GM launches low cost sub-brand in China

Selling low cost cars through a separate brand is not new. Renault sells low cost cars like the Logan and its derivatives through Dacia while way back, BMW sold city cars under the brand name Isetta. We are expecting the same with Bajaj’s low cost car. GM has gone ahead and introduced a new low cost brand in the Chinese market called ‘Baojun”, which literally means ‘Treasured Horse’. The new brand is aimed at first time buyers and those with lower income. Baojun was born out of a JV between GM China, SAIC and Wuling. Baojun has been launched at a time when GM has been axing brands like Saturn and Pontiac.

The sub-brand will complement Buick and Chevrolet, which is now GM’s fastest growing brand in China. The new brand will see a whole lot of inexpensive cars starting off with a mid-sized car based on the Cruze. The vehicle has been developed with help of GM and SAIC’s Pan Asia Technical Automotive Center (PATAC) joint venture in Shanghai. Wuling makes mini-vans in China and we very well know that those vans are headed to India. The new brand might make it to India to compete with the Nanos and Indigos.

[Autocar]