Roewe: Govt sales solution to sharp competition

SAIC's independently developed premium Roewe 950 model at the Beijing Auto Show last April. The automaker said it intends to boost the sale of executive cars tailored to business and government clients. [Photo/AFP]

Envisions following route first mapped out by Audi

Roewe plans to focus on government procurement following the establishment of a separate marketing network earlier this month, said Chen Zhixin, general manager of SAIC Passenger Vehicle Co.

The Shanghai-headquartered company, whose parent has joint ventures with GM and Volkswagen, has struggled with sales of its wholly owned Roewe and MG brands. SAIC acquired rights to the iconic British sports car following its liquidation in 2005.

SAIC announced on Feb 7 that the company will establish new marketing departments for the two brands from March 1.

Following the separation, Roewe and MG will have their own dealership networks and branding teams, said the company.

Roewe will focus on making executive cars tailored for business and government clients, while MG will further stress its British lineage, the announcement said.

Despite floundering sales of the Roewe 750 executive car priced starting at 162,800 yuan ($26,100), the carmaker has ambitious plans for its 950 that went on sale last April with sticker prices of up to 319,900 yuan.

It is now looking to government procurement where it could provide minister-level sedans to a market long dominated by Audi.

Some leaders of the Shanghai municipal government have already replaced their foreign-brand sedans with Roewe 950s.