Bric Country Analysis and Recommendations for Saic Motor Corporation Limited

SAIC Motor Corporation Limited is a Chinese state-owned automotive company, the largest auto company on China’s A-share market, with its business covering the research, production, and vehicle sales of both passenger cars and commercial vehicles. SAIC Motor’s is affiliated with other vehicle companies such as SAIC Volkswagen and SAIC General Motors, both headquartered in China.

According to reports form Jing Daily, China will account for 30% of all global car sales in 2020 which is a 23% increase from 2012. Reports also indicate that BRIC countries are forecasted to be the largest market for light vehicles in the following 5-10 years. With the continuous major success that SAIC has been receiving, it is recommended to expand into the growing BRIC countries.

According to the latest news published in SAIC Motor’s website, in 2014, SAIC succeeded to sustain a steady growth even though the Chinese economy was continuing to decline. SAIC ranked 60th position on the Fortune Global 500 list, moving up from 85th the year prior. SAIC Volkswagen and SAIC GM also continued to pull their weight sitting on the top three enterprises of car sales of Chinese passenger vehicles. Other SAIC joint ventures continued to show rapid growth in their markets as well.

South Korean competitors Hyundai and Kia Motors have expanded into the BRIC countries are seeing results with a combined market share just reaching the double figures in their first 10 months. Russia was the only BRIC country where sales decreased in 2014 from the previous year. However, sales were on the rise in Brazil and India.

With SAIC’s proven track record in China and other joint ventures, BRIC countries should be the next step in prioritizing expansion starting with India. With India being the fourth largest producer of steel in the world and their “Skill India” initiative, SAIC will be able to capitalize in the automotive market combining their companies culture with India’s resources.

REFERENCES

China To Dominate 30 Percent Of Global Car Sales By 2020 | Jing Daily. (2014, July 24). Retrieved January 16, 2016, from https://jingdaily.com/china-to-dominate-30-percent-of-global-car-sales-by-2020/#.VpqB8yorKM9