In 2018, SAIC Motor sold a total of 7.0517 million vehicles at its terminals, becoming the first Chinese automotive group to surpass the 7 million mark. With sales of 7 million vehicles, SAIC Motor has a promising future.

However, life is full of uncertainties, and this is the norm. Within a few years, SAIC Motor experienced a sales slump due to various reasons, nearly losing 2 million vehicles in sales. Although the company managed to retain sales above 5 million vehicles after catching up for a while, it became clear that the large sales volume was causing the company to struggle to keep up.

Fast forward to 2024, and SAIC Motor is facing even tougher times. Earlier, SAIC Motor released its 2023 financial report, which showed that the company achieved total operating revenue of RMB 744.71 billion in 2023, almost on par with the 2022 fiscal year. Net profit attributable to shareholders was RMB 14.11 billion, a year-on-year decrease of 12.5%. This means that compared to the RMB 36 billion in 2018, the current figure is less than 40% of that and is almost back to the net profit level in 2010.

The financial report paints a bleak picture, and sales figures are even worse. SAIC Motor announced that in July 2024, the company produced 237,524 vehicles, a year-on-year decrease of 42.57%, and sold 251,484 vehicles, a year-on-year decrease of 37.16%. From January to July of this year, cumulative sales reached 240,579 vehicles, a year-on-year decrease of 55.14%. Furthermore, SAIC Motor's July sales were surpassed by BYD, marking the second consecutive month that SAIC Motor has lost its position as the top domestic automaker. SAIC Motor should be on high alert.

Even more alarming is the all-around decline in SAIC Motor's sales. For example, SAIC Volkswagen saw a year-on-year decline of 18.18% in July, while SAIC GM saw a decline of 84.42%.

In July, SAIC Passenger Vehicle sales declined by 29.95% year-on-year, and cumulative sales for the first seven months declined by 20.19% year-on-year. SAIC MAXUS sales declined by 23.34% year-on-year. Even SAIC Passenger Vehicle, including Roewe and MG brands, is experiencing a decline.

To illustrate, in the first half of this year, Roewe's cumulative terminal sales reached 61,000 vehicles, a decline of 66.7% compared to 2021. This means that over the past three years, Roewe has continuously lost market share in the tide of time.

Looking across the entire SAIC Motor Group, the only trump card available is Buick, which sold 12,500 vehicles wholesale in July, with the Envision and GL8 being its main models. As everyone knows, the brand label and profit per vehicle of the Buick GL8 are exceptionally high, to the point that some even say it supports both Buick and SAIC GM. However, times have changed, and the Buick GL8 has lost its position as the sales champion in the MPV segment, replaced by the Tengshi D9. This truly validates the saying, "What you rely on will eventually bind you."

Conclusion: A giant ship is hard to turn around. On July 10, Shanghai Automotive Industry Corporation (Group) Company Limited announced the official retirement of Chairman Chen Hong, and Wang Xiaoqiu succeeded him as Chairman of SAIC Motor. Jia Jianxu, currently Vice President of SAIC Motor and General Manager of SAIC Volkswagen, will succeed Wang Xiaoqiu as President of SAIC Motor. With the change in helmsman, the giant ship of SAIC Motor will sail into deeper waters, facing even greater storms. Whether it will sail more steadily or risk capsizing, the market will give us the answer soon.