SAIC MOTOR(SH:600104) Jing Ji Guan Cha Wang·2025-07-25 14:44Core Viewpoint - The collaboration between SAIC's MG brand and OPPO aims to enhance MG's market presence and leverage OPPO's technology to attract younger consumers, particularly in the electric vehicle segment [4][6][8]. Group 1: Store Operations and Strategy - The first seven pop-up stores for the new MG4 opened on July 24, with plans to expand to over 60 cities by August [1][2]. - The pop-up stores are independently operated by MG staff, emphasizing the brand's commitment to customer experience [2]. - The MG4 features the "OPPO Smart Driving" system, allowing seamless integration with OPPO smartphones, enhancing user interaction [2][8]. Group 2: Market Position and Challenges - MG has struggled with domestic sales, maintaining retail volumes between 7,000 and 10,000 units from January to June, which is below competitors [5]. - The brand's transition to electric vehicles has been slow, with only three models currently available, and only 10% of sales coming from new energy vehicles [5][6]. - OPPO faces declining smartphone sales, with a 9% year-over-year drop in Q1 2025, necessitating new market strategies [5][6]. Group 3: Collaborative Benefits - The partnership allows MG to gain access to OPPO's extensive user base and technological expertise, while OPPO seeks to expand its market presence through automotive integration [4][6]. - Both companies aim to fill gaps in their respective markets: MG needs software and traffic, while OPPO requires new consumer scenarios and growth [4][6]. - Future collaborations may extend beyond MG to include other automotive brands, indicating a broader strategy for OPPO in the automotive sector [7][8]. Group 4: Future Outlook - The MG4 and pop-up store strategy is expected to generate significant consumer interest, particularly among OPPO's existing customer base [8]. - Long-term success will depend on the efficiency of the partnership and the market acceptance of the "OPPO Smart Driving" system [7][9]. - OPPO's strategy includes maintaining a steady release of new vehicles and developing a subscription model for software updates, creating a sustainable business cycle [9].