SAIC brings LDV back to life

Carmaker rebrands it as Maxus and plans to market it widely throughout the UK

Chinese carmaker SAIC Motor Corp Ltd is bringing LDV, once one of United Kingdom's best-known light vehicle brands, back to its home market for the first time since it acquired the company in 2009.

SAIC Motor reworked the vehicle, and in 2011, launched the first model based on the brand's technology, the V80, which sells in 40 markets worldwide.

Now the Shanghai-based company has rebranded it as Maxus and plans to market it widely in the UK.

LDV, which was once the main supplier to UK government services such as the Royal Mail, police and other emergency services, finally went into liquidation in 2009 after struggling against increased competition from German, French, Japanese and South Korean manufacturers.

SAIC, China's largest carmaker, has leveraged on its in-house research and development capability to give LDV-based vehicles big improvements.

Recognizing the importance of LDV's home market, the UK, SAIC Motor is mounting a big presence to promote the Maxus brand at Birmingham's Commercial Vehicle Show, which opened on Tuesday.

Lan Qingsong, SAIC Motor vice-president, said: "Maxus has kept the LDV brand DNA and upgraded the core technologies to bring about a better choice, a more reliable and more enjoyable user experience. Maxus is changing the view of made-in-China vehicles."

All three of the Maxus models are on show, the V80, EV80 and G10. The V80 has its roots in the LDV technology that SAIC bought, and EV80 is its electric cousin. G10 is a premium vehicle that SAIC Motor developed, which was launched in 2014.

SAIC Motor's push for Maxus in the UK rides on a wave of Chinese carmakers' extensive international expansion in recent years through acquiring struggling Western brands that offered good technology and brand value.

One key example is Zhejiang Geely Holding Group Co's acquisition of Swedish car brand Volvo and London's iconic black cab maker - The London Taxi Co. SAIC Motor itself bought the intellectual property rights to the Birmingham company MG Rover Group in 2005.

Yang Honghai, director of public relations for SAIC Maxus, said the UK market's importance is twofold, because of its large light commercial vehicle market and the LDV brand's established reputation, which SAIC motor sees as significant factors pointing to significant market potential.

Globally, sales of Maxus totaled 10,721 vehicles in the first quarter of 2016, representing a year-on-year increase of 53 percent. Yang said Maxus' international sales are planned to increase to 30-40 percent of overall revenue by 2020.

"We want to be a premium LCV brand, therefore our focus is on mature developed economies with high consumption ability, as well as the premium segment of China's LCV market," Yang said.

The V80, of which SAIC Motor has already sold 3,000 units to its UK distributor Harris Group last year, is now slowly being rolled out across the UK market. SAIC Motor anticipates the G10 will go on sale in the UK soon, after the company makes necessary adjustments to the vehicle based on feedback it receives at the Birmingham show.

The EV80 will go on sale at a later date, depending on government regulation and charging infrastructure availability.

Yang said that Maxus' competitive advantage is its quality design combined with value for money, adding SAIC has taken care to ensure Maxus is not marketed as a cheap competitor to its international counterparts.

The V80, which retails at around 140,000 yuan ($21,000) to 150,000 yuan in China, sells around the equivalent of 160,000 yuan to 180,000 yuan in most international markets. In comparison, the UK's current LCV leader, the Ford Transit, is selling with an entry retail price of 18,295 pounds ($27,500).

Ian Fletcher, principal analyst of IHS Automotive, a US-based consultancy, said that Maxus faces strong competition in Europe, which is dominated by very established "aggressive players" like Ford Motor Co, Volkswagen AG, General Motors Co and Daimler AG.

cecily.liu@mail.chinadailyuk.com

(China Daily USA 04/27/2016 page16)