SAIC Maxus: Pioneering The C2B Model in China's Auto Industry in The Digital Era

CB0142
REV: August 11, 2021
YUE FANG
WENYING QIAN
SAIC Maxus: Pioneering the C2B Model in China’s

Auto Industry in the Digital Era
In 2018, China’s 30-year unbroken period of growth in auto production and sales lost speed, slowing
to an annual contraction of 8.2% in car sales in 2019. Against this bleak backdrop, SAIC Maxus booked
the trend with a 42.9% surge in sales. 1
Founded in March 2011, SAIC Maxus is SAIC Motor Corporation’s international brand. In 2016, the
Shanghai-based company pioneered a customer-to-business (C2B) model for the auto industry with
the advent of the digital era. The C2B model tapped into the entire car-making process, allowing users
to personalize their car from the early stages of production. SAIC Maxus launched the model after
years of experimenting and winning consumer approval. In 2017, it rolled out the D90 SUV ①, the
world’s first vehicle model designed and produced according to the C2B model. The G50 MPV ② model
followed in 2019, with nearly 30,000 units sold by 2019. ③
With no industry blueprint to follow, how did SAIC Maxus devise the C2B model? How did digital
user operations make a difference to SAIC Maxus’ product creation? How did the C2B model help
digitize the traditional auto value chain? What challenges would this model face?
Overview of China’s Auto Industry

