The internationalization journey of Chinese car companies (4): SAIC-GM-Wuling is a bit less interesting

In China, SAIC-GM-Wuling is undoubtedly a "god"-like existence.

Its hot models come out one after another. Its cumulative sales volume of more than 26 million vehicles ranks first among the others. Its nearly 3,000 sales and service outlets cover almost all prefecture-level cities and about 80% of county-level cities, making it unmatched.

However, in overseas markets, there seems to be little news about SAIC-GM-Wuling, which seems to be a bit off.

So is SAIC-GM-Wuling really doing nothing in overseas markets? You might as well follow Xiyoushe's "Internationalization Journey of Chinese Automobile Companies" to find out.

01

The current situation of SAIC-GM-Wuling’s overseas markets

At present, SAIC-GM-Wuling’s best overseas record is the Southeast Asian market with the Indonesian market as its core.

Yes, the Southeast Asian market is the most important overseas market for SAIC-GM-Wuling.

In fact, Wuling’s overseas business started from exporting to Thailand in the 1990s.

At present, SAIC-GM-Wuling's Southeast Asian market is centered on the Indonesian market, based in Indonesia, and radiates to the entire Southeast Asia and even the global market.

The SAIC-GM-Wuling Indonesian plant is the first automobile company established overseas by a domestic car company. Before the SAIC-GM-Wuling Indonesian plant, most of the overseas bases of Chinese car companies were KD factories.

In fact, the SAIC-GM-Wuling Indonesian plant has achieved outstanding results since it was completed and put into production in July 2017.

First of all, the SAIC-GM-Wuling Indonesian plant has broken the long-term monopoly of Japanese cars in the Indonesian automobile market. Currently, SAIC-GM-Wuling has become the best-selling Chinese automobile brand in Indonesia, with a market share of about 3%, close to Japanese car brands such as Toyota, Daihatsu, and Honda are at the front.

Secondly, SAIC-GM-Wuling’s Indonesian plant began exporting to Thailand and other countries and regions two years after it was completed and put into production, truly starting the strategic journey of “rooting in Indonesia and radiating to Southeast Asia”.

At the export ceremony of SAIC-GM-Wuling Indonesia to Thailand that year (September 25, 2019), the then Indonesian Minister of Industry Airlangga Hartartoo also praised the development speed of SAIC-GM Indonesia’s factory: Congratulations to SAIC-GM-Wuling Indonesia. Wuling achieved complete vehicle exports two years after its opening. Wuling's rapid development in Indonesia impressed the government.

SAIC-GM-Wuling has established a good brand image in Indonesia.

SAIC-GM-Wuling has the broadest user base in China, but we have to admit that Chinese people’s brand awareness of it is relatively low-end brands (including Wuling, Baojun and New Baojun).

Different from the domestic market, SAIC-GM-Wuling has successfully created a mid-to-high-end brand image in Indonesia that is as good as Japanese cars but slightly cheaper.

For example, the Wuling Almaz series, also known as the domestic Baojun 530, has quickly ignited enthusiasm in the Indonesian mid-to-high-end SUV market with its product advantages of intelligent interconnection functions since it was put into production and launched in the Indonesian market in 2019. It successfully hit the market the same year it was launched. It has entered the mid-to-high-end SUV market in Indonesia, ranking second in market share.

In addition, the Almaz RS, which will be launched in 2021, won the title of Indonesia's "Best Car of the Year" within one month of its launch.

At the same time, SAIC-GM-Wuling has even established a Wuling brand center in Jakarta, Indonesia. This Wuling brand center, which opened on October 27, 2021, is Wuling’s first overseas brand center and the first in China. The brand center of car brands in Indonesia.

The sense of luxury and nobility created by this Wuling brand center even exceeds that of surrounding luxury car brand dealers.

It can be seen that at least in the Southeast Asian market represented by Indonesia, SAIC-GM-Wuling is still quite successful.

However, apart from this, SAIC-GM-Wuling is indeed not very popular in other overseas countries and regions. Why is this?

