"Although having a forward-looking vision can lead to a hit product, neglecting users can still result in losing ground"

Wang Xiaoqiu, who initially advocated for the cooperation between SAIC Motor Passenger Car Company and Alibaba to create SAIC's first hit product under its independent brand, has become SAIC's new leader, which can be seen as the aspiration of many.

However, even with Wang Xiaoqiu's determination, he is still somewhat insensitive to user maintenance within the rigid state-owned enterprise mechanism. Although SAIC's independent brands have had products that were popular upon launch, subsequent hardware and software upgrades and inadequate after-sales services have led to a reliance on constantly launching new models to boost sales.

If SAIC's independent brands are to regain their glory from 2017, the top management led by Wang Xiaoqiu should prioritize actions that demonstrate their commitment to users and the market, rather than mere words.

Gradual decline of star models

To date, Wang Xiaoqiu has been Chairman of SAIC Motor for over three months. Despite being 60 years old, he was still chosen as the helm of this large local state-owned enterprise, reflecting the recognition of his abilities by the upper management. Compared to other senior executives at SAIC, Wang Xiaoqiu has a complete resume from class monitor to general and has successfully built independent brands.

Some automotive media have publicly disclosed that Wang Xiaoqiu has recently spent half of his time working at the grassroots level, personally overseeing the research and development of the next generation of products, aiming to create another star product following RX5 and lead SAIC Motor's turnaround.

For any state-owned automaker, the importance of independent brands is self-evident. Since taking over as Chairman, Wang Xiaoqiu has redeployed key personnel across SAIC's important subsidiaries, including SAIC Motor Passenger Car Company.

In mid-August this year, SAIC Motor announced that Yu Jingmin, a popular figure in the automotive industry, had been transferred from SAIC Volkswagen to SAIC Motor Passenger Car Company as Executive Deputy General Manager, while Zhu Yong was promoted from Executive Director of the Drive Platform at the Business Planning and Project Management Department to Deputy General Manager. However, the General Manager of SAIC Motor Passenger Car Company remained unchanged, with Wang Jun continuing in that role.

According to the general practice of appointing cadres in state-owned enterprises, it is rare for someone like Wang Xiaoqiu, who is 60 years old, to take over as the leader. Zhu Yanfeng, Xu Liuping, and even Zeng Qinghong were all younger than Wang Xiaoqiu when they took charge of large state-owned automotive groups. This indirectly reflects that the new generation of executives at SAIC Motor still lags behind Wang Xiaoqiu in terms of accomplishments and prestige.

Previously, the author wrote an article about Chen Hong, and some readers commented that "we should have appointed Xiaoqiu as the leader earlier."

Wang Xiaoqiu has earned the internal recognition of SAIC Motor due to his tangible achievements, and he can be regarded as the founder of SAIC's independent brands.

In 2003, Wang Xiaoqiu led the acquisition of Rover's full range of core technologies, laying the foundation for the development of the Roewe brand. In 2016, Roewe launched its first internet-connected car, the Roewe RX5, which became a phenomenal model with monthly sales exceeding 20,000 units in multiple months the following year. However, the RX5 did not sustain its popularity, and after 2019, even with the addition of the MAX model, its average monthly sales failed to reach 15,000 units.

Despite Wang Xiaoqiu's efforts to streamline SAIC's independent brands by integrating Roewe and Flyingvan, the overall results have not yet met expectations. According to SAIC Motor's production and sales bulletin, in the first nine months of this year, SAIC Motor Passenger Car Company, which includes Roewe and MG, sold a total of 481,000 vehicles, a year-on-year decline of 26%.

IM Motors, another brand led by Wang Xiaoqiu, has also struggled. Sales of the LS6 have declined from nearly 10,000 units per month at launch to just 1,902 units per month. The L6, which was hyped as a rival to Xiaomi's SU7, has remained lukewarm, with sales hovering between 2,000 and 3,000 units since its launch this year.

User feedback goes unheeded

The initial popularity of the Roewe RX5 was due to its differentiation. In 2016, when new-energy vehicle brands had not yet achieved large-scale production, and voice-controlled infotainment systems were uncommon, the RX5's claim to be the "world's first internet-connected car" was not an exaggeration.

In 2014, SAIC partnered with Alibaba on an equal 45% share basis to establish Banma Networks. In the second half of 2016, under the leadership of Wang Xiaoqiu, who was then General Manager of SAIC Motor Passenger Car Company, the Roewe RX5 equipped with the Banma system was launched.

The RX5 initially differentiated itself with its large central control screen and smart infotainment system, which became popular after its launch. A senior executive from a state-owned automaker told Autocircle Chronicles, "At that time, SAIC's collaboration with an internet giant to develop from the OS level was a very innovative model."

In terms of product insight and willingness to innovate, 40-year-old Wang Xiaoqiu is on par with private enterprise leaders. However, in terms of sensitivity to user needs, Wang Xiaoqiu and other senior executives at SAIC, like many state-owned enterprise managers, are not outstanding.

Due to the acquisition of core powertrain components such as engines and transmissions from overseas, Roewe's early models were not ideally matched, and over time, small issues gradually emerged, affecting the brand's reputation.

The dry dual-clutch transmission in the RX5 was a major source of criticism. Congested urban traffic is a nightmare for dual-clutch transmissions, which can struggle to interpret the driver's intentions. Dry dual-clutch transmissions rely on natural airflow for cooling, leading to issues like overheating, clunky shifts, and missed gears.

Similarly, due to numerous complaints about the dry dual-clutch transmission, GAC Motor responded relatively quickly, replacing the core components of the first-generation GS4 with an Aisin 6AT transmission just two years after its launch. In contrast, it took SAIC until 2021, six years after the first RX5 was introduced, to completely abandon the dry dual-clutch transmission in favor of wet dual-clutch transmissions in new models.

Another common complaint among users of SAIC's independent brands, starting with Roewe, is that promises made at product launches are often not fulfilled. For example, the first-generation Roewe 550, marketed as a navigation-equipped vehicle, had its map and infotainment system remain unchanged for years, leaving the large screen unable to connect to smartphones or install apps, making it outdated compared to other brands on the market.

SAIC's independent brands have had models that impressed, such as the Roewe RX5, Roewe i5, and IM Motors LS6, which approached monthly sales of 10,000 units. However, their lifecycles were short-lived, eventually fading into obscurity, and the brands found themselves relying on launching new models to boost sales once again. The failure to promptly respond to user needs has led to accusations that SAIC's independent brands are only interested in making a quick sale.

Can SAIC's independent brands regain their glory in the era of Wang Xiaoqiu? (Part 2) will be released soon. Stay tuned.