| SAIC Motor Corporation Limited | |
| Former Name: | Shanghai Automotive Industry Corporation |
| Type: | State-owned |
| Location City: | Anting, Shanghai |
| Location Country: | China |
| Area Served: | Worldwide |
| Industry: | Automotive |
| Products: | Automobiles |
| Production: | 5,020,865 vehicles (2023) |
| Revenue: | billion (2022) |
| Operating Income: | (2022) |
| Net Income: | (2022) |
| Assets: | (2022) |
| Num Employees: | 215,999 (2022) |
| Parent: | Shanghai State-owned Assets Supervision and Administration Commission (62.69%) |
| Footnotes: | [1] [2] |
SAIC Motor Corp., Ltd. (formerly Shanghai Automotive Industry Corporation) is a Chinese state-owned automobile manufacturer headquartered in Anting, Shanghai. Founded in 1955,[3] it is currently the largest of the "Big Four" state-owned car manufacturers of China ahead of FAW Group, Dongfeng Motor Corporation, and Changan Automobile, with sales of 5.02 million vehicles in 2023.
The company traces its origins to the early years of the Chinese automobile industry in the 1940s, and SAIC was one of the few carmakers in Mao's China, making the Shanghai SH760.[4] Currently, it participates in the oldest surviving sino-foreign automotive joint venture with Volkswagen (SAIC-Volkswagen) since 1984, and in addition operates a joint venture with General Motors (SAIC-GM) since 1998. It also produces and sells vehicles under its own branding, such as IM, Maxus, MG, Rising Auto, and Roewe. It is also the largest shareholder of SAIC-GM-Wuling (SGMW), a joint venture selling Wuling and Baojun branded vehicles. In 2021, SAIC self-owned brands contributes 52% of SAIC's sales.[5]
The company ranked 84th on the Fortune Global 500 list in 2023. Including SGMW, it is also the third largest plug-in electric vehicle (battery electric and plug-in hybrid) company and second largest battery electric vehicle manufacturer in the world, with 10.5% and 13% global market share respectively in 2021.[6]
Although it has a long history, originating from an automobile assembly factory established in Shanghai sometime around World War II, SAIC, unlike domestic rivals FAW Group and Dongfeng Motors, has only recently attained a position of prominence in the Chinese vehicle industry.[7] A small company in the 1970s,[8] SAIC owes its rise to more than an increase in domestic demand for passenger vehicles. A cooperative agreement made with Volkswagen in 1984[9] followed by the formal establishment of Shanghai Volkswagen Automotive Co Ltd in March 1985 allowed it to produce competitive cars with foreign technology. Early success at SAIC may also be a result of guidance provided by local Shanghai authorities; at one time SAIC was simply an extension of the Shanghai Municipal government. For these two reasons and more, SAIC grew swiftly. In the 11 years leading to 1996, annual production capacity increased ten-fold to 300,000 units/year, and the company established itself as one of the leading Chinese automakers.[10]
During this period, SAIC effectively built an entire modern automotive component supply chain in Shanghai from scratch,[11] and the number and quality of locally produced auto parts rose significantly. Cars that were previously assembled in China from knock-down kits provisioned by Volkswagen[12] became products built from parts produced in Shanghai, and between 1990 and 1996 the city more than doubled its contribution to the national output of automotive components.[13] In 1987, the only local parts used in one car, the Volkswagen Santana, were tires, radio, and antenna,[14] but by 1998 over 90% of the components used in its manufacture were locally sourced.[15] A goal set by the Shanghai Municipal government,[16] creation of a local parts industry is an example of the influence that the local government has had on the development of SAIC.
In June 1997, SAIC formed a second major joint venture, Shanghai General Motors Co Ltd, with General Motors.[17] The new joint venture began operations in 1998, and helped to drive a doubling in SAIC's vehicle production between 2000 and 2004.[18] Initially partnering with foreign automakers, creating joint ventures with component suppliers, such as the American Visteon,[19] may now help underpin SAIC success.
