SAIC Motor Corp Ltd

The 29th Chengdu International Automobile Exhibition was held from August 21 to 30 at the Western China International Expo City, reflecting the domestic auto industry's departure from years of price-driven involution and its full entry into a new cycle dominated by value competition, with technology popularization and scenario-based segmentation advancing in parallel. Leading independent brands such as BYD, Chery, and Great Wall Motor exhibited with full-brand, full-category product matrices occupying entire halls, while mainstream joint-venture brands including Lexus, Infiniti, Dongfeng Nissan, Yueda Kia, and Dongfeng Honda were collectively absent, and ultra-luxury brands like Rolls-Royce and Bentley also did not appear. Data from the China Passenger Car Association shows that in July 2026, the domestic retail penetration rate of new energy passenger vehicles climbed to 65.1 percent, breaking through the 60 percent threshold on a stable basis for the first time. At this year's show, core technologies previously reserved for million-yuan-level high-end models, such as 800-volt high-voltage fast charging, lidar-based intelligent driving, full-domain chassis control, and silicon carbide oil-cooled electric drive systems, were comprehensively extended to mainstream family models in the 200,000-yuan and 150,000-yuan classes. The new Lynk & Co 20 comes standard with an 800-volt high-voltage platform, 6C ultra-fast charging, a lidar intelligent driving system, and a new-generation 16-in-1 silicon carbide oil-cooled electric drive. Geely Auto launched the Xingrui L Plus and the Boyue L i-HEV lidar version, and SAIC Roewe's Jiayue 07 made its first public appearance. IM Motors officially released its new product strategy, NEXT 2028, built on three core proprietary technology pillars: the NEO three-electric architecture, an aviation-grade safety full-by-wire chassis, and the IM Claw intelligent agent. BYD's second-generation blade battery and full-domain God's Eye intelligent driving system achieved deployment in high-difficulty scenarios such as narrow-space parking and customized parking. Joint-venture brands showed insufficient new product momentum and a slowing transformation pace. The Freelander brand, jointly created by Chery and Jaguar Land Rover, made its debut, and a small number of joint-venture new products such as the Buick GL8 Lushang and SAIC Volkswagen's all-new ID.ERA appeared, but their overall presence and product strength struggled to compete with the intensive technology and product iterations of independent brands.

General Motors and SAIC Motor agreed to extend their joint venture for another 20 years to deepen cooperation in intelligent electric vehicles and global expansion. The extension signals a renewed long-term commitment by GM to the Chinese market and global EV manufacturing through the SAIC-GM partnership. Separately, GM was removed as a key partner from a major new LG Energy Solution battery plant project in the US as the company adjusts its North American battery strategy. The twin moves indicate a shift in how GM balances China-focused EV development with a more flexible battery sourcing approach in the US.

General Motors plans to stop Chevrolet sales in China after nearly 21 years, while Ford will stop producing Lincoln vehicles in China for the US market beginning in 2030. Chevrolet's China sales fell from over 767,000 vehicles in 2014 to less than 9,000 last year, a 98.8% decrease, prompting GM to focus on Buick and Cadillac. Ford's move targets the Lincoln Nautilus, its best-selling model and the only vehicle it currently makes in China for American buyers, which faces a 52.5% US tariff. CEO Jim Farley said the decision was prompted by the Trump administration's trade policies, and GM recently extended its SAIC joint venture until 2047 while planning at least 30 new energy vehicles domestically by 2030.

Spain's Defence Ministry has indicated it will approve the construction of an automobile plant planned by Chinese state-owned automaker SAIC Motor in the northwestern region of Galicia. The proposed site is just five kilometres from Ferrol, a major Spanish Navy port and maintenance hub for frigates participating in NATO missions, prompting intelligence agencies to warn of espionage risks. However, after months of negotiations, the ministry confirmed its stance that there are no security concerns. The plant is set to produce up to 120,000 MG-brand vehicles per year, with construction starting in 2027 and operations beginning in 2028. The construction plan will be subject to approval by the Strategic Investment Committee, which may impose conditions related to security and other matters.

