SAIC adjusts MG’s brand position of commonly unique one

Reporters learn that SAIC passenger vehicles’ total sales exceed 300,000 units till December 14th, 30% higher than annual sales target. But the unbalanced developments between Roewe and MG brands also exist. Among the 274,700 units’ sales in the previous 11 months, Roewe brand occupies for more than 70% and MG only accounts for less than 70%. SUV model Roewe RX5 occupies more than 30% sales of Roewe brand’s total sales. It is obvious that SUV market will be an important battlefield for MG brand to raise its sales. The dealership network also shows unbalanced developments. It is introduced that currently SAIC Roewe has more than 400 dealerships and the number will be enlarged to 500 in the next year. But MG only has 280 dealerships.

MG brand’s first SUV model GS, which was elaborately designed by SAIC, was launched in March last year. But the response from market is out of expectation. MG GS only sells 3,649 units in November and 45,896 units in the previous eleven months.

According to relevant person, the reasons of MG GS’s failure should be listed as follows. Firstly, MG GS has an uncommon appearance, not accepted by the common public. Secondly, the model over-emphasizes quality but overlooks interior decoration, which rouses customers’ complaints. Thirdly, the price is set too high, following joint-venture brands, which is not accepted by the market.

Therefore, SAIC launches a new MG GS model at a day 20 months after GS’s debut, competing for self-independent brands. And the starting price is set at only RMB 98,800, RMB 20,000 lower than the previous model. Besides, the new model has a great advance in outer decoration and inner decoration, promoting the customers’ experiences greatly.

Besides, MG will launch a new model ZS in the next year, targeting at young customers who were born after the year 1990. A new model with an internal code IP 32 will also be launched next year, and MG alternative energy vehicles will make debut in 2018. “We have completed the product plan before 2019." One relevant person said.