Sales of SAIC Volkswagen and SAIC GM declined, and joint venture automakers faced challenges

SAIC Group's main partners, SAIC Volkswagen and SAIC GM, have both seen double-digit sales declines recently, which has had a negative impact on SAIC Group's performance. In 2023, the total sales of the two companies will decrease by 500,000 vehicles, and by about 2.5 million vehicles compared to 2018. This significant setback has put SAIC Group under tremendous transformation pressure and it needs to find new growth points to deal with the problem of more than 2 million idle production capacity.