China’s reform and opening-up ④ has brought more than 40 years of robust economic growth.
Soaring consumer demand ensured the auto industry remained a seller’s market as demand constantly
outstripped supply. Carmakers focused on ramping up capacity while dealers fretted over expanding
their network of sales channels.
The country’s car sector transitioned to a new normal of slower growth as the Chinese economy
shifted into a lower gear after decades of phenomenal growth. The year 2018 marked a turning point
for carmakers, as 30 straight years of growth came to a halt (Exhibit 1). Consequently, the traditional
①
SUV (sport utility vehicle or suburban utility vehicle) refers to a model with both the spatial functions of a station wagon and
the off-road capabilities of a truck.
②
MPV (multi-purpose vehicle) evolves from a station wagon. It combines the large passenger space of a station wagon, the
comfort of a car, and the functions of a van. MPVs, which generally come in a two-box design, can seat seven to eight people.
③
Source: 16888.com, https://xl.16888.com/s/128118/
④
Reform and opening up is Chima’s policy of domestic reform and opening to the outside world, initiated in 1978.
Professor Yue Fang and Case Researcher Wenying Qian of China Europe International Business School prepared this case. It was reviewed and
approved before publication by a company designate. Funding for the development of this case was provided by China Europe International
Business School and not by the company. CEIBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as
endorsements, sources of primary data, or illustrations of effective or ineffective management.
Copyright © 2021 China Europe International Business School. To order copies or request permission to reproduce materials, call 1-800-545-7685,
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This document is authorized for use only in WAN, Guohua's 23 FALL_MBA_OM(B)_WAN, Guohua at Shanghai Advanced Institute of Finance, Shanghai Jiao Tong University from Nov 2023 to
May 2024.
SAIC Maxus: Pioneering the C2B Model in China’s Auto Industry in the Digital Era CB0142
auto industry business model ran into problems, including market saturation from overproduction and
an inability to meet individual customer needs. As consumer mindsets and habits shifted, the post-85s
and post-90s generations (millennials), who formed the largest consumer group in China’s auto market,
put a high value on individualization and consumer experience. As cars typified assembly-line ①
standardized products, consumers had limited choice in configuring various options available.
As the global auto industry underwent a sea change, industrial capital investors and start-ups piled
into the auto market, bringing a wave of digital innovation across the industry chain. Amid changes in
the economic and technological landscape and rivalry between incumbents and new market entrants,
Chinese carmakers urgently needed to explore their digital transformation to adapt to new industry
trends and shifts in consumer demand.
Company Profile
SAIC Motor
Founded in 1984, SAIC Motor Corporation Limited (SAIC Motor) is China’s largest automaker
listed on the A-share market. SAIC Motor mainly develops, produces and sells passenger and
commercial vehicles. It has formed multiple joint-venture and own brands, such as SAIC Passenger
Vehicle Branch, SAIC Commercial Vehicle Branch, SAIC Volkswagen, SAIC General Motors, SAIC-
GM-Wuling, NAVECO, SAIC-IVECO Hongyan, Sunwin, and SAIC Maxus.
Facing new industry changes, SAIC Motor noted in 2016, “trends for intelligent, connected, electric
and shared (ICES) vehicles are here to stay. Emerging technologies and business models have brought
new opportunities to the auto industry, leaving open a crucial window for own brands to conduct
innovation.” ②
SAIC Motor brought in its own ICES vehicle strategy and mapped out a blueprint. It invested
heavily in technological innovation in the hope of transitioning from a traditional manufacturer to a
provider of mobility services and products. Amid an industry slump, SAIC Motor’s sales fell 11.5%
annually to 6.238 million units in 2019. However, the company’s ICES vehicle business was fast
becoming SAIC Motor’s new growth engine. Its new-energy vehicle (NEV) sales surged 30.4% to
185,000 units that year. 2
SAIC Maxus
Established in March 2011, SAIC Maxus is SAIC Motor’s international brand. The unit first tapped
the commercial vehicle market before entering the passenger vehicle segment in 2014, focusing on
MPVs. By 2015, SAIC Maxus was present in 41 countries and regions, such as the UK, Ireland, Australia
and New Zealand, and posted a sevenfold increase in sales.
As a fledgling subsidiary, SAIC Maxus was the first within the group to explore transformation
using digital technology. After examining multiple options, SAIC Maxus executives plumped for C2B
①
Assembly line production refers to a form of production organization, in which workers continuously process and produce
products at multiple work sites along a technical route at a uniform production speed. Assembly line production is a further
development of specialized organization and a form of production organization with a finer division of labor and higher
production efficiency. In 1913, Henry Ford, the founder of Ford Motor Company, established an automobile assembly line, which
significantly enhanced production efficiency.
②
Source: SAIC Motor Corporation Limited Annual Report 2016, P15
May 2024.
intelligent customization for two reasons. First, unlike traditional large players, SAIC Maxus could
optimize the entire value chain easily because it was small. Second, SAIC Maxus was one of the first
players in China’s commercial vehicle industry to launch intelligent customization, providing a wealth
of experience in tailoring products to customer needs.
Although well-proven C2B business models were few and far between in the global auto industry,
SAIC Maxus drew inspiration from successful C2B models in China’s home furnishings, home
appliances, and fast fashion sectors.
Design & Development: Local Motors, an open-source carmaker, assembled an army of design
firms and designers on its online platform to offer an array of personalized vehicles and accessories. It
reached out to end-consumers engaged in auto production. 3
Manufacturing: Shangpin Home Collection, a customized furniture manufacturer, extended its

range of “basic components” and introduced modular manufacturing to meet the demand for greater
flexibility and optimization in product supply. Red Collar, a customized apparel manufacturer,
digitized technical processes so that its database could quickly find a matching pattern when a
consumer placed an order. Its production system then assigned the task to a workshop.
Marketing: Xiaomi, a smart hardware maker, implemented a user review mechanism to promptly
tune into consumer needs and feedback. It also engaged consumers during product development to
ensure efficient product iteration and upgrades.
Sales: Adidas provided consumers with customization through its official website and offline
outlets. Shangpin Home Collection hired its designers as salespersons in its physical stores because
they understood consumer needs better than ordinary salespeople.
After-sales services: Tesla leveraged over-the-air (OTA) technology to constantly run remote
iterations on products delivered to consumers.
After teasing out relationships among users, carmakers and suppliers, SAIC Maxus drew up a
strategic plan for its C2B model. In 2016, it became the world’s first auto company to propose applying
C2B to auto production.
C2B Model
For more than a century, the auto industry had pursued a product-centric production model ①,
which prioritized completing each process task as soon as possible, regardless of whether the item
produced was required in the next step. As a result, it took around 40 months to develop a brand-new
auto model. This plan-based, standardized mass production could not satisfy individual customer
needs: it was inflexible and prone to inventory buildups as the market cooled.
C2B represented a user-centric pull production ② model in which customization and

