(Yicai Global) Nov. 20 -- The sales of the SAIC MG (Morris Garages) in the first 10 months of this year increased by 78 percent to 413,000 units, said Wang Xiaoqiu, vice president of SAIC Motor Corporation [SHA:600104] and general manager of SAIC Morris Garages. The year 2019 will be "tough" for all home brands, Wang said in an interview, indicating a "sense of crisis" in the industry.
"There is no need for so many auto makers in China. If the fuel act is to be issued after 2020, the auto makers that perform poorly in traditional cars and new energy vehicles will be the first to be eliminated," said Wang.
Driven by the growth of SUVs, the home brands achieved good results in the past two years, with their market share increasing from 38.44 percent at the end of 2014 to 44.15 percent in the first 10 months of this year, setting a new record. However, the spiking of the overall market does not mean that all the auto makers at home are flourishing.
The domestic auto makers are significantly divided this year. Geely Automobile Holdings Ltd. [HKG:0175], Great Wall Motor, SAIC Motor and Guangzhou Automobile Group Co. [HKG:2238] have been in the lead for rapid growth, Chery Auto and Chongqing Changan Automobile Co. [SHE:200625] have slowed down in growth, and the sales of JAC Motors, Zotye Auto and other brands have been in decline.
The traditional auto makers should continue to invest in SUVs and the Internet of Vehicles. It is impossible to provide good user experience with the effort of only one auto maker, Wang stressed. The development of the internet concept cars requires joint efforts of all the auto makers. The "hellobanma" platform established by SAIC Motor and Alibaba Group Holding Ltd. [NYSE:BABA], an intelligent system for the internet concept cars, will be joined by more car companies. The advantage of SAIC Motor lies in the previous technical experience and its deep understanding of the consumption demands, which will bring personalized products and experience, Wang Xiaoqiu said.
All auto makers have a global dream, he said. But the Chinese auto brands have only entered the emerging markets in recent years. SAIC Motor has entered the ASEAN market. With the full product layout and the sales growth in the domestic market, SAIC Motor will expand to the overseas markets. "There will be a huge change in the overseas market," Wang suggested.