General Motors and SAIC Motor have extended their SAIC-GM joint venture in China by 20 years to 2047, committing to launch at least 30 new energy vehicles by 2030 and to use China-developed technologies for both domestic and overseas markets. This shift from one-way technology transfer to local innovation and global sharing positions GM to tap China's electric vehicle supply chain and engineering base as a key pillar of its worldwide product and technology roadmap. The extension reinforces GM's global EV ambitions but does not clearly change the near-term focus on EV profitability and the risk that slower adoption and policy shifts keep margins under pressure. GM is also recalibrating its battery and EV footprint, highlighted by its decision to unwind an Indiana battery joint venture with Samsung SDI while continuing to cooperate on next-generation prismatic cells.

General Motors announced on the 4th that it has extended its joint venture agreement with China's SAIC Motor for 20 years. The extension of the 50-50 joint venture will further advance vehicle development tailored to local tastes in China, the world's largest auto market. GM will focus on the Cadillac and Buick brands in China and discontinue sales of the Chevrolet brand, while continuing production and export of Chevrolet from China through a separate joint venture with SAIC and Wuling. Under the terms of the agreement, GM can also use China as an export hub, shipping Buick and Cadillac vehicles to the Middle East, Africa, South America, Mexico, and other parts of Asia.

SAIC Motor released its July 2026 production and sales report, with monthly output reaching 340,000 units, up 5.17% year-on-year, and sales also at 340,000 units, up 0.32% year-on-year. In the first quarter of 2026, the company achieved revenue of 140.418 billion yuan and net profit attributable to shareholders of 3.026 billion yuan.

SAIC Motor's MG brand officially opened pre-sales for the MG 07 on the evening of July 29, launching five variants with a starting pre-sale price of 125,900 yuan. The vehicle packs premium features such as a CATL battery offering 845 kilometers of range, a semi-solid-state battery with 650 kilometers of range, an 800-volt high-voltage platform, 5C fast charging, the Momenta R7 lidar intelligent driving solution, mCDC intelligent electromagnetic suspension, and a HeatMatrix active-cooling electric motor, bringing technologies previously reserved for luxury models down to the 120,000 to 160,000 yuan market and realizing SAIC's vision of technology equality. The MG 07 comes standard with mCDC intelligent electromagnetic suspension across the lineup, and all but the entry-level variant include an AI preview function that scans for speed bumps and manhole covers in advance and adjusts damping firmness in milliseconds. Its 18-in-1 active-cooling electric drive system, HeatMatrix, integrates thermal management into the motor, enabling unlimited launch control without heat degradation and solving the durability challenge of motor cooling. The car also features a VMC blowout stability control system and the Momenta R7 lidar-based advanced intelligent driving solution, supporting AES automatic evasive steering at 130 kilometers per hour at night. SAIC's nearly 190 billion yuan in R&D investment in intelligent electric technologies and over 24,000 valid patents form a technological moat, with its technology foundation fully entering the 2.0 era. In addition, SAIC is rolling out a pop-up store marketing model for the MG 07, with 100 pop-up stores set to open gradually across 59 cities nationwide, signaling a shift in its marketing approach.

Volkswagen AG has warned that annual revenue may decline by as much as 3%, revising its previous outlook of flat growth to a 3% increase, as group deliveries in China fell 37% during the three months through June. The worsening performance in China places further pressure on CEO Oliver Blume's turnaround strategy, with shares falling as much as 3.2% in Frankfurt and extending their year-to-date decline to 31%. CFO Arno Antlitz said the company faces a 30% cost gap against competitors and needs to reduce overhead expenses by at least 10 billion euros, or 11.4 billion dollars. Despite these pressures, management expects earnings to improve in the second half and maintained its projection for an operating margin of between 4% and 5.5%, with the full-year result still expected to exceed the 2025 level. Volkswagen is seeking to rebuild momentum through local partnerships, including work with Xpeng Inc. on new electric models and Audi's development of a China-specific electric-vehicle platform with SAIC Motor Corp.

