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Great Wall Motors: a little frustrated in 2017, low-key forward in 2018

  • 2020-04-20 15:04:46

fter the release of Alipay's annual bill, the popular "sunshine" bill in the circle of friends has become a new way of showing off wealth. In fact, not only ordinary consumers, but also auto companies have their own "annual bills". At present, a number of car companies have published the sales "bill" in 2017, which can be described as several happy and several sad. How do we view these "bills" and what are the "key words" of each brand in 2018? "Car enterprise bill" will solve the mystery. In this issue, we focus on Great Wall Motors.


The past 2017 has been a little bitter for Great Wall Motors.


According to the sales data officially released by Great Wall Motors, its annual cumulative sales volume last year was 1070161 vehicles, down 0.4% year on year, and the annual sales target completion rate was 85.6%. There is still a big gap from the annual sales target of 1.25 million vehicles set at the beginning of 2017.



 

Specifically, the performance of each business segment is quite different. In 2017, SUV is still the mainstay of sales volume of Great Wall Motor, with a total of 851855 Haval SUV models sold; high-end brand wey has achieved sales performance of 86427 vehicles in less than one year relying on two models; pickup still plays an important role in the business system of Great Wall Motor, and in 2017, Fengjun pickup achieved sales of 119, 846 cars; the already marginalized sedan business has also achieved sales of 12033 cars in the past year.

In my opinion, the sales performance of Great Wall Motor in 2017 is both reasonable and unexpected. According to the data released by China Automobile Industry Association, in 2017, a total of 24718300 passenger cars were sold nationwide, an increase of 1.40% year-on-year, with an increase rate of 13.53 percentage points lower than that of the previous year; the sales of SUVs were 10.2527 million, an increase of 13.32% year-on-year, while that of 2016 was up to 44.59%. The era of rapid growth of China's automobile market, especially the SUV market, has passed, and it is reasonable that the sales volume of Great Wall Motor in the market has declined. However, in 2016, the sales volume of Great Wall Motor increased by 26.01% year-on-year. In 2017, the sales volume fell slightly, not only did not outperform the SUV market segment, but also was lower than the market as a whole, which was somewhat unexpected.

For Great Wall Motor, which aspires to be the leader of SUV, the disadvantages of walking on one leg have appeared. After giving up the car business, the development of SUV has not met its expectations. Fortunately, wey, a high-end brand of Great Wall Motors, has begun to show its edge. Its outstanding performance may be a consolation to the slightly frustrated Great Wall Motors in 2017, and it is also a sharp tool for the future growth channel of Great Wall Motors.


WEY Carries the high flag

 

The birth of wey bears the determination of Great Wall Motors and even the whole independent brand camp.

At the end of 2016, Great Wall Motor launched the wey brand, a brand named after the founder Wei Jianjun, to carry the great banner of great wall motor. Maybe it learned the lesson that H8 lost its brand image due to two ticket skipping. Within less than 10 months after the launch of the brand, wey brand has completed the launch of two models. On April 19, 2017, at Shanghai auto show, the first SUV vv7 of wey brand was announced to be launched; at the end of August after four months, the second model vv5 was launched. You should know that linker, which was launched almost at the same time, only launched its first model a year later.

From the perspective of sales volume after that, the wey brand is a success. In less than a year, the sales volume of the two models has reached 86000, which almost catches up with the sales volume of a luxury brand in the whole year. However, such sales data obviously can't satisfy Great Wall Motors. At the opening ceremony of the first 4S store of wey brand in June 2017, the official of wey brand said that it planned to achieve sales of 100000 vehicles in the year, and set up 200 exclusive 4S stores of wey brand by the end of the year. Wei Jianjun, chairman of Great Wall Motors, previously said that the third section of the wey brand will go on sale at the end of 2017. But up to now, this model is still missing, the model lineup is too thin, which also affects the sales performance of wey brand to a certain extent.

In addition to constantly upward, Great Wall Motors also began to supplement the "Courses" in the field of new energy.

