SAIC Motor SWOT & PESTLE Analysis

Strengths

1. One of the ‘Big Four’ state-owned multinational automotive firm: SAIC Motor Corporation is a state-owned automobile manufacturer, headquartered in Shanghai, China. The company is ranked among the ‘Big Four’ Chinese automakers, namely Dongfeng Motor, FAW, and Chang’an Motors. It specializes in manufacturing some of the most fuel-efficient and luxurious vehicles in China. SAIC has joint ventures with General Motors, Volkswagen, and Volvo. Its major activities include development, production and distribution of the commercial vehicles. In 2020, SAIC manufactured 5.6 million finished vehicles. This figure includes 2.6 million self-branded vehicles, accounting for 46.4 percent of the total, 320,000 new energy vehicles, and 390,000 exported vehicles. It has been ranking first in China for the past 15 years.

The remaining section under "Strength" is available only in the 'Complete Report' on purchase.

Weakness

This section is available only in the 'Complete Report' on purchase.

Opportunity

1. SAIC-GM-Wuling joint venture commands second-highest share in EV market: General Motor sells EVs in China under two joint ventures (JV). One JV is with the state-owned SAIC Motor, and another with SAIC Motor and Wuling Automobile. The SAIC-GM-Wuling (SGMW) joint venture controls around 15% of China's EV market between January and October in 2021. This is the second highest share of China's EV market. Less than one-fourth of the sales under the two JVs are electric. While General Motors' EV sales in China are growing, its competitors are growing faster. In two months, SGMW's market share has fallen roughly 2%. SGMW's HongGuang Mini EV is the top-selling EV model in China. If the joint venture manages to bring new and successful EV models, it could retain its share in the competitive Chinese market.

The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.

Threat

This section is available only in the 'Complete Report' on purchase.

Political

1. Abolition of foreign ownership restrictions in Chinese automotive industry: In April 2018, China announced it would relax foreign investment restrictions in the auto sector, in an attempt to open up the Chinese economy to the outside world. The limits would be phased out over a 5-year period. This phasing out began with the removal of restrictions on new energy vehicles and special purpose vehicles in 2018 and was followed by removal of restrictions on commercial vehicles in 2020. In 2022, the government is expected to remove restrictions on passenger cars, and also allow foreign automakers to set up more than two joint ventures in China. This would mean more competitors for domestic automotive companies. However, all these years of joint ventures with foreign automakers should have enabled domestic companies to build their brand. Hence, the rising competition should be a stimulus for Chinese companies to improve their products. SIAC also has a joint venture with a foreign company - General Motors.

The remaining section under "Political" is available only in the 'Complete Report' on purchase.

Economic

This section is available only in the 'Complete Report' on purchase.

Social

This section is available only in the 'Complete Report' on purchase.

Technological

This section is available only in the 'Complete Report' on purchase.

Legal

This section is available only in the 'Complete Report' on purchase.

Environmental

This section is available only in the 'Complete Report' on purchase.