The west side is not bright, the east side is bright, and the dream of making cars on Saab and Subaru cannot be realized. The huge automobile trade group company (hereinafter referred to as “largeâ€) will be realized on Ssangyong. "Shuanglong will definitely choose to make domestically produced products in the Chinese market. We must also choose to make joint ventures with the huge ones." On August 20th, at the scene of the renewal of the huge and Ssangyong, Li Yuyi, president of Ssangyong Motor Co., Ltd., told reporters.
Three years ago, it became the sole general agent of Ssangyong Motor in mainland China. The signing of the contract was routinely renewed. In terms of cooperation, Huge and Ssangyong have signed a three-year visa. But obviously, the huge cooperation with Ssangyong does not stop there. The huge Shuanglong high-level reporter told the Economic Observer that the huge and also brewing model, in accordance with the Subaru model, established a joint venture with Ssangyong to fully manage the sales of Ssangyong brand in China.
However, on the day of signing the contract, Huge and Ssangyong did not make a clear reply on the time when the joint venture sales company was established. "The huge position in the actual position is similar to the role of Ssangyong in China. We do marketing and do our own projects, but in terms of form, we are only the general agent in China." The huge Ssangyong senior told the Economic Observer.
In China, although Ssangyong has repeatedly stated that it will open local production in China, the target of its joint venture has not been finalized. "When conditions are ripe, we will find joint venture partners to make domestic products." Ssangyong Motor executives said so. This time, Li Yuyi’s statement shows that Ssangyong and Huge have reached a further consensus in China.
"This is the first time the Korean side has made such a statement." A large insider told reporters. This means that after being promoted to the vehicle sales manager with the Subaru model, it will once again be transformed into a car. And if Ssangyong domestically opened successfully, it means that the huge not only recreates a Subaru model, but also further expands the industrial Chain, becoming the first dealer group in China to get involved in making cars.
However, in the case that the competent authorities in the industry strictly control the approval of vehicle production qualifications and basically close the door to the approval of new projects, there is still a great deal of uncertainty as to whether the huge gap between automobile circulation and vehicle manufacturing can be achieved.
Ssangyong speeds up the domestic production of Subaru, which took nearly 10 years, but for Ssangyong, this time is obviously too long. In 2013, Ssangyong sold 143,000 new cars worldwide, regaining profitability after years of losses. However, in the Chinese market, due to the joint venture with SAIC, the development of Ssangyong in the Chinese market has been affected.
Last year, Ssangyong’s sales in the Chinese market were less than 10,000 units, far from the initial setting of 30,000-50,000 units, even less than the Russian market. According to the goal of Ssangyong Motor's parent company Mahindra Motors of India, Ssangyong will become a world-class SUV brand, which means it will also significantly increase sales, and China is one of the most critical markets.
In this context, Ssangyong has begun to gradually lower the threshold of domestic production to increase sales as soon as possible. In the determination of the huge localized production joint venture, Li Yuyi also revealed to reporters that Ssangyong started the domestic sales of 50,000 vehicles in China. This is half the number of 100,000 vehicles originally requested.
This year, Ssangyong’s sales target in China is 21,000. According to Li Yuyi’s vision, if it goes smoothly, Shuanglong may open a domestic window after three years. This statement means that in addition to starting the domestic sales of the bottom line, Ssangyong's timetable for domestic production is also ahead of schedule.
Previously, Li Yuyi once said that before 2017-2018, Ssangyong will not consider producing in China. The exception is that the Ssangyong brand can reach an annual sales of 100,000 units.
One reason for Ssangyong to speed up the pace of domestic production is that Ssangyong has found obstacles in its development in China and will fully attack the Chinese SUV segment, which is still growing at a high speed. “In the past, the aging of Ssangyong products, coupled with the main use of diesel vehicles, did not meet the needs of Chinese consumers.†Shuanglong Automobile (Shanghai) Co., Ltd. Deputy General Manager Wang Zhihong said in an interview. "After the listing of Ssangyong Kelando, there was a situation of short supply, which exceeded the expectations completely." Li Yuyi said. According to the plan, Ssangyong will launch more petrol models in China in the future, and speed up the introduction of new cars according to the delivery speed of a new car every year.
In addition, the huge plan to complete the construction of 180 outlets by the end of 2014 will increase to 200 in 2015 and increase to 220 to 230 in 2016. “The Ssangyong brand is less popular, and it should be able to achieve coverage of the Chinese market by 2016.†The huge executives previously said.
A huge restart of the car dream Ssangyong's domestic re-transmission schedule means that the dream of “transforming from car to car†has been launched again for many years. Although it is the largest dealer group in China, it still has not changed its weak position in the face of OEMs. "Distributors are miserable." Pang Qinghua, chairman of the huge group (601258, commemorative), once told the Economic Observer. "The manufacturers are very strong, the standards for building stores are particularly high, and the pressure warehouse is also very serious, but the dealers have no way, we are always a weak side." Pang Qinghua said that the pressure from manufacturers is one of the reasons for the decline in dealer profit margins. The huge financial report shows that during the three years from 2011 to 2013, the huge profits were 650 million, -8.25 billion yuan and 211 million yuan respectively. The net profit margins in the three years were 1.17%, -1.43% and 0.33% respectively.
In order to break through this unequal relationship and increase profits, Huge has teamed up with Young Auto to try to acquire Saab, and then plans to joint venture with Subaru to control the auto industry chain and get rid of the shackles of automakers. However, the bankruptcy of Saab has made it impossible to build a car. Although it has established a joint venture sales company with Subaru, Subaru has not been listed in China. "For the huge size, Ssangyong's development potential is greater than Subaru." A large Shuanglong senior told reporters. At the beginning of 2013, it invested heavily in Subaru China and held 40% of the company's shares. It became the first dealer group in China to establish a joint venture sales company with the whole vehicle manufacturer. "Subaru has become the largest and most important source of profit." Pang Qinghua told the Economic Observer.
In the Ssangyong brand, as the sole general agent in China, it has a strong voice. Although it has not established a joint venture sales company like Subaru, it is not only responsible for the sales and distribution of Ssangyong products, but also responsible for brand promotion and promotion, product introduction and pricing, etc. Its functions are basically consistent with the functions of sales companies of general automobile brands.
After 2012, the scale of the largest domestic distributor group began to transform, from quantity expansion to quality expansion. Pang Qinghua believes that from the perspective of medium and long-term development, it is necessary to build a sustainable “hematopoietic†function of listed companies. The huge must be fully transformed into passenger vehicles to create profit cows like Subaru. Ssangyong is one of the important sections.
However, whether it is a joint venture sales company with Ssangyong, or a longer-term domestic plan, it all depends on the huge re-creation of Ssangyong brand in China in the past two years, and whether it can push Ssangyong’s sales in China to 50,000. .
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