personalization drove consumer engagement in product design, production, and pricing. This model
①
Push production refers to the calculation logic based on material requirement planning (MRP). According to this logic, every
department is required to comply with the production plan as stipulated by the company. The upper process does not need to
hold itself responsible for the lower process. Once created, the product is delivered to the subsequent process according to the
plan.
②
Pull production means that product assembly is geared to market demand, driving the processing of parts in the previous
processes. As pull production ensures appropriate output, the enterprise will not face high inventory.
May 2024.
gave consumers a say, allowing them to make joint decisions with carmakers. To this end, carmakers
needed to digitize the entire manufacturing process and restructure the supply chain ecosystem while
embracing a new business model.
In 2016, SAIC Maxus first applied the C2B model when customizing the SUV D90. The year before
its rollout, SAIC Maxus recruited seed users online from its millennial customer base. They were
typically keen to share their opinions on the internet. These seed users contributed their ideas online
throughout each phase of D90 production - from specification (car size and price) to development,
including improvements. In 2017, SAIC Maxus rolled out the D90, the world’s first vehicle customized
via a user-centric C2B model. In 2019, SAIC Maxus launched the G50, the first C2B-customized MPV
that was an immediate success.
The C2B model significantly boosted SAIC Maxus’ development. Although China’s overall auto
sales dropped 2.8% in 2018, SAIC Maxus’ sales grew 18% to 84,017 units. 4 In 2019, SAIC Maxus’ sales
surged 42.9% to 120,017 units, bucking the trend as industry sales slumped 8.2% in the country (Exhibit
2). 5
Exploring C2B
Customer side: a user-centric approach
SAIC Maxus first shifted from a product-centric approach, onto which traditional carmakers had
long clung, to a user-centric one.
Establishing channels to engage users directly

Carmakers heavily relied on market surveys. However, they failed to reflect real user needs due to
tiny sample sizes and feedback lag. Collecting authentic user feedback in real-time became crucial.
Therefore, SAIC Maxus began building an online platform to engage potential users.
The “SAIC Maxus” platform, based on its WeChat public account, included multiple features like a
forum, mall, and market surveys. SAIC Maxus soon amassed a huge following online by launching a
minigame on the platform every two weeks, holding raffles to encourage users to invite their friends
to the platform, and establishing a user influence index. During the 2016 Double-12 shopping festival,
SAIC Maxus attracted around 200,000 followers within four days simply through a poster campaign.
Before the D90’s rollout, SAIC Maxus amassed 400,000 followers through more than 38 marketing
channels, such as WeChat, Weibo, and short-messaging, and collected 6,000 blind orders.
Fully engaging users

Unlike the traditional model, where car buyers enjoyed limited configuration options, the C2B
model allowed them to participate in customization, from defining, development and verification to
selection and matching, pricing, and improvement. Users contributed during each step of the D90’s
production process across the product lifecycle, rather than making purely passive choices.
Product defining: By communicating with 31,125 users on the interactive platform and inviting
industry KOLs to test-drive the D90, SAIC Maxus collected over 30,000 recommendations relating to
18 product-defining points.
Product development: Having crowdsourced the D90 design via the “SAIC Maxus” platform, the
firm received around 80 designs, with 240 external designers registered. The entries included hubs,
May 2024.
roof racks, rolling cages, and gear levers. SAIC Maxus also allowed users to observe and participate in
the design process through the designer’s platform, making user engagement more interesting. By the
end of 2018, the Engineering Online Platform had received more than 30,000 individual
recommendations from users. Each received a reply from engineers with 900,000 online views
accumulated.
Product pricing: SAIC Maxus pioneered user engagement in pricing in the auto market. In April
2017, before the launch of the D90, SAIC Maxus invited users to experience the order process through
simulation, using a matching tool feature it designed, which allowed them to set their own prices. This
event attracted more than 600,000 followers online, with the back-end system receiving more than 1.7
million prices. Afterwards, SAIC Maxus analyzed the colossal sample data and unveiled the D90’s
price.
Product selection and matching: As the D90 entered the market, SAIC Maxus upgraded the
matching tool that helped users simulate the ordering process to a smart matching tool called “Spider
Smart Choice”. This tool allowed users to choose a car to their liking in terms of driving mode, radiator
grille, car logo, hub shape, sunroof, seat, electric trunk, adaptive cruise control system, 360-degree high-
definition panoramic view, 64-color ambient light, large-screen system, and even the caliper color in
just three to 15 minutes. Theoretically, the Spider Smart Choice offered billions of different
configuration combinations 6 and four modes of selection for different types of users. The first was
smart customization, with the car customized based on users’ areas of interest. The second, geek ①
customization, allowed car-savvy users to hand-pick a customized car in keeping with their
personality, while the third way employed interactive questions to help users choose a car that suited
their needs. Finally, the fourth way used big data analysis to help users find cars with popular
configurations.
Product verification/improvement: For traditional carmakers, models largely remained unseen by

