount amount to 7,000 yuan.
Dropping extrusion joint venture brand Baojun
"If you look from a separate legal entity, SGMW is China's largest automobile company, results for all to see, and every step tread very precise." Zhong said. By 2015, SAIC-GM-Wuling vehicle sales 2.04 million, an increase of 13%, becoming the only domestic sales of more than 2 million a car prices.
At the same time, as a mini-car business in recent years, from mini-car to achieve the transformation of passenger cars. 2015, passenger car brand and product matrix Baojun Wuling Hongguang MPV and other full-line product configuration, sales totaled 1.18 million, accounting for SGMW annual sales of 58%, an increase of 26.72%.
And by the Po Chun 730 Wuling Hongguang whole system composed of MPV product portfolio, sales of one million by 2015. Achieve these results, are SGMW recent transformation results. In 2009 sales exceeded one million after becoming the first annual sales exceeded 100 million car prices.
In 2010, SGMW Baojun brand release, it embarked on a "take the quotient of both" road. Since 2011, the first model 630 Po Chun listed, have launched the Po Chun Yue Chi Po Chun 610, and 730 Po Chun Po Chun 560.
Six years after entering the passenger car market, SGMW challenges faced growing. In addition to Chang'an, Beijing Automotive and other old rivals, Volkswagen, Renault, Hyundai and Kia and other brands have also announced plans to enter the low-end market, the production of low-cost models. Such a competitive environment, to rely on the scale profitable enterprises shadows.
In addition, SGMW own channel advantages, but also with competitors dropping channels in recent years gradually lost. As an advantage of SGMW four hundred fifty-six line market in recent years, many car prices through two outlets, and other forms of rural liaison constantly dropping.
Upgrade driving force lacking
As a micro-car to win business, SGMW products Success is close to user needs, but overall upgrade its own brand, but also appropriate to enhance the user needs.
"In the future we will continue to focus on customer needs, providing products that customers need." SGMW executive said in an interview mentioned several times. In Baojun 310, for example, the main face of the first car of the young consumer groups, SGMW sales company general manager Xue Haitao said SAIC-GM-Wuling prepared a "low down payment, zero interest rate" Po Chun 310 dedicated financial policies.
In fact, in the past three months, SGMW sales decline at the same time, including SAIC, Geely, Chery and other sales are better, in improving its own brand as a whole. Especially SAIC launched the Roewe rx5, orders have more than 40,000, and sold 70% of the vehicles are more than 148,800 yuan. Geely located in the 94800 -15.38 million more Bo, the market performance is better.
SAIC-GM-Wuling has been difficult to meet escalating consumer demand, Po Chun 560 in decline. July 18, 2015 Po Chun listed 560, in the day of listing the number of orders exceeded 150 million units, from the beginning of October 3 consecutive months of monthly sales exceeded 30,000, now Baojun 560 from a peak of 30,000 sales, down to more than 10,000 vehicles.
In accordance with the general manager, vice president of SAIC Passenger Vehicle Company Xiaoqiu saying, "independent brands from 'price' era into the 'product bid' era." Own brand from the product strength, quality should be directly on the standard joint.
Meanwhile, SGMW shareholders of both GM and SAIC, did not wish to cultivate its own competitors. This also means that the possibility of both shareholders will own the latest technology to SGMW small, with SGMW competitive advantage lies in independent research and development to create a low-cost system, once the products to high-end, it is difficult to ensure competitiveness.
"I believe SGMW will also find a new path, both play to their strengths, but also get rid of the restrictions." Zhong Shi believes that the road may be in overseas markets, it could be a new business model.
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