As the most competitive auto market with 102 existing brands, China is welcoming its 103rd brand—Baojun, meaning “treasured horse”. This new line of inexpensive passenger cars is a joint venture between General Motors, Shanghai Automotive Industry Corporation and Wuling Motors. The Baojun brand will be sold at Wuling dealerships throughout China.

The introduction of Baojun is part of GM's multi-brand strategy in China. The company already holds names like Buick, Cadillac, Chevrolet, Opel, Wuling and Jiefang. Kevin Wale, the President of GM China said, "Baojun will complement our other brands sold in China, including our fastest-growing mainstream nameplate, Chevrolet. It will enable us to better address the increasingly segmented Chinese vehicle market."
As an entry-level vehicle brand, Baojun may overlap with similarly priced competitors Chevrolet and Wuling. Baojun’s most significant challenge will therefore be how to differentiate the brand, and position itself to meet its target market.

Baojun vs Chevrolet and Wuling

Thanks to its lines of premium small cars like the Cruise and Spark, Chevrolet has successfully met the demands of the Chinese market for cars that are cost efficient and deluxe. However, Chevrolet has not scaled down its prices or issued a lower priced series for fear of downgrading their brand image. Baojun represents a bare-bones, entry-level car brand that fills this gap in the market.
GM hopes that Baojun, their new entry-level car, will be as successful as another no-frills work van—the Wuling Sunshine, which is the best selling vehicle in China. GM has essentially replicated this successful series and business model, transferring it from vans to passenger cars. The Baojun, at $5,000-$10,000 costs slightly more than the Wuling Sunshine, priced at $4,500.

Conclusion
Currently, Baojun’s brand image is not differentiated from other brands. Shen Yang, General Manager of the SAIC-GM-Wuling joint partnership, commented that “Baojun is being positioned as a reliable partner with an image that is confident, smart and dependable” But couldn’t this description apply to any other sub-brand under GM, or even similar-level brands from other manufacturers? Chevrolet’s Cruise and Spark are cheap, simple and designed for family use. Wuling is an inexpensive and economical transportation vehicle intended for farmers from rural areas who need to move their goods. Unfortunately, Baojun’s target market remains unclear so far.