Having disappeared for 20 years, “Shanghai”, the sub-brand of SAIC (Shanghai Automobile Industry Corporation) is planning to come back. According to an insider at SAIC, the project is still under development and relevant information won’t be released until it is settled.

SAIC is one of China’s leading automobile groups. The company contributes one fifth of the total sales of China’s automobile market. In 1958 the group first pioneered the production of a vehicle in China named Phoenix, but the “Shanghai” brand was fully established in 1963. In fact that same year, on the other side of the country, FAW’s (First Automobile Works) first car Dong Feng (predecessor of Hong Qi cars) was produced with a dragon as its logo. While the Hong Qi brand was positioned as a high-end carexclusively produced for high-level government officials, “Shanghai” was designed for a larger segment, which brought the brand closer to ordinary Chinese people’s life. The quality and reliability of the product made “Shanghai” as the brand that the public trusted. However SAIC stopped the production of “Shanghai”in 1991.
“Shanghai” seems to be catching up with recent trends that see old Chinese brands returning to life. Hong Qi had a diplomatic car model called HQE designed especially for the 2009 National Parade. In the cosmetics industry, Shanghai Vive has been successfully rebranded and entered the luxury goods market. It is no surprise to see these authentic Chinese productions being revitalized by the vibrant Chinese economy. This economic growth is fostering the rise of interest in traditional Chinese culture, resulting in the increasing popularity of Peking Opera and “revolutionary” items (red star, army green) in society. Aware of this luxury fashion brands such as Louis Vuitton, Longchamp, and Bagigia have brought to the market designer bags with clear Chinese features.
However, it is important to note that the majority of SAIC’s sales still come from its joint venture brands with Volkswagen and GM. What is clear is that the market share of Chinese automotive brands is declining. With that said, it is interesting to see the new positioning of the “Shanghai”brand and what it will bring to the SAIC group as well as the whole Chinese automobile market.