Overseas sales increased by 40% in the first half of the year, and SAIC announced that it will establish factories in Europe | Sales | Europe
On July 4th, SAIC Group released overseas business sales data for the first half of the year. In the first half of 2023, SAIC's overseas market sold a total of 530000 vehicles, a year-on-year increase of 40%. Among them, domestic brand sales accounted for over 70%, and MG's global sales in the first half of the year accumulated 370000 vehicles. On the same day, SAIC announced that it would build a production base in Europe and is currently undergoing site selection work.
Intending to build a factory in Europe
Europe has grown into SAIC's first overseas business market of 200000 vehicles, which is an important reason for SAIC's decision to build a factory in Europe. From the perspective of SAIC Motor's main export brand MG, in the first half of 2023, MG sold a total of 115000 vehicles in the European market, a year-on-year increase of 143%. It has entered 28 European countries and established more than 830 service outlets.
As for how to open the European market, Yuan Yingchen, the general manager of SAIC Group Germany Branch, said that Europe, especially Germany, has very strict technical requirements for cars. "It is as difficult to sell foreign cars in Germany as it is to sell Xiaolongbao to Nanxiang in Shanghai". Although MG has the aura of a traditional European brand, its ability to achieve rapid sales growth is still due to its strong product and service system.
Meanwhile, MG's popularity in Europe is also inseparable from the development of new energy vehicles. In the first half of the year, over half of MG's sales in the European market were contributed by new energy vehicles, and MG's promotional strategy in Europe is also "new energy vehicles that ordinary people can also obtain.".
"From 'inviting in' to 'going out', building a factory in Europe has been a dream for SAIC people in the past few decades." Yu De, Assistant to the President of SAIC Group, General Manager of International Business Department, and General Manager of SAIC International, said that SAIC's sales in Europe are increasing day by day, and the time is ripe to build a factory. Europe is also one of the markets with the highest acceptance of new energy vehicles in the world, suitable for developing localized layout.
Recently, there have been rumors that Europe will investigate the "double reverse" of Chinese car companies. SAIC's construction of a factory in Europe is also a choice to adapt to the development stage. After the car companies go to sea, it is expected that more Chinese auto parts companies will follow the sea.
Rapid growth in emerging markets
In addition to the European market, SAIC's sales in four emerging export markets, namely Australia, New Zealand, the Americas, the Middle East, ASEAN, and South Asia, have also grown rapidly. Especially in the Southeast Asian market, SAIC Motor Corporation (SAIC) had an early layout. Currently, MG's market share in Thailand has reached 7.5%, ranking third in the Thai passenger car market.
At the end of April this year, a groundbreaking ceremony was held for the new energy industry park jointly constructed by SAIC and Thailand's Chia Tai Group. The focus will be on localized production of key components for new energy vehicles. The first phase of the project will be completed within the year, and the overall project will be completed by 2025.
In addition, SAIC also responded to the hot topics of the Indian branch during the communication meeting, denying rumors that SAIC MG India had been forcibly acquired at a low price by the local government and lost control. "As an automotive group committed to global development, we have no reason not to participate in the Indian market." Yu De said that the Indian market has the characteristics of a large market and prominent localization. SAIC MG is making various efforts, such as localizing its employees and localizing its supply chain, to better participate in the development of the Indian market.
According to Zhou Jiang, Chief Financial Officer of SAIC MG India, in 2022, India has grown into the fourth largest automotive market globally, second only to the United States, China, and Europe, and there are relatively few competitors in the Indian automotive market. There is a high demand for large and medium-sized SUVs, and the market potential is enormous. It is understood that the SAIC Maxus D90 with the MG logo is very popular in the Indian market, and MG's sales in India this year are expected to reach 60000 to 70000 units.
To achieve economies of scale profitability
In terms of new products, SAIC stated that in the next 18 months, the MG brand will launch 10 more global cars, forming a matrix of overseas products with full coverage of pure electric, plug-in hybrid, and fuel.
This month, MG's first pure electric sports car Cyberster will debut at the Goodwood Speed Festival and is expected to be officially launched in the UK in July 2024. The Goodwood Speed Festival is known as the "world's top automotive sports festival", and the Cyberster will also become the first Chinese brand mass-produced model to complete its dynamic debut in Goodwood. In addition, MG also has a new product that will be unveiled at the end of this year.
SAIC expects that the overall overseas sales of SAIC Group will exceed 1.2 million vehicles and MG will exceed 800000 vehicles in 2023.
Yu De believes that overseas sales are expected to continue to grow in the third and fourth quarters of this year. With the continuous expansion of overseas business scale, production costs will further decrease, and overseas business will achieve scale profitability in 2023.
