State-Owned SAIC Motor Reshuffles Management as Sales Tumble

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A man sits inside SAIC’s MG Cyberster at an industry event in Shanghai on June 5. Photo: VCG

State-owned SAIC Motor Corp. Ltd. (600104.SH) has reshuffled leadership as the automaker’s monthly sales slipped, falling behind BYD Co. Ltd., China’s largest electric-vehicle (EV) maker, for the first time.

The leadership shakeup began in early July, when SAIC appointed Vice President Jia Jianxu as its president after his predecessor, Wang Xiaoqiu, took over the role as chairman from Chen Hong, who retired after a decade in the position.

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SAIC Motor Corp. reshuffled its leadership, appointing Jia Jianxu as president after a sales decline saw them fall behind BYD in monthly sales for the first time.
In June, SAIC’s sales dropped 25.9% year-on-year to 300,545 units, compared to BYD’s 341,658 cars, which increased by 35%; the sales gap widened further in July.
SAIC is focusing on enhancing its NEV offerings and local JV capabilities, including new ventures with Volkswagen and General Motors to regain market share.

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Who’s Who

SAIC Motor Corp. Ltd.: SAIC Motor Corp. Ltd. (600104.SH) is a state-owned Chinese automaker that recently underwent a leadership reshuffle after experiencing a decline in sales, losing its monthly sales lead to BYD for the first time. The new management team, with a strong track record, aims to bolster the company's performance. SAIC's joint ventures with General Motors and Volkswagen focus on new-energy vehicles but have struggled against local competitors. Despite challenges, SAIC remains China’s largest automaker by sales in the first half of the year.

BYD Co. Ltd.: BYD Co. Ltd. is China's largest electric vehicle (EV) maker, having ceased production of fossil fuel-powered vehicles in early 2022 to focus on pure electric cars and plug-in hybrids. In June, it sold 341,658 cars, marking a 35% year-on-year increase. Its sales surged from around 500,000 in 2018 to about 3 million in 2022, contributing to its rise over competitors including SAIC. BYD aims for global zero-emission vehicle sales by 2040.

SAIC General Motors Corp. Ltd.: SAIC General Motors Corp. Ltd., established in 1997, produces cars using General Motors’ technology. Recently, it has focused on new-energy vehicles (NEVs) under GM's Cadillac and Buick brands but has struggled to compete with local alternatives. Amid leadership changes and lagging sales, the JV aims to enhance its development of homegrown models to strengthen its position in China's auto market.

China FAW Group Co. Ltd.: China FAW Group Co. Ltd. is a state-owned vehicle manufacturer that ranks as one of China's largest automakers by sales, following SAIC Motor Corp. Ltd. and BYD Co. Ltd. Despite being behind SAIC and BYD in sales, China FAW Group remains a significant player in China's automotive industry.

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What Happened When

Early 2022：: BYD stopped making fossil fuel-powered vehicles to focus exclusively on pure electric cars and plug-in hybrids.

May 2024：: SAIC announced plans to work with Volkswagen’s Audi AG to develop models built on a China-specific platform for premium electric smart cars.

June 2024：: SAIC’s auto sales fell 25.9% year-on-year to 300,545 units, with 93,422 being NEVs, while BYD sold 341,658 cars, up 35% year-on-year.

Early July 2024：: SAIC appointed Vice President Jia Jianxu as its president and Wang Xiaoqiu as chairman, replacing Chen Hong.

July 2024：: The sales gap widened as SAIC sold 90,899 fewer cars than BYD, with SAIC’s NEV sales slipping to 71,106 units.

July 29, 2024：: Jia Jianxu acknowledged the significant challenges SAIC faces during a meeting with investors.

Friday, August 9, 2024：: SAIC rejigged management at its JV with General Motors Co., including appointing a new general manager, party secretary, and deputy general manager.

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