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SAIC Motor posts $US5.3b annual profit

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SAIC Motor posts $US5.3b annual profit

CHINESE Automotive giant SAIC Motor has announced it has posted a 2018 net profit of $US5.3 billion ($A7.53b), which has played a part in its decision to expand into further global markets including New Zealand.

 

The company – which owns brands MG and Roewe – saw a 4.6 per cent increase in profit as a result of its global profit last year, which it has attributed to the development of overseas businesses and the increase in popularity of its alternative powetrain offerings.

 

In 2018, SAIC Motor doubled the sales of its alternative powertrain offerings for the fifth consecutive year, while overall Roewe and MG sales totalled 702,000 units worldwide – an increase of 34.5 per cent.

 

Particular growth was shown from the MG brand, which recorded 73,000 sales, representing a 176.5 per cent lift year-on-year.

 

Locally, MG’s sales grew 401 per cent in 2018, from 600 sales in 2017 to 3007 last year, thanks predominantly to its ZS small SUV which accounted for more than half of its overall sales with 1692 units sold.

 

The ZS arrived in Australia in November 2017, which helps explain the rapid growth of the formerly British car-maker that relaunched in Australia under SAIC ownership in October 2016 with the MG3 light hatch and MG6 small sedan.

 

Since its launch, MG also added the GS medium SUV to its portfolio in March 2017, which helped contribute 333 sales last year, behind the MG3 (564) and MG6 (418).

 

The brand’s 3007 sales meant it outsold established brands such as Peugeot, Jaguar Fiat and Alfa Romeo in Australia last year.

 

Roewe, a Chinese brand that launched in 2006, is not sold in Australia.

 

As part of its global expansion, SAIC announced last month an expansion into the New Zealand market, where MG Motor vehicles had previously been imported and distributed by independent organisation British Motor Distributors.

 

SAIC is preparing to open up to 10 new retail outlets in in its first wave of network development, including sites in Auckland, Wellington and Christchurch.

 

SAIC Motor Australia and New Zealand CEO Peter Cao said the local financial results were due to a range of factors.

 

“SAIC Motor continues to grow, with an excellent result for 2018,” he said.

 

“As a global brand, the company bring innovative and exciting new models to the automotive marketplace, which have been positively received in our local market.

 

“In Australia, our steady, strategic dealer expansion, competitive price point, and attractive seven-year warranty and roadside assist, have each contributed to MG’s success, and we look forward to the year ahead.”

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