 

New energy sector completed layout

 

In 2016, Wei Jianjun said that Great Wall Motors is only a follower of the new energy industry. In the past year, under the pressure of the upcoming implementation of the "double points" policy, Great Wall Motors, which had lagged behind in the new energy strategy, has made great efforts to catch up with this "follower".

In May 25, 2017, the Great Wall motor and Japan Suri Electronics announced strategic cooperation to develop automotive semiconductor technology and solutions to promote the development of new energy vehicles and automatic driving vehicles including China's electric vehicles (EV) and plug-in hybrid electric vehicles (PHV).

On July 15, 2017, Great Wall Motor signed a joint venture framework agreement with Hebei Yujie Automobile Industry Co., Ltd. According to the agreement, Great Wall Motors will increase its capital and share in Yujie in cash, with 25% of its initial shares and a maximum of 49% of its shares. Hebei Yujie mainly focuses on the traditional low-speed electric vehicle market, with a sales target of 180000 in 2017.

At the falafel auto show, which opened in September 2017, wey brand launched a number of pure electric and hybrid concept cars.

At the wey brand anniversary celebration on the eve of 2017 Guangzhou auto show, wey released a new high-end new energy pi4 platform and brought the first new P8 under the new pi4 platform. According to the plan, in the future, wey will further subdivide the platforms of new energy vehicles, including building the pi4 platform of PHEV plug-in hybrid vehicle, the hi4 platform of HEV hybrid vehicle and the EV four-wheel drive platform of EV pure electric vehicle.




Facing the "double points" policy to be implemented, Great Wall Motor, as a big emitter with an annual sales of more than one million, needs more new energy points to balance the weakness of fuel consumption. Now, with the continuous improvement of the layout of Great Wall Motor in the field of new energy, its new energy alarm has been lifted.

Great Wall Motor, which has been making great strides in the field of new energy, once announced that it would marry Mini brand to share its new energy technology.

 

Two "marriages" ended in nothing

 

In the second half of last year, the news that great wall and BMW are about to cooperate was revealed by the media. After that, Great Wall Motor issued an announcement that it had contact with BMW and discussed matters related to the introduction of mini brand cars. The marriage of Great Wall Motor and mini once brought both sides to the forefront of the storm. But since then, there has been no news of the marriage, and the industry speculates that it may be stranded. A BMW insider said: "at present, mini has no one to promote in BMW, it should have stopped." It is reported that Great Wall Motors and mini have been negotiating for a year and a half, and should have made progress in many detail projects. Neither side gave an explanation as to why they finally stopped.

Prior to mini, Great Wall Motors was also revealed to purchase Jeep brand. According to Wang Fengying, the president of Great Wall Motors, who was not so official later, it should be true that Great Wall Motors wanted to buy the Jeep brand. However, from the continuous silence of FCA, it may be that FCA didn't want to sell it, or that the offer of Great Wall Motors didn't meet the expectation of FCA, so there was no following for this transaction.

In 2018, Great Wall Motors set the target sales volume as 1.16 million vehicles, an increase of only 8% compared with the actual sales volume in 2017, even lower than the predicted annual growth of SUV in 2018 by the China Automobile Association. After experiencing the disappointment in 2017, Great Wall Motors is not so radical in setting the target sales volume. In 2018, there will be only one H4 new car and two H6 derivative models for Haval SUV in the true sense; there will be four new models for wey brand, including vv6 and P8, the first plug-in hybrid model. It can be seen that the wey brand will be the focus of Great Wall Motor's development in the next year.

The middle and low-end SUV market has become the Red Sea, and the accumulated advantages of Great Wall Motor, which has been deeply cultivated in this market, are gradually fading. The clue can be seen from the sharp drop in sales of Haval H1 and Haval H7 last year, as well as the decline in sales of the main model Haval H6. This is also the reason why Great Wall Motor takes the wey brand as its development focus this year. After focusing on SUV, the disadvantages of Great Wall Motor have already appeared. Whether it can make up for this disadvantage with the help of new energy vehicles gradually rising in the future, or it will be the key for Great Wall Motor to return to the right track of growth.