Ssangyong returns to China to target SUV market

Ssangyong is back.

I believe many people still remembered the tragic outcome of SAIC Motor’s acquisition of Ssangyong. After the South Korean court announced that Ssangyong Motor entered the bankruptcy reorganization procedure in 2009, Ssangyong’s business in China was suspended. Ssangyong’s senior management and sales structure in China were adjusted. Four imported cars, including AiTeng, were also gradually shut down.

This time, Ssangyong once again returned to the eyes of Chinese consumers by leveraging the power of China’s huge Auto Trade Group Co., Ltd. and China South-South Investment Group Co., Ltd., and announced that it would re-enter the Chinese market in August. It is reported that Huge Group and CNAF South will set up agency companies in 30 regions in China and increase the number of dealers in China to 150 by 2013. The reporter learned that the two companies will begin to choose cars in July. Ssangyong Motor plans to cooperate with the giant and South China Steam South to increase the number of dealers in China to 150 by 2013, and to achieve 30,000 to 50,000 vehicles in China. Ssangyong sees the development of the Chinese SUV market and proposes to win the SUV sales championship in the Chinese market.

The reporter learned that the Ssangyong's renaissance in the Chinese market is a sign that the Chinese market is favoring SUV models and will re-enter the Chinese market with the new SUV model Korando.

Among the huge groups that have taken frequent action recently are Ssangyong Motor’s general agency rights in northern China. Previously, Pang Qinghua, chairman of the giant group, repeatedly mentioned the name of Ssangyong in public. An industry insider who is close to a high-level executive said that he will copy the Subaru model to re-stimulate Ssangyong.

Ssangyong Motor has positioned itself as a "world-class SUV expert", yet its global sales volume in 2010 was less than 100,000 units. ”

The potential of the Chinese market is obvious to all, especially since the SUV is still performing well in the current market. Therefore, Ssangyong Motor has been trying to enter the Chinese market again.

Since March, Ssangyong Motor has officially recruited dealers in China. This time, they plan to rely mainly on big distributor groups. As the largest car dealership group in the country, and with extensive experience in successfully operating sub-brands such as Subaru, the huge group is clearly the best candidate.

Since the sale of Subaru Motors in 2004, the huge group has grown from small to large, creating a distinctive wholesale and retail model of imported cars. With the development of the market, the scale of both has embarked on an expansion path. At present, Zhongmu Subaru, a subsidiary of the giant group, has become the largest general agent of Subaru Motors in China and is also the main source of profit for the Group. In addition, Subaru's market share in China is also expanding and its sales have increased rapidly.

Therefore, the huge group has a sales and service network in northern China, and it is a unique advantage to continue to operate South Korea's Ssangyong Motor. When the huge group went public before the IPO, Pang Qinghua once stated that he would surely duplicate another Subaru model. At that time, industry analysts said that Pang Qinghua’s mouth copied another Subaru, in fact, alluding to Ssangyong Motor. At that time the two parties were already in contact.

Our reporter learned that Li Jinyong, general manager of Zhongye Subaru Automobile Sales Co., Ltd., will serve as the general manager of Shuanglong. From such a personnel arrangement, it seems that the huge plan to replicate Ssangyong’s copy of another Subaru model is even more evident.

In an interview with a reporter from the China Economic Times, Pang Qinghua said that Huge Group is willing to share Shuanglong's distribution rights with other dealers. It is reported that the first Ssangyong auto dealership of the giant group has been basically selected. According to sources, dealers of the original Ssangyong Motor Co., as long as they meet the requirements for continuing operations, will give priority to the supply of vehicles, depending on the wishes of the other party.

This huge cooperation with Ssangyong Motor does not involve equity participation. It is only the cooperation of sales and management rights. This is exactly the same as the original Subaru model. In the past, Huge cooperation with Saab also repeatedly stressed that the huge participation in vehicle production is only to be able to work more closely with automakers. It does not intend to participate in production processes that are not their own strengths and will rely on their own dealer status.