Shanghai Automotive Industry Corporation (SAIC) has established the "L" project to distribute high-end new energy vehicles.

     Shanghai Automotive Industry Corporation (SAIC) is pushing ahead with a new electric smart car brand project, code-named "L", according to a report on Oct. 12 by Yiche, citing people familiar with the matter.

      The "L" project, starting from 2018, is mainly targeted at high-end intelligent electric vehicles. Within SAIC, the "L" project is regarded as "Project No. 1".

       According to a person familiar with the matter, SAIC chairman Chen Hong is in charge of the L project, President Wang Xiaoqiu is in charge, and senior executives such as Vice President and CFO Wei Yong and Vice President and chief engineer Zu Xianjie also hold key positions in the project. In addition, Jiang Jun, a former senior executive of SAIC Passenger Car Company, was appointed as the executive team leader of the "L Project", while Liu Tao was appointed as the deputy team leader.

         Auto contacted SAIC at this point, the relevant person in charge did not deny the establishment of "L" project.

       The head also said that saic, aiming at the auto industry for the future development trend, and in the "electric, intelligent snatched, sharing, internationalization" layout already a long time, the future hand in hand from all walks of life partners, assembled global innovation resources, new intelligent high-end brands, "if you have any further information will be disclosed in a timely manner."

       The "L" project will set up a separate company and bring in market capital, the person said. At the product level, the "L" project will use AI technology, etc., and the product plan will cover multiple market segments.

      Zhang Xiang, an independent auto analyst, said SAIC's launch of the "L" project was an attempt to transform itself into a high-end vehicle. He noted that SAIC has been pushing into the high-end auto market in recent years as it has become a trend in the auto industry. Roewe, its own brand, launched its MARVEL line in May with a new "R" label. But Zhang Xiang thinks, "R" mark is released time is short still, the effect has not been reflected.

       At present, almost all auto companies are building independent new energy vehicle brands, and SAIC's "L" project also conforms to the recent trend of auto groups, said Bai Yiyang of CMG International Research department. He believes that in the current time, consumers' preference for traditional luxury brands has not been reflected in their choice of new energy vehicles, thus giving Chinese auto companies the opportunity and window period to build high-end new energy vehicle brands.

       He pointed out that SAIC will set up an independent company through the "L" project and smooth out the incentive mechanism, which is expected to integrate the advantageous resources within the group.

       However, Zhang Xiang said that at present, SAIC revealed less information about the "L" project, the future is difficult to judge.