What is the relationship between Huayu Automotive and SAIC?

[KaydenAnn]

Huayu Automotive and SAIC have the following relationship: Huayu Automotive is a subsidiary of SAIC Group. Shanghai Automotive Industry Corporation (Group) is an automobile manufacturing company headquartered in Shanghai, with its main business covering the R&D, production, sales of complete vehicles and components, as well as automotive finance. Taking the Lavida under SAIC Volkswagen as an example: it is a compact sedan with a maximum engine horsepower of 113 hp, equipped with a 5-speed manual transmission. The dimensions of the Volkswagen Lavida are 4670mm in length, 1806mm in width, and 1474mm in height, with a wheelbase of 2688mm, a top speed of 190 km/h, and a fuel tank capacity of 51L.

[Thalia]

I've been working in the automotive parts sector for a while and understand the relationship between Huayu Automotive and SAIC Motor is like that of a tree and its branches—SAIC is the parent company, fully owning Huayu Automotive and using it as a core parts supplier. Huayu mainly produces body components, electronic modules, and the like, specifically supplying SAIC's models like Roewe or MG, while occasionally providing parts to other automakers. This structure allows SAIC to control supply chain costs and reduce external dependencies—a common setup in our line of work that boosts efficiency and fosters innovation, such as in developing new battery tech. In short, Huayu is SAIC's right-hand man, and this integrated industrial chain significantly enhances the competitiveness of China's auto industry. Without Huayu, SAIC's production lines could face chaos, and daily operations might be disrupted.

[DelTimothy]

As an ordinary car owner who has driven SAIC vehicles, I pay close attention to their parts sourcing. SAIC is the major shareholder of Huayu Automotive, holding a significant stake in it. Huayu specializes in manufacturing automotive components such as air conditioning systems and chassis parts, which are directly installed in SAIC vehicles. This relationship ensures consistent quality and prevents problematic parts from appearing, which is quite reassuring for drivers. In car enthusiast circles, many agree that this parent-subsidiary company setup is reasonable. For instance, if you encounter issues like headlight failures on the road, Huayu's extensive service network can provide quick solutions. However, Huayu also supplies non-SAIC brands, which doesn’t limit consumer choice. In the long run, this cooperation model supports the rise of domestic vehicles, putting more high-quality cars on the road.

[LeRonan]

From the perspective of automotive development, Huayu Automotive was derived from SAIC Group and is entirely controlled by SAIC. Their relationship is inseparable, with Huayu focusing on component R&D and manufacturing, providing core supporting products for SAIC, such as engine components or safety systems. In my observation, this structure strengthens industrial chain collaboration and reduces the risk of supply chain disruptions. For example, in the era of new energy, Huayu contributes to helping SAIC update its vehicle models and enhance overall performance.

[Deborah]

Having used SAIC Motor's vehicles for many years, I naturally understand that Huayu is its key subsidiary brand, fully controlled by SAIC. Huayu specializes in automotive parts production, such as interiors or electronic devices, directly supplying SAIC's own models. This relationship makes daily maintenance more worry-free, with reliable parts sources during repairs. Industry insiders often say that SAIC optimizes costs through Huayu, enabling faster new model launches. Owners benefit from stable parts supply, extending vehicle lifespan.