Under the background that the traditional passenger car market lacks such acclaimed products as the Accord, the Great Wall still steadily progresses by relying on the stepping point of the SUV market. "Slow is fast." This is a word often spoken by Wei Jianjun in answering the Great Wall Motor Development Strategy.
On August 26, at the launch of Great Wall Motors Tianjin Base and the Haval H6 listing ceremony, Great Wall Motors Chairman Wei Jianjun looked excited. Before the media interview began, he asked the staff to withdraw the sofa that had been prepared and change to a standing position to receive the interview. The reason is to sit and the reporter behind cannot see him. At the one-hour press conference, he responded to almost all the questions, and his words were confident, frank, and in good condition.
The strong Great Wall started from the pickup market and became the No. 1 self-owned brand in the SUV market. The ever-famous Great Wall Motor is definitely a special case in its own brand: Focusing on the pickup and SUV market, it has always been the entry to the passenger car market. Keep a cautious attitude and never advance.
In 2003, Great Wall Motor seized the opportunity to become the first private automaker listed in Hong Kong. Following the ups and downs of the Chinese auto market, after the 2005 trough, Great Wall Motor Co., Ltd. followed a low-key trend. Even under the background of the overall auto market tightening this year, Great Wall Motors quietly surrendered sales in the first half of the year. The year-on-year increase of 47.3%, accumulative total exports of 34,197 units, a year-on-year increase of 27.1%, net profit reached 1.812 billion yuan, a year-on-year increase of 109%. In terms of sub-products, Tengyi’s sales of 101,100 units achieved a year-on-year growth of 100%; Haval SUVs sold 77,376 units in the first half of the year, an increase of 8.6% year-on-year, continuing to lead the Chinese SUV market; Fengjun pickup sold 59,910 units, a year-on-year increase of 23.4%. , For the 13th consecutive year, the pickup sales champion has been maintained.
Regarding why the Great Wall has achieved such a strong rate of return under the circumstances of a major tightening of the environment, Wei Jianjun believes that this is a return to the quality of Great Wall Motor’s insistence on quality: “The Great Wall’s philosophy of high quality over the years has benefited us greatly. â€
Regarding the development direction of self-owned brands, Wei Jianjun agrees that high-end is the only way out, but at the same time, he also admitted that the high-end brand of its own brand needs to pay a high price. It will be very painful at the initial stage because the initial profit rate is low. Only after a long period of pain can it be possible to create its own brand. "It is an indisputable fact that the independent brand premium is not enough." Wei Jianjun admits, "For any brand in the initial stage, high-end is a painful choice, and this pain will continue for at least ten years."
Looking back at the growth of the Great Wall, Wei Jianjun’s experience is “first sell products and then sell brands.†In terms of branding, Wei Jianjun repeatedly emphasized that Great Wall Motors must adhere to the pickup and SUV markets, and will only consider entering other market segments after first achieving absolute absolute first in the pickup and SUV markets.
The Great Wall Motors in Wei Jianjun’s heart must be a typical representative of “Made in Chinaâ€. The connotation of “Made in China†is to “make the best quality Chinese car†and it is necessary to get rid of the image of low quality and low price. Wei Jianjun said: "Great Wall Motors must give glory to 'Made in China' and must not discredit 'Made in China'! Autos are big consumer goods. Consumers are more cautious to buy, and companies must ensure that the quality of their products is not a problem. We have recalls in Italy and Australia, which reflects a sense of responsibility and integrity to consumers. The rapid recall and good handling are the enhancement of the image of Chinese products."
Mr. Wei Jiansi, who was extremely conscious of the dangers of safety, was well aware of the "Left-to-left, right-going" approach. When he was running Great Wall Motors, he was always known for his solidity. At this year’s Shanghai auto show, Wei Jianjun said that after 10 years, Great Wall Motors will be able to take a place in the competitive landscape of China’s auto industry. It is not Toyota’s “mega-big†company with the largest sales volume and balanced in all aspects, but like Honda’s. A company that does not require the largest scale but has strong technical characteristics.
As early as 2005, Wei Jianjun elaborated on his business philosophy: “Be strong first, and then seek bigger! There is no rule in China’s automobile competition. We can’t absolutely risk doing unsure things with great risks. Many overseas investors will not agree, so take a step closer to avoid this risk."
At that time, Wei Jianjun had already recognized that the passenger car market was the breakthrough point for the future development of Great Wall Motors. However, he also indicated that the Great Wall’s efforts in the passenger vehicle market “are still cautious. They will not rush to make a full-scale breakthrough at once. Instead, they will choose to enter the mid-size car market, and then move slowly to stabilize.†In the lower-end A-class market, the Great Wall’s original plan was to invest more than eight models in this segment of the market, covering all market segments in the region, and through these product developments, The sharing rate of parts and components on the same platform exceeds 50%, minimizing costs.
