Edge Dock Leveler,Fixed Dock Leveler,Edge Dock,Mechanical Edge Of Dock Porema (Suzhou) Logistics Machinery and Equipment Co., LTD , https://www.jsporema.com
In the years following China's accession to the World Trade Organization (WTO), numerous Chinese-owned automotive brands and trademarks emerged within new joint ventures. However, managing these brands proved challenging due to fragmented strategies and limited resources.
With the comprehensive collaboration between SAIC and Nanjing Automobile (NAC), there is hope that the two brands—Roewe and MG—can coexist without competing against each other. Instead, they could leverage integrated management to collaborate and grow together. According to Chen Hong, President of Shanghai Automotive Co., Ltd., "Roewe and MG share significant technological and component resources." He explained that when MG Rover was active, the MG brand focused on sports and fashion, while Rover emphasized luxury and robustness. These distinct positioning strategies have helped shape the current brand identities of Roewe and MG.
Zhang Boshun, Secretary-General of the China Automobile Association’s Market and Trade Commission, noted that Chinese auto companies are currently building their own brands in a relatively decentralized manner. The SAIC-NAC partnership is expected to enhance their competitive edge by leveraging synergies, accelerating independent innovation, and ultimately creating globally competitive brands.
According to the "Eleventh Five-Year Plan for the Development of China's Automobile Industry," an independent brand must possess intellectual property rights, which can be acquired through independent development, joint efforts, or technology absorption. This plan emphasizes the importance of original innovation and re-innovation to build a strong domestic automotive industry.
Currently, most self-owned brand projects are not located within joint ventures. For example, the "Red Flag" brand, developed by FAW Group, has been around since 1958 and reached a brand value of 5.828 billion yuan in 2006. In 2007, Dongfeng Motor entered the self-owned brand market with plans to launch models across various segments, aiming to make a strong impact by 2009.
SAIC has invested heavily in its research and development capabilities, allocating 1.8 billion RMB to expand its Automotive Engineering Research Institute. The goal is to become a leading domestic center for technological development, providing sustainable support for independent brands.
Shanghai Automotive established its Passenger Vehicles Branch in 2006 to focus on the Roewe brand. With the collaboration between SAIC and NAC, both companies are working to integrate their UK-based R&D and production operations. A future three-platform system—R&D, production, and marketing—is being planned to strengthen their global presence.
Despite challenges, some joint ventures have successfully managed their own brands. For instance, after joining forces with Fiat, SAIC expanded its commercial vehicle portfolio, adding more models to its lineup. Similarly, Nanjing Iveco retained the Yuejin brand while integrating Iveco’s core technology into the Yuejin light truck, making it compliant with European standards.
However, Zhang Boshun pointed out that many joint ventures struggle with brand management. For example, SAIC-GM-Wuling’s Wuling brand dominated sales, yet it was provided free of charge to the joint venture. Protecting and strengthening brand identity remains a critical challenge.
While some joint ventures face difficulties, others like Chery have made remarkable progress. Chery has built its own R&D capabilities, owns intellectual property rights, and has become one of China’s largest independent automotive companies.
Looking ahead, the Eleventh Five-Year Plan aims for self-owned brands to capture 50% of the domestic market. Major groups like SAIC, FAW, and Guangzhou Auto are already making strides in this direction. With continued investment and strategic cooperation, China’s automotive industry is well-positioned to compete globally.