SAIC adheres to a long-term strategy, going out is not about making quick money

Writing | MANGO

Editor in Chief | DAN

Design | PinZow

At the end of October, the European Union decided to impose tariffs on electric vehicles from China. Among them, SAIC Group was rated as the "worst car company" and was subject to a tariff of up to 35.3%, far exceeding other car companies (BYD's tariff is 17.0%, Geely's is 18.8%). It is worth noting that relying on the outstanding performance of SAIC MG, SAIC Group has a high market share in Europe. In the first three quarters of 2024, SAIC delivered over 800000 new cars in Europe. Nowadays, high tariffs are like the sword of Damocles hanging high, adding a bit of uncertainty to SAIC Group's development in Europe.

The collective "going global" of Chinese car companies has become a new mainstream trend at present. But as a benchmark for single brand exports in China, MG still focuses on the domestic new energy vehicle market and has recently launched a new pure electric SUV MG ES5.

After the new car launch event, My Car Wheel had the privilege of conversing with senior executives such as Yu Jingmin, Executive Vice President of SAIC Motor Passenger Vehicle, Zhao Aimin, Secretary of SAIC International Party Committee and Deputy General Manager, Shao Jingfeng, Vice President and Chief Designer of SAIC Group Innovation Research and Development Institute and General Manager of SAIC UK Technology Center, and Zhu Yong, Deputy General Manager of SAIC Motor Passenger Vehicle, to unveil the latest actions of SAIC MG in product layout and brand strategy.

Zhao Aimin: SAIC adheres to a long-term strategic direction

The EU's imposition of tariffs will inevitably weaken the comprehensive competitiveness of Chinese cars in the local market. The most affected one is undoubtedly SAIC MG, which has to face the objective reality of adjusting the prices of its models. It is not difficult to predict that as MG increases the price of MG 4 and Cyberster in the local market, it may significantly affect the sales performance of the models.

Regarding this, Zhao Aimin, who leads SAIC's overseas business, said, "There may be some adjustments to the terminal price system, which is a response and also what the EU hopes to see

But in the long run, SAIC still has a positive outlook on entering the European Union. Zhao Aimin believes that "we have vehicles with different structural forms to meet consumer needs, while also meeting the carbon balance requirements of the entire Europe. In the face of different demands in overseas markets, we have corresponding plans. SAIC adheres to a long-term approach to the development of the European market and aims to firmly establish the MG brand in the high-end market, providing a good foundation for future development

Despite the significant increase in tariffs, SAIC MG expects growth this year compared to last year, and even sustained growth next year under the same economic conditions. Gulu Ge believes that this indicates that SAIC MG has strong confidence in its own products and has a long-term outlook on the strong demand for new energy vehicles in Europe. As a reference, the MG 4 has repeatedly won the top spot in European pure electric vehicle sales, following closely behind Tesla Model Y, Tesla Model 3, and Volvo EX30.

The recently launched MG ES5 is also a pure electric new car with outstanding product strength. Whether it is the wheelbase, space, and other visible areas for users, or the invisible areas such as galvanized sheets and zero self ignition battery packs used in the body, SAIC MG adheres to the highest global standards. Zhao Aimin believes that "at this price point, there is such a pure electric architecture, such mechanical quality, such three electric technology, and such intelligent driving experience. It can be said that looking at the European market, there is no second one. I believe European users will also vote with their feet and choose the highest standard products

Yu Jingmin: MG is not going out to make quick money

The MG brand itself is a global brand, and the price alone is definitely not enough. We still need to embrace the value of long termism and constantly strive for mutual cooperation with users, "said Yu Jingmin. According to Gu Lu Ge's understanding, in 2011, Yu Jingmin established an overseas business preparation group on behalf of SAIC Group, which not only identified the path for Chinese automobiles to go overseas, but also laid a solid foundation for SAIC's good operation in overseas markets.

Therefore, when MG faces enormous market pressure, Yu Jingmin can analyze the development prospects of the MG brand overseas from a more profound perspective. We definitely have opportunities globally, not only because we went abroad early, but also because we are a global brand that always builds with sincerity and embraces local partners in the long term. When we go out, we never think about coming back, and when we go out, we never think about doing short-term trade, making quick money, and increasing sales. When we go out, we must be down-to-earth and meticulous

This year marks the 100th anniversary of the MG brand and the 20th anniversary of MG's return to SAIC. Looking ahead, MG will continue to maintain its leading position in markets such as the Middle East, Australia, New Zealand, and Mexico, and lead the Chinese automotive industry to firmly go global with practical actions. Data shows that under the pressure of increased tariffs, MG is expected to achieve sales of 250000 to 260000 units in Europe this year, with little problem with year-on-year growth against the trend.

Zhu Yong: Adhere to globally unified standards

The MG ES5 is MG's third global car, so it was developed to meet the most stringent standards in the European market. In terms of safety, environmental protection, and driving control, it has advantages over cars in the same class.

Zhu Yong emphasized, "We will not directly switch from oil to electricity, nor will we simply change our appearance and push it to the market. The ES5 is based on the original pure electric architecture of SAIC Xingyun, and has a 5-link rear wheel drive and a lying battery pack, with zero self ignition of the battery. Therefore, even though the current A-class car market is extremely competitive, the several product advantages of MG ES5 are still prominent.

Take the security performance that users are most concerned about as an example. The MG ES5 is equipped with SAIC's exclusive LBS lying battery pack, with a thickness of 110mm, the thinnest in the world, and a maximum lifespan of up to 1 million kilometers. The battery cells are provided by CATL, and the lying battery cells reach the highest PPB quality level in the industry. Data shows that SAIC Xingyun's high-end pure electric architecture models have delivered over 300000 units worldwide, setting the industry's only zero self ignition record.

Shao Jingfeng: One word to describe ES5 as "refreshing"

The first time seeing the actual MG ES5, Gulu Ge realized that it was not a typical model with the MG brand. As the designer of MG ES5, Shao Jingfeng believes that "to describe ES5 in one word is' refreshing '. Compared to the Cyberster's overflow screen sports elements, the MG ES5 appears introverted, rounded, and much less aggressive. In line with the launch theme of MG ES5- 'It's better to live a comfortable life', this car comes with its own affinity.

Shao Jingfeng said, "I hope ES5 can bring a sense of relaxation to everyone. Driving an MG, living a beautiful life, having a happy family, and developing a career." Changing the design style of ES5 also stems from MG's increasing efforts to open up a segmented market for female car owners, attempting to increase the proportion of female car owners in the MG brand.

It is not difficult to understand why the front face of MG ES5 is close to a smiling face, with a simple surface and fewer aggressive lines. Shao Jingfeng emphasized, "The combination of Western design language and a face of national peace and security will make people feel that this car is full of positive energy

With the surge in the number of new energy vehicles in China, the phenomenon of design homogenization is becoming increasingly prominent. However, the MG ES5 does not adopt conventional hidden door handles, low drag wheel hubs, and other designs. Instead, it enhances its recognition with a closed front grille and a brand new split headlight design, coupled with rounded body lines, which are more in line with mainstream aesthetics.

MG is engraved with the traits of passion, sportiness, youthfulness, and individuality in its brand DNA, which enables this century old brand to maintain its unique brand value even as the automotive industry transitions to the new energy track. And adhering to a long-term strategy has enabled MG to go further and shine in domestic and foreign markets. In Gulu Ge's view, the MG brand has always had a touch of romanticism, but standing at the starting point of the next century, it is incredibly down-to-earth, taking one step at a time, and exploring a broader stage.