Five years later, it is not satisfactory to look back at the success of the Great Wall in the passenger car market. Compared to Great Wall Motor's famous Haval series in the SUV field, in terms of passenger cars, people can remember only Tengyi C30, dazzling and cool bears. The sales performance of dazzling and cool bears is not outstanding. In the first 7 months of this year, the cumulative sales of dazzling and cool bears totaled only 22,081 units, far less than the Haval series and the Tengyi series. The target that was planned to be cut from the mid-size car market was not completed, and the A-class car market, which is known as a full-scale coverage, is now only supported by a Tengyi C30.
Observing the development track of Great Wall Motors, it is not difficult to find that Great Wall Motors has always stuck to pickups and SUVs in its development plans and is focused on strengthening. The test in the passenger car market has not stopped but the pace is very slow. Every time when asked when Great Wall Motors would have a big move in the passenger car market, Wei Jianjun always said caution and repeatedly stressed the basic principle of “carefulness and cautionâ€. When talking about whether the R&D center under construction will emphasize the development of passenger vehicles, Wei Jianjun still clearly indicated that he should first make pickup trucks and SUVs, especially the SUV market, and then consider transitioning from SUVs to passenger cars.
As for the more common joint-venture issues, Wei Jianjun clearly stated that he has consistently adhered to the view that “joint ventures cannot be replaced by technology†and that the Great Wall will definitely not become a foundry base for foreign brands. Great Wall Motor's current cooperation with foreign investment is mainly in the supply of parts and related technology research and development. Compared with joint ventures and cooperation, Wei Jianjun is more optimistic about upgrading Great Wall's brand through overseas mergers and acquisitions: "Overseas mergers and acquisitions are a better way. It is a matter of time, and overseas mergers and acquisitions can't find more success stories."
As Wei Jianjun hopes, the current Great Wall is very similar to Honda in terms of its development strategy, focusing on technological accumulation and adopting an absolutely conservative pace of progress. In the face of the phenomenon that "there will be a decline in sales of self-owned brands with more than 500,000 vehicles," Wei Jianjun replied without hesitation: "If 500,000 vehicles will decline, then as long as I can increase profits by 10 times, I I would rather maintain sales in the first 100,000 cars!" The answer is similar to Honda Motor's.
However, Honda Motors, which is respected by Wei Jianjun, has not had a good day in the Chinese market. During the period when the Chinese automobile market exploded, the conservative and stubborn Honda Motors lags behind, and they are tired. The emerging Chinese auto market is notoriously changeable and has no rules to follow. Who can guarantee that the Great Wall Motors, which is taking a slow pace, can always match the rhythm of the market?
On August 26, at the launch of Great Wall Motors Tianjin Base and the Haval H6 listing ceremony, Great Wall Motors Chairman Wei Jianjun looked excited. Before the media interview began, he asked the staff to withdraw the sofa that had been prepared and change to a standing position to receive the interview. The reason is to sit and the reporter behind cannot see him. At the one-hour press conference, he responded to almost all the questions, and his words were confident, frank, and in good condition.
The strong Great Wall started from the pickup market and became the No. 1 self-owned brand in the SUV market. The ever-famous Great Wall Motor is definitely a special case in its own brand: Focusing on the pickup and SUV market, it has always been the entry to the passenger car market. Keep a cautious attitude and never advance.
In 2003, Great Wall Motor seized the opportunity to become the first private automaker listed in Hong Kong. Following the ups and downs of the Chinese auto market, after the 2005 trough, Great Wall Motor Co., Ltd. followed a low-key trend. Even under the background of the overall auto market tightening this year, Great Wall Motors quietly surrendered sales in the first half of the year. The year-on-year increase of 47.3%, accumulative total exports of 34,197 units, a year-on-year increase of 27.1%, net profit reached 1.812 billion yuan, a year-on-year increase of 109%. In terms of sub-products, Tengyi’s sales of 101,100 units achieved a year-on-year growth of 100%; Haval SUVs sold 77,376 units in the first half of the year, an increase of 8.6% year-on-year, continuing to lead the Chinese SUV market; Fengjun pickup sold 59,910 units, a year-on-year increase of 23.4%. , For the 13th consecutive year, the pickup sales champion has been maintained.
Regarding why the Great Wall has achieved such a strong rate of return under the circumstances of a major tightening of the environment, Wei Jianjun believes that this is a return to the quality of Great Wall Motor’s insistence on quality: “The Great Wall’s philosophy of high quality over the years has benefited us greatly. â€
Regarding the development direction of self-owned brands, Wei Jianjun agrees that high-end is the only way out, but at the same time, he also admitted that the high-end brand of its own brand needs to pay a high price. It will be very painful at the initial stage because the initial profit rate is low. Only after a long period of pain can it be possible to create its own brand. "It is an indisputable fact that the independent brand premium is not enough." Wei Jianjun admits, "For any brand in the initial stage, high-end is a painful choice, and this pain will continue for at least ten years."
