Gasgoo.com (Shanghai Nov 6)-China’s BYD, Great Wall and Lifan all announced their plans to put more emphasis on alternative energy cars. With that being the fact, China’s SAIC (600104), after several days of trading halts, unveiled its plan to raise 15 billion yuan through non-public shares, and those money would be put into alternative energy, intelligence manufacturing and automotive e-commerce and finance. The mentioned plan kind of revealed SAIC’s creative strategies in production and services in the next Thirteenth Five-year Plan period from 2016 to 2020.
In the past few years, SAIC has invested more than 6 billion yuan into the R&D and the industrial chain of alternative cars, managing to produce all-electric vehicles(EV) and plug-in hybrid electric vehicles(HEV). SAIC also became the one and only auto manufacturer in China who owned volume production capacity for fuel cell vehicles. At the same time, through M&A, SAIC gained competitive edge in alternative energy cell, motors and electronic control which strengthened its industrial chain. Alternative vehicles would still keep its importance in SAIC’s future agenda. The announcement indicated that7.2 out of 15 billion yuan would be used to develop alternative vehicles, not only including the R&D of EV, plug-in HEV and unplug-in HEV under self-owned brands, but also the platforms of G10, V80 and SV63 under MAXUS, a commercial vehicle manufacturer. According to SAIC’s plan, the annual volume of alternative vehicles under self-owned brands would reach 300,000, achieving a revenue of 40 billion yuan; the number for commercial vehicles would respectively be 22,000 and 6.8 billion.
At present, with the development ofInternet, smart driving and advance technologies based on Internet of Vehicles(IOV) gain their momentum. And SAIC has already established its venture capital company in Silicon Valley as an effort to take hold of the global technological trend. According to the plan announced, SAIC will put 1.9 billion into the R&D of future cutting-edge technology and IOV-related projects.
The plan also indicated SAIC’s intention to change from a traditional automotive manufacturer to a provider of both products and services. As a result, 3.9 billion yuan will be used to develop auto service and auto finance, with the development of Chexiang platform and SAIC’s financial service being the priorities. SAIC expects its financial sector could bring a revenue of 1.8 billion yuan in 2018, and an increase of net profit of 0.54 billion yuan.
