Shanghai Automotive: Brewing “Northwards” to Open Up the Northern Commercial Vehicle Market


During the Guangzhou Auto Show, Volkswagen China announced its South strategy aimed at strengthening the market share of the southern region where sales are weak. For Shanghai Automotive, the brewing of “Northern” shows the ambition of the largest domestic auto company. .

On November 26th, Shanghai Automotive issued a reminder that the Tangshan Municipal People's Government has formed a strategic partnership with SAIC Motor. Both parties intend to establish a core competitive production base in Caofeidian to provide consumers with environmental protection and energy conservation. Technology-leading new energy automotive products.

The base starts with the development of electric buses, hybrid buses, and traditional passenger vehicle industries. It expands the scope of cooperation to other types of vehicles as required, and its products mainly meet the market demand in Hebei and even North China.

In the past, Shenzhen Leitian Energy Group Co., Ltd. has broken ground in the large-scale modern electric car city invested in Caofeidian, which means that Caofeidian will become a large-scale new energy automobile production base in the future. The base is also expected to become the first base of SAIC's own brand and new energy commercial vehicle project.

Previously, Shanghai Automotive 's layout in the north was limited to passenger car projects, including Shanghai GM's Yantai Dongyue and Shenyang Beisheng projects, and SAIC-GM-Wuling's Qingdao project. Commercial vehicle projects have never experienced a “going north” experience, but northern China is a must-have for commercial vehicles.

SAIC 's layout in commercial vehicles , Huizhong, Shenwo focus on Shanghai, Nanjing Yuejin and Chongqing Hongyan, belonging to East and West China. How to deepen into the hinterland of rivals, SAIC Caofeidian project has shouldered this important task.

"The development of new energy vehicles is also a process, the current problem is the cost, two power systems hybrid, and electric vehicles are still relatively expensive. One is the need to encourage national policies, and the other is the municipal facilities have to follow up In any case, our auto companies have already seen very clearly that the trend of driving power in the world is irreversible, and we will follow this trend and be ready for this fundamental change.” Chen Hong, president of SAIC, at the Guangzhou Auto Show Period to CBN.

In fact, from the perspective of the new automotive industry development plan, the breakthrough of new energy vehicles will be in the commercial vehicle sector. Due to the country’s support measures and subsidy policies around the country, New Energy Bus has a market-oriented environment ahead of schedule, targeting this market. Opportunity, SAIC has increased its layout in this area since the beginning of this year.

On January 9 this year, Shanghai Jieneng Automotive Technology Co., Ltd., with a registered capital of 2 billion yuan, was officially established. The company is jointly invested and established by SAIC Motor and SAIC Motors, and independently develops the core technologies of hybrid power and pure electric drive that can gradually replace the traditional internal combustion engine drive technology.

On September 15 this year, Shanghai Automotive and Italian Iveco signed a framework agreement on the consensus and basic principles for further cooperation between the two parties. According to the agreement, the two parties intend to integrate the commercial vehicle resources of both sides on the existing platform of SAIC Iveco Commercial Vehicle Investment Co., Ltd. and create a complete business system for commercial vehicles .

On this new platform, Shanghai Huizhong, SAIC Iveco Hongyan, Nanjing Iveco, and Nanjing Yuejin will further integrate, and behind the integration is Shanghai Automotive’s determination to develop in the commercial vehicle sector.

Although Shanghai Automotive has already reached the top in the field of passenger vehicles, in the area of commercial vehicles , the scale of Shanghai autos is still very weak compared with FAW and Dongfeng. With the Caofeidian project surfaced, both the concept of new energy and the concept of passenger cars have laid the first foundation for SAIC in the entire north, especially in the Bohai Rim region.

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