02

The two major shareholders are advantages but also constraints

In fact, SAIC-GM-Wuling has not only entered the Southeast Asian market, but has two major shareholders in other markets. Major shareholders SAIC and General Motors' brands MG and Chevrolet were shown.

In fact, before the Indonesian company, SAIC-GM-Wuling operated under the Chevrolet brand in overseas markets.

With two major shareholders who are powerful in the global market, the advantages and disadvantages of SAIC-GM-Wuling’s overseas business are equally obvious.

In terms of advantages, first of all, with the help of the channels and brands of the major shareholder, SAIC-GM-Wuling's products can quickly enter many markets around the world.

For example, Wuling Rongguang, Wuling Hongguang, and Baojun 530 are all sold in South America and other markets as Chevrolet N300, N400, and Captiva. Baojun 530 has also entered the Indian market as MG Hector.

In addition, the experience of SAIC Group and General Motors in the global market is also an asset to SAIC-GM-Wuling.

In terms of disadvantages, after all, SAIC-GM-Wuling wants to promote the Wuling brand to more countries and regions. However, before Wuling enters every new market, it must consider the local strategy and positioning of the brands owned by the two major shareholders. , competition status, etc.

This undoubtedly greatly increases the difficulty for Wuling brand to enter new markets and slows down the speed of Wuling brand entering new markets.

03

The silver label strategy comes at the wrong time

On May 25, 2020, SAIC-GM-Wuling Wuling Global Silver Label was officially released.

The official website of the Wuling brand introduces the Silver Label as follows: The launch of the Silver Label is Wuling’s many years of deep exploration in the global market. It is a sign of the comprehensive launch of the globalization strategy, and it is a sign that Chinese manufacturing that has reached global standards can participate in global competition. A new beginning.

However, so far, the story of the global silver label has obviously not unfolded, and only a few new models of the silver label such as Air ev have been launched in the Indonesian market.

Although the Global Silver Label is said to be for the global market, it now seems more like Wuling's brand in the domestic market is slightly upward.

The reason is of course not difficult to understand. Who could have expected in May 2020 that the impact of the epidemic on China and the global market would last for two or three years?

Now that China and the world have finally entered the post-epidemic era, it’s time for Wuling’s Global Silver Label to tell some new stories!

04

Lack of particularly outstanding global models

Wuling Global Silver Label is moving to more countries and regions and lacks a particularly good global model, similar to For Toyota's Corolla, Volkswagen's Golf, and Tesla's Model Y.

Although Baojun 530 has been exported to nearly 20 countries and regions under the brands of Wuling, MG, Chevrolet, etc., and it is one of Wuling’s export models to the most countries and regions so far, but if Baojun 530 is to be branded as Wuling Silver It is obviously difficult for Biao to conquer more markets.

In fact, Baojun 530 has been discontinued in China.

Looking at the current silver-labeled Wuling models, including Xingchi, Asta, Jiachen, Victory, and Air ev, who can become Wuling's "Corolla"?

At least in terms of domestic sales, no car has such potential yet. SAIC-GM-Wuling's high sales still mainly rely on the Wuling Hongguang series.

The slightly upward performance of Global Silver Label in the domestic market is not very outstanding for SAIC-GM-Wuling. So will this shake Global Silver Label's brand and model positioning?

All this is unknown.

Conclusion

In recent years, SAIC-GM-Wuling has not been as aggressive in the domestic market as it was in previous years, which means that overseas markets will also be more important to SAIC-GM-Wuling. How to quickly break through the current situation of achievements but also shortcomings, advantages and constraints, and win more markets and sales overseas has become a difficult problem for SAIC-GM-Wuling's overseas team. The difficulties to be solved in this question include how to balance the interests of shareholders, how to position global models, how to learn from domestic successful experience, etc. Let us wait and see!

This article comes from Xiyoushe, the author of Yichehao. The copyright belongs to the author. Please contact the author for any form of reprinting.

The content only represents the author's opinion and has nothing to do with Bitauto