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After SAIC acquires NAC, Rover’s “combination of the two into one†in China will make SAIC passenger vehicles even more powerful. Similarly, SAIC Motor’s commercial vehicle segment will also add strength – Nanjing Iveco, the domestic light truck leader. After Nanjing Iveco entered the short board of the SAIC commercial vehicle, SAIC will start to integrate commercial vehicle plates. The commercial vehicle, SAIC's former weakness, is gradually becoming stronger.
Focus on building commercial vehicles this year
At the SAIC commercial vehicle business meeting just concluded last month, SAIC officials said that SAIC will focus on commercial vehicle business this year, including SAIC Iveco Hongyan, Nanjing Iveco, Shanghai Huizhong and Shanghai Shenwo All commercial vehicle companies, including Shanghai Diesel Engine Co., Ltd. and Shanghai Diesel Engine Co., Ltd., have to achieve rapid growth. The sales target for commercial vehicles this year is 700,000, compared with 553,000 vehicles last year.
In the past year, SAIC has made frequent moves in the commercial vehicle sector: it has established a joint venture with Iveco to establish a commercial vehicle joint venture, and has acquired a 67% stake in Chongqing Hongyan and formed a three-party joint venture with SAIC Hongyan; it has signed comprehensive cooperation with Yuejin Group. Agreement; Announcement was issued at the beginning of the year to acquire 50.32% of the equity interest in Shanghai Shichai Co., Ltd. with 923 million yuan. After arranging heavy trucks, large and medium-sized passenger cars and engines, they also took the opportunity of South cooperation to bring Nanjing Iveco into the bag.
After this series of actions, SAIC’s current commercial vehicle segment is mainly divided into three parts: the former Nanjing Automobile Commercial Vehicle segment, Chongqing Hongyan and the former SAIC Commercial Vehicle segment. The person in charge of the SAIC Group's commercial vehicle division said that formerly the former owner of China SouthCar Iveco had two shareholders, China’s Nanjing Automobile Group and foreign partner Iveco. After Shangnan’s cooperation, the original 50% of Iveco’s shareholding in Nanjing Automobile was transferred to SAIC Motor. . Therefore, at present, Nanhua Iveco accepts double leadership. One is the foreign Iveco, and the other is the SAIC commercial vehicle.
Iveco to force commercial vehicles
Despite its prominent position in the field of passenger vehicles, SAIC Group has not been able to become the “First Corps†in the commercial vehicle sector. This time the acquisition of Nanqi, some analysts believe that SAIC is not only interested in the MG, but also has a strong interest in Nanjing Automobile's commercial vehicle assets. After the merger, Nanjing Iveco's IVECO brand can make up for SAIC's shortcomings in the light passenger market. The addition of Yuejin's brand will also give SAIC a stronger competitive edge in the truck market.
In an interview, Lin Wei, Iveco brand product and marketing director, also told reporters that commercial vehicles have always been shortcomings of SAIC. SAIC commercial vehicles sold only more than 6,000 vehicles last year, while sales of commercial vehicles by NAC were more than 10 times that of SAIC. . From this point of view, SAIC Motor hopes to use Iveco's strong capabilities to reconstruct the layout of commercial vehicles and to promote itself as an industry giant with a complete product line in the three major areas of passenger vehicles, commercial vehicles and parts and components.
Nanjing Iveco Limited
Not long ago, Xiao Guopu, vice president of SAIC Motor Corporation and general manager of commercial vehicle company, said that Nanjing Iveco plans to increase sales from 27,000 units to 29,000 units in 2008, and Yuejin’s target sales volume will increase from 58,000 units to 65,000 units.
SAIC's confidence may come from Iveco's performance. According to Iveco, in January this year, Nanjing Iveco sales increased by 18% compared with the same period in 2007, of which, Nanjing Iveco IVECO brand light passengers sold 2506 vehicles, compared with the same period last year increased by 17 %; Yuejin brand sales reached 3329 units, an increase of 17% year-on-year; Lingye heavy trucks increased by 150% year-on-year.
However, the vertical comparison may not be able to explain all the problems. The horizontal comparison may be more realistic. According to statistics from the China Automobile Industry Association's 2007 production and sales statistics, the sales volume of Yuejin light trucks last year was around 40,000, and its market share was only about 4.3%. The well-performing Iveco light passengers sold about 24,000 vehicles, and their share in the light passenger market was only around 10%. In the commercial vehicle rankings, NAC has already dropped to the ninth position and is left behind by major competitors such as Futian, Dongfeng and Jianghuai.
From these data, it is possible for SAIC to use Iveco to make up for the shortcomings of the light truck and increase the overall strength of commercial vehicles. However, with the competitiveness of Iveco in the south, even if the Nanjing Iveco commercial vehicle resources are integrated, it is difficult for SAIC Motor to shake up the entire commercial vehicle industry. Moreover, according to the original joint venture regulations in South Africa, Nanjing Iveco will continue to develop according to its own planning for at least three years, and SAIC will not intervene.
Fully integrate SAIC Road
Lin Wei judged that in order to better conduct research and development, rationalize resources and adapt to future competition, SAIC will certainly integrate in the commercial vehicle segment. SAIC Motor certainly has its own commercial vehicle development plan. This requires a process that is estimated to take 2-3 years. At present, SAIC has no way to retreat in the commercial vehicle segment. It is only desperate to go all out. It uses mass-manufactured, general-purpose marketing and Nanjing Auto's talents to integrate commercial vehicles.
Tan Xiuqing, an expert from the China Association of Automobile Manufacturers, also believes that at least two or three years, the commercial vehicle structure will not change due to SAIC intervention. The key to the development prospects of SAIC in the commercial vehicle sector depends on its planning and deployment of resources.
From the current situation, SAIC did start its own consolidation of commercial vehicles. In accordance with SAIC's commercial vehicle division plan, Nanjing Iveco completed the first off-line product of the first European new product Oka in January. SAIC invested 2.1 years ago. The commercial vehicle technology center set up by 100 million yuan has also been connected with the Nanjing Automobile Research Institute.
SAIC's integration work has only just begun. It is necessary to fill in this short board as soon as possible. We would like to compare it with FAW and Dongfeng. SAIC still has a short way to go.
View related topics: SAIC commercial vehicle expansion 
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