Wei Jianjun: Great Wall Automotive Products Will Continue to Rise

From January to November 2011, Great Wall Motor sold a total of 434,000 vehicles, a year-on-year increase of 28.7%. The Haval SUV has been sitting in the top spot for SUV sales for nine consecutive years. The total sales of this category currently reach 600,000 units, which is the largest sales volume of independent brands. Wei Jianjun, chairman of Great Wall Motors, said that Great Wall Motor will not increase sales through price wars, and will continue to improve the quality and configuration of its products. This is the main way for it to build cost-effective models. This year, the company’s product prices have risen by more than 1,000 yuan against the market. In the future, the company’s models will continue to increase prices.

In March of this year, the sales volume of Haval SU V has exceeded 500,000 vehicles. On the 21st of this month, Great Wall Motors held a delivery ceremony for the 600,000 Haval vehicle in Baoding. The total sales of this category currently reach 600,000 units, which is the largest sales volume of its own brands. Rao Da, Secretary-General of the National Passenger Vehicles Association, mentioned in the presentation of the delivery ceremony: “The current SU market is ushering in the golden age of its own development and is expected to become the second largest segment of China’s auto market”. The hot growth of the SU V market will provide Harvard SU V with a rare opportunity for brand development.

“Great Wall Motor’s development path is not the same as other companies. Great Wall Motor builds brand advantage based on its category advantages.” Wei Jianjun, chairman of Great Wall Motors, said that the company has been doing a “subtraction movement” with little or no sales. The direction of the products have been gradually canceled, the future Great Wall Motor will pickup, SU V and A-class cars in the three market segments intensive, hoping that the sales of these three brands can remain first. “I once asked reporters at a media meeting that the Olympics were the champion of the pentathlon. As a result, many people couldn’t answer it. Whenever the champion of the 100m hurdles was asked, everyone could immediately say the answer.”

The “vertical integration” approach of Great Wall Motor is considered by many brokers as an effective way to increase efficiency and reduce costs. The company pays attention to the independent research and development of the core components such as the engine and the transmission, and the development of supporting capabilities. In addition, for products where the price of some suppliers is too high, the manufacturers will choose to build their own production. Through the vertical integration of the parts industry chain, It can effectively save logistics costs and reduce capital investment, and significantly reduce vehicle production costs through economies of scale and synergies.

In contrast to other companies' repeated price cuts, in the face of fierce competition, the price of Great Wall Motor’s multiple models has increased by more than 1,000 yuan this year. Wei Jianjun believes that continuously improving the quality and configuration of products is the main way to build high-cost models. In the future, the company's products will continue to increase prices.

Written by: Nan Du Reporter Lin Huiying Next Report Harvard swept many of the first passenger vehicles to attend the ceremony of the delivery of the 600,000 Hough Cars, Secretary-General Rao Da told Southern Reporter, although SU V is a distinct growth market segment However, the share of self-owned brands in the market has dropped from the previous 50% to 33.5%. Haval SU V's performance is obviously different from the "big market." Statistics show that from January-November, Haval SU V sold 141,249 units, ranking first in China's SU V market; in November, Haval SU V sold 21,105 units, an increase of 50.1% year-on-year, more than 2,800 units higher than CR-V's sales. As of now, the total volume of exports of Haval SU V has reached 128,000 vehicles, ranking first in the country, with more than 100 export countries and regions.