"Shanghai" automobile ComesBack to Market Aiming New Energy Segment

"Shanghai” automobile will come back to life. It takes SAIC new energy car technologypopularization duty. However, its role repeat Roewe for SAIC, which shows SAIC hesitate for “Shanghai” position.

Shanghai automobile, which was born in 1958, was milestone product at that period. In 1970’s, saying goes like “North Red Flag, South Shanghai”. SAIC Shanghai brand was as famous as FAW Red Flag at that moment. Compared with Red Flag“government special” position, Shanghai goes into normal people home.

Recently, MIIT publishes its 255th manufacturers and new car brands catalog. The most highlight is Shanghai automobile comes back at list. According to MIIT published declaration, both Roewe and Shanghai catalog have codes of CSA7241, CSA7301 and CSA7201. It means that the two brands own the same modes.

Da RAO, general secretary of China Passenger Car Association, does not totally understand SAIC declares the same three modes for Roewe and Shanghai. According to automobile industry experience, different brads shall not introduce the same products.

“We have explained for different brands the same modes,” a staff of SAIC told reporter that “Shanghai brand introduced for Shanghai area consumer historical Shanghai plot”.

Senior management of SAIC say that SAIC developed Roewe 750 new energy car will still use Roewe at the tail brand. But if the car sold to Shanghai consumers, SAIC will hang Shanghai brand logo at car door. It is for Shanghai plot consumers. However, Roewe 750 in other market will not own Shanghai logo at car door.

At present, SAIC owned brands are Roewe and MG. Both of them have clear position and widely accepted and welcomed by market. Shanghai brand expectation keeps increasing.

Shanghai brand slight get out of SAIC and Volkswagen eyesight after their found joint venture. When SAIC and Volkswagen found joint venture in 1985, Shanghai Volkswagen and Shanghai brand share the same plant. Considering about different market position, SAIC moves Shanghai brand outside. Because of shortage of capital and technology, Shanghai brand finally stop operation in Nov 1991. Since Shanghai brand born, it produces more than 70 thousand.

After 20 years joint venture cooperation, SAIC has realized the important of itself brand development. SAIC purchases British Rover and changes its name to Roewe in Oct 2006. At the first beginning, Roewe aims upper middle segment. The position does not offer any advantage for competition among foreign brands, but market image has widely identified by consumers.