users until the marketing phase. However, SAIC Maxus engage users even when setting retail prices.
With the mountains of data collected from this involvement, SAIC verified and improved the product
through its back-end system. For example, when verifying and improving the D90, product selection
and matching revealed that users preferred hub types starkly different from what SAIC Maxus had
planned to purchase, allowing it to adjust its purchasing plan. This would not have been possible with
a traditional supply-demand model and it prevented the introduction of a product that did not
necessarily fit user preferences (Exhibit 3).
After-sales services: SAIC Maxus was the first player in the auto industry to give users a ‘second’
chance to change their options after purchasing. Certified D90 car owners could ‘revisit’ their purchase
eight times over a fixed period via the “SAIC Maxus” App and WeChat Public Account, and even
making changes to their car, even after this time.
Digital user operations

As the user base expanded, SAIC Maxus’ data team established an optimal data mining process to
monitor full user engagement, including the effect of channel marketing, user behavior, and shared
user data. By leveraging this data, SAIC Maxus moved away from marketing models traditional
carmakers preferred.
Old-school players tended to assign tasks, such as user acquisition, engagement, and conversion, to
different departments. While the company informationized all departments, information flows
①
Geek, a US slang, refers to people obsessed with innovation and technology.
May 2024.
between them were not fully open. This led to opaque, incomplete, and not timely information in the
marketing process and, therefore, incorrect marketing decisions.
To gain user insights, SAIC Maxus’ Marketing Data Center integrated multiple processes from
mining user data to closing a sale. SAIC Maxus digitized user operations by establishing a user tagging
system (combing through 223 user tags based on data and introducing 56 social tags). This marked a
move away from traditional marketing, in which carmakers did not have direct contact with product
users to identify granular user needs.
The Marketing Data Center captured a range of user profiles using big data to make decisions on
segmented marketing, media advertising, and event design to enhance presale order conversion and
help other departments categorize the users and monetize data.
Through the above “customer-centric” exploration, SAIC Maxus overcame users’ problems related
to C2B model operations.
Business side: smart production

To customize a car, users pick their options from a menu in Spider Smart Choice, just like ordering
takeout. To this end, SAIC Maxus needed to reengineer the entire manufacturing process. As
individual needs could entail huge differences in orders at factory level, with the time needed to
produce a car dependent on model and configuration. A car usually comprises of 10,000 to 20,000 parts
purchased from possibly thousands of suppliers. Therefore, processing personalized orders is a major
challenge for production and supply chains. While developing the C2B model, SAIC Maxus worked
with software supplier MAS ① to digitize manufacturing and supply chain systems.
Building a smart and flexible production line

To launch a new car model, a traditional carmaker first needs to forecast market trends and set a
goal. Then, they build a new development platform for 18 to 36 months, and suppliers adjust parts
supply for the planned capacity. After going on sale, new models generally go unchanged for a few
years. Model reviews also require two to four months of technical verification.
To adapt to the flexible C2B production model, SAIC Maxus developed the Advanced Planning
System (APS) ②, with help from MAS. Upon receiving an order, the APS quickly simulates and verifies
every production process for every car model, and forms an optimal planning system considering the
time required for assembly and the order cycle. After entering assembly, vehicle bodies are sequenced
in the AS/RS ③. Every vehicle body goes onto the assembly line while the APS uniformly controls
assembly instructions. The APS clearly shows the location of every vehicle. When users place an order,
it receives a unique ID for determining related part supply, production and assembly. The APS issues
instructions and compiles a production material list according to the ID for every order. A logistics
① Founded in 2011, Shanghai MAS Co., Ltd. is an IT company that provides big data application solutions and data analytics
for the auto industry.

