Great Wall Motor: Expanding Xushui Plant to increase production capacity

Aiming to expand Haval brand and maintain position as China's number 1 SUV producer

2016/11/15

Summary

Great Wall Motor Vehicles Sales

  Great Wall Motor Co., Ltd. is an automobile group company that manufactures and sells passenger vehicles and commercial vehicles. Great Wall ranked 7th in 2015 for the number of vehicles sold in China (factory shipments), and holds the top sales volume among domestic manufacturers. While the top 6 automakers for sales volume in China are nationalized or government-owned corporations that have joint ventures with non-Chinese firms, Great Wall has not followed them in forming tie ups with foreign firms in China.

  Great Wall was founded in 1984 in Baoding City, Hebei Province in northern China, and started as the "Great Wall Motor Manufacturing Plant," which initially focused on activities like the sale of automobile aftermarket parts. In 1990, after the current Chairman, Mr. Wei Jianjun, took up the post as the General Manager of "Great Wall Motor Industry Company," the company changed its business to automobile assembly. The OEM grew rapidly under Wei's strong leadership, and became successful in the production and sales of pickup trucks in the first half of the 1990's. In 2003 Great Wall became the first private company to be listed on the Hong Kong Stock Exchange (H-shares), and was also listed on the Shanghai Stock Exchange in 2011.

  While Great Wall ranked 10th for annual sales volume in China in 2010, management resources were subsequently focused on the development of SUV models. Through the successive launch of these vehicles into the market, the company established their position as the "pioneer of SUV's" in China. Although its sales volume temporarily dropped in 2014, sales recovered in 2015 to 823,000 vehicles for an increase of 20.2% year-over-year (y/y). For worldwide sales (domestic and export), the company saw a y/y increase of 15.5% to reach 846,000 vehicles in 2015. Great Wall has set their worldwide sales target at 950,000 vehicles in 2016.

  The percentage of SUV sales (domestic and export) of Great Wall in 2015 increased by 10.5% y/y to 81.9%, and the percentage was even higher at 83.7% in the first half of 2016. In 2015, Great Wall sold 93,000 pickup trucks in China, and has continually led the rankings for 18 years.



Great Wall Motor Vehicles Sales

(Units)

2010 2011 2012 2013 2014 2015 Jan.-Jun
2015
Jan.-Jun
2016
SUV Domestic 119,807 116,793 244,977 387,887 499,185 682,104 331,162 377,768
Export 17,175 30,548 34,979 32,415 24,023 11,242 5,305 3,100
Pickup Truck Domestic 73,763 85,269 94,421 104,658 104,547 93,347 51,288 50,438
Export 24,880 36,404 42,273 31,474 17,055 7,392 3,857 2,569
Sedan Domestic 115,171 175,331 181,107 194,404 80,013 46,899 23,133 19,705
Export 7672 12,173 18,149 11,047 7,466 4,900 2,980 1,081
Other Domestic 4,786 6,009 5,444 8,728 700 385 150 152
Export 228 152 88 6 0 3 0 0
Total (In China) 313,527 383,402 525,949 695,677 684,445 822,735 405,733 448,063
Total (Export) 49,955 79,277 95,489 74,942 48,544 23,537 12,142 6,750
Grand Total 363,482 462,679 621,438 770,619 732,989 846,272 417,875 454,813

(Source: Created based on Great Wall Motor's Annual Report)



Related report: Beijing Motor Show 2016 (Part 3) Chinese OEMs: Competing Displays of New Energy Vehicles