SAIC steps on innovation pedal for fast growth in global markets

SAIC Motor Corp Ltd, China's biggest carmaker and the local partner for Volkswagen and General Motors, has always been a step ahead of its peers when it comes to technology and innovation. More importantly, the automaker is one of the shining examples of the reform and opening-up policy that China embarked on some 40 years ago.

Yu Jingmin, who graduated from university in 1994, remembers that it was with some trepidation that he joined the company as his job options were limited to just three choices - real estate, commerce or automobiles. Yu, a deputy general manager of China's largest listed automaker, said he is proud of his job choice and has no regrets.

Perhaps, his crowning glory came last year during an industrial event at Stanford University, when he told the stunned participants that futuristic connected cars had already made their debut in China, courtesy of SAIC Motor, while it was still a concept in many developed nations.

"I felt extremely proud about our achievement vis-a-vis our foreign counterparts," said Yu, adding that the connected car model has notched up sales of 700,000 units till date.

The model mentioned by Yu is the world's first internet connected car jointly created by SAIC and Alibaba Group in July 2016 under the brand name Roewe. The car can be turned on by the voice command: "Hello Zebra" and also used as a smartphone for receiving financial and insurance, maintenance, navigation and entertainment information.

SAIC's total vehicle sales stood at 6.93 million units last year, up 6.8 percent year-on-year, double the average industry growth.

Nobody would have believed that the automaker would make such impressive strides in the four decades since its inception. Passenger car joint venture discussions started some 40 years ago in November and became a reality after six years of negotiation with the launch of SAIC Volkswagen in October 1984.

Bao Anrong, who retired from the company's procurement division last year, still remembers the first batch of 100 Santanas that rolled off the production line in 1983. After the groundbreaking ceremony of the Sino-German joint venture, one of the top executives told him that soon there would be more cars on the roads than he could imagine and that he himself would be the proud owner of one.

Bao said he did not take the words seriously as the more than 200,000 yuan ($28,830) sedan was totally unaffordable then. But in 1999, Bao and his colleagues were among the first batch of private car owners in China.

In 2014, Bao and his old colleagues witnessed the last Santana roll off the production line, but after gaining sales of four million units across China. The Santana was subsequently replaced by other car models like Passat, Tiguan, Polo, Lavida and Touran.

Today SAIC Motors is ranked 36th in the Fortune 500 list with revenue of $128.8 billion and is the seventh largest automobile company in the world.

The group sold more than 3.52 million vehicles from January to June this year, up 10.9 percent year-on-year. Of this, nearly 57,000 units are new energy vehicles, rising 275 percent year-on-year.

In addition to the domestic market, the group has also established production centers in Thailand, India and Indonesia, and has 13 overseas marketing service centers in the Middle East, South America, the Southeast Asia, Australia, and Europe.

Nearly 130,000 vehicles made by SAIC Motors were sold overseas in the first half this year, including in developed markets such as the United Kingdom, Australia, New Zealand, Ireland and Germany.

"The global automotive industry is entering an era of revolution and innovation. Only companies that seize the opportunity and trend can survive and stand out," said Chen Hong, chairman of SAIC Motors.