② Advanced Planning System, also known as Advanced Planning and Scheduling, combines long-term, mid-term and short-
term planning to quickly plan limited capacity through scheduling systems like MAXPROVA.
③ The automated storage & retrieval system (AS/RS), also known as the high-rise warehouse, generally refers to a warehouse
that stores unit loads on the shelves as high as several, a dozen of, or even dozens of floors, and performs inbound and outbound
operations with handling equipment. AS/RS can make full use of space to store unit loads. AS/RS, which comprises high-rise
shelves, stacker cranes, conveyors, control systems, and warehouse management systems (WMS), can perform computer-
controlled automated storage and retrieval of unit loads.
May 2024.
warehouse worker picks out the required production materials according to the instructions, which
appear electronically, not in paper form. Before picking, the operator simply scans the QR code of every
order, and the shelf automatically lights up to indicate the location of each component or part. As a
result, the worker only needs to load materials onto a self-driving trolley rather than spending time
searching shelves and arranges assembly parts according to the picking order. The operator assembles
the parts in the same sequence without needing to check the original order.
During assembly, every station along the production line features an electronic display showing the
assembly details and checklist. Workers simply assemble parts following the sequence indicated by the
shelf lights and operating requirements on the display without going back to every order. The APS
includes an error-proofing function capable of using a QR code to trace parts and issue early warnings
to suppliers. Its Andon system allows for production material control to give semi-automatic alerts.
The visual error-proofing system spots minor hole location differences among vehicles with different
models and configurations in the workshop. When a vehicle rolls off the assembly line, delivery
inspections are based on the unique order ID.
Digitizing the supply chain

The traditional supply chain in the auto industry was based on mass production and
standardization system, with parts supply matching carmakers’ planned capacity in terms of SKU ①
and quantity. Conventionally, a car has between 2,000 to 3,000 SKUs.
Under the C2B model, however, parts needed small-volume supply in multiple batches in a short
time, which required coordination across the supply chain. The success of SAIC Maxus’ C2B model
depended on suppliers’ willingness and ability to adapt. Therefore, it made many attempts to digitize
the supply chain.
By accessing data streams on the sales and production sides, SAIC Maxus compared users’
configuration preferences via the Spider Smart Choice with the proportions of parts as estimated in the
original purchasing plan to optimize purchasing decisions. The OTD ② visual menu monitored
production in real-time and averted risks to reduce supply chain volatility. SAIC Maxus also shared its
data capabilities with suppliers by linking them to its EDI ③ system. When users chose configurations,
suppliers could view stock in real-time for related parts and match production to ensure timely
delivery. Suppliers with access to SAIC Maxus user data could produce parts required for each car in
real-time based on the unique vehicle identification number (VIN). Taking car seats as an example,
traditional carmakers used to carry large inventories, taking up space and making it difficult to find
the required model. SAIC Maxus linked its IT system to car seat supplier Yanfeng Adient which
stockpiled and shipped seats after receiving orders in real-time. To carry zero inventory of finished
products and shorten response time from one week to two hours, Yanfeng Adient moved a production
line to SAIC Maxus’ factory to integrate the supply. 7
By the end of 2018, SAIC Maxus had linked up with multiple first-tier suppliers, but there was still
a long way to go to engage all suppliers from the top two tiers.
①
SKU: stock keeping unit
②
OTD: Order to delivery
③
Electronic data interchange (EDI) simply refers to the process of transmitting business documents electronically between a
company’s internal application systems through computers and public information networks. In other words, EDI means a
process, in which suppliers, retailers, manufacturers and customers leverage the EDI technology to automatically interchange
and process commercial documents between their respective application systems through the public EDI network.
May 2024.
Building an open design platform