At the start of the 2000s, SAIC made several acquisitions in Korea. In 2002 it participated in GM's purchase of Korean automaker Daewoo, acquiring a 10% stake in the newly formed GM Daewoo company for US$59.7 million,[20] and in 2004 it also assumed control of an ailing South Korean automaker, SsangYong Motor, paying US$500 million for 48.9% ownership of the company.[21] Around this time SAIC created a new holding company for its subsidiaries employed in passenger car production, Shanghai Automotive Group.[22]
In the middle of the decade, SAIC attempted to acquire the British automaker MG Rover, but in 2005 was outbid by another Chinese automaker, Nanjing Automobile.[23] SAIC did manage to obtain some MG Rover technology that was incorporated into a new line of luxury sedans sold under the Roewe marque,[24] and it subsequently purchased the winning bidder.[25]
While the company saw sales success in the late 2000s, with 2.72 million vehicles sold in 2009,[26] its 2004 purchase of an ownership stake in a Korean SUV-maker, Ssangyong, soured. In January 2009, after an additional US$45 million was provided to it by SAIC, SsangYong Motor Company was placed into receivership in Korea.[27] Courts might have mandated SAIC reduce its ownership, and by 2010 a 51.33% share of the Korean company had become a 10% one.[28] The 2009 Ssangyong failure also saw riot police quell protesting Ssangyong workers who staged a 77-day-long sit in.[29] SAIC may have benefitted from exposure to some technology from Mercedes that Ssangyong controlled during this time.[30] [31]
In 2010, SAIC produced 3.58 million units, the largest output of any China-based automaker that year.[32]
In June 2010, Magneti Marelli and Shanghai Automobile Gear Works (SAGW) officially launched a new joint venture plant in the Jiading district near Shanghai, China. SAGW, the main Chinese manufacturer of transmissions for the automotive sector, is a subsidiary of SAIC Motor.
In February 2011, SAIC unveiled a new commercial vehicles marque, Maxus.[33]
In 2011, SAIC produced 3.97 million vehicles, the largest output of any China-based automaker that year.[34]
In 2012, SAIC retained its top spot among domestic rivals by producing around 3.5 million units.[35]
In 2023, SAIC received the equivalent of US$560 million in state subsidies.[36] In July 2023, Audi and SAIC Group announced their partnership that the EV platform from IM Motors will be introduced into Audi's electric models.[37]
In September 2023, the European Commission (EC) launched an anti-subsidy investigation into Chinese electric vehicle manufacturers, including SAIC which exported electric vehicles in high volume under the MG brand to the region.[38] In June 2024, the EC completed its investigation and announced new tariffs for Chinese-built electric vehicles (on top of an existing 10 percent tariff for all foreign-made vehicles regardless of engine type), which went into effect on 4 July 2024.[39] Electric vehicles made by SAIC Motor would be subjected to the highest tariff of 38.1 percent.[40] On 26 June, after receiving more information, the EU reduced the proposed tariffs from 38.1 percent to 37.6 percent for SAIC.[41] [42] The tariffs subjected to SAIC vehicles are the highest among Chinese electric vehicle manufacturers that are affected.[40] [43] SAIC released a statement condemning the decision, noting that the tariffs are a form of unfair market discrimination that went against the principles of free trade.[44]
In July 2024, SAIC Motor issued a statement stating that it would formally request the European Commission to hold a hearing on the anti-subsidy investigation. The company claimed that the European Commission's investigation asked SAIC to disclose its commercially sensitive information including battery-related chemical formulas, which SAIC declined as it is beyond the scope of a normal investigation.[45] [46] [47]
The present-day SAIC is the product of numerous mergers and corporate re-structurings.
SAIC sells vehicles under a variety of brands. Brands that are considered "self-owned" by SAIC include IM, Maxus, MG, Rising Auto, Roewe, Baojun, Wuling, Hongyan, and Sunwin.[49]
See also: List of SAIC vehicles.
See main article: IM Motors.