Chinese automakers BYD, Chery, and Leapmotor posted triple-digit registration gains in the European Union during the first half of 2026, as battery-electric vehicle registrations across the bloc jumped 40.5% year-on-year to 1.22 million units and claimed a 20.7% market share. BYD registrations surged 168.2% to 130,743 units, Chery jumped 268.7% to 84,987 units, and Leapmotor posted a more than fivefold increase of 526.7% to 48,261 units, while SAIC Motor rose 19.1% to 127,585 units. Tesla also strengthened its position with a 75.4% rise to 124,242 units. In contrast, legacy automakers lost ground, with Ford registrations falling 20.2% to 132,780 units, Nissan down 5.3% to 106,833 units, and Renault Group declining 4.2% to 620,250 units. Overall EU new car registrations rose 5.7% year-on-year, while the combined share of petrol and diesel vehicles fell to 29.7% from 37.8% a year earlier.

The 2026 Fortune China 500 list has been unveiled. The 36 companies in the vehicles and parts sector reported combined revenue of 940.21 billion US dollars for 2025, up 2.95 percent year on year, with total net profit of 29.15 billion US dollars, a jump of nearly 40 percent. BYD led the auto industry with revenue of 111.85 billion US dollars, ranking 26th overall, up one spot from 2025, and was the only automaker in the sector to surpass 100 billion US dollars in revenue. SAIC Motor ranked second in the industry with revenue of 91.3 billion US dollars, placing 36th overall, while net profit surged 507.1 percent to 1.41 billion US dollars. Geely Group came third with revenue of 87.87 billion US dollars, ranking 39th overall, but net profit fell 207.4 percent year on year to a loss of 897 million US dollars. Xiaomi ranked fifth among auto companies with revenue of 63.62 billion US dollars, placing 58th overall, and its smart electric vehicle business revenue exceeded 100 billion yuan for the first time. Leapmotor jumped 151 spots to 272nd place, making it one of the biggest risers among auto companies.

SDEC announced that its controlling shareholder SAIC Motor, based on confidence in the company's future development prospects and recognition of its intrinsic investment value, has pledged not to reduce its holdings of the company's shares in any way within six months starting from July 22, 2026, including newly added shares obtained through capital reserve conversion into share capital, stock dividend distribution, and other means. As of now, SAIC Motor holds 539 million shares of the company, accounting for 38.86% of the total share capital.

SAIC Motor has appointed Yang Huaijing as Vice President, overseeing all core commercial vehicle operations. This personnel adjustment follows the counter-trend growth of SAIC's commercial vehicle business. In June 2026, SAIC's total commercial vehicle sales reached 31,033 units, a year-on-year increase of 42 percent. Cumulative sales in the first half of the year exceeded 147,000 units, up 24 percent year-on-year, tripling the industry's overall growth rate. Core brand SAIC Maxus sold 138,000 units in the first half, up 29 percent year-on-year, with new energy vehicle sales rising 69 percent. Monthly overseas exports surpassed 14,000 units, a 70 percent year-on-year increase. As the domestic passenger vehicle market reaches its growth ceiling, the commercial vehicle sector maintains steady growth with ample room for new energy substitution. SAIC's move aims to strengthen its presence in the commercial vehicle blue ocean market and create a new growth curve.

Chinese autonomous-driving company Momenta is preparing a Hong Kong initial public offering that could raise about $1 billion, valuing the company at roughly $9 billion. The Suzhou-based firm, whose investors include General Motors, Toyota Motor and SAIC Motor, develops autonomous-vehicle technology and sells driving assistance systems to carmakers. It has also signed robotaxi partnerships with Uber and Mercedes-Benz Group for projects in Munich and Abu Dhabi, and is working with ride-hailing company Grab in Southeast Asia. A China Securities Regulatory Commission notice dated 10 June and published on 18 June said Momenta plans to offer up to 43.75 million shares in Hong Kong, and the regulator approved the filing. If completed, the flotation would add Momenta to a growing number of Chinese technology and robotics companies turning to Hong Kong's capital markets, following autonomous-driving peers WeRide and Pony AI which both listed in Hong Kong last year.