At the end of 2018, SAIC Maxus reached an agreement with Dassault Systèmes SE ①, a French
software company. SAIC Maxus would integrate its C2B model with the latter’s 3DEXPERIENCE
platform to build an R&D & Engineering Online Platform, which would bring together internal
engineers and external designers. In a short space of time, the platform signed up around 1,000
engineers and designers.
Providing dealers with services online

SAIC Maxus did not push into the passenger vehicle market until 2014. Considering the poor user
experience due to its relatively small dealer network, the company set about bringing in more channel
dealers. Consequently, its number of dealers grew to 70 in 2017 and 100 in 2018. To empower dealers,
SAIC Maxus launched the Maxus Zhihu ② platform to provide dealers with standardized, data-driven
online services. SAIC Maxus used the platform to share information with dealers and help address
problems 8 to achieve synergies by reaching customers through online and offline channels.
A new organization
The C2B model’s success required optimizing the company’s organizational structure. Traditional
carmakers operated functional departments in silos, with each assuming their own duties. However,
this isolated internal division of labor and collaboration blunted response times for users. Building a
user-centric organization presented SAIC Maxus with a conundrum. 9
A new incentive mechanism

Facing drastic changes in the auto market, SAIC Maxus urgently needed to enlist broad support
from within the organization for the C2B model despite its state of transformation. In the beginning,
some employees embraced change, while others remained skeptical. With the transformation
becoming imperative, it was crucial to help employees understand any associated uncertainty. SAIC
Maxus devoted significant efforts to building organizational capacity, a prerequisite to transformation.
SAIC Maxus introduced a ‘survival-of-the-fittest’ mechanism, in which ‘employees who could

adapt to change would stand out, while those who couldn’t would be weeded out’. After hammering
away at the importance of change to get rid of noises, company Chairman Lan Qingsong noted that
15% to 20% of excellent managers and employees within the organization had come to the fore. When
pressing ahead with the C2B model, SAIC Maxus incentivized these star performers to assume greater
responsibilities and lead. Initial progress boosted morale within the company, inspiring more
employees to embrace the change. 10
Organizational process reengineering