SAIC launched a luxury EV brand "IM" (dubbed "Zhiji Motor" in Chinese) jointly developed with Shanghai's Pudong New Area government and Alibaba on January 13, 2021. According to SAIC Motor, "IM" stands for Intelligence in Motion.[50]
See main article: MG Motor.
MG Motor designs (in UK and Shanghai), develops and markets cars sold under the MG marque while vehicle manufacturing takes place at its factories in China, Thailand, Indonesia and India. MG Motor is the largest importer of Chinese made cars into the United Kingdom.
See main article: Rising Auto.
Rising Auto (Feifan, 飞凡汽车), formerly R Brand,[51] is an offshoot of SAIC's Roewe brand dedicated to new energy vehicles and intelligent vehicles.[52] Early products are rebadged Roewes with the R7 crossover being the first original product. The upcoming following product is the F7 compact executive sedan.
See main article: Roewe. Roewe was introduced by SAIC in 2006. It is sold in most export markets outside China under the MG Motor marque.
See main article: Maxus.
Maxus was formed in 2011 following the acquisition of LDV Group by SAIC in 2010,[53] and produces MPVs, pickup trucks, and SUVs for both domestic sale and global export.
See main article: SAIC-GM-Wuling.
See main article: Baojun.
A joint venture between SAIC, General Motors, and Guangxi Automobile Group (previously Wuling Group) Based in Liuzhou, Guangxi Zhuang Autonomous Region, in southwestern China, it makes commercial and consumer vehicles sold in China under the Wuling and Baojun brands. SGMW has recently found great success as an electric vehicle manufacturer — in 2021, the venture's Wuling Hongguang Mini EV city car was the best-selling electric car in China by volume.[54]
See main article: SAIC Hongyan.
SAIC Hongyan was established in January 2003 as Chongqing Hongyan and traces its origins back to a Chinese manufacturer established in 1965. The company is focused on producing heavy trucks.[55]
See main article: Sunwin. SAIC Sunwin is a brand specialized in producing passenger buses[56] and trolleybuses.[57]
See main article: Nanjing Automobile.
In 2021, SAIC announced an increase in its holdings of Nanjing Iveco (Naveco). SAIC's subsidiary, Nanjing Automobile Group holds a 50% stake, while SAIC itself holds 30.1%, and IVECO S.P.A. holds 19.9%. SAIC's ownership of Naveco has now risen to 80.1%, making the Italian brand a strategic investor.[58]
SAIC participates in cooperative efforts with foreign automakers that see the products of large international companies such as General Motors and Volkswagen made and sold in China.
See main article: SAIC Volkswagen. A joint venture between SAIC and Volkswagen Group. It was founded in 1984 and produces cars under the Volkswagen, Skoda, and Audi brands.
See main article: SAIC-GM. This joint venture between SAIC and General Motors manufactures and sells Chevrolet, Buick, and Cadillac brand automobiles in Mainland China.
SAIC produces MG Motors vehicles through this joint venture with Charoen Pokphand for their Thailand subsidiary.[59]
Established with Austrian technology provider TTTech in 2018 for Intelligent and Autonomous Driving solutions.[60]
| Total | IM | SAIC Passenger Vehicle | Maxus/LDV | SAIC-GM-Wuling | Hongyan | Sunwin | Naveco | |||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MG | Rising | Roewe | Wuling | Baojun | ||||||||
| 2010 | 1,424,513 | - | 29,603 | - | 131,027 | - | 1,157,258 | - | 33,258 | 3,098 | - | |
| 2011 | 1,433,387 | - | 50,349 | - | 112,825 | 2,833 | 1,210,824 | 21,854 | 31,500 | 3,152 | - | |
| 2012 | 1,659,973 | - | 79,343 | - | 122,952 | 7,076 | 1,503,868 | 80,323 | 17,008 | 3,250 | - | |
| 2013 | 1,884,112 | - | 83,896 | - | 152,705 | 11,032 | 1,349,964 | 100,500 | 28,008 | 3,783 | - | |
