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Throughout 2020, the word "hard to say" is appropriate to describe SAIC Volkswagen's performance. As the former annual sales champion, it is now struggling in the Chinese market.

As a "profit cow", SAIC Volkswagen's car sales performance in 2020 is obviously sluggish, as if there is a feeling of "giving up treatment". According to the latest data released by SAIC Group, the cumulative sales volume of SAIC Volkswagen in 2020 is 1,505,505 vehicles, down 24.79% year-on-year, making it the brand with the largest annual sales decline under SAIC Group. According to the sales volume in December, SAIC Volkswagen achieved sales volume of 157,520 vehicles, a year-on-year decline of 32.70%, which is the only brand under SAIC Group that has experienced a decline.

In addition, as a traditional promotion and annual impulse in December, SAIC Volkswagen sales also appeared retrogression. From the data point of view, SAIC Volkswagen's sales volume in November was 161,600 vehicles, while December sales volume was 157,520 vehicles, down 2.52% month-on-month, although the decline was not large, but compared with SAIC GM, SAIC GM Wuling, SAIC passenger cars and other brands, the performance is indeed some "ugly." However, even if SAIC Volkswagen monthly sales year-on-year decline, but still SAIC Group's "profit cow" brand, this is an indisputable fact.

Compared with FAW-Volkswagen, SAIC Volkswagen's performance is even more "ugly". After being overtaken by FAW-Volkswagen in 2019, SAIC-Volkswagen will be overtaken by FAW-Volkswagen again in 2020, and the latter will win the annual sales champion of passenger cars again. According to official data, FAW-Volkswagen accumulated terminal sales reached 2,161,888 vehicles (including Audi imported vehicles) in 2020, up 1.5% year-on-year, in sharp contrast to SAIC Volkswagen's 32.70% decline.

Previously, SAIC Volkswagen was able to crush other brands by relying on consumers 'trust in Volkswagen brands. However, after Tiguan L, Passat and other models "rolled over" in the research and development, the myth of Volkswagen brand collapsed instantly. Under the increasingly competitive market environment, SAIC Volkswagen could only rely on a large preferential margin to maintain market competitiveness, but in the long run, it also hit the price system and brand reputation. After the Passat crash rollover, SAIC Volkswagen re-applied for C-IASI test Passat, and obtained good results, especially the closely watched front 25% offset collision, A-pillar no longer bent, airbag no longer deviated, dummy also did not be headshot, but even such excellent results are difficult to restore SAIC Volkswagen and Passat in the hearts of consumers.

Xinhua Agency once commented publicly: "Trust is an important cornerstone for achieving a brand or product. Once you have this trust, you have a commercially important psychological Great Wall." But trust is also fragile, and once broken, hundreds of smiles can't be repaired. A collision may destroy consumer trust, but it is hard to expect a collision to restore confidence. Whether consumers will eventually pay for the collision of this new Passat is not yet known, but if SAIC Volkswagen rebuilds trust, I am afraid there is still a long way to go."

Why is SAIC Volkswagen so sad in 2020? The reason is that the current situation of SAIC Volkswagen has a great relationship with product reputation, enterprise reputation, enterprise marketing and product strategy. Once there are problems with products and brands, even if the price compromises, it is difficult to restore the trust of consumers.

How should SAIC Volkswagen turn over in 2021? It is understood that SAIC Volkswagen will launch more than 10 brand-new products in 2021, including ID.4X, ID.ROOMZZ and ID.3 MEB products, as well as the update of Touang, Passat, Tiguan L and other products. Skoda brand will also launch brand-new Mingrui. The replacement of Touang, Passat, Tiguan L and other models will improve the competitiveness of products. The launch of ID electric vehicles and the launch of SAIC Audi project are also expected to become new growth points of SAIC Volkswagen.

However, SAIC Volkswagen faces great pressure in 2021. With the official landing of Volkswagen Anhui, Volkswagen Group has formed a three-legged situation of FAW-Volkswagen, SAIC Volkswagen and Volkswagen Anhui in China, with internal competition relationship. In addition, in the face of the rise of Japanese brands such as Toyota, Honda and Nissan, the competitive advantage of SAIC Volkswagen products will be greatly weakened.

In 2020, SAIC Volkswagen's "inexhaustible" performance may be just the beginning. In 2021, SAIC Volkswagen is going up against the trend or continuing to be depressed, which deserves attention!

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