Traditional companies generally follow a linear organizational structure, which is ill-suited to cope
with the greater communication needs associated with a C2B model. SAIC Maxus converted the linear
structure to a matrix, in which the middle-end sustained front-end operations.
①
Headquartered in Paris, Dassault Systèmes SE provides the 3DEXPERIENCE platform for 3D modeling, social networking and
collaboration, information intelligence, and content creation and emulation in the business jet and automobile industries.
②
Zhihu is a Chinese question-and-answer website, on which users can share knowledge, experience and viewpoints.
May 2024.
To digitize the communication and collaboration system within the organization, SAIC Maxus built
the “i-Maxus Platform” so that rank-and-file employees could report matters anonymously. More than
90% of managers responded promptly on the platform. This platform reversed the one-way, lengthy
reporting lines from the bottom up, which slowed executive responses. The shift from linear structure
to the matrix enabled user-driven operations, blurring boundaries between departments.
SAIC Maxus built seven digital platforms: the “i-Maxus” for the internal organization, “SAIC
Maxus”, “RV2GO”, “Spider Smart Choice”, “Spider Smart Connectivity”, and “Engineering Online”
for customers, and “Maxus Zhihu” for dealers. These platforms allowed SAIC Maxus to maintain
interactions with users and partners across the value chain. 11
Challenges Ahead
Following the D90’s launch, SAIC Maxus harnessed the C2B model to engage users in the
development and production of the MPV G50. SAIC Maxus shortened the delivery cycle to 30 days in
the first phase and 16 days in the second phase. Furthermore, it accumulated vast volumes of user data.
By June 2019, Spider Smart Choice visits had reached 11.7 million. Around 42% of the SAIC Maxus
owners had logged onto Spider Smart Choice purchasing and 30% customized their car via the C2B
model. The model helped shorten the time to market by 35% and delivery cycle by 20%. It improved
the matching accuracy to 99.8% and reduced processing and changeover time by 30%.
At the 2019 World Economic Forum Summer Davos, SAIC Maxus’ C2B smart factory in Nanjing
made it into the Industry 4.0 Lighthouse Factory list. SAIC Maxus’ C2B model was highly acclaimed:
“Amid keen competition in the auto market, SAIC Maxus has pioneered the C2B model for mass
customization. Its smart factory in Nanjing has digitized the value chain from customers to suppliers,
cutting down on the costs while boosting the sales.” This meant SAIC Maxus’ C2B model had won
global recognition and could provide valuable lessons for manufacturers globally. 12
Lan Qingsong noted that only a unique business model would help SAIC Maxus, a latecomer, carve
out a niche in China’s intensely competitive auto market. Riding the wave of digital change, SAIC
Maxus took an enormous risk as China’s first carmaker to dip its toes into C2B. Was the C2B model
really the shape of things to come? How would SAIC Maxus maintain its first-mover advantage?
Would the C2B model respond to greater market demand? How would SAIC Maxus establish its
ecosystem to develop sustainably in its next iteration?
May 2024.
Exhibit 1: China’s Total Auto Sales, 2008-2019
3,500.00 50.0%
45.5% 2,887.89
3,000.00 2,802.81 2,808.06 40.0%
2,459.76 2,576.90
32.4% 2,349.19
2,500.00 2,198.10 30.0%
1,930.64
2,000.00 1,806.19 1,850.51 20.0%
13.9% 13.9%
1,500.00 1,364.48 10.0%
6.9%
938.05 4.3% 4.7% 3.0%
2.5% -2.8%
1,000.00 0.0%
500.00 -10.0%
-8.2%
0.00 -20.0%
2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Auto Sales (unit: 10,000 units) Growth rate
Source: data on annual auto sales released by the China Association of Automobile Manufacturers
Exhibit 2: SAIC Maxus’ Auto Sales
Exhibit 2.1 SAIC Maxus’ Auto Sales, 2011-2019
140,000 160.0%
150.8% 120,017
120,000 140.0%
120.0%
100,000
84,017
100.0%
80,000 71,117
78.1% 80.0%
60,000 66.9% 66.8%
46,123 60.0%
35,053 54.2%
40,000 42.9%
40.0%
Auto sales (unit:
21,012 31.6% Growth rate
20,000 11,800 20.0%
2,820 7,072 i ) 18.1%
0 0.0%
2011 2012 2013 2014 2015 2016 2017 2018 2019
Auto Sales (unit: 1 unit) Growth rate
Source: data on annual auto sales released by the China Association of Automobile Manufacturers
10
May 2024.
Exhibit 2.2 SAIC Maxus’ D90 and G50 Sales
D90 (unit: units)

G50 （单位：辆）
3500
2759 2863 2869 3000
2725 2605 2663
2281 2543 2368 2486
2500
2124
1936 1859
1720 1678 1772 2000
1727 1502
1703 1500
1315
813 1000
716 771 499 633
706 549
417
426 272 430 316 556 678 359 384 303 500
240 292 103 162 224
231 343 290 185 142
155 111101 156 124 79 5 8 58 202 0
Source: SAIC Maxus’s G50 Sales, 16888.com, 2020 [2020-10-10]. https://xl.16888.com/s/128118/; SAIC Maxus’s D90 Sales,
16888.com, 2020[2020-10-10]. https://xl.16888.com/s/127528/.
Exhibit 3: Differences between the Data on D90 Users’ Configuration Preferences and Estimated
Purchases
17-inch 18-inch 19-inch 21-inch