| 2014 | 2,051,240 | - | 64,651 | - | 126,590 | 21,016 | 1,628,493 | 181,586 | 25,000 | 3,866 | - | |
| 2015 | 2,272,961 | - | 83,294 | - | 99,350 | 35,071 | 1,541,516 | 502,872 | 8,708 | 2,103 | - | |
| 2016 | 2,533,586 | - | 98,714 | - | 241,026 | 46,145 | 1,369,618 | 760,559 | 15,517 | 2,007 | - | |
| 2017 | 2,811,224 | - | 158,574 | - | 385,235 | 71,117 | 1,138,726 | 1,016,342 | 40,017 | 1,213 | - | |
| 2018 | 2,957,136 | - | 270,647 | - | 466,608 | 84,017 | 1,197,932 | 879,077 | 58,037 | 818 | - | |
| 2019 | 2,621,117 | - | 298,000 | - | 428,597 | 153,024 | 1,078,234 | 604,026 | 58,077 | 1,159 | - | |
| 2020 | 2,575,775 | - | 310,000 | - | 384,321 | 192,617 | 1,184,088 | 422,550 | 80,077 | 2,122 | - | |
| 2021 | 2,845,309 | - | 471,992 | 14,241 | 343,283 | 232,844 | 1,470,783 | 214,947 | 63,007 | 825 | 33,387 | |
| 2022 | 2,779,123 | 5,000 | 571,887 | 29,780 | 286,018 | 214,155 | 1,524,960 | 105,084 | 13,107 | 2,009 | 27,123 | |
| 2023 | 2,804,845 | 38,253 | 903,789 | 21,012 | 145,437 | 226,664 | 1,376,490 | 51,641 | 41,559 | |||
| Due to SAIC only disclosing the combined sales figures for the MG, Rising, and Roewe brands as "SAIC Passenger Vehicle", the individual sales figures for Rising and Roewe are derived from the registered numbers in China (as these two brands are exclusively sold in China currently). The separate sales data for MG brand is calculated as the "Rising registered number" plus "Roewe registered number" minus the "total sales of SAIC Passenger Vehicle", potentially resulting in some discrepancies to the actual data. | ||||||||||||
On 13 April 2011, vehicle assembly resumed at the MG Motor UK Longbridge plant as the first MG 6 to be produced in the United Kingdom came off the production line,[61] but ended in 2016 when SAIC moved production to China.[62] It retains a technical subsidiary SAIC Motor UK on site.
On July 19, 2023, SAIC's Philippines subsidiary SAIC Motor Philippines, Inc. has appointed the new distributor and importer of MG vehicles and services in the country with launch of the all-new 2024 MG4 EV and MG Marvel R for the local market by October 2023. Aside from importation, distribution, and aftersales operations, SMP’s functions also include the management of MG’s dealership network in the Philippines. This is currently composed of 42 authorized dealer locations and the addition of four more dealerships before the close of 2023, and a goal to have 60 MG dealerships running by 2025. [63] [64]
In June 2012, SAIC's United States-based subsidiary Shanghai Automotive Industries Corp USA, Inc. opened a new North American Operations Center in Birmingham, Michigan.[65] [66] [67] The opening ceremony was attended by Rick Snyder, Governor of Michigan, Oakland County Executive L. Brooks Patterson, and senior executives from General Motors and SAIC Motor. The 30,000-square-foot, three-story facility will house nearly 100 staff and focus on sourcing components.
SAIC has numerous production facilities in China, including sites in: Chongqing, Liuzhou, Qingdao, Shanghai, Shenyang, and Yantai.[68] It also had an assembly plant in the United Kingdom, the Longbridge plant.[69] It also has a plant in Chonburi, Thailand, Cikarang, Indonesia, and Halol, India.
SAIC operated a large research and development centre in the United Kingdom, the SAIC Motor UK Technical Centre, which as of 2012 employed around 275 engineers and 25 designers.[70] The UK Technical Centre was the principal site worldwide for the development of MG cars,[71] also playing a major role in the development of Roewe products.[72] However in June 2019, SAIC Motor closed the UK Technical Centre making over 300 engineers redundant in the process.[73] [74]