Looking back at the growth of the Great Wall, Wei Jianjun’s experience is “first sell products and then sell brands.†In terms of branding, Wei Jianjun repeatedly emphasized that Great Wall Motors must adhere to the pickup and SUV markets, and will only consider entering other market segments after first achieving absolute absolute first in the pickup and SUV markets.
The Great Wall Motors in Wei Jianjun’s heart must be a typical representative of “Made in Chinaâ€. The connotation of “Made in China†is to “make the best quality Chinese car†and it is necessary to get rid of the image of low quality and low price. Wei Jianjun said: "Great Wall Motors must give glory to 'Made in China' and must not discredit 'Made in China'! Autos are big consumer goods. Consumers are more cautious to buy, and companies must ensure that the quality of their products is not a problem. We have recalls in Italy and Australia, which reflects a sense of responsibility and integrity to consumers. The rapid recall and good handling are the enhancement of the image of Chinese products."
Mr. Wei Jiansi, who was extremely conscious of the dangers of safety, was well aware of the "Left-to-left, right-going" approach. When he was running Great Wall Motors, he was always known for his solidity. At this year’s Shanghai auto show, Wei Jianjun said that after 10 years, Great Wall Motors will be able to take a place in the competitive landscape of China’s auto industry. It is not Toyota’s “mega-big†company with the largest sales volume and balanced in all aspects, but like Honda’s. A company that does not require the largest scale but has strong technical characteristics.
As early as 2005, Wei Jianjun elaborated on his business philosophy: “Be strong first, and then seek bigger! There is no rule in China’s automobile competition. We can’t absolutely risk doing unsure things with great risks. Many overseas investors will not agree, so take a step closer to avoid this risk."
At that time, Wei Jianjun had already recognized that the passenger car market was the breakthrough point for the future development of Great Wall Motors. However, he also indicated that the Great Wall’s efforts in the passenger vehicle market “are still cautious. They will not rush to make a full-scale breakthrough at once. Instead, they will choose to enter the mid-size car market, and then move slowly to stabilize.†In the lower-end A-class market, the Great Wall’s original plan was to invest more than eight models in this segment of the market, covering all market segments in the region, and through these product developments, The sharing rate of parts and components on the same platform exceeds 50%, minimizing costs.
Five years later, it is not satisfactory to look back at the success of the Great Wall in the passenger car market. Compared to Great Wall Motor's famous Haval series in the SUV field, in terms of passenger cars, people can remember only Tengyi C30, dazzling and cool bears. The sales performance of dazzling and cool bears is not outstanding. In the first 7 months of this year, the cumulative sales of dazzling and cool bears totaled only 22,081 units, far less than the Haval series and the Tengyi series. The target that was planned to be cut from the mid-size car market was not completed, and the A-class car market, which is known as a full-scale coverage, is now only supported by a Tengyi C30.
Observing the development track of Great Wall Motors, it is not difficult to find that Great Wall Motors has always stuck to pickups and SUVs in its development plans and is focused on strengthening. The test in the passenger car market has not stopped but the pace is very slow. Every time when asked when Great Wall Motors would have a big move in the passenger car market, Wei Jianjun always said caution and repeatedly stressed the basic principle of “carefulness and cautionâ€. When talking about whether the R&D center under construction will emphasize the development of passenger vehicles, Wei Jianjun still clearly indicated that he should first make pickup trucks and SUVs, especially the SUV market, and then consider transitioning from SUVs to passenger cars.
As for the more common joint-venture issues, Wei Jianjun clearly stated that he has consistently adhered to the view that “joint ventures cannot be replaced by technology†and that the Great Wall will definitely not become a foundry base for foreign brands. Great Wall Motor's current cooperation with foreign investment is mainly in the supply of parts and related technology research and development. Compared with joint ventures and cooperation, Wei Jianjun is more optimistic about upgrading Great Wall's brand through overseas mergers and acquisitions: "Overseas mergers and acquisitions are a better way. It is a matter of time, and overseas mergers and acquisitions can't find more success stories."
As Wei Jianjun hopes, the current Great Wall is very similar to Honda in terms of its development strategy, focusing on technological accumulation and adopting an absolutely conservative pace of progress. In the face of the phenomenon that "there will be a decline in sales of self-owned brands with more than 500,000 vehicles," Wei Jianjun replied without hesitation: "If 500,000 vehicles will decline, then as long as I can increase profits by 10 times, I I would rather maintain sales in the first 100,000 cars!" The answer is similar to Honda Motor's.
However, Honda Motors, which is respected by Wei Jianjun, has not had a good day in the Chinese market. During the period when the Chinese automobile market exploded, the conservative and stubborn Honda Motors lags behind, and they are tired. The emerging Chinese auto market is notoriously changeable and has no rules to follow. Who can guarantee that the Great Wall Motors, which is taking a slow pace, can always match the rhythm of the market?
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