(Yicai Global) June 18 -- General Motors’ China-based joint venture, SAIC-GM-Wuling, is partnering with Chinese retail giant Suning to transform the traditional sales model for its smart cars.

“As operating costs continue to soar, the input-output ratio of traditional 4S stores is getting worse,” the JV’s Deputy General Manager Lian Chaochun told Yicai Global. “Why not sell cars like household appliances?”

It was this idea that led the automaker to join hands with Suning, a major e-commerce player, adept at selling home appliances. The pair opened their first smart space at a large mall in Nanjing in China’s eastern Jiangsu province on June 16, where they also launched the JV’s new energy vehicle Xinbaojun E300.

A Xinbaojun outlet also opened on Suning’s online platform, and has already made its first deal. More smart spaces for the vehicle are planned for Suning’s retail networks in Jiangsu and Shanghai.

Nanjing-based Suning has not ruled out cooperation with Xinbaojun’s existing sales channels, Liu Donghao, president of the retailer’s car business Suning Auto, told Yicai Global. Suning could leverage its 600 million online members and offline smart spaces to promote and showcase the product, while Xinbaojun’s existing channels would be responsible for final product delivery and other services, he added.

The online unveiling of the Xinbaojun E300 is only the first step in the cooperation, Lian noted, adding that Suning Auto will join in product design and break the mold of engineer-designed models. The two parties will use the consumption data collected by Suning’s retail platforms and their respective retailing know-how to jointly develop new models.

Editors: Tang Shihua, Peter Thomas