hub hub hub hub
Proportion of selected configurations estimated before
0% 50% 40% 10%
the purchase
Proportion of configurations selected by users in the
4.7% 10.1% 62.8% 22.4%
phase of pricing
Proportion of configurations selected by users in the
2.7% 13.1% 70.2% 14.0%
phase of configuration choice
Source: SAIC Maxus
11
May 2024.
Endnotes
1 SAIC Maxus Posted a 42.85% Sales Growth in 2019 amidst a Slump in the Auto Industry, https://chejiahao.autohom
e.com.cn/info/5396310
2 SAIC Motor Corporation Limited (600104) Annual Report 2019: Despite a Decline in Both Operating Revenue and Pr
ofit, SAIC Motor Strives to Fulfill the Sales of Six Million Units, https://xueqiu.com/5675075225/146865563
3 Zhu Gangqiang, the C2B Model Is the Shape of Things to Come in the Auto Industry, ebrun.com, http://m. ebrun.
com/252037.html?from=single message &is app installed=0. 2017-11-01
4 SAIC Maxus Posted a 18% Sales Growth in 2018 amidst a Slump in the Auto Industry, Selling 84,017 Units through
out the Year, gasgoo.com, 2019-01-02[2020-06-15]. http://auto.gasgoo.com/News/2019/01/020955125512I70081449C102.s
html.
5 Yang Yichun, SAIC Maxus’s Sales Surged by 42.85% in 2019, Topping 10,000 Units for Five Straight Months, cheshi.
com, 2020-01-02[2020-06-15]. https://a.cheshi.com/news/3242611.html.
6 Zhou Bolin, C2B Smart Customization Model, Interview with SAIC Maxus’ Spider Smart Choice, zol.com.cn, 2018-05-
03[2020-06-15]. http://auto.zol.com.cn/688/6881549.html.
7 SAIC Maxus’ Smart Customization Factory Customizes a Car in Line with the C2B Model, tmtpost.com, 2019-01-22[2
020-06-15]. https://www.tmtpost.com/3695726.html.
8 Chairman of SAIC Maxus Notes Leadership Encourage Employees to Embrace Change, sohu.com, 2019-05-22[2020-06-
15]. https://www.sohu.com/a/315958020_308956.
9 Chairman of SAIC Maxus Notes Leadership Encourage Employees to Embrace Change, sohu.com, 2019-05-22[2020-06-
15]. https://www.sohu.com/a/315958020_308956.
10 Lan Qingsong, Chairman of SAIC Maxus, Notes the C2B Model (version 2.0)Will Bring Companies a Competitive E
dge in Organizational Process, Auto News App, 2018-08-10[2020-06-15]. http://news.bitauto.com/hao/wenzhang/8909
16.
11 Chairman of SAIC Maxus Notes Leadership Encourage Employees to Embrace Change, sohu.com, 2019-05-22[2020-06
-15]. https://www.sohu.com/a/315958020_308956.
12 Chairman of SAIC Maxus Notes Leadership Encourage Employees to Embrace Change, sohu.com, 2019-05-22[2020-06
-15]. https://www.sohu.com/a/315958020_308956.
12
May 2024.

SAIC Maxus: Pioneering The C2B Model in China's Auto Industry in The Digital Era

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REV: August 11, 2021

SAIC Maxus: Pioneering the C2B Model in China’s

Overview of China’s Auto Industry

Manufacturing: Shangpin Home Collection, a customized furniture manufacturer, extended its

C2B represented a user-centric pull production ② model in which customization and

Establishing channels to engage users directly

Fully engaging users

Product verification/improvement: For traditional carmakers, models largely remained unseen by

Digital user operations

Business side: smart production

Building a smart and flexible production line

for the auto industry.

Digitizing the supply chain

Building an open design platform

Providing dealers with services online

A new incentive mechanism

SAIC Maxus introduced a ‘survival-of-the-fittest’ mechanism, in which ‘employees who could

Organizational process reengineering

Exhibit 1: China’s Total Auto Sales, 2008-2019

Auto Sales (unit: 10,000 units) Growth rate

Exhibit 2: SAIC Maxus’ Auto Sales

Exhibit 2.1 SAIC Maxus’ Auto Sales, 2011-2019

Auto Sales (unit: 1 unit) Growth rate

Exhibit 2.2 SAIC Maxus’ D90 and G50 Sales

D90 (unit: units)

17-inch 18-inch 19-inch 21-inch

Source: SAIC Maxus

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